The Board of Directors of the National Social Security Fund (NSSF) through management last year wrote to the Gender Minister asking her to approve a pay rise in their retainer plus other fat allowances according to a leaked document with a stamp of the Ministry.<\/p>\n\n\n\n
It is not clear who leaked the letter and why now when there is a leadership crises at the 18 Trillion workers fund which has prompted investigations by various government institutions including a select committee of parliament.<\/p>\n\n\n\n
ugandaupdatenews.com<\/strong> could not also independently confirm whether the Gender Minister Betty Amongi cleared these fat allowances but sources intimated that in January 2022, the Fund commissioned Japheth KATTO Consulting, a tier 1 corporate governance consultancy firm, to conduct an independent benchmarking survey on Board reward and remuneration. <\/p>\n\n\n\n That this was meant to assess the Fund\u2019s standing against “comparable entities” in the public and private sectors in the country and EAC region.<\/p>\n\n\n\n According to the consultant it was found out that the fund is amongst the top 5 by asset size in comparison to its investee companies, and yet it is not in the upper percentile when it comes to Non-Executive Director\u2019s retainer fees.<\/p>\n\n\n\n The top investee companies seek to remunerate their Non-Executive Directors at least at the 75th percentile of the market. It was also observed that amongst the investee financial institutions, for example, Absa Bank Kenya Plc (ABSA.ke) is amongst the top when it comes to Non-Executive Director retainer fees.<\/p>\n\n\n\n ABSA Kenya pays an estimated USD 5,000 to the Board Chairperson. The Fund holds over two hundred thousand shares in Absa Bank Kenya Plc.<\/p>\n\n\n\n NSSF board members also discovered that Umeme Limited, one of the local investee companies in which the Fund holds at least a 23.11% stake, is one of the top remunerators. It was observed that the utility company pays an estimated USD 5,800 to the Board Chairperson and USD 4,100 to other Board Members.<\/p>\n\n\n\n It was also observed that at least half of the investee companies offer a different retainer fee for both the Board Chairperson and the Chairpersons of the various committees.<\/p>\n\n\n\n The NSSF board then argued that the current positioning of the Fund\u2019s Non-Executive Director\u2019s retainer fees ( its chairman earns ug.shs. 9.5m plus other fat allowances ) poses serious challenges for the Fund and unduly diverts the attention of the board from focusing on their core mandate, which is to have ultimate responsibility for the management, general affairs, direction, culture, performance, and long-term success of the Fund. This situation also poses serious concerns, negatively impacting motivation, and commitment of the board.<\/p>\n\n\n\n They felt the move will align the BOD remuneration with comparable tier 1 entities within and beyond Uganda. That this will also enable and facilitate the BOD in providing seamless stewardship and oversight in harmonizing the new and applicable sector rules, guidelines, and regulations during this transition.<\/p>\n\n\n\n The same will also go a long way to frequently support Management in field testing the new products and services within the context of the Fund\u2019s expanded mandate as a result of the NSSF Amendment Act.<\/p>\n\n\n\n The board also went on to propose pay rise estimates that would enable competitive compensation of Non-Executive Directors in comparison to peers and its investee companies.<\/p>\n\n\n\n It has now been proposed that the board chairperson\u2019s pay be increased from Ug.shs.9.5M toe to Ug.Shs20m per month. There is also a proposed introduction of a Committee Chairperson\u2019s retainer fee. A retainer fee of Shs17 has been proposed. Other board member retainer fees will also increase from shs7.5m to shs 15m.<\/p>\n\n\n\n \u201cBased on the above, we request you to approve these recommendations and adjustments to the board\u2019s retainer fee remuneration. In addition, we request that these payments be applied with effect from the dates of their appointment. For the months already paid, they would offset with the paid retainer fee. The Fund has provided for these payments in the Budget by re-allocating from other less critical activities,\u201d read a letter dated August 16, 2022 from then MD Richard Byarugaba to Gender Minister Betty Amongi. It is not clear whether these were approved or not.<\/p>\n\n\n\n The monthly retainer is separate from allowances that each board member takes home at every seating.<\/p>\n\n\n\n Dr. Peter Kimbowa is the board chairman. The board also has David Kibenge the PS from the Ministry of Gender, Labour and Social Development, and Patrick Ocailap, representing the finance ministry while Dr. Eng. Silver Mugisha and Finance Trust Bank Managing Director Annet Nakawunde Mulindwa represent the Federation of Uganda Employers (FUE).<\/p>\n\n\n\n Others are Sam Lyomoki and Penninah Tukamwesiga on behalf of the Confederation of Free Trade Unions (COFTU) while Uganda Nurses & Midwifes Union\u2019s Treasurer Annet Birungi and Hassan Lwabayi Mudiba represent the National Organization of Trade Unions (NOTU) and the NSSF managing director serves as the executive member of the board.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" The Board of Directors of the National Social Security Fund (NSSF) through management last year wrote to the Gender Minister<\/p>\n","protected":false},"author":1,"featured_media":8196,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[271],"tags":[],"class_list":["post-8195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nssf-saga-workers-savings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/02\/Byarugaba-letter-to-Amongi-on-pay-rise.png","jetpack-related-posts":[{"id":7953,"url":"https:\/\/prowebinhost.com\/anzu\/amongi-vs-byarugaba-nssf-saga-deepens-as-igg-takes-over-investigations-following-president-museveni-directive\/","url_meta":{"origin":8195,"position":0},"title":"\u00a0AMONGI VS. BYARUGABA: NSSF SAGA DEEPENS AS IGG TAKES OVER INVESTIGATIONS FOLLOWING PRESIDENT MUSEVENI DIRECTIVE","author":"UgandaUpdate","date":"January 9, 2023","format":false,"excerpt":"IGG\u00a0 Betty Kamya freezes spending at NSSF Only wage bill and statutory expenditure is allowed NSSF revised budget for financial year 2023-2024 suspended till investigations are\u00a0 completed The NSSF saga\u00a0 about the reappointment of Richard Byarugaba\u00a0 has taken a new twist \u00a0with the Inspector General of Government (IGG) taking over\u2026","rel":"","context":"In "Accountability"","block_context":{"text":"Accountability","link":"https:\/\/prowebinhost.com\/anzu\/category\/accountability\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/home12pix.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/home12pix.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/home12pix.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/home12pix.jpg 2x"},"classes":[]},{"id":7979,"url":"https:\/\/prowebinhost.com\/anzu\/nssf-saga-gender-minister-amongi-defends-ug-shs-6b-she-directed-to-be-included-in-the-funds-budget\/","url_meta":{"origin":8195,"position":1},"title":"NSSF SAGA: GENDER MINISTER AMONGI DEFENDS UG.SHS.6B SHE DIRECTED TO BE INCLUDED IN THE FUND\u2019S BUDGET","author":"UgandaUpdate","date":"January 11, 2023","format":false,"excerpt":"By Our Reporters The Minster of Gender Labour and Social Development Betty Amongi Ongom has once again defended the Ug.shs. 6bn she directed the NSSF Management and Board to include in its 2023\/24 budget to mobilise more savings for the fund. While addressing journalists at the Media Center in Kampala\u2026","rel":"","context":"In "NSSF Savings"","block_context":{"text":"NSSF Savings","link":"https:\/\/prowebinhost.com\/anzu\/category\/nssf-savings\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/amongi-1.jpeg","width":350,"height":200},"classes":[]},{"id":8173,"url":"https:\/\/prowebinhost.com\/anzu\/nssf-saga-byarugaba-accuses-minister-amongi-of-interference-in-management-of-the-fund\/","url_meta":{"origin":8195,"position":2},"title":"NSSF\u00a0 SAGA: BYARUGABA ACCUSES MINISTER AMONGI OF INTERFERENCE IN MANAGEMENT OF THE FUND","author":"UgandaUpdate","date":"February 5, 2023","format":false,"excerpt":"By Our Parliament Reporters Out going Managing Director \u00a0,Richard Byarugaba who is at the center of a leadership row at the - 18 Trillion National Social Security Fund (NSSF) has told the parliamentary select committee that \u00a0Minister of Gender, Labour and Social Development, Betty Amongi \u00a0was overstepping her oversight mandate\u2026","rel":"","context":"In "Workers savings"","block_context":{"text":"Workers savings","link":"https:\/\/prowebinhost.com\/anzu\/category\/workers-savings\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8437,"url":"https:\/\/prowebinhost.com\/anzu\/parliament-adopts-nssf-committee-report-calls-for-minister-amongi-resignation-for-soliciting-ug-shs-6bn-workers-money\/","url_meta":{"origin":8195,"position":3},"title":"Parliament adopts NSSF committee report calls for Minister Amongi resignation for soliciting ug.shs.6bn workers money","author":"UgandaUpdate","date":"March 11, 2023","format":false,"excerpt":"Members of Parliament chaired by Speaker Anita Among have adopted recommendations by the select committee that investigated mismanagement and corruption at the Ug.Shs.18 trillion NSSF and called for the resignation of Gender Minister Betty Amongi for abuse of office. The MPs voted to adopt the report after two days of\u2026","rel":"","context":"In "NSSF SAGA: Workers savings"","block_context":{"text":"NSSF SAGA: Workers savings","link":"https:\/\/prowebinhost.com\/anzu\/category\/nssf-saga-workers-savings\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/03\/WhatsApp-Image-2023-03-09-at-15.50.55.jpeg","width":350,"height":200},"classes":[]},{"id":8104,"url":"https:\/\/prowebinhost.com\/anzu\/nssf-saga-deputy-speaker-names-seven-member-committee-to-investigate-leadership-row-over-workers-savings\/","url_meta":{"origin":8195,"position":4},"title":"NSSF SAGA: DEPUTY SPEAKER NAMES SEVEN MEMBER COMMITTEE TO INVESTIGATE LEADERSHIP ROW OVER WORKERS SAVINGS","author":"UgandaUpdate","date":"January 27, 2023","format":false,"excerpt":"By Our Parliamentary Reporters Mbarara South Division Member of Parliament, Hon. Mwine Mpaka has been named Chairperson of the select committee to investigate operations and management of the National Social Security Fund (NSSF).\u00a0The other committee members include are Workers\u2019 Representative, Hon. Charles Bakkabulindi, Hon. Karim Masaba (Indep., Industrial Division Mbale\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/WhatsApp-Image-2023-01-25-at-16.13.13.jpeg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/WhatsApp-Image-2023-01-25-at-16.13.13.jpeg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/WhatsApp-Image-2023-01-25-at-16.13.13.jpeg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/WhatsApp-Image-2023-01-25-at-16.13.13.jpeg 2x"},"classes":[]},{"id":8408,"url":"https:\/\/prowebinhost.com\/anzu\/members-of-parliament-call-for-resignation-of-labour-minister-amongi-ask-govt-to-recover-stolen-nssf-funds-from-top-managers\/","url_meta":{"origin":8195,"position":5},"title":"MEMBERS OF PARLIAMENT CALL FOR RESIGNATION OF \u00a0LABOUR MINISTER AMONGI , ASK GOVT TO RECOVER STOLEN NSSF FUNDS FROM TOP MANAGERS","author":"UgandaUpdate","date":"March 7, 2023","format":false,"excerpt":"By Our Parliament Reporters In a heated debated this afternoon Members of Parliament have called for the immediate resignation of Labour and Gender Minister Betty Amongi for exerting political pressure on the management of the NSSF to take out Ug.Shs. 6bn . During the debate Chaired by Speaker Anita Among\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/03\/Betty-Amongi.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/03\/Betty-Amongi.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/03\/Betty-Amongi.jpg 1.5x"},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/pc0aOV-28b","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/8195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/comments?post=8195"}],"version-history":[{"count":1,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/8195\/revisions"}],"predecessor-version":[{"id":8197,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/8195\/revisions\/8197"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/media\/8196"}],"wp:attachment":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/media?parent=8195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/categories?post=8195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/tags?post=8195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}