KCCA appears before COSASE over a petition on illegal NSSF subscriptions
In February this year, the Speaker of Parliament received a petition by a concerned citizen regarding the financial loss caused by KCCA and she referred the matter to the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE). On the 17th March 2020, Eng. Andrew Kitaka, the Acting Executive Director for Kampala Capital City Authority (KCCA) appeared before COSASE over a petition by the concerned citizen that KCCA had caused a financial loss to Government by making it contribute 10% to the National Social Security Fund (NSSF) yet some officers employed by KCCA are on permanent and pensionable terms. The Committee was chaired by Hon. Munyagwa Mubarak Sserung and Hon. Ssemujju Nganda was the Lead Counsel.
Following the enactment of the Kampala Capital City Authority Act 2010, KCCA was declared to be under the administration of Central Government which implies that KCCA staff are in public service and thus regulated by the Constitution and the Public Service Act 2008, Pensions Act Cap 286 and Public Service Standing Orders.
From the petition, those employed on local contract by the Executive Director and are rightly contributing to NSSF are in accordance with the NSSF Act as required by the law. However, those appointed by the President under article 172 of the Constitution and those recruited under Section 25 of the KCCA Act on contract but subject to payment of gratuity at the end of the contract are illegally contributing with NSSF and Government has continued to contribute 10% of monthly salary in addition to paying the gratuity at the end of their contracts which amounts to a double payment.
While appearing before the Committee, the KCCA Director said that there was absence of a clear legal opinion on whether KCCA staff should or shouldn’t remit NSSF contribution and therefore no staff was guilty of abuse of office. In response, Hon. Ibrahim Ssemujju Nganda asserted that KCCA should have halted NSSF payments since the Public Service Commission had pointed out an ambiguity in the staff appointment minutes stating lack of clarity in terms of employment contracts.
The Committee Chairperson instructed the Executive Director KCCA to return to the Committee together with his staff, and the former Director Dr. Janifer Musisi to provide clarity on why the institution paid NSSF for employees who had permanent and pensionable contracts.