Sheila Naturinda
27 August 2008
MPs yesterday accused the two top National Social Security Fund officials of doctoring evidence and threatened to order their suspension to allow smooth investigations into alleged political influence-peddling in the Fund.
The threats came after Mr Edward Gaamuwa, the chairman of the board of directors and Mr David Chandi Jamwa, the managing director, presented as part of their defence, a letter purportedly signed by Finance Minister Ezra Suruma in February, but which was dated December 2008.
MPs said the letter, which was not on NSSF headed paper and did not have the institution's logo, might be a forgery. The two NSSF officials were appearing for the second time before the parliamentary committee on commissions, statutory enterprises and state authorities, which is investigating the fund's controversial purchase of land from Security Minister Amama Mbabazi and city businessman Amos Nzeyi.
The MPs are investigating why the NSSF paid Shs11 billion for the 414 acres of land, several billions higher than the price recommended by three independent firms it contracted to value the land.
The legislators are also probing why the board advised Mr Mbabazi on how to structure the deal to conceal his ownership of part of the land, forcing one board member to allege that the transaction was being forced through using political pressure.
Mr Mbabazi, who is the secretary general of the ruling NRM party, will appear before the NRM caucus next Monday to defend himself.
Mr Gaamuwa initially denied knowledge of the minutes of the January 31 board meeting that approved the controversial transaction until MPs, who had a copy of the minutes, pointed out that he had actually chaired the meeting.
After a few minutes of silence, Mr Gaamuwa accepted that the minutes were genuine although he said he did not know that the land in question belonged to Mr Mbabazi, despite the board members being told so in the meeting.
MPs were further stunned to learn that other deliberations between Dr Suruma and the fund's board to finalise the purchase were held orally without any supporting documents. "We met the minister in his office in form of consultations and we never took any minutes because it was me, the MD, the minister and his personal assistant," Mr Gaamuwa said. "We have no minutes for that meeting." Shocked MPs asked the officials to produce evidence of the "informal" meeting.
Mr John Odit, the committee chairperson, said, "Three public officials met the Minister of Finance somewhere without any record and approved items with monetary implications to them? The decision was very informal that you committed the fund into spending huge sums of money yet you have nothing like minutes to show for that said meeting?"
Lwemiyaga MP Theodore Ssekikubo said he was "perturbed" by the casual manner in which the Fund transacted its business. "The chairman of the board has led this into a casual matter, just rushing to write a post-dated letter without checking, so how can we go on with such evidence? Mr Gaamuwa is surely hiding something from us; he can't run such matters casually and moreover in a public office of workers' money," Mr Ssekikubo said.
Mr Gaamuwa said the wrong date was "an oversight" but MPs said the two officials might be asked to step aside as investigations continue to avoid interference.
"Given the massaging of this document, Mr Chairman, we should recommend that the two step out of office so that this doctoring stops immediately," MP Elijah Okupa (FDC Kasilo) said, to the applause of other members. "Mr Chairman, these irregularities must be adequately explained."
MPs demanded for a delivery book to prove that the letter was recorded and delivered to the Finance Ministry but Mr Jamwa said the Fund does not record memos that have been stamped by the recipient, such as the letter in question, leaving the MPs more dissatisfied.
Kabula County MP James Kakooza said, "So this means that you knew the minister was going to stamp the letter since you say you never recorded it in the delivery book? You surely must be hiding something Mr Gaamuwa and MD."
Although Mr Jamwa sent one of his officers for the delivery book, it had not arrived by the time the committee adjourned.
The NSSF officials have previously said they paid a competitive price for the land, which is meant to accommodate a housing estate for low and middle-income earners.
MPs also demanded to know why the Fund had approved plans to buy land in Gayaza at Shs4 million per acre compared to the Shs24 million they paid for the contested land in Wakiso, yet the two areas are not far apart and about the same distance from the city centre.
Both pieces of land were approved by the board for real estate development although Mr Jamwa said the Gayaza land had not yet been paid for because it had squatters. The MPs, however, objected to the different prices for land in the same vicinity.
"You surely need to prove us wrong if we say that Gayaza land was meant to wash the dirty linen of the Wakiso land that was bought at Shs24 million," Rubanda West MP Henry Banyenzaki said. "Why then did you purchase land in the same locality but at a different price?"
What started out as a query of the amount paid for the land in question has expanded into an examination of political interference and influence-peddling in the fund.
MPs on Monday told Daily Monitor that they were also investigating the links between Dr Suruma, under whose docket the NSSF falls, and Mbabazi, over their shareholding in National Bank of Commerce, in which some of the proceeds of the sale are reported to have been invested.
Mr Odit told Daily Monitor that the Committee, which wrote to the registrar of companies and asked for details of the shareholders in the bank, wants to know whether the finance minister is a shareholder in the bank and whether he acted in public, rather than private interest, in authorising NSSF to buy land from Mr Mbabazi.
The spotlight yesterday also turned to Mr Jamwa's job.
MPs queried the circumstances under which the 36-year-old was appointed to head the Fund.
"I was recruited by the NSSF board and went through three interviews, one from the Minister of Finance," he said, drawing laughter from MPs even before he could finish his submission.
"You mean even the minister participated in interviewing you?" asked Mr Odit.
"With this kind of work, members, we cannot proceed," he said as he adjourned the meeting to today.
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