Lydia Mukisa
30 October 2008
The National Social Security fund is seeking court intervention to block the Public Procurement and Disposal of Public Assets Authority report into the purchase of Temangalo land, which recommended "severe disciplinary" action against the fund's top management.
Through Nangwala, Rezida & Co. Advocates, the fund has applied to Kampala High Court for judicial review seeking orders to quash the PPDA report into the NSSF's land deal with businessman Amos Nzeyi and Security Minister Amama Mbabazi.
NSSF claims the report was made basing on wrong interpretation of the PPDA Act that land is a procurement. "Land is not a procurement under the PPDA Act and report of respondent (PPDA) is wrong in law," NSSF stated in the application filed in court on Monday.
The fund is seeking a declaration that acquiring land is not procurement under the PPDA Act. NSSF also wants court to issue a declaration that the PPDA Act doesn't apply to NSSF when it is investing its monies under section 30 of the NSSF Act.
NSSF says it is empowered by its enabling law to invest all its surplus monies including the reserve account in investments as may be determined by the board of directors in consultation with the finance minister.
Mr David Chandi Jamwa in an affidavit supporting the application says the fund acquired Temanagalo land as an investment of its monies pursuant to Section 30 of NSSF Act. Mr Jamwa, the managing director of the fund further says the PPDA failed to appreciate that in acquiring Temangalo land, the fund was making an investment of its monies pursuant to a statutory power it has under its Act.
And it is not obliged to invite bids when it is investing in real property or acquiring equities in companies. PPDA Executive Director Edgar Agaba said in recommending severe disciplinary action, the authority is seeking "suspension" of the fund's top managers, or a punishment "commensurate to the kind of mistakes they committed."
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