Mary Karugaba
18 December 2008
Kampala — TWO simultaneous investigations into the National Social Security Fund (NSSF) have been instituted, the Auditor General, John Muwanga, said yesterday.
The forensic audit, which the President ordered recently, Muwanga said, would be carried out alongside another investigation by the Inspector General of Government.
Muwanga said his officers had started collecting information. They are assisted by a private firm which will scrutinise all the major investments and procurement transactions since January 2005.
The wide-ranging investigation, Muwanga noted, would capture transactions related to property purchases, fixed deposit, equity investments and procurements.
"We suspect that huge amounts of transfers went to fixed deposits. We want to establish whether that money is there and if it earned interest," Muwanga said
Earlier reports said two directors took advances of sh200m and sh150m. "We are going to look at all these things," Muwanga said.
In a letter to the Minister of Finance, Dr. Ezra Suruma, President Yoweri Museveni recently ordered the suspension of NSSF managing director David Chandi Jamwa and his deputy Prof. Mondo Kagonyera.
The interdiction followed the controversial purchase of land at Temangalo in Wakiso district from businessman Amos Nzeyi and Arma Ltd., a company linked to security minister and NRM secretary general Amama Mbabazi.
Parliament had raised concerns that sh11b NSSF paid for over 400 acres of land was higher than the market price.
It also accused Mbabazi and Suruma of exerting political influence to clinch the deal.
A Parliament investigation produced two reports. The main one found the ministers guilty of breaching the Leadership Code and called for their dismissal. The minority report, however, found otherwise.
In the final debate, the House concluded that the probe committee did not have the power to enforce the Leadership Code and suggested that the matter be taken up by the IGG.
However, the current investigations are based on broader parameters, according to officials. Besides Temangalo, NSSF is also accused of undertaking many other projects without proper procedures.
For instance, the President is concerned that Jamwa and Kagonyera carried out huge financial transactions without following procedures.
He noted that the Fund on February 6, 2008 transferred sh17.3b, another 17b and paid out sh22.9b without procedure.
"I am concerned about the transfers," the President wrote.
"The Auditor General's office should immediately carry out a forensic audit. It should at least cover the period since January 2005."
He added: "The IGG should also get involved to enable pursuit of any investigations that may be required subsequently."
Be the first to Write a Comment!
Copyright © 2008 New Vision. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
