9 February 2010

Uganda: African Alliance Cleared on NSSF

Kampala — THE final report of the Auditor General on the National Social Security Fund (NSSF) has cleared African Alliance, a brokerage company, of any wrong-doing.

The draft report by the Kenyan audit firm, KPMG, had indicated that African Alliance and Crane Financial Services were involved in losses amounting to sh27b.

The losses occurred in the process of buying and selling shares on behalf of NSSF. The final report, however, makes no mention of African Alliance Uganda.

The Auditor General said further investigations found that the company was absolved.

"After the findings were published in the media, the company brought additional information clarifying on the issues of the shares," said John Muwanga. African Alliance Uganda boss Kenneth Kitariko welcomed the final report.

"The final report vindicates our position all along that we have never caused losses to our clients and to NSSF in particular."

He said it confirmed the company's adherence to best international practices and good corporate governance.

On other irregularities, the final report largely concurred with the findings of the forensic audit by KPMG.

It confirmed that irregular salary advances and loans were awarded to NSSF top officials, and that former MD David Jamwa had incurred personal expenditures amounting to sh72m, including in US casinos, which he charged on NSSF.

It also found that procurement rules were flouted in awarding contracts. In addition, it established that NSSF lost almost sh6b by selling Government bonds below the prevailing market price and before their maturity date.

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