NSSF Hit By Renewed Tension On Leadership

Nairobi, Jul 28, 2010 (Nairobi Star/All Africa Global Media via COMTEX) -- DISQUIET has resurfaced at the National Social Security Fund.

Some trustees are claiming that a board meeting called for tomorrow will discuss the conduct of its Managing Trustee Alex Kazongo but the NSSF boss has insisted that it is a routine board meeting.

Some trustees are unhappy with the failure by Kazongo to implement some of its decisions and are concerned that the NSSF accounts published recently in the local newspapers may have been inaccurate.

Tension is high at the NSSF following a recent job evaluation with some employees claiming that they have been targeted for removal.

"We have on several occasions raised concern about the way people are being dismissed because some of them are in positions which must be approved by the board," said one trustee.

"We have a lot of problems at the fund. Apart from political appointees who serve their own interests, we have a Managing Trustee who does not respect the board and does not implement some board resolutions." Another trustee claimed that Kazongo did not renew insurance for NSSF cars and properties forcing the fund to ground all its cars for one and a half days.

"No car could move and the NSSF properties were not insured for nearly two days. How this can this be allowed to happen? We want an explanation to that effect," said a third trustee. The NSSF Board has nine trustees and manages assets totalling Sh82 billion as of the last audited accounts.

Contacted for comment yesterday, Kazongo dismissed the allegations as malicious.

"I have just signed the notice calling for the board meeting n Thursday.

As far as I know, I am not on the agenda. It's normal stuff, e.g.

confirmation of minutes. Why would the board discuss me, when we have made assets are up from Sh82 billion last year to Sh100 billion this year? These are the good stories your people should be writing about.

We have also moved off the transparency list of shame for the corrupt," declared Kazongo.

Kazongo dismissed allegations that the accounts approved by the Board of Trustees were not the ones published in the papers.

"The accounts were audited. They were for 2008/2009. They were approved by the board. They were a reflection of the books as per last year," said Kazongo. He also dismissed allegations that he put the property of NSSF at risk by failing to insure them.

Yesterday the NSSF Board chairman Adan Mohammed confirmed that he had called tomorrow's meeting but did not reveal the agenda. However he did not deny or confirm the allegations being made by some trustees.

"We have a board meeting on Thursday but I cannot tell you if we are discussing the conduct of the Managing Trustee because those are internal issues," said Mohammed.

"If there are any issues, I would like my colleagues to raise them at the board meeting. I'm satisfied with the way the fund has been managed since I became the chairman in March 2009," he said.

Trustee and COTU boss Francis Atwoli said he had an issue with the results recently published by the NSSF.

"Someone drew my attention to the fact that there was a loss of Sh8 billion but when we checked there was nothing like that," said Atwoli.

The COTU secretary general insisted that the fund was operating well and the issue of insurance was petty.

The latest audited accounts for the NSSF show that it made a loss of Sh7.4 billion in 2009 and the value of its assets dropped from Sh90.5 billion to Sh82.1 billion.

The National Social Security Fund provides social security for Kenyan workers. It registers members, receives their contributions, manages the funds, processes and ultimately pays out benefits to eligible members or dependants.

It has been plagued in the past by scandals and political interference in the past with several Managing Trustees being arraigned in court.

Kazongo, the former Kenya Ports Authority financial controller, was appointed in July 2009 after he emerged the best candidate following interviews.

The minister picked him from a list of three finalists that included Albert Odero, who had been acting managing trustee, and William Kirwa, who is the Agricultural Development Corporation managing director.

Kazongo has since suspended Odero.

Kazongo replaced Rachel Lumbasyo who was dismissed over alleged abuse of office. "The car insurance.. we had insurance for one year. We opted for a two year insurance and on June 30, we extended the insurance for a further one year. All my properties are well covered. Both internal and external auditors can attest to that," stated Kazongo.

On claims that he has employed people from Nyanza in key positions, Kazongo laughed it off. He however said they have put a cap on employment to allow PricewaterhouseCoopers to audit staff.

" We have engaged PWC to do a job evaluation to determine whether staff are in the right position. The board approved that. When the report comes, it will go to the board to discuss," said Kazongo.

Yesterday the Permanent Secretary in the Ministry of Labour Beatrice Kituyi who also sits in the NSSF board refused to comment on whether the board meeting tomorrow might discuss the Managing Trustee and the way the fund is being managed.

"On issues of NSSF please talk to the chairman or the Managing Trustee.

If you can reach them, I suggest that you send in your request for an interview," said the PS.

The NSSF Board consists of Adan D. Mohamed, Chairman; Arthur O. Papa, Trustee; Patrick Obath,Trustee representing FKE; Jackline Mugo, Trustee representing FKE; Francis Atwoli, trustee, representing COTU; Cornelius Nyang'un, trustee representing COTU; Beatrice N. Kituyi, trustee representing Ministry of Labour; Joseph Kinyua, trustee representing Ministry of Finance; and Alex O. Kazongo, Managing Trustee.