The minister of Gender, Labour, and Social Development, Betty Amongi has appointed Patrick M. Ayota as the new managing director of National Social Security Fund (NSSF).
His five-year term took effect yesterday, August 18. Ayota has been deputy managing director since December 2017 and chief finance officer from 2011.
The appointment follows the NSSF board of director's recommendation to the minister. Ayota has been the fund's acting managing director for the last eight months which have been dogged by turbulence including probes by parliament's committee on commissions, statutory authorities and state enterprises (Cosase), the Inspectorate of Government (IG) and a presidential team.
The fund's board says Ayota ensured its stability during the challenging period, according to a letter signed by the chairman, Dr Peter Kimbowa. He comes at a time when the fund's primary constituency; the workers union movement is divided over the recent happenings that saw the National Organisation of Trade Unions (NOTU) split into two leadership factions.
One faction sympathetic to the minister attempted to sack Wilson Owere as chairman general before the court declared the move illegal. He had accused the minister of overstepping her powers to influence the budget of the fund, including the allocation of Shs 6 billion to herself, accusations she denied.
Former NSSF managing director, Richard Byarugaba, last week petitioned the civil division of the High court challenging a decision not to renew his contract. Byarugaba is also seeking an order directing minister Amongi to fulfil her statutory duties and "complete his reappointment as the MD of NSSF as recommended by the board and required by the law."
He said that rejecting the board's recommendation to reappoint him was against the procedure because it was done without giving him a right to a fair hearing, thereby violating his legitimate expectations.
Byarugaba was twice MD of the fund, from 2010 to 2013 and from 2017 to 2022. But late last year, Amongi told Byarugaba that he could not be reappointed nor his term temporarily extended till a substantive appointment was done because he was already past the upper age limit of 60 years. She named Ayota into an acting capacity.
"The board is confident that he is the right person to steer the fund forward at such a critical time following changes in legislation that oblige the fund to play a leading role in expanding social security coverage to all Ugandans," said Kimbowa in the letter.
He ends with the assurance that the fund is stable and on course to surpass its 2015-2025 strategic objectives. - URN/The Observer
Parliament has suggested a raft of measures in the management of the silkworm project after which it emerged that over Shs 20 billion of Shs 35 billion invested in the initiative was wasted.
The silkworm project is one of the science initiatives that has so far received Shs 31 billion from the Innovation Fund established by President Museveni in 2016 and commenced operations in the financial year 2017/2018.
Dr Clet Wandui Masiga, who heads the Tropical Institute for Development Innovation (TRIDI), was one of the researchers who applied for the innovation fund to implement a project titled, "Evaluating the Utility of Sericulture and Apiculture Technologies and Innovations, as tools for household-wealth creation and employment generation in Uganda."
The key targets of the silkworm project were to acquire 50,000 acres of land under mulberry, construct and equip eight research and technology transfer centers, construct 25 million cubic meters of valley water tanks, construct 50,000 silkworm rearing houses, install six complete lines of post-cocoon processing equipment in six major regions of Uganda, and install 50 complete sets of 40-end silk reeling factories in 50 districts of Uganda.
The investment was projected to be about Shs 756 billion over a period of five financial years.
Findings
However, the parliament’s committee on science, technology, and innovation, which investigated the operations of the silk project, observed poor sequencing of the sericulture processes, resulting in the wastage of resources amounting to Shs 20.7 billion.
"The said amount (Shs 20.7 billion) was sunk into the establishment and management of mulberry gardens whose leaves matured and went to waste because the rearing houses were incomplete or nonexistent," reads the report of parliament tabled this week.
"Silkworm rearing houses should have been constructed and equipped before planting the mulberry gardens; and the silkworms introduced towards the maturing of the gardens," said the committee.
"This would have ensured the achievement of tangible results with the silkworms producing cocoons. On the contrary, over 2300 acres of mulberry gardens were established in the absence of silkworm rearing houses."
TRIDI boss Dr Clet Wandui Masiga has since defended the operations of the project, attributing the challenges to the suspension of funding by the ministry of Science and Technology. Masiga said the project would have created many jobs and that the delayed release of funds saw the project fail to pay casual workers and contractors.
However, parliament says the project was mismanaged and its operations should be streamlined to achieve its objectives.
Mismanagement
The project envisaged building 8 research and technology transfer centers over a period of five years at a cost of Shs 40 billion.
According to the timeline, by the end of June 2022, five research and technology transfer centers should have been built, but so far only two have been built in Kween and Sheema districts. The committee observed that the two newly constructed centers have neither been fully completed nor equipped.
"The buildings did not have approved designs or drawings that would qualify them to be factory facilities; and they were constructed using poor quality materials that only qualified them to be temporary structures," said the lawmakers.
The buildings had poor lighting, ventilation, and cracked floors even before they were completed, as was observed in Kween district.
For example, the facility in Kween district was located in a low-lying area that is prone to flooding, and if the area flooded before the machines were evacuated, they could be destroyed. The report says the shell house on Rubare Farm cost Shs 1.2 billion.
"The cost was not commensurate with the structure in place... The committee recommends that a forensic audit be expeditiously carried out to ascertain value for money for all the building structures erected under the sericulture project managed by TRIDI," said the MPs.
No titles
Additionally, TRIDI reported having cumulatively purchased 870 acres of land at a cost of Shs 8.2 billion and acquired 50 acres under lease agreements at a cost of Shs 200 million.
However, the parliament committee discovered that all the land titles for the pieces presented were in individual names and not in the name of TRIDI or GOU, indicating that no sub-division and transfer of land ownership had been done since the purchase of the land.
"This put GOU at risk of financial loss if the subdivision and transfer of the acquired land from private hands to the government are not done expeditiously. Some of the titles had encumbrances, meaning that no due diligence was undertaken before purchasing the land," the MPs’ report reads in part.
Lawmakers called for the immediate transfer of the land purchased by TRIDI with government funds to the Uganda Land Commission within 3 months and a report to this effect to be submitted to Parliament.
"TRIDI should halt all land purchases until the previously purchased land is transferred to the government of Uganda and put to use, and the future expansion and purchases of land by TRIDI should be aligned to an approved business plan."
The committee was also concerned that workers at TRIDI had spent six months (May to October 2022) without pay, yet TRIDI had been receiving funds from the government until June 2022. The committee observed that as of October 2022, TRIDI had only gone 3 months without funds; therefore, at worst, the workers should have been demanding arrears equivalent to that period.
MPs also discovered that there was no evidence of an Environmental Impact Assessment (ElA) carried out to ascertain the extent of the threat posed by the silkworm eggs imported from China to Uganda.
"There was no meaningful engagement between TRIDI and Agriculture Research Institutions in the country such as the National Agricultural Research Organisation (NARO) to explore possibilities of local production of silkworms and agronomy best practices for mulberry in the country. This exposes the industry to reliance on imports of the silkworm eggs rather than opening up avenues for local production and research in the future," said the MPs.
The committee said TRIDI must work closely with the National Agricultural Research Organisation (NARO) to explore the production of silkworm eggs in Kawanda Research Station and that funding should be allocated to the silkworm egg production unit in Kawanda to feed the sericulture industry in the country.
Haphazard expansion
The committee was informed that the project had made a 30 per cent deposit on additional machinery to be delivered to the Kween, Kayunga, and Nwoya project sites. It was noted that the project was expanding in an ambitious and haphazard manner in the face of limited resources.
"The acquisition of machinery for multiple sites with none of the sites having the full chain of equipment to produce results is mirrored in the expansion of the project to 34 sites with none of the sites having the full sericulture value chain from mulberry growing to production and sale of silk products," the MPs said.
The committee observed that the mode of project implementation was unsustainable and illogical; the aspect of commercialization was reduced to activities that were not leading to the end goal of sales, exports, and profits in the long run, and that the government resources were wasted on expansion rather than focusing on the completion of existing activities up to the point of realizing profit.
The committee recommends that the ministry of Technology, Science, Technology, and Innovation halt the expansion of the project until the sericulture sites in Sheema and Kueen districts progress through the various stages of the sericulture value chain and the products are released to the market for sale. By URN, The Observer
An image of jobseekers holding placards along a road. PHOTO
Hundreds of Kenyans are staring at unemployment following the move by the Registrar of Companies Joyce Koech to dissolve 33 companies.
The Registrar's decision stems from resolutions that were collectively endorsed by a majority of the respective business directors and shareholders. These resolutions were duly submitted in accordance with the prescribed format required by the government agency.
One significant reason for these dissolution requests is the companies' inability to manage their debt portfolios, which has reached an unsustainable level. Another major reason is lack of profitability.
Prior to the decision to close these companies, the Registrar of Companies reviewed the requests along with corresponding documents such as the minutes of the meetings during which the resolutions were approved.
"Pursuant to section 897 (4) of the Companies Act, 2015, it is notified for the information of the general public that the following companies are dissolved and their names have been struck off the Register of Companies, with effect from the date of publication of this notice," the Registrar of Companies stated.
The Registrar of Companies conducted a comprehensive assessment of the companies' annual returns over the preceding three years. Additionally, a clearance certificate furnished by the Revenue Authority was subjected to scrutiny.
Registrar Koech stipulated the requisition of certificates from the Commissioner of Cooperatives, particularly applicable to enterprises designated as cooperatives.
These notifications, a requisite step, were issued three weeks before the dissolution date.
The Companies Act of 2015 unequivocally mandates that the companies must exhibit financial insolvency and an absence of outstanding debts or obligations before proceeding with the dissolution process.
In compliance with statutory provisions, the companies are required to conclude their affairs, settling all outstanding debts and obligations.
Furthermore, they are obligated to formally inform creditors and other vested stakeholders about their intent to undergo dissolution. By Mark Obar, Kenyans.co.ke
The septic tank that caved in, killed six people in Kihunguro, Ruiru.[Gitau Wanyoike, Standard]
At least six people have died and several others were injured after a septic tank caved in while they made merry attending a wedding in Kihunguro, Ruiru, Kiambu County.
Kiambu Police Commander Muchangi Kioi, confirming the incident to The Standard said the six drowned in a well, as they sang and danced on a concrete slab.
Eyewitnesses at the scene of the incident in Kihunguro, Ruiru. [Police]
They were waiting to pick up the bride, at the time of the incident.
A rescue operation is currently underway.
The scene of the incident.[Gitau Wanyoike, Standard]
Uasin Gishu Senator Jackson Mandago escorted to Nakuru Central Police station. [Kipsang Joseph, Standard]
Uasin Gishu Senator Jackson Mandago and his two co-accused have pleaded not guilty to charges in Finland's Education programme scandal. Senator Mandago was charged alongside Meshack Rono and Joshua Kipkemboi after the prosecution amended the charge sheet for the second time on Thursday, August 17.
The amendment was done to exclude the name of Joseph Maritim, who according to his lawyer is in Canada and is yet to be summoned by the Directorate of Criminal Investigations (DCI) or summoned to appear in court to answer to charges.
Mandago, Rono, and Kipkemboi denied 10 counts of conspiracy to steal, theft, abuse of office, and forgery charges.
Senior Assistant Director of Public Prosecutions Hassan Abdi said he was not opposed to the release of the three on bond.
Abdi, however, pleaded with the court to impose strict bond terms on the three. He said the three should not interfere with witnesses in the case and appear in court in person when needed.
Senior Principal Magistrate Peter Ndege ordered them not to interfere with witnesses and appear in court in person. Ndege warned that the bond terms will be cancelled if any of them fails to adhere.
He said that the court should not hear complaints from the witnesses that they have been contacted by the accused persons.
Earlier, The Standard reported that the three were freed on Sh500,000 cash bail each or bond of Sh2 million each with surety of a similar amount, pending plea taking.
Senior Principal Magistrate Peter Ndege said all four suspects must be present in court. The plea has been deferred to a date yet to be decided.
Joseph Maritim, the first accused person was absent in court on Thursday. Lawyer Zephania Yego who appeared in court on behalf of Maritim said his client travelled to Canada on June 13 on a visitor's Visa.
Yego said Maritim has not been summoned by the Directorate of Criminal Investigation (DCI) to record any statement and was not informed of any investigation against him.
"He has not been notified he is required to be in court and only learned of his indictment on social media and instructed me to appear," said the lawyer.
He added that he has advised the suspect to come back to Kenya and face his accusers and answer to charges leveled against him. "He [Maritim] has organized to come back to the country," he said.
The lawyer earlier wanted the court to defer plea taking for his client to a date he will be available.
Further, the Office of the Director of Public Prosecution (ODPP), and the missing suspect’s lawyer have been granted two hours to lodge an appeal at the High Court after the trial failed to begin without all four suspects present. By Daniel Chege, The Standard
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