The National Social Security Fund (NSSF) has asked Kyambogo University to pay Shs 4.1 billion for failing to remit standard contributions of Shs1.1 billion, an audit report by the Fund has revealed.
According to the six-page report, the failure attracted a penalty and interest of more than Shs3 billion.
“The general observation was that no remittances are being made on the teaching claims, marking allowances, some casual staff and the 10 per cent for the salary arrears,” the report reads in part.
The records that the NSSF officials based on to arrive at the figure include monthly payrolls and Pay As You Earn (PAYE) schedules of the university staff.
Mr Sam Akorimo, the university secretary, yesterday said the management held a meeting with NSSF officials on Monday to try and resolve the matter.
He said the money was as a result of payments to part-time staff which the university was supposed to deduct but did not.
However, Mr Akorimo said the university officials were not aware that the law required them to do so.
“I am sure we are not the only ones affected but NSSF says it is a requirement under the law and we are obliged to pay but we are discussing with them. We are in negotiations with the Fund officials so that we don’t pay the penalty (Shs2.7b) but only the principle (Shs1.1b) and the interest (Shs295m),” he said.
Mr Isaac Nsereko, the NSSF branch manager in Kireka, confirmed having had a meeting with the university management but declined to divulge any more details.
Ms Olive Lumonya, the head of marketing and communications at the Fund, said they were waiting for the university to finalise a payment schedule and have a deed of settlement executed for payment of the arrears.
“The Fund will only consider the request to waive the penalty after the university has paid the outstanding arrears and interest accrued in respect to Section 14(2) of the NSSF Act that empowers the managing director to waive whole or part of the penalty,” Ms Lumonya said.
In 2009, the institution owed NSSF arrears amounting to Shs25 billion but when the former vice chancellor, Prof Isaiah Ndiege, came to office, he negotiated for a waiver of Shs16 billion and the university agreed to pay NSSF Shs9 billion in two years.
A 2009 report by the Inspector General of Government, indicted the then Kyambogo management of incompetence through gross financial mismanagement which was characterised by poor record keeping, non-compliance with accounting procedures, none remittance of PAYE and staff savings to NSSF.
Another investigation by the same organ is ongoing and a report is expected soon.
“The problem is with the university finance department. They failed to remit the money as it was required. But I hope the administrators there will sort it out,” Prof Ndiege said.
The Break down
Faculty Outstandg contbns Penalty & interest
Special Nds 58.4m 75.4m
Mgt & Entp 157.3m 213.4m
Science 133.2m 285.9m
Engineering 79.4m 212.3m
Arts & SSci 23.9m 50.7m
Voc Studies 98.1m 177m
Education 62m 129.7m
Csl employees 7.8m 41m
Unpaid 10% 499m 1.7b
Total 1.1b 3b