NSSF Boss Repairs House At Sh400m
New Vision (Kampala)
March 5, 1998
The National Social Security Fund (NSSF) recently spent sh400m on the renovation of the official
residence of its managing director, situated on Mbuya Hill in Kampala.
The organisation had earlier spent sh1.8b on construction of 18 executive houses at Namuwongo, a city
suburb. The two projects have cost NSSF over sh 2.2b. Initially, the renovation of Mr. Abel Katembwe's
official residence was expected to cost sh215m.The house was bought from the late Sam Sseb agereka
at over sh200m. Ssebagereka, who died on August 31,1994, was a public service minister in the NRM
government. He was 61. The Namuwongo project also shot up from sh1.1b to sh1.8b.
Officials attributed this to earth-works, reclaiming the mashy land and compensation to owners of an
excavator hit by a grenade which it stepped on while clearing the site.
Work on Katembwe's house commenced on March 3,1997 and was completed December. It is situated
on plot. M.571, Sserunkuma road, Mbuya. But the project cost kept on rising from sh215m to sh400m.
At one time, the figure clocked sh241m before it finally skyrocketed to sh 400m. The corporation, which
keeps workers' pension, attributed the first increment in the project cost(sh 241m) to the introduction
of the value added tax (VAT). Senior NSSF officials, who talked to The New Vision Tuesd ay, said the
figure went to sh400m due to the additional work the contractors did on the Mbuya house.
The NSSF board had on May 29, 1996, approved sh215m for renovating the MD's official residence.
This was at its 10th sitting in Kampala. On June 6,1996, the then labour and social affairs minister, Dr.
Stephen Chebrot, wrote to the board chairman, approving the budget proposal for the Mbuya hou se.
Dr. Crispus Kiyonga was the board chairman.
However, the management reportedly never sought the board's consent when the renovation work at
the four-bedroomed house rose to sh 400m. "We made a decision as the management which we are
ready to defend in case the board asked us.
As the contractors repaired the house, we discovered several parts were in a dilapidated state. For
instance, some walls were made of clay bricks while the roof was crumbling. The former landlord had also
constructed some adjacent blocks.
We, therefore, had to pull them down and erect new walls and a tiled roof," a senior NSSF official said.
Today, the tiled-roofed executive house has been given a facelift. A guest wing has been constructed
nearby, together with the servants' quarters among others. Work on both the Mbuya and Namuwongo
projects, was done by a local firm, HL Investments Limited.
Of the three firms which the NSSF invited to contest for the Mbuya house tender, only two responded.
These were: a Swedish company, Skanska Jensen International (sh 539m) and HL Investments which
quoted sh415m. Roko Construction Limited did not tender. The bids were submitted on December 12,
19 96.
HL Investments was awarded the contract after it reportedly agreed to reduce its sh 415m bid price and
scrap some areas of the renovation work. Sources said this was intended to enable the workers body
operate within the budget its board had passed( sh 241m). A top HL Investments director, Henr y
Lubwama, is a brother-in-law of an adviser to the NSSF board, Dr. Anthony Lubega.
Lubega is said to be a leading architect. But NSSF officials said HL Investments was awarded the
contract on merit and not because of its director's relationship with the board adviser. W.H Ssentoogo
and Partners who are also on the Social Security House project, were the architects for the Mbu ya
project. Others were Multi Konsult for electrical work. Kiwagama-Kiwanuka and Co worked as the
quantity surveyors.
On February 7, 1996, NSSF and HL Investments signed the contract agreement for the Namuwongo
project. Work was completed in October 1997 and tenants occupied the 18 houses in December.
The 18 executive houses include: eight three-bed-roomed units rented at sh450,000 per month,
another eight three-bedroomed units were rented at sh400,000 per month.
Two other two-bedroomed units are rented at sh200,000 per month. Records obtained by The New
Vision indicate that invitations for the Namuwongo project were on November 25, 1995, sent out to six
companies.
Those which responded were: Spencon Services Ltd (sh2.5.b), Avcon International (sh1.3b), Concorp
International (sh1.3b) and HL Investments(sh1.013b).
On December 12, 1995 Roko Construction Ltd wrote back, saying it was unable to tender for the
Namuwongo project because it had a lot of commitments. Lukwago Construction also wrote to NSSF on
December 15,1995, giving reasons why they could not tender. Tenants at the Namuwongo houses
include a p ermanent secretary, Mr. Ben Otto, doctors, expatriates and others.
=======
1.4B/- Missing On NSSF House
December 4, 1997
About 1.4m US dollars (1.4b/=) which the National Social Security Fund deposited in Kampala's Orient
Bank for importation of curtain walling glasses by the contractor, Alcon for Workers House, is feared to
have gone missing.
The revelations emerged at a meeting in Kampala yesterday to discuss the delayed arrival of the
consignment. It was ordered from South Africa five months ago.
In a brief interview with The New Vision yesterday, NSSF Managing Director, Abel Katembwe, said
Orient Bank had acted contrary to instructions.
However, sources close to Orient Bank said last night that any changes in the LC had been instructed by
the Contractor Alcon.
Alcon had opened the Letter of Credit and was responsible for it and Orient Bank had correctly followed
all procedures involving the LC. Some NSSF officials are now pressing for suspension of all business
transactions with Orient Bank until the confusion over the LC is sorted out. Sources say NSSF had
about 2b/= in fixed deposit with Orient Bank.
Katembwe said NSFF would now deal directly with the suppliers to avoid a re-occurence of similar
problems. Yesterday's meeting was attended by Abel Katembwe, NSSF legal officer, Asuman Kiyingi,
Orient Bank boss, Ketan Morjaria, the bank lawyer Allan Shonubi, and the contractors, Alcon
International. Shonubi declined comment while Ketan could not be traced.
Orient Bank staff are alleged to have transferred 1.4m US dollars on the instruction of the contractor,
Alcon without NSSF being informed purportedly for procurement of the curtain walling glasses.
Katembwe, who was rushing to another meeting, said: "We have discovered that Orient Bank released
1.4m US dollars to the contractors without our consent.
"They will have to pay interest for the money we had deposited there", (since June 5th this year), he said.
NSSF had reportedly instructed the bank to only release the funds after the South African suppliers
fulfilled terms and conditions in the Letter of Credit.
The LC was in the names of Pre Plan Ltd, the South African suppliers. Pre Plan were expected to be
approved by the project consultants, Ssentoogo and Partners.
But unconfirmed reports say the suppliers identified by the contractors, were discovered to be fake.
__________
bwanika
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