Today's Headlines
- Two Exhibitions Are On At Ramoma, Nairobi
- Country to Review Tourism Law
- Econet Wireless Finally Rolls Out
- Odinga Warns of Civil Unrest
- Mulee Rules Out Harambee Stars U-Turn
- Taking Up a Women's Agenda
- More Than 6,000 Christian Youth Converge for Prayers
- Catholic Church Outraged By MPs' Refusal to Pay Tax
- Pope Benedict Praying for Release of Abducted Nuns
- Thousands Flee Amid Fears of Border Clashes
- Malaria Rates Plummet Among Children
- Winning Against HIV Stigma Behind Bars
- First Congress of Federation of African Journalists a Historic Milestone, Says IFJ
- Archbishop Lele Urges State to Act as Food Crisis Bites
- Regional Workshop Focus Border Management, Irregular Migration
- Silverbird Acquires Kenya's Nu Metro, Starts Operations in Ghana
- Raila is Evil, Says Minister
- Man Charged With Abduction of Two Catholic Sisters
- UN Censures State On Torture
- Agencies Seek $390 Million to Offset Climate And Food Risks
- UN-Backed Scheme Gives 3,000 Prisoners Clean Water and Sanitation
- Samosa Festival is On in Nairobi
- Heartstrings in Another Comedy
- Govts, Investors Engage RVR in Rail Bid
- Mwangi Replaces Mwebesa At NSE
- Riepa Hosts Business Association
- ICTR Petitions UN for Arrest of Kabuga
- UBA to Invest SH360 Billion in Kenya
- Free Movement of People Too, Not Just Goods and Capital
- Judges Running Out of Money?
The Nation (Nairobi)
September 2, 2008
News Article By Dave Opiyo
Just who is responsible for making changes at the National Social Security Fund?
Labour minister John Munyes says it is his responsibility but the NSSF board of trustees believes the minister does not have any powers to act unilaterally when it comes to naming a chief executive officer for the workers' pension scheme.
As a result, the fund now has two people laying claim to the title of managing trustee; Mrs Rachael Lumbasyo, the insider who rose to the helm, and Mr Fred Rabongo, a public relations consultant appointed by Mr Munyes last week.
Civil service chief Francis Muthaura, has written to the minister informing him that the changes are invalid, a position supported by the board whose members held a day-long meeting yesterday to deliberate on the matter.
Political intrigue
It is the latest chapter in a long history of political intrigue, interference by the executive and mega corruption at the NSSF, which in the 1990s almost drove the main workers' pension fund to the verge of bankruptcy.
At that time, the fund was a major milking cow for political scheming, turning those in the good books into overnight billionaires through shady land deals and construction schemes.
The fund enjoyed relative stability with the appointment of Mrs Lumbasyo in 2005. Only last year, she won an award for the changes she had introduced.
On Monday, she reported to work as usual despite an order by Mr Munyes sending her on forced leave.
The decision by members of the board was due to the fact that Mr Munyes failed to follow "due process" in the appointment of Mr Rabongo.
And as a result, said Mrs Jane Mwangi, the chairperson of the NSSF board of trustees, Mrs Lumbasyo, who had last week been sent on terminal leave pending retirement, will remain in office until such due process is followed.
Corporate governance
At a news conference in Nairobi yesterday, Mrs Mwangi termed Mr Rabongo's appointment "irregular and untenable, contrary to good corporate governance".
"The fact that due process and the law was not followed, the appointment of the new acting Managing Trustee is not accepted by the board," she said.
However, the Labour minister said the new appointment was done in good faith, with an aim of ridding NSSF of corruption.
