NSSF Saga Exposes Folly of Our Politics

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NSSF Saga Exposes Folly of Our Politics

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The Nation (Nairobi)

September 3, 2008

Editorial Article

The unfolding events at the National Social Security Fund (NSSF) demonstrate the folly of political meddling in the management of corporates. It underlines the urgent need to educate ministers on governance and particularly, how to exercise their constitutional mandates and the general decorum required of them as they manage public affairs.

In a our changed political dispensation, ministers have latitude to make decisions on a daily basis. In the dark Kanu days, a minister had to look above his or her shoulder before taking any action.

Arguably, this has given some freshness in the management of public affairs. But there is also the flip side -- some ministers are going overboard. What Labour minister John Munyes did, namely to sack the Fund's managing trustee, Mrs Rachael Lumbasyo, and replace her with an outsider, was unprocedural. Although the minister argues that he has powers to appoint the Fund's chief executive, the procedures to be followed are clearly stated in the NSSF Act, Cap 258.

The Act categorically states that the minister; "on the recommendation of the Board of Trustees, appoint a managing trustee, who shall hold office on such terms and conditions of service as may be specified in the instrument of his appointment."

Nowhere does the minister get unilateral powers to appoint anyone to that high office. Even if the minister was out to usurp the powers, there ought to be justification.

For Mrs Lumbasyo, the information in the public domain is that she has presided over the slow and painful turnaround of the Fund. Taking over an institution that was beset with mega scandals and routinely faulted for poor service delivery, the Fund has remarkably improved its performance.

Mr Munyes is not alone. We have heard of complaints about other ministers, including Mrs Charity Ngilu (Water), who has sacked directors of water boards without following procedures.

This culture of impunity must stop. President Kibaki and Prime Minister Raila Odinga must rein in errant ministers, instil discipline and force them to follow procedures. Public corporations must be shielded from reckless political decisions.

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