NSSF boss must go, says Raila

September 5, 2008 12:00 am

, NAIROBI, September 4 – The fate of the National Social Security Fund (NSSF) Managing Trustee Rachael Lumbasyo appeared sealed Thursday after Prime Minister Raila Odinga said he fully supported her sacking.

In a statement by his spokesman Salim Lome, the PM said he stood by the decision taken by Labour Minister John Munyes.

“The PM has noted that the Minister, as the appointing authority, has the power under the Laws of Kenya – Para 6 of the First Schedule of the NSSF Act, Cap 258 – to relieve the Fund’s Managing Trustee of her duties,” the statement said.

The statement which was issued moments after Raila left for Mwanza, Tanzania this afternoon also directed the NSSF board to immediately initiate the recruitment of a new Managing Trustee. 

“This recruitment should be conducted in a fully transparent manner, with the help of a professional external recruiting agency,” Raila said.

The Prime Minister also directed the Inspectorate of State Corporations to investigate all credible allegations of financial fraud, including dealings in securities at the Nairobi Stock Exchange.

Allegations of nepotism in employment, the payment of inflated legal fees and the sale of plots adjacent to the Grand Regency Hotel, should also be probed.

When Munyes announced sacking of the NSSF boss, the corporation rejected the move and asked for a meeting with Raila.  Initial reports had indicated that the PM sided with the board.

On Wednesday, Lumbasyo issued a statement from her office asking Munyes to reverse his decision.

Munyes sent her on forced leave pending her retirement on allegations of corruption, mismanagement and nepotism among others.  Lumbasyo has denied any wrongdoing and argues that the NSSF had recorded substantial growth during her tenure.

Meanwhile, sources had earlier told capital News Thursday that Lumbasyo had been expected to appear before the Public Investments Committee (PIC) next Monday over the sacking.

The sources said others due to questioned by the PIC include Munyes, and the Head of the Public Service Francis Muthaura.  It was not clear if the questioning would go ahead following latest development.

The source had further said the committee wanted to carry out its investigations into the sacking and the controversial sale of a plot that is adjacent to the Grand Regency Hotel.

When the Grand Regency saga surfaced, the Parliamentary Committee on Finance Planning and Trade investigated the sale of the same piece of land, but its report was not tabled in the House before it went on recess.


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