NAIROBI, August 28 – The National Social Security Fund (NSSF) Managing Trustee Rachael Lumbasyo has been sent on compulsory leave.,
She has been replaced by Fred Rabongo in what the government called ‘a complete overhaul’ at the Labour Ministry.
Cabinet Minister John Munyes said Thursday that the shakeup was aimed at flushing out cartels at the ministry which he said were responsible for numerous court cases against the workers’ body.
“When there is a problem at any institution, it is the management that is to blame. She is therefore responsible for everything,” Munyes said.
Lumbasyo, who had been at the helm of the social security fund since November 2005, was due to retire in November.
Munyes accused the fund’s management of engaging in corruption, and vowed to ensure the restoration of efficiency and transparency at the vital social security institution, which is currently chocking under litigation.
The Labour Minister also put on notice employees who may have been involved in irregular dealings at the institution, saying he would ensure the place is cleaned up.
He said there were cartels at the fund who were taking advantage of bureaucracy to engage in irregular activities, which have led to massive losses at 82-billion-asset portfolio charged with ensuring social security.
“I don’t want to spend my life answering things I don’t understand, because people are not clean. This must stop, and to do it, I must install transparent people who are ready to work,” Munyes said.
He cited the pending court case at the High Court regarding a plot next to Grand Regency Hotel, whose ownership was reportedly transferred before any payments were made.