COTU Secretary general Francis Atwoli alleges Sh1.7 billion lost at NSSF

The National Social Security Fund’s (NSSF’s) turbulent boardroom politics spilled over to the public arena with workers’ representative Francis Atwoli sensationally claiming Sh1.7 billion was looted from the Fund and declaring August 4 a national work boycott day to protest his removal and State’s interference in its affairs.

Rallying workers unions’ representatives to a televised protest meeting against his removal from the board by labour Cabinet Secretary Kazungu Kambi, Atwoli claimed the money was lost in six months and his sacking was a cover-up. Atwoli has served for in NSSF’s main decision-making organ by virtue of being the Central Organisation of Trade Unions (Cotu) secretary general. He also alleged a scheme to ensure the Ethics and Anti-Corruption Commission (EACC) dragged its feet in investigating the scandal over which he claimed to have recorded statements.

Atwoli alleged corruption in NSSF and said there is evidence that in the first six months of this year some Sh1.7 billion was lost in dubious deals.

“Between January 2014 and now, the NSSF Board of Trustees has embezzled Sh1.7 billion. An audit report should be conducted to show where this money meant for retirees disappeared to,” Atwoli told a Cotu meeting.

The Cotu boss said despite recording statements together with Kambi at the EACC, no action had been taken. He wants an independent investigation into the alleged missing funds and the money returned to the workers.

Cotu has issued a two-week strike notice to protest his removal and that of Federation of Kenya Employers (FKE) Chief Executive Jackline Mugo from NSSF board.

Atwoli said Kambi’s move may be related to the controversial Tassia II housing project and asked the CS to keep off NSSF matters to allow reforms.

“Kambi and the Jubilee government have forgotten about workers. This is a move to undermine the workers’ union. Our efforts to uncover corruption at NSSF is what has led to our removal,” he said.

Cotu said Kambi cannot dictate to workers who they should choose to represent them at NSSF.

“This is a calculated move by the Government so that they can employ and fire whomever they want from the board so as to control the management of the workers’ pension scheme. That amounts to unfair labour practices,” reiterated Atwoli during a meeting with shop stewards and secretary generals from affiliate unions.

He added: “If I have broken the law in any way, then the CS should inform the workers union because it is the workers who elected me to this position to represent their interests at the NSSF Board.”

Kambi retired Mugo and Atwoli as board members accusing them of overstaying at the board for 11 and 15 years respectively.

The Labour CS claimed he axed them in line with the NSSF Fund Act 2013 that states a board member can only serve for two consecutive terms that adds up to six years.

“The two have been in the board for too long with Atwoli having served for 15 years and Ms Mugo 11 years. I have therefore retired them from the Board of Trustees for not complying with section 10 (3) of the NSSF Act. I am doing this in compliance with Section 8 (1) of the Act,” explained the CS.

But Atwoli swiftly dismissed the claims of serving as board member for 15 years saying he has served for just nine years. Mugo said she has served at FKE for close to seven and a half years as well as on the NSSF Board, and not the 11 years claimed by Kambi.

Both Atwoli and Mugo argued that in line with the new NSSF Act, which came into effect in January 10, they have only served for a period of six months and do not understand why Kambi said they have ‘overstayed’ at the board.

Cotu pointed out that Atwoli has the full mandate of the workers as he was elected and his removal, together with Mugo's, “was unprocedural, ill-advised and malicious”.

“The Government has betrayed us by removing Atwoli and Mugo from the board and also interfering with the workers' movement, yet the minimum wage as promised during the Labour Day celebration has not been adjusted. The Government must respect the workers' choice,” declared Francis Wangara, General Secretary of the Sugar Plantation Workers Union.

“The Government should hold no authority over the Fund because that is meant for workers. How can you retire someone who has been chosen by the people? We cannot accept that,” said Mosi Ndiema, General Secretary Kenya Aviation Workers Union.

Cotu wants Kambi to be removed from office as the Cabinet Secretary for Labour as well as the dismissal of the NSSF’s Board Chairman Adan Mohammed.

“We are not going to sit and watch as the Government undermines the workers’ movement. If Kambi does not immediately reinstate Mugo and myself to the board, he will face the wrath of workers in the country on August 4,” threatened Atwoli.

The union is also demanding respect for leaders in the labour movement by the Government as well as an end to what they called State interference in NSSF’s management.

The union has scheduled a series of meetings from July 24 to August 2 in various parts of the country including Naivasha, Nakuru, Kisumu, Thika, Mombasa, Nyeri, Embu, Machakos and Nairobi, that will culminate in a nationwide strike on August 4 if their demands are not met.

Early this year, the NSSF boss defended the viability and transparency of the Tassia project, saying it got the board’s approval.

Richard Langat, the Managing Trustee of NSSF told The Standard in earlier interview: “The tender process and outcome was open, transparent and above board. The tender documents are available for scrutiny by any interested party.”

He said there were no objections raised on the process, accusing Atwoli of misleading the taxpayers about the issue. He added that the cost incurred would be entirely recovered from 5,500 plot owners through individual contributions of Sh920,000 per plot.