Parliament has overwhelmingly voted in support of the removal of Ivan Kyayonka, the board chairperson National Social Security Fund -NSSF for his role in the purchase of shares in Umeme.
NSSF bought 131 million shares during Umeme’s Initial Public Offer-IPO in 2012, making it the third largest institutional investor with 14.27% shares.
Earlier on, a committee constituted by Speaker Rebecca Kadaga, observed that Ivan Kyayonka appeared to have acted under conflict of interest when he pushed NSSF to purchase the UMEME /PO.
NSSF Board Chair, Kyayonka, and Managing Director, Richard Byarugaba, purchased UMEME IPO without approval of Board of NSSF and the Solicitor General.
The committee recommended that Ms Geraldine Ssali, the then acting Managing Director and Ms Catherine Byakika, head of human resource be seriously reprimanded by the appointing authority.
The committee wants Kiwanuka held responsible for loss of Shs 500m spent on recruitment whose results were largely ignored.
It further moved that Byarugaba and Kyayonka be compelled to refund the Shs 56m loss incurred in Namirembe land.
Today, the select committee said the NSSF board chairperson flouted investment procedures when he sanctioned the acquisition without the board’s involvement and approval from the Solicitor General.
According to the committee, Kyayonka rushed to purchase UMEME shares because the proceeds would go to the independent thermal power producers (IPP), the suppliers to UMEME, who would then pass on the money to Shell, where he was a director.
As a result, MPs have voted recommending the removal of Kyayonka as NSSF board chair.
They also voted recommending that Geraldine Ssali, the Deputy Managing Director be reprimanded for her role in sanctioning the purchase of the shares.
Also to be punished is the Managing Director, Byarugaba.