National Social Security Fund (NSSF) Managing Director, Patrick Ayota, has approached the court to maintain stability within the fund amidst a legal dispute. Ayota made this appeal in response to a lawsuit filed by his predecessor, Richard Byarugaba, who seeks to regain his position at NSSF.
Ayota, during his appearance in the High Court Civil Division, emphasized the need for the court to protect the fund from potential misuse and stagnation. He expressed concerns about the fund’s 18 trillion shilling assets and warned that a lack of strategic leadership would be against the public’s interest.
Byarugaba had filed a petition in August 2023, challenging the decision of Gender, Labor, and Social Development Minister, Betty Amongi, and the Attorney General to not reappoint him as NSSF MD, as recommended by the Board and required by the law. His argument revolved around procedural irregularities and the absence of a fair hearing in the decision-making process, along with questioning Ayota’s suitability for the role.
In response, Ayota’s legal team contended that his appointment as NSSF Managing Director was lawful, valid, and not intended to undermine the ongoing legal proceedings initiated by Byarugaba. They argued that the interests of justice for the entire NSSF membership should take precedence over any specific interest Byarugaba may have in a leadership position he was deemed unfit to hold.
Ayota urged the court to dismiss Byarugaba’s application in the interest of justice, fairness, and equity. He cautioned that granting Byarugaba’s appointment could result in a leadership vacuum, jeopardizing the fund’s ability to safeguard its members’ savings.
Byarugaba had previously served as NSSF MD since August 1, 2010, with his second term ending on November 30, 2022. He claimed that his second contract was prematurely terminated by Minister Amongi, who suggested that he should have retired at the age of 60. Only with the intervention of the Attorney General did Byarugaba complete his second term.
The NSSF Board of Directors had recommended renewing the contracts of both Byarugaba and his deputy, Ayota. However, Amongi only renewed the Deputy MD’s contract, citing various allegations against Byarugaba. Despite presidential guidance and parliamentary committee clearance, the contract was not renewed.
The case is currently pending in court, and Byarugaba has requested an amendment to include Ayota as a respondent to address the allegations against him. The court has granted this request and scheduled a follow-up on the case.
Byarugaba argued that Ayota’s appointment as NSSF MD while holding the position of Deputy MD on a fixed five-year term rendered him ineligible for the MD appointment. He sought to invalidate Ayota’s appointment and requested a permanent injunction to prevent Ayota from acting as the MD.
After hearing the parties, Justice Ssekaana granted a one-week adjournment and requested all parties to submit their written submissions. The case is set to return to court on December 4th, 2023, for further proceedings.
NSSF, under Byarugaba’s and Ayota’s leadership, currently boasts 2 million members and assets worth 18 trillion Shillings. Byarugaba’s legal action seeks to challenge the decision not to renew his contract based on this performance record.
