Business

Inside Sudhir, NSSF Multi-billion Shilling Arrears

NSSF boss Richard Byarugaba
NSSF boss Richard Byarugaba

The National Social Security Fund (NSSF) is claiming Shs 7.5bn from businessman Sudhir Ruparelia as contribution arrears to the Fund.

Official records seen by ChimpReports indicate that unpaid ‘Standard Contribution’ from employees of Crane Bank Limited amount to Shs 7.5bn.

This followed what NSSF officials described as a “comprehensive audit” of Crane Bank Limited covering a period from January 2010 to December 2016.

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NSSF said the Bank should have as well paid ‘Special Contribution’ amounting to Shs 930m to the Fund.

According to NSSF Managing Director, Richard Byarugaba, the Fund initiated steps to take action as provided for under the NSSF Act.

Due to alleged failure to pay the above figure, Crane Bank which was early this year taken over by the Central Bank, was slapped with a penalty of Shs 39bn.

The Bank would as well pay Shs 4.5bn as interest.

But experienced accountants and auditors said the penalty can be scrapped upon negotiations with the Fund’s Managing Director.

“In such circumstances, a penalty can be waived if the contributor agrees to a payment plan or proves that its (penalty) basis is untenable,” said a source.

A structure of Crane Bank contribution arrears as assessed by NSSF

A structure of Crane Bank contribution arrears as assessed by NSSF

Byarugaba told this website that talks between Crane Bank and NSSF were already underway when the financial institution was put under receivership.

“Before the Fund could reach an agreement with Crane Bank Limited to settle the arrears, it was sold to DFCU Bank,” said Byarugaba.

He further pointed out the “Fund is engaged in discussions with DFCU Bank, which assumed Crane Bank Limited’s liabilities, to remit the outstanding arrears.”

He also reassured the public that the matter would be resolved.

Asked why the information was not brought to the limelight early this year, Byarugaba said that was not the Fund’s responsibility.

“It’s not in our mandate unless when compelled by the courts. This is how this matter has come to the fore. Even Bank of Uganda couldn’t have brought it out unless it was a court process,” said Byarugaba.

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