Business

UTL’s Top-dollar Expatriates Dodged NSSF Contributions

NSSF Managing Director Richard Byarugaba

Most of the top expatriates earning top dollar at the Uganda Telecom did not pay contributions to the National Social Security Fund (NSSF), cheapest underscoring the impunity that reigned at the once popular and progressive telecommunications company.

According to a letter dated March 27, 2017 to the Clerk of Parliament, NSSF boss Richard Byarugaba said this was discovered during an assessment carried out on UTL’s outstanding arrears.

“Prior to January 2016, UTL did not make any contributions for its expatriates,” said Byarugaba.

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“And these include Amir Ali, the Chief Executive Officer and Mr Kiel Alexander, the Chief Finance Officer at the time,” he added.

The two officers have since left the country.

ChimpReports understands that Amir served from 2013 to 2015 as MD.

He was appointed by UTL’s major shareholder hence a higher remuneration compared to locally recruited staff.

We were unable to establish the exact figure Amir earned.

However, the recent MD Mark Shoebridge earned about Shs 150m per month.

NSSF contributors pay 5 percent of their gross pay.

Their respective companies make a top-up of 10 percent, bringing to 15 percent the total contribution.

Byarugaba's letter to Parliament

Byarugaba’s letter to Parliament

Byarugaba said between June 2012 and February 2014, NSSF discovered that the telecom’s outstanding arrears stood at Shs 18bn.

UTL had arrears of Shs 4bn before paying Shs 2.4bn, leaving an outstanding balance of Shs 1.6bn.

Out of an interest of Shs 924m, only Shs 58m was paid hence a balance of Shs 865m.

The penalties alone stand at Shs 15bn.

Byarugaba said UTL has not made any contributions for the periods of March 2014 to December 2015 but paid for only the periods of January 2016 to July 2016.

Government recently took over the telecom company after its major shareholder withheld funding.

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