EXCLUSIVE: Byarugaba Denies Sudhir Bribe To Watch Formula 1 Cars

order geneva; color: #222222;”>“This is ridiculous, pill totally ridiculous and untrue, ” said Byarugaba when contacted by Chimpreports on Saturday afternoon.

A whistle-blower recently petitioned the Inspector General of Government Irene Mulyagonja to probe Byarugaba and his juniors of “corruption of the highest order coupled with flouting of procedures and influence peddling in processes that is taking place at NSSF by top managers.”

The whistle-blower said it has become a habit by top managers at the institution to openly flout and disregard laid down procedures in deals where they have interest.

But in this particular accusation, the whistle-blower says Byarugaba, his deputy and Corporation Secretary “have a complicated system of giving waivers on contributions to selected companies and in turn this money is shared by the top managers and their front men in NSSF.”


“The top managers (Managing Director, Deputy Managing Director and the Corporation Secretary) together with the manager Contributions called Hez Alinda are the people involved in this scam,” the dossier sent to Mulyagonja reads in part.

It notes that one of the companies that has benefited from this scam is Commonwealth Resort, Munyonyo where “the resort had unpaid contributions of Shs1.2b which figure was reduced to Shs400m after paying these people on top of giving some of these guys (NSSF bosses) fully paid trips abroad.”

It adds: “For example Mr Byarugaba was sponsored by Sudhir Ruparelia to go to India to watch formula one racing cars.”

Byarugaba said the ticket to watch the Formula One race is a paltry $500 (Shs1.2m) and $250 (Shs600, 000) per night for three days.

“I don’t need a bribe to watch Formula One. Even you (reporter) can afford it. So the allegations do not hold water. They are just rubbish,” said Byarugaba.

Formula One, also known as Formula 1 or F1 and referred to officially as the FIA Formula One World Championship, is the highest class of single-seater auto racing.

It attracts millions of well-to-do fans worldwide.

The allegations are likely to pile pressure on Byarugaba and also evoke memories of the Temangalo scandal that saw the exit of Chandi Jamwa over conflict of interest and flouting of rules in dubious land deals.

The whistle-blower raises a multitude of allegations of impropriety on the part of NSSF bosses, allegations they deny.

The dossier names companies that have allegedly benefited from “waiving of contributions” which include SBI M/s Soleh Boneh international holdings AG.

It is said it had unpaid contributions of Shs360m which was reduced to Shs60m under unclear circumstances.

Spencon and Roko Technical services ltd also reportedly received a waiver of Shs272,892,574m, MCRL got a waiver of 248,247,105m and SGH managed to survive payment of Shs 143,016,683m.


“We are reliably informed that they agreed that in order for this money not to be detected easily they should always channel it through a money lending company owned by David Nambale and the sharing is done afterwards,” alleged the whistle-blower.

“Madam, these senior Managers are dealing with some of your Directors to exonerate them whenever they are implicated, for example the top managers waived contributions for Barclays bank but among the companies that were investigated when a similar complaint was brought to your office nothing was mention about Barclays Bank.

Madam, there was a meeting between these top managers and one of your directors to exonerate them on transactions they had waived which would implicate them so that they would go back and re audit and there are plans to change the findings of the report. To confirm this trick, Barclays bank has just been re audited and arrears of Shs1 billion have been discovered again,” the dossier noted.

“Madam IGG, this is just a small portion of the waivers that have been given and money paid back to the four managers and the whole issue is covered. It should be noted that this money is for the workers who have tirelessly worked and at the end when they go to claim, they will find nothing and these managers will have long gone with their loot.

There is no way all this can happen without the knowledge of the top three(Managing Director, Deputy Managing Director and he Corporation Secretary) or Manager Contributions (Hez Alinda).”

It is said a similar complaint had been lodged at IGG’s office before, investigated and the findings “are very clear that some officers should be dismissed but to our surprise these people are still in office and some of them have been given fresh contracts of three years.”

The whistle-blower said there is overwhelming evidence “that these characters have amassed a lot of wealth which cannot be accounted for.”

“For example Hez Alinda should explain the huge/massive investment in the building in Hoima town. It should be noted that this boy ( Hez Alinda) joined NSSF around 2004.

Madam the situation is becoming more tense every second that passes and after your investigations started, Hez vowed/threatened to reveal all the dirt if he is sacked/terminated/dismissed by management and in order for them not to be exposed, they are looking for ways of covering up and protecting Hez.

One of the ways they are looking at is to make sure that they deal with your directors to change the report before it reaches you. This assignment has been given to the Corporation Secretary (David Nambale) who is using his connections at your office to change the report.

Note that David Nambale was working at your office until Justice Jotham Tumwesigye could no longer accommodate his shoddy behavior and advised him to leave.”

Byarugaba response

But Byarugaba said in 2011, the Fund launched an Amnesty and Whistleblowers campaign to encourage employers who were defaulters to pay their employee’s NSSF contributions and in turn, the Fund would offer a waiver of the penalty as provide for in the NSSF Act.

He noted a number of employers have responded and are paying the arrears in installments, which has resulted into NSSF’s increased monthly contribution rates.

Byarugaba said the “waivers of contributions” was a subject of a recent IGG investigation (report of 7th March 2013); where the IGG identified some very historical weaknesses in the controls and procedures and these were immediately addressed.

“Though the IGG identified these weaknesses, it was also clearly established that there were no personal gains or motives behind these lapses.”

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