High Court in Kampala has set aside the execution of a court order issued by the Registrar of Executions Division last Friday, pill freezing three National Social Security Fund’s bank accounts held in Standard Chartered, Citibank and Stanbic Bank.
The court also set aside the original order by Justice Lydia Mugambe in which she had ordered NSSF to refund contributions made by Uganda Telecom for a section of its workers.
The bank accounts were frozen after UTL rushed to court and obtained a preliminary garnishee order to attach the accounts to recover Shs14.2billion and costs from NSSF.
The money is about two thirds of the savings of UTL workers it inherited from Uganda Posts and Telecommunications Corporation (UPTC)
High Court’s Justice Ezekiel Muhanguzi in his ruling on Wednesday agreed with the Fund that execution of the Garnishee Order was improper, given that there is a pending appeal in the Court of Appeal against the ruling by Justice Mugambe.
The ruling implies now that NSSF can operate its accounts in the three banks without any hindrance.
Meanwhile, court also ordered the Fund to issue a fresh guarantee with the court for the entire decretal sum, which NSSF’s Managing Director Richard Byarugaba says they will comply with.
In a statement, Byarugaba said they were happy with the court’s decision and keen to continue protecting the worker’s savings.
“We believe that the Shs. 14.2billion belongs to a section of former UTL workers and UTL should not circumvent the ongoing court process to access this money,” he said.