Kenya: Raila Backs Sacking of NSSF Boss
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The Nation (Nairobi)
4 September 2008
Posted to the web 5 September 2008
Dave Opiyo
Nairobi
The controversy at National Social Security Fund took a new twist Thursday, with Prime minister Raila Odinga approving the interdiction of managing trustee Rachael Lumbasyo.
Consequently, Mrs Lumbasyo has been ordered by officials from the ministry of Labour to vacate her office by latest 2pm today.
This comes only a day after the managing trustee declared that she was still in charge at the workers' pension fund - at least for the next three months, after which her contract will end.
Mrs Lumbasyo had on Wednesday asked Labour minister John Munyes to rescind his decision to replace her.
Appointing authority
The PM's decision, said the statement sent by Mr Salim Lone, his spokesman, was made during his Tuesday meeting with the NSSF's board of trustees.
Mr Munyes last week announced that he had sent the managing trustee on 90 days leave pending her retirement, to pave way for investigations into the management of the pension fund.
This decision was challenged by members of the board of trustees, who accused the minister of not following "due process" in the interdiction of Mrs Lumbasyo and the subsequent appointment of Mr Fred Rabongo in an acting capacity.
The board members cited section 33(1) of the NSSF Act, which compels the Labour minister to consult them when making such appointments.
The head of Public Service Francis Muthaura has also written to the Labour minister, disapproving his decision.
But Thursday, Mr Odinga reiterated that the law granted the Labour minister, as the appointing authority, the power to relieve Mrs Lumbasyo of her duties.
"The minister has power under the laws of Kenya - para six of the first schedule of the NSSF Act cap 258 - to relieve the Fund's Managing Trustee of her duties...
"The minister, as empowered by the Law, should also immediately appoint an Interim Managing Trustee from within the organisation," said Mr Odinga.
By this, the Prime Minister also nullified the appointment of Mr Rabongo, a marketing and public relations consultant, as the acting managing trustee.
The NSSF currently manages a Sh90 billion portfolio.
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