Why It is Immoral for UBC to Write Off NSSF Arrears

UBC representatives, including Managing Director Winston Agaba, recently appeared before Parliament’s Committee of Statutory Authorities and State Enterprises (COSASE) to request the write-off of National Social Security Fund (NSSF) arrears. This proposal has sparked significant debate among lawmakers and raised ethical and legal concerns.

Medard Sseggona, representing Busiro East, questioned the legality of President Museveni’s directive to write off these arrears, emphasizing that NSSF is a private entity with funds belonging to contributors. UBC has a history of deducting NSSF contributions from employees’ salaries without remitting them, dating back to 2010 under multiple managing directors. This has resulted in financial losses for both NSSF and UBC employees, some of whom have left the company or passed away without receiving their rightful benefits.

UBC’s Managing Director, Winston Agaba, acknowledged the broadcaster’s financial difficulties, citing low funding and significant debts. He revealed that while the President directed the write-off of some debts, including NSSF penalties, these debts continue to accumulate. UBC faces high operational costs, including substantial electricity expenses and issues with the Uganda Revenue Authority (URA).

In 2018, NSSF filed a criminal case against UBC to recover arrears, interest, and penalties. A consent judgment in 2021 mandated UBC to pay outstanding amounts in installments, with NSSF waiving a substantial penalty. However, as of January 2023, UBC still owed NSSF a significant sum. In 2018, NSSF filed a criminal case in the Chief Magistrates Court of Nakawa against Uganda Broadcasting Corporation for recovery of NSSF contribution arrears, interest thereon and penalty that had accumulated as a result of noncompliance. On 22nd September 2021, a consent judgment was entered between UBC and NSSF to pay the outstanding amounts in instalments. UBC was supposed to pay UGX 4,942,741,170 being unremitted monthly standard contributions for the period of November 2005 to September 2016 and UGX 3,749,377,185 as the annual statutory interest accrued on the contributions as 11 at July 2019. It was also agreed that the Fund would waive the accrued penalty of UGX 29,150,077,970. As at January 2023, UBC was still indebted to NSSF to the tune of UGX 11,691,728,081.

Sseggona criticized UBC for its lack of a strategic plan since 2017, questioning how the broadcaster can recover without a clear roadmap. He argued that UBC’s continuous requests for funds from the treasury indicate poor planning rather than underfunding.

This debate highlights the ethical and legal complexities of writing off NSSF arrears. It underscores the need for clear legal justification and strategic planning to guide UBC’s financial recovery and operational improvements. The welfare of UBC employees and the integrity of NSSF as a private entity are central concerns in this ongoing discussion.