Former EAC workers cry foul as pension money is returned to consolidated fund

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Former EAC workers cry foul as pension money is returned to consolidated fund
Former EAC workers cry foul as pension money is returned to consolidated fund

Africa-Press – Uganda. The former workers of the East African Community (EAC) are casting doom at the Ministry (of EAC Affairs) for not paying their gratuity and pension as directed by parliament.

One of the members said that they were surprised when the Minister of EAC Affairs, Ms Rebecca Kadaga informed parliament in March this year that her ministry was stuck with Shs70b that was provided to pay gratuity and pension to the former workers.

The chairperson of the former EAC employees, Mr Richard Kaggwa said that although some former workers have not been traced, over 20 who submitted their documents have never been paid.

“They only tell us they failed to trace them (former employees) but even those that were have never been paid,” he said.

When contacted, the Permanent Secretary of the EAC Affairs, Ms Edith Mwanje said that all former employees who qualify for pension benefits were paid.

She revealed that the last group of about 163 people were paid in the last financial year.

She, however, noted that the ministry has failed to trace about 184 former workers, and as a result, the money was returned to the consolidated fund.

“All the 894 files were reviewed and submitted to the Internal Audit Unit for further technical verification, and recommendation of the action to be taken. Out of these only 347 were found to have genuine outstanding arrears and were therefore recommended for payment,” Ms Mwanje said.

She explained that of the 347 that were recommended for payment, only 163 were able to submit the required information and the rest have never shown up.

The former employees worked in departments like East African Airways, East African Railways, East African Harbours, and East African Cargo Handling among others which collapsed in 1977.

After the collapse, the responsibility of paying retirement benefits was given to the Ministry of Public Service which paid about 60 per cent of them until 2015 when the responsibility was transferred to the Ministry of East African Community Affairs.

The Ministry of East African Community Affairs last financial year received Shs9.2b to settle pension arrears for former East African community employees.

Ms Mwanje said that the ministry last financial year received 9.2b to settle pension arrears, but only Shs1.9b was used to pay 163 former employees and the remainder had to be returned to the consolidated fund.

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