Makerere University sued for failure to remit Shs4b retirement Benefits
By Ruth Anderah
The registered trustees of Makerere University Retirement Benefits Scheme have dragged the institution to court for alleged failure to remit over Shs4bn to the scheme.
In their suit they filed before the High Court Civil Division, the trustees contend that by a Trust Deed dated September 10th, 2009 they agreed with Makerere University to remit to the scheme on a monthly basis 15 percent of the salaries paid to the institute’s employees.
According to the deed, 5 percent was to be deducted from the employee and 10 percent from the university as the employer and each employee was to get his or her own share upon retirement, early termination, or to be given to family upon death.
However, the applicant contends that for the last three months of March, April, and May 2021 the Makerere University only remitted to the Scheme 5 percent being the employee contribution and did not remit 10 percent being the employer contribution.
The documents before the court also indicated that on 15th June 2021, the Trustees demanded the unremitted contributions but they were shocked when the University Secretary directed the Human Resources and Bursar to remit to the National Social Security Fund the unremitted contributions for three months.
According to Yusuf Kiranda, the University had a statutory duty to remit its staff contribution to NSSF adding that NSSF sued Makerere University over the non-remittance of staff social security contributions, and management based on the council’s resolution was engaging NSSF with the view to settle the matter out of court.
The letter dated 14th June 2021 also shows that the University Council resolved that ” Management remits the unremitted statutory social security contributions for staff to NSSF”.
Through their lawyers of Acardia Advocates, the registered trustees now want a declaration that the acts of the university in remitting the contributions to NSSF is in breach of the terms of the Trust Deed.
They also want a permanent order restraining the University from remitting the monies to NSSF as well as to be paid costs of the suit.
The Assistant Registrar of the Civil Division Agnes Alum has already issued summons to Makerere University to put in a defense within 15 days or else the court will proceed and deliver judgement in their absence.
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