I sacked former NSSF boss for talking to media, says Kazungu

Labour secretary Kazungu Kambi (pictured) in an affidavit filed at Industrial Court accused former NSSF managing trustee Tom Odongo of five counts with three bordering on an interview Mr Odongo had with the Business Daily. Photo/FILE

What you need to know:

  • Labour secretary Kazungu Kambi in an affidavit filed at Industrial Court accused Mr Odongo of five counts with three bordering on an interview Mr Odongo had with the Business Daily.
  • The Labour secretary also accused him of laxity in efforts to rope in more workers to the fund through a deal with the Kenya Revenue Authority and of complaints touching on Mr Odongo’s integrity.
  • NSSF board of trustees Thursday told the court that they have no problem with Mr Kambi’s move to fire Mr Odongo.

The former National Social Security Fund (NSSF) managing trustee Tom Odongo was fired for sharing the pension body’s investment plan with the media before getting Cabinet approval.

Labour secretary Kazungu Kambi in an affidavit filed at Industrial Court accused Mr Odongo of five counts with three bordering on an interview Mr Odongo had with the Business Daily.

Mr Odongo is blamed for telling Business Daily that the fund will package and list its real estate investments at the Nairobi bourse, of plans to invest Sh100 billion in property and efforts to increase workers contribution to a maximum of Sh18,450 monthly from Sh400.

The Labour secretary also accused him of laxity in efforts to rope in more workers to the fund through a deal with the Kenya Revenue Authority and of complaints touching on Mr Odongo’s integrity.

Mr Kambi noted that the unauthorised press interviews touched on policy shifts that had not been approved by the government and caused “uproar within the public and government.”

“For the last few months, I have been greatly troubled by the actions of the claimant and despite repeated requests, caution and advice, the claimant declined to rectify the wayward attributes,” said Mr Kambi, citing the media interviews that happened between July 16 and July 19.

“These are merely indicative of the numerous difficulties that both the respondent and the government experienced. I considered it more appropriate to invoke the relevant clause in the employment contract which allows the termination by either party.”

Mr Odongo, who was axed last Monday, moved to court seeking reinstatement on grounds that Mr Kambi’s decision was arbitrary and did not involve the board of trustees to whom he was answerable as chief executive.

But the board of trustees Thursday told the court that they have no problem with Mr Kambi’s move to fire Mr Odongo.

The board met on July 24, two days after Mr Odongo was sacked, and ratified Mr Kambi’s decision and appointment of the corporation secretary as the acting managing trustee, according to court documents.

“The Board of trustees National Social Security Fund at a special meeting held on July 24 resolved to accept the decision of the Cabinet Secretary to terminate the contract of Mr Tom Odongo, the managing director and appointed the corporation secretary to act until further notice,” states the letter.

The NSSF said that Mr Odongo had been paid Sh2.99 million for the three months’ salary on July 31.

But his lawyer Ochieng Oduol reckoned that payment was not in line with the contract, which indicated that he was to be paid when the contract was terminated on July 22 and not 31.

Thursday, the Industrial Court Judge Nzioki Wa Makau directed NSSF not to commence the process of filling the managing trustee’s position pending the ruling on the preliminary objection raised by the fund slated for August 12. The NSSF wants the case dismissed.

Mr Odongo had held the position for barely eight months following his confirmation last November after holding it in an acting capacity for ten months.

He becomes the sixth chief executive of the Sh126 billion fund to exit in a period of five years, a move that could further shake public confidence.

Mr Odongo took over from Alex Kazongo, who was fired in February last year after two years in charge.

Among other former occupants of the hot seat are Rachel Lumbasyo, James Akoya and Albert Odero.

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