In a resolute move to safeguard the interests of impoverished pensioners, the Public Service, Labour and Social Welfare ministry has recently blocked a potentially catastrophic financial maneuver involving the National Social Security Authority (Nssa) and a local software firm, Twenty Third Century Systems (TTCS) Pvt. This decisive action follows an investigative report by The NewsHawks in April that uncovered the shady dealings spearheaded by Nssa chair Emmanuel Fundira.

The case revolves around a dubious $10 million ICT tender, which not only threatened the security of the $1.2 billion pension fund but also jeopardized the financial well-being of countless pensioners. Documents obtained by the press reveal that Fundira leveraged his authority, employing what is known as “chairman’s action,” to push the Nssa board towards reinstating this deal. This term, “chairman’s action,” refers to the chairman’s power to impose decisions on the board, often bypassing standard procedural checks and balances.

A ministry official, speaking on condition of anonymity, confirmed that the ministry has now suspended the tender and is gearing up to cancel it altogether after a thorough investigation. “The Ministry of Public Service, Labour and Social Welfare has blocked and suspended the deal, with the intention to first investigate and eventually cancel it,” the official disclosed. The abrupt suspension signifies a crucial turning point, indicating the ministry’s commitment to transparency and accountability within publicly managed funds.

Fundira’s insistence on reviving the contract at any cost, coupled with his urgent demands, point to a deep-seated personal stake in the matter. This desperation has caused a significant rift within the Nssa management and has alarmed several government officials who are privy to the potential financial fallout that could ensue.

Adding to the complexity of the situation, Fundira has proposed that Nssa halt its ongoing legal battle against TTCS. This comes amid demands that Nssa funnel additional funds to TTCS, despite the unresolved allegations of previous failures tied to the same contract. This move could lead to further financial losses running into millions, further straining the resources meant to support pensioners.

The legal wrangling has taken a new turn as court documents reveal that Nssa is seeking $10 million in damages for breach of contract, along with an interest of 5% per annum dating back to December 2017. In contrast, TTCS is counter-claiming over $7 million for maintenance fees and software licenses. The matter is currently poised at the pre-trial conference stage, with the court consolidating the cases due to the overlapping nature of the claims by the involved parties.

Despite these legal battles, Fundira’s push to resurrect the old deal involves an immediate additional payment of about $2 million to TTCS. This is particularly contentious given the previous complaints about the failure of the implemented systems, highlighting a persistent disregard for fiscal prudence and the welfare of the pensioners.

The ministry’s intervention has put a temporary halt to a cycle of financial imprudence that could have further undermined the integrity of a fund designed to secure the futures of many. The unfolding developments underscore the critical need for stringent oversight and the rigorous enforcement of ethical standards in the management of public funds. As the investigation progresses, all eyes will be on the Ministry of Public Service, Labour and Social Welfare to ensure that justice is served and the interests of the vulnerable pensioners are protected.