Court of Appeal confirms that URBRA Board is incompetent, maintains order to reinstate CEO Martin Nsubuga
✳HIGH COURT RULING (click)
✳APPEAL COURT RULING (click)
Kampala, Uganda | THE INDEPENDENT |The Court of Appeal has dismissed an application by four board members of theUganda Retirement Benefits Regulatory Authority (URBRA), to halt a High Court order, seeking to have them replaced because they lack the requisite competences to hold their positions.
The High Court had on January 31, 2025 adjudged that the URBRA Board, chaired by former MP for Buhaguzi County Julius Bigirwa Junjura, did not have the technical competence to run the affairs of the agency.
Court found then that the URBRA board was constituted by persons who lacked requisite qualifications, and said that “it is only fair and in the interest of the general public or the retired persons or pensioners that they are stopped from continuing to manage or sit on the board.”
According to the URBRA Act 2011, the Authority’s board, appointed by the Minister of Finance, comprises seven members includingthe Permanent Secretaries of the Ministry of finance, Ministry of Labour and Ministry of Public Service; four people who are not public officers, but areknowledgeable or experienced in matters relating to the administration of retirement benefits schemes, banking, insurance, finance, law accounting, economic or actuarial studies; andthe URBRA Chief Executive Officer.
It is the four board members who are not public officials, that the High Court disqualified from holding positions on the URBRA Board.
The four board members’ appeal against High Court ruling, irked Court of Appeal judgeChristopher Gashirabake, who has now asked the Minister of Finance Matia Kasaija, who appointed the current board and its chairman, to respect the order, and two other recommendations made on the matter by Cabinet and theAttorney General.
“I find no reason to interfere with the Orders of the High Court at this stage. The status quo ante the Board decision made on 8th May 2024 shall continue to prevail at the 1st Applicant as was ordered by the High Court.Accordingly, this application is dismissed,” Justice Gashirabake concluded in his 20 page ruling on the matter on April 25th.
He added that, “the issue for this court is whether this court can issue an order that preserves the applicants in office despite the High Court Orders that find them unqualified and unfit for the positions they seek to hold on to. I find this unsafe to do so given the important public mandate of the 1st Applicant. I find it most puzzling that a government Minister has chosen to defend them, in total disregard of the Attorney General’s advice.”
Justice Gashirabake said court had also taken into consideration the opinion of the Attorney General and noted the advice given to the Minister to implement the Orders of the High Court.
“The balance of convenience is to allow for this process to continue to return normalcy at the 1st Applicant (URBRA) and protect the interest of savers, pensioners and thenational economy. Therefore, the Minister ought to respect the constitutional function of the Learned Attorney General and respect his legal opinion on this matter. Similarly, he ought to respect the decisions of Cabinet and take measures to comply with them.”
The board, comprising former MPs, and representatives from the line Ministries of Finance, Gender, andPublicService, fired the CEO of URBRA Martin Anthony Nsubuga on May 8, 2024, alleging that he was incompetent, but encouraged him instead to apply when the position was advertised. They then went on to appoint an acting CEO, Rita Nansasi Wasswa. The Court of Appeal has now concluded that Nansasi’s Acting as URBRA CEO was in defiance of an earlier Court Order halting the process of her appointment.
President Yoweri Museveni had also late last year threatened to block “political failures” from appointments to boards, as investigations into URBRA affairs became public after CEO Martin Nsubuga was sacked in May last year.
On November 5, 2024, Head of Public Service and Secretary to the cabinet Lucy Nakyobe wrote to the Minister of Finance Matia Kasaija expressing concern about the appointment of members without requisite qualifications to statutory Boards.
“At the 36th Cabinet meeting held on 28 October 2024, H.E the President raised concerns on appointment of politicians who have failed in elective politics to statutory boards and that the appointments are marred with favoritism.”
Nakyobe added that, President Museveni “cited examples of the Uganda Retirements Regulatory Authority and the Tax Tribunal where politicians on boards are causing confusion in the agencies; transforming board membership into full time jobs yet these are supposed to be part time assignments and engaging in politicking. As such this was affecting service delivery and undermining the credibility of government.”
URBRA is an autonomous body established by virtue of Section 2 of the Uganda Retirement Benefits Regulatory Authority Act 2011, Act No. 15 of 2011. It is responsible forregulating the establishment, management and operation of retirement benefits schemes in Uganda in both the private and public sectors. NSSF is one of entities it regulates.
What the High Court said
“This court having found that the 2ndrespondent’s (URBRA) board is not properly constituted or that it is constituted by persons who lack requisite qualifications, it is only fair and in the interest of the general public or the retired persons or pensioners that they are stopped from continuing to manage or sit on the board,” ruled Justice Musa Ssekaana.
“This court issues a declaratory order to the effect that the decision of the Minister of Finance (1strespondent) to disregard the order of court stopping the removal of the applicant (Martin Anthony Nsubuga) from office was contemptuous and is accordingly cautioned. The applicant is awarded costs of this application.”
What the Appeals Court has said
“As I am satisfied that the executive arm of government is working on a solution that will solve this leadership problem, I find that granting an order of stay/injunction (as requested by the URBRA board chaired by Junjura) in the matter will derail Government’s resolution process and spur even more confusion. Therefore, if the Minister’s concerns for the public are legitimate, he should work closely with the Attorney General as the Principal legal adviser and his colleagues in cabinet to expeditiously comply with their directives,” ruled JusticeGashirabake.
“I am further fortified in my finding by the Cabinet directive (annexure F to the Respondent’s affidavit in reply) issued to the Minister. This directive was forwarded to the Minister by the Head of Public Service and Secretary to Cabinet by a letter dated 5th November 2024. The directive expressly directed for the retention of the Respondent in office and further invited the Minister to meet the President over the retention of the 2nd Applicant (Hon Junjura) as Chairperson of the Board in view of intelligence reports received about him.”
