Court orders Kampala University to pay 4bn/- NSSF contributions

DAR ES SALAAM: THE High Court, Dar es Salaam Sub-Registry has ordered the Registered Trustees of Kampala University to pay over 4bn/- to the National Social Security Fund (NSSF) being outstanding members’ statutory contributions between November 2018 and November 2023.

Judge Wilfred Ndyasobera gave an order dated May 17, 2024, after the parties reached a settlement deed with regard to the model of payments of the amount in question. He ordered Kampala University, the defendant, to settle the amount to NSSF, the plaintiff, within 21 months from the date of the ruling of the court.

“The defendant shall pay the plaintiff a total sum of 4,015,637,076/08 being outstanding statutory contributions. The remittance of the sum shall be paid in monthly instalments of 200m/- for the period of 21 months effective from the execution of the deed,” he ruled.

The plaintiff instituted before the court a civil case by way of summary suit, claiming arrears of the statutory monthly social security contributions in respect of employees who are members of the Fund.

On August 14, 2023, the court granted the defendant leave to appear and defend the suit with an order that the written statement of defense be filed within 21 days from the date of the ruling.

In resisting the claims, the defendants, in her written statement of defence, presented for filing on August 31, 2023 prayed that the plaintiff’s suit be dismissed in its entirety with costs for lacking merits. While the suit was pending in court, the defendant expressed her willingness to settle the matter amicably out of court.

In consequence, the defendant wrote a commitment letter to the plaintiff requesting to pay the outstanding arrears in 21 instalments of 200m/- per month.

On that score, the parties agreed mutually to settle the dispute on the terms and conditions set out and thereafter they desired to record the settlement, which was deemed to be a decree of the court.

The parties agreed that upon the deed of settlement being filed in court it will have the same effect as a decree dully made by the court capable of being executed in the same manner as any other decree.

It was also agreed that in the event of default of any and, or the other terms of the deed of settlement, then such deed shall be enforceable as a decree of the court and the usual default clause shall apply.