KAMPALA. The Inspector General of Government Irene Mulyagonja has pinned the Uganda Electricity Generation Company Limited (UEGCL) board for irregularly sacking the former Chief executive officer John Mugyenzi, and the manager finance and administration, Mr Emmanuel Lubandi. Justice Mulyagonja in the April 5 report to Finance state minister Fred Omach, a copy seen by this newspaper, observed that the board’s resolutions to send the two on leave without going through proper disciplinary process “were irregular.”

“The summary termination of the services of the CEO and manager finance without going through the disciplinary process provided for by the human resources manual, their employment contracts and the Employment Act was unlawful and unfair,” the report reads in part.

Under the body’s HR manual, the report notes, gross misconduct warrants an employees’s instant/summary dismissal provided that in all cases, it is after a disciplinary hearing.

However, since the termination of the two is currently the subject of civil proceedings at the Industrial Court, the ombudsman refrained from making recommendations.

The board led by Dr Stephen Isabalija sacked the duo on claims of causing a financial loss of Shs103 million, and immediately embarked on the process of recruiting replacements.

According to the board, the loss resulted from the premature retirement of the company’s fixed deposits. The board constituted a probe into management of the accounts, then directed Mr Lubandi to hand over all company property and take leave, but was accused of incompetence, misadvising management, failure to apply accounting, and eventually fired.

The board then turned the heat on Mr Mugyenzi for supervising the unjustifiable management of UEGCL and was also fired. Both were fired in 2014.

Investigations, however, revealed “there was no policy or guidelines at UEGCL on management of fixed deposits.”

“The practice was that management made the decisions on when to fix and retire deposits depending on the circumstances. Reports would then be prepared and submitted to the board annually,” the report reads.

In the ongoing suit in which the duo are challenging their termination, Daily Monitor understands UEGCL had budgeted to spend Shs172 million on defending itself, a figure which is 19.5 per cent more than what the body spent on legal fees the previous year.

The IGG commenced investigations into UEGCL management after receiving complaint that the sacked staff had been victimised and that the board had engaged a process of recruitment of a human resources manager riddled with irregularities and fraud.

The report also indicates that the “board irregularly took over the process of recruitment of the human resource manager, as their function is only limited to positions of CEO, company secretary and internal auditor.”

Justice Mulyagonja in recommendation cautioned the board to refrain from “taking over management roles, and to be respectful of management.” As for recruitment of the HR, Ms Harriet Oyulu, the IGG recommended no further action. Mr Omach was not available for comment on the way forward as he did not pick or return calls for two days.