Nytil dismisses staff amid probe into workers’ sacco

Southern Range Nyanza Limited (Nytil) has dismissed two employees who were at the centre of efforts to probe alleged irregularities in the company’s workers’ sacco, sparking accusations of victimisation and unlawful termination.

Mr Wycliffe Wamembo and Mr Julius Webisa were dismissed last month following disciplinary proceedings in which management cited ‘gross insubordination’ and ‘fundamental breach of obligations’ under the Employment Act.

The two, formerly attached to the quality control department, had been transferred to the garments department effective October 16, 2025. Management says they resisted the transfer, leading to disciplinary action.

However, the dismissed employees claim they were targeted for pushing accountability reforms within the Southern Range Nyanza Workers’ Association, a sacco with about 2,000 members.

‘The association has gone for more than 10 years without elections, annual general meetings (AGMs) or accountability,’ Mr Wamembo said at the weekend.

He alleged that members have also been denied access to passbooks and that the sacco runs businesses generating more than Shs500 million annually without transparent profit sharing.

Mr Wamembo further claimed that the association was registered as a limited company with directors appointed by management without members’ knowledge, and that whistle-blowers pushing for reforms have been intimidated. Mr Webisa called on the Inspectorate of Government and the Uganda Human Rights Commission to investigate alleged corruption and labour rights abuses within the sacco.

‘We seek accountability for workers’ savings over the past 10 years and justice for what we believe is illegal dismissal without payment of benefits,’ Mr Webisa said.

Their dismissal followed a May 8, 2025, letter they wrote to sacco leadership on behalf of 314 members, demanding an AGM, audited financial statements covering at least eight years, issuance of members’ passbooks, and disclosure of loans, deductions, and bonuses.

On October 29, 2025, their lawyers, Wasswa P Silas and Co Advocates, wrote to the sacco’s governor general demanding compliance with members’ demands. One of their lawyers, Mr Jacob Muduaulira, said the dismissal was unlawful and intended to silence calls for accountability.

‘The sacco was registered as a company limited by guarantee without share capital, yet it reportedly owns supermarkets and may have funded other businesses. The sums involved could run into billions of shillings,’ Mr Muduaulira said.

He argued that the transfer altered the scope of work and therefore required employee consent, which his clients did not give. He also faulted management for rejecting their request to be accompanied by lawyers during disciplinary hearings.

‘That violated the principles of natural justice and the right to representation. We intend to seek redress from the labour officer and, if necessary, the Industrial Court,’ Mr Muduaulira added.

Company response

When contacted for a comment, the group head of human resources, Mr Anthony Katta, on Sunday said he was busy, but promised to get back to the reporter, which he hadn’t done by press time last evening. In minutes of a disciplinary committee meeting seen by this reporter, Mr Katta said the transfers were conducted in line with the company’s internal framework, which allows management to redeploy staff across departments without altering salary, position, or benefits.

Mr Katta said the transfer of Mr Wamembo was lateral and could not be termed forceful or in bad faith, and warned that failure to report to the new duty station would amount to abandonment of duty.

Ms Harriet Mawano Kyolaba, a member of the disciplinary panel, advised against conflating sacco governance issues with internal staff transfers. Separately, the sacco’s governor general, Mr John Waako, in a March 28, 2025, communication, said the association had recorded ‘significant successes’, including growing membership to 1,931 by December 31, 2024, and posting a net surplus of Shs504.5 million. He said members were set to receive bonuses based on the length of their membership.

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