Jumatatu, 24 Oktoba 2022

INTERNAL AUDIT DIRECTOR HOPE TO GET 1.2BN/- COMPENSATION MELTS

By FAUSTINE KAPAMA-Judiciary

THE High Court’s Labour Division has nullified the Commission for Mediation and Arbitration (CMA) Award, requiring the Board of Trustees of National Social Security Fund (NSSF) to compensate former Director of Internal Audit, Pauline Mtunda, over 1.2bn/- for unfair termination.

Judge Salma Maghimbi ruled in favour of NSSF, the applicant and the Attorney General after allowing an application for revision lodged against the former employee, the respondent, to challenge the jurisdiction of the CMA to entertain such labour dispute.

The judge held that the respondent was a public servant, thus ought to have exhausted available remedy to address his grievances in regard to the position given by the Court of Appeal on a similar matter as per provisions of section 32A of the Public Services Act (PSA).

“In regard to (such) position and Section 32A of the PSA, the respondent being a Public Servant and the dispute before CMA being a dispute of unfair termination of employment, the CMA had no jurisdiction to entertain the matter. Consequently, all proceedings and the Award are hereby nullified,” she ruled.

During the hearing of the application, the counsel for the applicant had contended that the application which originated from the CMA was incompetent for contravening Section 32A of Public Service Act of 2002 as amended in written laws (Misc. Amendment) Act No. 3 of 2016.

She submitted, therefore, that on March 04, 2022, the CMA determined on the matter which it had no jurisdiction, consequently both proceedings and the Award need to be quashed or nullified.

Judge Maghimbi went through the provisions under the PSA and the National Social Security Fund Act on the meaning of a public servant as well as the pubic office and concluded that the applicant was a pubic office and that the respondent was a public servant.

“The applicant being a public institution and by the definition of the term public servant under section 3 of the PSA, the respondent was a public servant, hence the provisions of the PSA are applicable in this case,” she said in the judgement delivered recently.

Further to that, the judge said, as gathered from the submissions of both parties and the records of the revision, it was undisputed that the respondent was a public servant. In addition, she said, it was also undisputed that the respondent was terminated in July 2017, a termination which aggrieved him.

“Now, following recent amendments of the PSA, which came to force on November 18, 2016, there was introduced a new Section, Section 32A which provide (that) a public servant shall, prior to seeking remedies provided for in labour laws, exhaust all remedies as provided for under this Act,” she said.

According to the judge, such provision was well elaborated by the Court of Appeal in the case of Tanzania Posts Corporation Vs Dominic Kalangi, Civil Appeal No. 12 of 2022.

In that case, the Court held, "...it is unambiguously dear that all disciplinary matters or disputes involving public servants are exclusively within the domain of the Public Service Commission whose decision is appealable to the President. (….) the CMA has no jurisdiction to adjudicate upon such matters."

The respondent was employed by the applicant on July 15, 1997 as Auditor III and promoted to several positions. On July 11, 2017, he was terminated while holding the position of the Director of Internal Audit.

On the August 7, 2017, the respondent filed labour dispute before the CMA for Ilala, claiming for unfair termination. Such dispute was greeted with objection, challenging the jurisdiction of the Commission to entertain the matter. Such objection raised by the applicant was overruled.

Following such a decision, the CMA proceeded to determine the dispute and the Arbitrator rendered an award in favor of the respondent, holding that his termination was unfair both substantively and procedurally.

The applicant was ordered to pay the respondent compensation to the tune of 1,277,398,854/20 as terminal benefits. Dissatisfied by the award, the applicant lodged the application in question and raised several grounds, including the question of jurisdiction.

Judge Salma Maghimbi.
Court Hammer.
Labour Court building in Dar es Salaam.

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