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Former Mulago accountant remanded to Luzira over graft


What you need to know:

  • Mr Nyeko who has been on the run is accused of involvement in the irregular payment of billions of shillings to private companies, Setramaco International Limited and Convention World Limited.

The former Assistant Commissioner Accounts/ head of accounts section of Mulago National Referral Hospital, Ponziano Nyeko, has been remanded to Luzira Prison over corruption related charges.

Mr Nyeko who has been on the run is accused of involvement in the irregular payment of billions of shillings to private companies, Setramaco International Limited and Convention World Limited.

The prosecution alleges that Nyeko and his co-accused, including former hospital employees and directors of the private companies, engaged in a scheme to defraud the hospital of millions of taxpayers' money.

The Nakasero-based Anti-Corruption court presided over by magistrate Abert Asiimwe remanded Nyeko until July 25 for his bail ruling as his co-accused are already on bail.

They include; Dr Byarugaba Baterana (former hospital’s executive director), Eng Edward Kataha, a former senior hospital engineer, Kenneth Wafula (former senior hospital administrator), Christopher Okware (former head of procurement and disposal unit) and Adah Kamucunguzi (former procurement officer).

Others are; Perezi Batanda, an assistant Engineer Bugema Village along Mbale-Tororo Road and Directors of Setramaco Limited and Convention World Limited, Robert Wasike and Catherine Winfred Nabwire.

They faces charges of abuse of office and causing financial loss regarding contested payments of billions of millions of taxpayers’ money, which they have all denied.

Prosecution alleges that Kataha and Okware abused their authority by irregularly requisitioning for a total of Shs3 billion to be paid to Setramaco International Limited for purported supply of consumables without following the established public procurement procedures.

It is alleged that during the financial year 2015/2016 and 2016/17 at the offices of Setramaco International in Kampala, Wasike and Nabwire being shareholders and directors of the company, used their said company to invoice Mulago National Referral Hospital of Shs3 billion as payment for purported supply of consumables for non-existent autoclaves with capacity of 1500 litres, having reason to believe that such invoicing for fictitious supplies would cause financial loss to the said hospital.

The state alleges that during the financial year 2019 and 2020 at Mulago Hospital in Kampala, Dr Baterana, Nyeko and Mwasa irregularly processed payment of Shs1.581 billion to Setramaco International Limited for routine servicing of autoclave without following the proper procedures for processing public payments.

The said money (Shs1.581 billion) was allegedly received by Setramaco International Limited directors, Nabwire and Wasike upon presenting fictitious invoices and that the same money was irregularly certified based on non-executed works.

The state further alleges that in the financial year 2016/17, at Mulago hospital in Kampala, Kamucunguzi being employed as procurement officer, abused her office and flouted the procurement procedures resulting into the irregular award of the said contract to Setramaco International Limited at a contract fee of Shs7.543 billion, an act that was prejudicial to the interests of her employer. Also in the same year, Wafula and Okware awarded the same company a contract worth Shs 196, 521,630 for relocation and re-installation of the multi-ironer from lower Mulago to upper Mulago without following the due process.

It is alleged that in the financial years 2016/17 to 2019/2020 at Mulago hospital in Kampala, Dr Baterana, Eng Kataha, Nyeko, Wafula, Okware, Kamucunguzi and Matanda being employed by the government, irregularly caused multiple payments to Setramaco International Limited and Convention World Limited all worth Shs774,277,860 for alleged relocation and re-installation of the multi-Ironer from Lower Mulago to Upper Mulago which was previously awarded to Setramaco International Limited and paid by Mulago hospital, having a reason to believe that such duplicate payments for works that were already paid for, would cause financial loss to Mulago hospital. It is stated that the said money was received by Wasike and Nabwire as directors and shareholders of the said company.

According to the charge sheet, in 2017/18, Okware and Kamucunguzi irregularly awarded a contract for procurement of Molten Blankets, Guiding Tapes and Conveyor Belt for the Laundry Unit worth Shs179 million to Convention World Limited and that Dr Baterana, Eng Kataha, Nyeko, Wafula and Kamucunguzi awarded the same contract that was in 2019 awarded to Setramaco International Limited at a cost of Shs186.9 million and the same money was received by Wasike and Nabwire.

It is alleged that in 2016/17, Dr Baterana, Wafula, Okware and Kamucunguzi awarded a Shs196.6 million to Setramaco International Limited for relocation of steam cooking pans from lower Mulago to upper Mulago.

The state alleges that in January and December 2019, Dr Baterana, Eng Kataha, Nyeko, Wafula and Kamucunguzi, caused a double payments of Shs198.8 million to Convention World Limited for alleged relocation of Steam cooking pans to upper Mulago, a contract previously awarded to the same company for no work done and paid to both Setramaco International Limited and convention World Limited through the directors, Wasike and Nabwire.