Ministry of Trade PS Geraldine Ssali at the Anti-Corruption Court in Kampala on July 19, 2024. PHOTO/ABUBAKER LUBOWA
Ms Geraldine Ssali, the Trade ministry Permanent Secretary (PS), was on July 19 slapped with three charges in the Anti-Corruption Court.
According to an amended charge sheet that was presented to the Nakasero-based anti-graft court yesterday, under the charge of abuse of office, the Director of Public Prosecutions (DPP), contends that PS Ssali, during the Financial Year (FY) 2021/2022, irregularly introduced Buyaka Growers Cooperatives Society Ltd among the cooperatives to be compensated for the war loss by the government. The DPP avers that Ms Ssali did this while knowing that Buyaka Growers Cooperatives was not on the list on the request for the supplementary budget dated August 4, 2021.
Under the charge of causing financial loss, it’s the prosecution’s case that PS Ssali, during the FYs 2021/2022 and 2022/2023, made payments to Kirya and Co Advocates totaling more than Shs3.8 billion meant for Buyaka Growers Cooperatives Society Ltd. This, prosecution adds, was in contravention of the Treasury instructions of 2017.
In the last count of conspiracy to defraud, prosecution contends that PS Ssali, alongside lawmakers Michael Mawanda Maranga (Igara West), Ignatius Mudimi Wamakuyu (Elgon County), Paul Akamba (Busiki County), between 2019 and 2023 conspired to defraud government of more than Shs3.4 billion, which was intended for the war loss compensation to Buyaka Growers Cooperative Society Ltd.
Others facing this particular charge of conspiracy to defraud the government of more than Shs3.4 billion are Mr Julius Kirya, the managing partner of Kirya & Co Advocates, and Mr Leonard Kavundira, the principal cooperative officer in the Trade ministry.
New charges
The new alternative charges that were introduced against the accused, who are already on remand, include receiving stolen property against lawmakers Mawanda and Wamakuyu; a new alternative charge of stealing by an agent and money laundering against Mr Kirya; and another new alternative charge of abuse of office against Mr Kavundira.
Mr Mawanda under the charge of diversion of resources, is accused of having converted public funds amounting to more than Shs1 billion for purposes unrelated to that for which they were intended. His counterparts Wamakuyu and Akamba are accused of converting public funds amounting to more than Shs2.3 billion and Shs200m, respectively for the same government compensation purpose.
On July 18, the state slapped new alternate charges against lawmakers Mawanda and Wamakuyu as well as Mr Kavundira and Mr Kirya. Charges of receiving stolen property were filed against the two legislators, while Mr. Kirya faced additional alternative charges of theft by an agent and money laundering. An alternate charge of abuse of office was brought up against Mr Kavundira.
Defence lawyers Caleb Alaka and Evans Ochieng vehemently objected to this amendment, arguing that the new charges were being brought in bad faith and for purposes of frustrating bail applications by the two legislators and their co-accused.
The lawmakers, the lawyer, and the Registrar of Cooperatives featured prominently in a report that the Sectoral Committee on Tourism, Trade and Industry presented to the House last October following an inquiry into the governance of and value for money for budgetary appropriations to cooperatives.
The inquiry, which was conducted on the orders of House Speaker Anita Among, focused on how cooperatives across the country were compensated during the period from Financial Year 2011/2012 to 2022/2023, for losses incurred during the 1979 liberation and the bush war of 1980/1986. PS Ssali was also extensively named in the 210-page report.
Kickbacks
The report accused PS Ssali of using her husband, Mr Victor Busuulwa, as a conduit through whom she received at least Shs936m out of the Shs2.2 billion paid to one cooperative, Bwavumpologoma Cooperative Union.
The report alleged that one of the beneficiary cooperatives, Bwavumpologoma Growers Cooperative Union, which received compensation amounting to Shs1.7 billion via the Masaka Diocesan Treasury, had received the payment prior to its registration and verification. Whereas the cooperative was found to have been paid on November 25, 2021, its registration certificate was issued on March 4, 2022, weeks before a parallel verification committee was formed at the behest of PS Ssali.
According to the report, PS Ssali used her position to influence the said payment even though its registration had been carried out irregularly and in contravention of the provisions of the Cooperative Societies Act, 2020.
The committee report revealed that on May 16, 2021, Bwavumpologoma Cooperative deposited Shs350m on the account of Wilson Kasule, who on the same day deposited Shs300m on Mr Busuulwa’s account in Centenary Bank, Kabalagala Branch.
On November 29, 2021, Masaka Catholic Dioceses deposited Shs848m in the bank account of Mr Francis Lwanga. Mr Lwanga told the committee that he had withdrawn Shs600m, out of which he handed Mr Busuulwa Shs446m.
Again on December 8, 2021, Fr Deus Sekyewo deposited Shs150m on Mr Lwanga’s account. The amount was the following day deposited on Mr Busuulwa’s account by the same Mr Lwanga. On December 9, 2021, Mr Lwanga deposited another Shs150m on Mr Busulwa’s bank account.
“Mr Victor Busuulwa informed the committee that he received money to purchase machinery, and that he needed time to check his records to verify the amount. However, Mr Francis Lwanga informed the committee in response that they have no agreement with Mr Victor Busuulwa to procure machinery,” the report notes, adding that Mr Busuulwa received some of the amounts in cash.
Ghost cooperatives
PS Ssali stands accused of a litany of things. These include approving the excess payment of Shs37.3 billion to some cooperative societies; approving payment of Shs1.7 billion to Okoro Cooperatives Society before its verification; approving excess payment of Shs4.5 billion to Busoga Growers Cooperative Union; approving excess payment of Shs500m to Lango Cooperative Society; and approving the payment of Shs500m to South Bukedi Cooperative Union prior to its verification.
The Trade ministry PS is also accused of having approved payments to ghost cooperatives. A report of the Auditor General for the period ending June 2023 revealed that some of the Shs139b that the government paid out could have gone to ghost cooperatives. The report revealed that the Trade ministry didn’t have a record that captures the existence of some of the cooperatives that received the money.
“Shs139.147 billion was paid to cooperative unions. However, no individual file relating to the cooperatives listed was availed to prove the amounts being claimed for compensation and also existence of these cooperatives,” the report read in parts.
Unpaid cooperatives
The same report indicates that more than Shs18.6 billion that was paid to law firms and second parties for onward transmission to the cooperatives never got to the intended beneficiaries. The so-called intended beneficiaries had nothing to show that they had received the money.
“Payments amounting to Shs13.889 billion were made to persons and law firms other than the beneficiary cooperative societies who were acting as third parties for the cooperative unions. There was no evidence in form of confirmation or acknowledgement of receipt of monies by the cooperative unions,” the report reads in part.
The report raises the possibility that the third parties could have been used to facilitate theft of public funds.
“Third party payments may be a method of siphoning out funds to non-bonafide parties creating a risk of loss of funds,” it concludes.
The Auditor General’s report also reveals that only about Shs650m out of one tranche of Shs5.4 billion transferred to law firms was received by some of the cooperatives.
“Payments of Shs5.369 billion to cooperative unions through law firms was made directly to the bank accounts of the law firms for compensation of the war claims, but only Shs0.650 billion was actually received by the cooperatives unions as per their bank statements,” the report further says.
The State Minister for Cooperatives, Mr Fredrick Ngobi Gume, told Saturday Monitor that it was highly improbable that the third parties had failed to account.
“There must be documentary evidence to support the payments and remittances to the beneficiary cooperatives. I do not know why or how the cooperatives did not make the information available to the Auditor General. I would have to find out,” Minister Gume said.
The report does not mention the names of the law firms and third parties that are suspected to have received the money, but failed to pass it on to the cooperatives.
The matter of payments to law firms and third parties also featured prominently in a report of the House Committee on Trade. In fact, the report recommended that some of the said law firms be referred to the Uganda Law Council for “professional misconduct.”
Some of the third parties that were also involved in getting the said compensation include Mr Mawanda, who was heavily involved in the case of Mengo Growers’ Cooperative Union, and Kibakwi Agencies Limited Consultancy Services, who were involved in getting compensation for Kigezi Growers Cooperative Union Limited.
Budget overshot
In a related development, it has emerged that the Trade ministry overshot its budget by at least Shs10 billion. The budget in question had been set aside for compensating the cooperatives.
“Of the Shs17.5 billion paid out during the year to the Cooperative Unions and Societies, only Shs6.640 billion was provided for in the ministry’s approved budget and the excess payment of Shs10.850 billion was not supported by either the original Approved Budget or a Supplementary budget,” the Auditor General’s report disclosed.
The report further revealed that 11 cooperative unions that had not been listed in the ministry’s approved work plan ended up being paid Shs16.9 billion.
The Auditor General’s report does not list the beneficiaries in this category and what each of them took, but the report of the parliamentary committee on trade revealed that Lambuli Central Pulpery Cooperative Society got Shs4.7 billion; Jinja Multipurpose Cooperative Society got Shs4.8 billion; and Buyaka Cooperative Society bagged Shs3.5 billion.
It further discloses that Masaaba Cooperative Union got Shs5 billion; Bumwambu Cooperative Society Shs6.7 billion; Masaka Cooperative Union Shs7 billion; and Bwavumpologoma Growers Cooperative Union Shs2.75b.
