The Inspector General of Government (IGG) has directed the management of Lagan Dott to stop payment of the disputed Shs316.6m honoraria to the staff of the Uganda Investment Authority (UIA).
Ms Anne Twinomugisha Muhairwe, the deputy IGG, in a July 25 letter to the management of Lagan Dott, said any further payment of this money would result in more losses to the government since the UIA staff had already received Shs545m under the same unclear arrangement.
“The purpose of this communication is to direct you to halt any further payment of honoraria under the Kampala Industrial Business Park (KIBP) Project until completion of our investigations into the matter or until any further orders are given by this office,” the letter read in part.
Lagan Dott was contracted to develop key infrastructure in the Kampala Industrial and Business Park project in Namanve.
It was unclear whether the staff members who had previously received the Shs545m honoraria were also lined up to get the Shs316.6m payout.
Ms Munira Ali, the spokesperson of the Inspectorate, yesterday confirmed issuance of the letter, but said: “Right now, we can’t name the intended beneficiaries [of the honoraria] until we conclude the investigations.”
At least eight officials from the UIA, including Mr Robert Mukiza, the director general, and his deputy, have been on the spot for sharing the Shs545m honoraria among themselves.
Earlier, Ms Evelyn Anite, the Investment and Privatisation State minister, in a June 12 letter to Mr Morrison Rwakakamba, the chairperson, Board of Directors of UIA, made public last month, ordered the UIA staff to refund the money, which they declined.
Mr Mukiza reportedly received Shs82m, while his deputy Dr Paul Kyalimpa got Shs58m, Ms Patience Kabije, the contracts and claims manager (Shs43m), Mr John Bwambale Kyamakya, the transactional and contractual risk manager (Shs43m), Ms Amina Nassaka, the contracts and claims assistant (Shs17m), Ms Suzanne Akware Okissa, the records manager (Shs17m), Ms Joanitah Kambedha, a documentalist (Shs8m), and Mr Mwanga Muzamil and Mr Augustine Katale, both drivers (Shs4m) each.
Other staff that formed part of the KIBP project management team reportedly received money in the second tranche in Euros. These included the KIBP project manager, Mr Alex Nuwagira (Shs92m), Mr Felix Tumukunde Beinamaryo, the project engineer (Shs55m), Mr Emmanuel Muhumuza, the project architect (Shs49m), Mr William Sande, the project quantitative surveyor (Shs36m), and Mr Dominic Mugesera, the project accountant (Shs30m).
The sums are part of the €249m (about Shs1 trillion), which the government through the Finance ministry borrowed from the UK Export Finance and Standard Chartered Bank of London to finance the development of KIBP in 2018 to facilitate industrialisation, a project which includes tarmacking roads and bridges, a small and medium enterprise (SME) hub, and related amenities to ease investors setting up industries.
Dr Kyalimpa told Monitor on July 9 that the money was given to them legally after they were assigned additional roles in the KIBP project.
He said they were assigned duties of supervising the project when the contract of Owner’s Engineer (OE), the firm that had been contracted to supervise the works, was terminated on August 29, 2022.
“The work we did saved the taxpayers Shs5.9b because the previous contractor had asked for Shs6.4b yet we worked for only Shs545m. Secondly, the honoraria was paid for the extra service we offered as UIA staff, which is set out in the human resource manual,” he said.
“I am waiting for the investigation bodies mandated to carry out probes on corruption to complete their work and if they ask me to refund, I will do so,” he added.
But Ms Muhairwe in the letter to the management of Lagan Dott, wrote: “It is our responsibility to protect government funds and prevent any loss through irregular payments.
Article 230(2) of the 1995 Constitution of the Republic of Uganda as amended, and section 13(6) of the Inspectorate of Government Act, 2002, provide that ‘The Inspector General, may, during the course of his or her duties or as a consequence of his or her findings, make such orders and give such directions as are necessary and appropriate in the circumstances.’”
Order
Ms Evelyn Anite, the Investment and Privatisation State minister, in a June 12 letter to Mr Morrison Rwakakamba, the chairperson, Board of Directors of UIA, made public last month, ordered the UIA staff to refund the Shs545m, which they declined.