By Herbert Ssempogo

THE IGG has recommended the immediate sacking and prosecution of the suspended National Forestry Authority (NFA) boss, Damian Akankwasa, over the sh900m saga. The IGG made the recommendation in a report on claims by Akankwasa that his wife, Juliet Katusiime, stole the sh900m he kept in their bedroom last year.

The IGG accused Akankwasa of abuse of office, failure to declare all his wealth and causing a financial loss of over sh2.8b to NFA through suspicious deals. The IGG suspects the sh900m could have come from such deals.

In a May 7 letter to the water and environment minister, Maria Mutagamba, the IGG said Akankwasa made arbitrary decisions disregarding formal procedures.

The IGG cited a tender awarded to Nile Plywood to harvest timber in Katugo Central Forest Reserve at sh62,500 per cubic meter, instead of sh82,500.

“The contract for the harvest of dying trees given to M/s Nile Plywood (U) Ltd after cancellation of the earlier advert was not subjected to another fresh advert for competitiveness and transparency,” the nine-page document read.

“His claim that the board, in its sitting of 15/11/2007 and 27/2/2008, evaluated and agreed to allocate M/s Nile Plywood (U) Ltd 100,000 more cubic meters was proved to be false. There was no resolution to that effect in the said minutes to the board.”

The investigation team rejected claims that the trees were ‘dying’. Forest officers there also confirmed that the trees were healthy.

“The executive director’s actions of giving 100,000 more cubic meters of round wood for harvest at sh62,500 instead of sh82,500 to M/s Plywood (U) Ltd resulted into a loss of sh20,000 per cubic meter, which was equivalent to sh2b,” the report said.

Akankwasa was also accused of causing another loss of sh760m when he, on June 17, 2009, awarded the same company licenses in Lendu Forest Reserve to harvest wood at sh46,000 per cubic meter, a rate set four years earlier.

“He ignored inflation and the depreciation of the shilling and the prevailing price of sh65,000 per cubic meter set by the price committee,” the document stated.

Akankwasa was also accused of causing a loss of sh100m after Woodco was awarded a contract to cut 100,000 eucalyptus trees at sh10,000 each instead of sh20,000. He was also faulted for giving away Nakawa Forest Reserve to Viro Holdings without considering other bidders, whom the IGG believe could have offered “better terms”.

Akankwasa’s troubles began last year when he claimed that his wife, currently on trial, stole sh900m he was keeping in their home in Naguru, a Kampala city suburb.

The money, Akankwasa claimed, was pooled by him, his brothers, John Bagambe and William Akankwasa, and 25 business associates to purchase a plot of land.

However, the IGG discovered that the brothers had no financial capacity to raise the money. Additionally, there was no evidence to that effect.

“The statements given by George William Akankwasa, John Bagambe and their 25 business associates were found to be inconsistent and untruthful,” the report said, adding that there was no evidence in any bank.

Akankwasa reportedly failed to satisfactorily explain the source of the sh900m yet there had been “minimum withdrawals” on his account.

“From the above dealings, it is highly probable that the sh900m Damian Akankwasa claimed to have been lost from his house and source of income for construction of his guest house at Plot 11 Balikuddembe Road, Naguru and the acquisition of the commercial building in Kabuyanda trading center in Isingiro district are either rewards or inducements for the under-pricing of forestry products,” the report added.

The team also questioned the source of the money he used to build the guest house, which was valued at sh580m by January 2010. The IGG further said Akankwasa never declared the guest house, which was described as being “in excess of his income”.

In addition, the IGG found that NFA paid sh836,489 in water bills yet the water was used to construct the guest house.

The IGG further questioned the source of sh50m Akankwasa paid for a house in western Uganda.