NRM exonerates officials named in market funds saga

By Mary Karugaba

The NRM caucus has exonerated a number of officials implicated in the mismanagement of the sh10b presidential project on markets by the Parliamentary Public Accounts Committee (PAC).

PAC in its report presented to Parliament recommended that the implicated officials be punished for pilfering money meant for supporting small businesses. The money was channeled through the Micro-Finance Center where the former Vice President Dr. Specioza Kazibwe was the Board chairperson.

The probe report dated April 2014,  implicated Kazibwe, Secretary to the treasury, Keith Muhakanizi, ex- Finance minister Syda Bbumba, the then state minister for Micro-Finance Ruth Nankabirwa and Senior Presidential advisors; Gen. Salim Saleh (military matters) and Moses Byaruhanga (political affairs) among others.

According to sources that attended the closed door meeting, members debated each recommendation and agreed that some of the individuals implicated did not directly deal with the funds and therefore should not be held personally accountable.

The members reportedly discussed the involvement of Senior Presidential advisors; Gen. Salim Saleh (military matters) and Moses Byaruhanga (political affairs) and discovered that their role stopped at recommending members. “The members said they did not directly direct on the use of funds. It was upon the responsibility of the officer in charge to reject them or not,” a senior member of the Caucus told journalists at parliament.

Kazibwe was also reportedly cleared after members were informed that the Inspector General of Government (IGG) had investigated the matter and cleared her. In the report she was accused of influence peddling, abuse of office and interfering with management work leading to loss of funds.

According to PAC report, the MPs accused Saleh of influence peddling and using public funds for politicking. Saleh reportedly wrote an e-mail to Microfinance directing the officials to handle a list of beneficiaries who included women and youth league leaders from Arua and Jinja.

The MPs also accused Byaruhanga of occasioning financial loss through groups he allegedly smuggled into the programme that failed to account for over sh100m. These included Muslim founded associations, car washers and food vendors in Rubaga division.

MPs also recommended that MSCL staff; Rwabukuku, finance head Jackson Sabila, zonal manager Joseph Okello and Kampala credit officer Hellen Petronilla Masika be held criminally liable for causing financial loss of over sh3b.

During the caucus meeting, members reportedly agreed that further investigations by Police be carried out on the reported financial loss by the Microfinance Center staff.

The caucus was chaired the Caucus deputy chairperson David Bahati. Bahati was recently appointed state minister of finance in charge of Planning.  When contacted, Bahati though confirmed that the Caucus discussed the report, he declined to reveal the details.

Members told New Vision that the debate at first was heated up as members rejected proposals to exonerate the members. Some members reportedly wondered whether some people should be exonerated and others left out.  

This reportedly prompted Bahati to request the then ex- Finance minister Bbumba and the then state minister for Micro-Finance Nankabirwa who have also been implicated to defend themselves. The two ministers reportedly defended themselves but the members were still divided over their case.

 “While others agreed to exonerate them, others refused,” a source said. After hours of debate without making headways, the caucus reportedly resolved that let the matter be handled in the House. “The two members will defend themselves again in the House. We shall argue the matter since we are going to debate each recommendation,” the source said.

According to PAC report, the money was approved though a supplementary budget to   improve businesses for market vendors and small business operators, New Vision has leant  was mismanaged by politicians and government officials, a parliamentary probe team has revealed.

The project was based on a concept paper by the Joint Steering Committee (JSC) whose members included Workers MP Sam Lyomoki.

The money was disbursed close to the 2011 general elections and majority of the beneficiaries believed that it was political grant according.

MPs further recommended that Nankabirwa be relieved of her ministerial appointment. MPs accused Muhakanizi of including sh14.7b in the supplementary budget which was not originated by any ministry or department, contrary to the Budget Act 2001.

The MPs revealed that funds were channeled to MSCL without modalities of how they would be disbursed to beneficiaries.
Muhakanizi and Betty Kasimbazi, the accounting officer in the finance ministry were held responsible for ignoring the request for a memorandum of understanding and transferring the money to MSCL without clear guidelines.