Trial of former Global Fund project boss starts

By Edward Anyoli        

The trial of former Global fund project coordinator Dr.Tiberius Muhebwa charged with causing financial loss of sh108m to government starts this morning at the Anti- Corruption Court before Justice Lawrence Gidudu.

Muhebwa  is jointly  charged with  two former bosses of DFCU bank Robert  Katuntu  former managing  director of DFCU and  Godfrey Lule former  head of treasury  are charged   with abuse of office over loss of sh479m belonging to government.

Magala Kituuma, city lawyer is   charged with conspiracy to defraud government of sh295m belonging to Global Fund project.

Prosecution  led by  state  attorney Josephine  Namatovu alleged  that  in November2004, at the Project  Management  Unit offices  in  Kampala , being  a person  employed  by  Uganda  Government  as a project  coordinator , abused  his office when he deliberately  sold Global  Fund U$1m( about sh8m)  to DFCU bank at a  lower rate  of sh1712 per dollar, leaving  a better rate of sh1729 per dollar that  was  offered  by Stanbic bank.

On  the  second  count, Muhebwa is accused  of causing  financial  loss  of sh100m  when  he  allegedly  sold  Global  Fund dollars  at   lower  rate of  sh1700 per dollar to DFCU  bank   leaving  a better rate of sh1725 per dollar  that  was offered by  Stanbic bank and  this prosecution said had been brought  to his notice by finance department   that such an act  would cause loss  of sh100m  to government.

Katuntu , Lule  and  Kituuma  are facing  charges  of  conspiracy  to defraud   Government  of sh295m which was allegedly  and fraudulently raised  by Katuntu and Lule through manipulation of  Global  Fund  foreign exchange rates and illicitly  paid  Kituuma as brokerage  fees claiming that  Kituuma had introduced Global Fund account  to DFCU bank. They denied the charges.

It is alleged that  Lule  in April 2004, at DFCU bank in Kampala  being   employed  as  the  head of   treasury  in  abuse  of authority  of  his office , did an arbitrary act, when  he fraudulently  directed   the staff of DFCU ‘s bank  to convert  Global Fund dollars in  sum of $1m at an inflated  foreign exchange rate of sh1,920 per dollar which was much  higher  than the rate  of 1908 per  dollar.
                                              
It is  alleged  that  Lule while  employed  by  DFCU bank a company in which  government had shares, fraudulently  directed  the  bank  to convert  Global  Fund dollars in  sum of $2m at an inflated  foreign exchange  rate of sh1,839  per dollar, which  was  much higher than  the rate of sh1,815 thereby raising an illicit difference  of sh48m.

On  another charge  of  abuse of  office, Lule  is  accused   fraudulently directing bank staff to convert  Global Fund dollars amounting to $1m at an inflated  foreign exchange  rate of  sh1,825 per dollar, which  was much  high than the rate  of sh1,810  raising an illicit difference of sh15m an act prosecution said  is prejudicial   to  the interest of  his employer.

Lule  is also  accused  of fraudulently  converting another Global Fund money  amounting  to $1m at an inflated  foreign  exchange rate  of 1,697 per dollar  which  was higher  than sh1,682  causing  an  illicit difference of sh15m.

Prosecution  alleged  that  did another an arbitrary act  when  he  directed  the bank staff  to convert $2m at an inflated  foreign exchange  rate of sh1,739 per dollar instead of 1,730 raising an illicit difference of sh18m.

On  the  last  count of abuse of office  Lule  is accused  of  an arbitrary act when  he allegedly  directed  bank  staff  to convert  Global Fund dollars amounting  $4m at an inflated  foreign exchange rate of sh1,714 instead of sh1,700 leaving  an illicit  difference  of sh56m.

Meanwhile prosecution said Katuntu being employed as the general manager of DFCU paid sh56m which was fraudulently raised by Lule through manipulation of Global Fund foreign exchange rates.

Katuntu is  further  accused of approving  instructions directing  the staff of DFCU bank   to convert Global Fund  dollars  amounting  to $4m at an inflated  foreign  exchange rate of sh1,689 per dollar  instead of 1,665 leaving  an illicit difference  of sh96m, an act prosecution said  is  prejudicial.

Prosecution said Katuntu in August 2005, at DFCU bank office in Kampala being employed  as  the general manager a company in which  government  had shares abused  his office when  he allegedly paid sh35m which  had been fraudulently raised by  Lule through manipulation of Global Fund foreign  exchange falsely  claiming  that it was commission fees for soliciting Global Fund business.