today's Pick
LC bicycle scam: Court set to deliver verdictPublish Date: Jun 27, 2014
LC bicycle scam: Court set to deliver verdict
  • mail
  • img
Interdicted local government permanent secretary John Kashaka Muhanguzi is accused of sham LC bicycle importation. FILE PHOTO/Nicholas Oneal
newvision

By Edward Anyoli   

KAMPALA - The Anti-Corruption Court is expected to deliver its judgment today in a case where interdicted local government permanent secretary John Kashaka Muhanguzi is accused of sham LC bicycle importation that cost government over sh4bn.

Kashaka’s co-accused are; Henry Bamutura (the principal accountant), Robert Mwebaze (Principal procurement officer), Sam Emorut (assistant commissioner for policy and planning), Timothy Musherure and Adam B. Aluma, an administrative officer.

During the trial conducted by Justice Catherine Bamugemereire, 17 witnesses testified, most of them saying the process to secure the 70,000 bicycles was irregular.

Prosecution led by principal state attorney Jane Frances Abodo, during final submission, asked court to convict all the accused, saying prosecution had proved beyond reasonable doubt.

Silva Kakumba, a court assessor, also asked court to convict all the accused.

He said Kashaka, in a letter dated March3, 2011 to Bank of Uganda, deliberately authorised a payment of 40% letter of credit which he did without the approval of the contract committee.

The former PS and Bamutura are accused of causing financial loss by authorising payment of US$1,719,454.58 to the purported supplier M/s AITEL, despite being warned by Bank of Uganda that documents presented by Stanbic Bank did not comply with terms for letters of credit.

The two, according to prosecution, also wrote to Bank of Uganda amending the conditions for the final destination of the bicycles from the villages and parishes to Kampala. They never consulted the contracts or adjusted the contract price accordingly.


Kashaka (right) with family members at the Anti-corruption Court in 2012. PHOTO/Kennedy Oryema

The State also accuses Kashaka and Emorut of signing the bicycles’ contract with irregularly amended terms which allowed payment of 40% of the money on presentation of shipping documents instead of full payment on delivery of the bicycles.

They also allegedly extended the bicycles’ delivery period by one month.

According to the State, Mwebaze also advised bidders to ignore technical specifications and reduced the bid security to sh300m without consulting the contracts committee.

Among other complaints, Emorut, Mwebaze, Aluma and Musherure, are accused of irregularly advising that the M/S AITEL met the minimum requirements and experience of having supplied 70,000 bicycles in a single lot.

They also irregularly recommended that M/S AITEL had complied with the payment terms.

The State also argues that in addition, the four recommended M/s AITEL despite it having no joint venture agreement with Amman Impex as stated in the solicitation documents.

According to the State, they should have disqualified M/s AITEL.


Also related to this story

Kashaka pinned in sh4b LC bicycle scam

Insurer says fraud halted sh1.1b LC bicycle payment

Bank of Uganda blamed for LC bicycle scandal

Accountant General denies role in LC bicycle scam

Firm fails to deliver LC bicycles

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Five inmates from Kakika government prison in Mbarara have been killed and several others injured after a lorry they were traveling on overturned....
Kenyan and Ugandan governments have struck a deal that will see Kenyan fishermen operating in Migingo Island freely on the Ugandan waters....
Uganda alert after Ebola reports in DRC
Ugandan health experts are monitoring neighbouring Democratic Republic of Congo where suspected cases of Ebola have been reported....
African Union to set up court to rival ICC
Complaining of bullying in the international justice arena, African leaders are forging ahead with plans to set up their own regional court - and give themselves immunity in the process....
Monkey study dampens hopes for AIDS cure
The monkey version of HIV can take refuge from anti-AIDS drugs within days of entering the body, a study said Sunday, dampening hopes for a human cure....
Two dead in accident involving King Oyo
TWO UPDF soldiers guarding Toro King Oyo Nyimba on Sunday died instantly along Mityana Mubende Road when the King’s convoy was involved in an accident...
With the recent increase of the HIV prevelance rate, Is Uganda losing the fight against the disease?
Yes
No
Can't Say
follow us
subscribe to our news letter