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Uganda Railways Corporation (URC) former managing director has pleaded guilty to the charges of causing financial loss of sh146m to the Government.

Chief state attorney at the Office of the Director of Public Prosecutions (ODPP) Gloria Inzikuru on April 11, 2024, informed the Nakasero-based Anti-Corruption Court senior principal grade one magistrate Albert Asiimwe that Stanley Sendegeya, who is facing charges of causing financial loss, entered a plea bargain agreement with (ODPP).

“Your worship, the accused person agreed to pay a fine of sh4m and an additional 37% sh146m as compensation and in default he serves two years in jail,” Inzikuru said.

Plea bargain is an arrangement between the prosecutor and defendant whereby the defendant pleads guilty to a lesser charge in exchange for a more lenient sentence.

Sendegeya’s lawyer, Dr Beson Tusasirwe, confirmed to court that his client opted for a plea bargain regarding a loss of the sh146m.

“In the plea bargain agreement, the accused agreed that he made a decision, which caused a loss and he admits the offence,” Tusasirwe said.

Magistrate Asiimwe said the plea bargain will be concluded on April 15, 2024, after reading the brief facts of the case.

Sendegeya’s co-accused

Sendegeya’s co-accused, Eng. Nicholas Kakooza and Peter Chrys Katwebaze, who were charged before the same court denied the charge and have maintained their innocence.

They were charged with one count of causing financial loss contrary to Section 20(1) of the Anti-Corruption Act of 2009 as amended. The charge elicits 14 years in jail.

Kakooza and Katwebaze are accused of causing irregular payment of an additional $38,200 (approximately sh146m) to the Kenya Railways Corporation for security and transportation of four locomotives procured by URC.

It is alleged this happened in August 2021 at the URC offices at Plot 57 Nasser Road in Kampala city when Kakooza and Katwebaze were employed by URC as mechanical engineer and assistant mechanical engineer, respectively.

The prosecution team, led by Inzikuru, alleges that the locomotives had been procured from Chwengamwe in Kenya's port city of Mombasa to Nalukulongo in Kampala.

It is further alleged that the payment had already been made to GPR Leasing Africa under the contract for the supply, delivery, training and commissioning of four used locomotives. However, the accused purportedly made another payment.

According to the prosecution, the accused knew that making such extra payments would cause a financial loss to the government of Uganda.