Katosi road scandal: Senketto jailed as Byandala cleared, UNRA director's sentence quashed

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The multi-billion Katosi road saga, which caused public uproar, has unleashed its fangs again.

The Court of Appeal, led by Justice Geoffrey Kiryabwire, on Friday (August 22), sent the main protagonist, businessman Apollo Senketto alias Mark Kalyesubulula, to spend six years, six months and 30 days in prison.

Other justices on the panel, are Muzamiru Mutangula Kibeedi and John Oscar Kihika.

The appellate court upheld Senketto’s conviction after finding him guilty of uttering false documents and obtaining execution of a security by false pretences. The case involved a sh24.7b meant for the upgrade of the Mukono-Katosi-Nyenga road.

Immediately after the ruling, the court ordered for Senketto’s immediate arrest. He was taken into custody by security personnel and transported to Luzira Prison.

The conviction and sentence upheld by the appellate court were originally delivered by Judge Lawrence Gidudu of the Anti-Corruption Division of the High Court.

Byandala, ex-UNRA lawyer cleared

However, former works minister Abraham Byandala and former disbanded UNRA officials, including lawyer Marvin Baryaruha, Eng. Berunado Ssebbugga Kimeze (acting executive director), and Joe Semugooma (finance and administration director), were cleared of the offences of abuse of office and causing financial loss. Also acquitted is the former Housing Finance Bank official, Isaac Mugote.

The court set aside Semugooma's five-year sentence after finding that the prosecution had not presented evidence incriminating him of the offence of abuse of office.

“We accordingly set aside the judgment and orders of the trial court, as far as Semugooma is concerned, we order his immediate release unless he is held on other lawful charges,” Kiryabwire directed.

According to the court, the prosecution did not also present evidence implicating Byandala, Baryaruha, Kimeze, and Mugote in the crime.

The justices agreed with Gidudu that there was nothing illegal or criminal about the decision by Byandala to sign the contract because due diligence is permissible under the law to be done concurrently with performance of the contract.

The court also stated that the prosecution produced evidence that an order stopping the road works was issued, but did not prove to the court that the order was served on Byandala.

The justices also ruled that the prosecution failed to produce evidence of the actual loss occasioned to Government when the Katosi road works was temporarily halted.

According to the justices, the prosecution witnesses presented various sums such as shillings 5.8 billion to shillings 6.1 billion, out of the 24.7 billion as the value of work on the ground.

The judges, ruled that the element of loss occasioned was not proved and upheld Gidudu’s decision of acquitting the accused of causing financial loss.

The justices said there is evidence that 12.2 billion was paid to Cinghcho International Construction Corporation (CICO) for mobilising equipment and shillings 4.6 billion to Soka Gakkai International in the USA, which was owned by Timothy Lee Ms Coy, Michael Olvey and Richard Pratt for purposes of providing equipment.

The justices said although the equipment was never delivered from the USA, the mobilisation funds were paid out by CICO.

According to the justices, the prosecution failed to prove that the money disbursed to CICO in a sub-contract to carry out the road works on Katosi road was intended to deprive the government of 24.7 billion.

“The element of intent to deprive UNRA of the money was not proved by the prosecution, having disbursed the money for the mobilisation,” Kiryabwire noted.

Evidence that pinned Senketto, Senjako

The justices noted that Senketto was in possession of the forged Housing Finance Bank performance guarantee and presented them to UNRA to secure Katosi road contract.

The justices ruled that Senketto knowingly and fraudulently uttered to UNRA a false advance payment for sh24.7b, purporting the same to have been issued by State Wide Insurance Company (SWICO), whereas not.

“Based on the evidence, it is clear that Senketto knowingly uttered the false securities with the intent to deceive UNRA,” Kiryabwire noted.

The justices said Senketto also sourced the advance payment bond from UAP, knowing that the advance payment of sh24.7b had already been paid to Eutaw Construction Company.

The justices ruled that Senjako did not verify the forged securities that were submitted to UNRA by Senketto.

“It appears that Senjako was made aware at some point that the securities submitted by Senketto were not genuine. The question of what he did with that information is still unanswered,” Kiryabwire wondered.

In that regard, the justices found that Senjako neglected to carry out his duty and thus resulted in prejudice to UNRA.

Background

Court documents indicate that in 2010, a bid was presented to UNRA by Eutaw, Mississippi, which emerged the best evaluated bidder for road works on Katosi road.

Consequently, the contract worth sh162b was awarded to Eutaw Construction Company Incorporation of Florida for the construction of Katosi road yet the bidder for the job was Eutaw Construction Company of Mississippi.

According to court documents, as soon as the contract was signed, Senketto sought for a company that would implement the works and eventually agreed with Eng. Nuo Hong of Cinghcho International Construction Corporation (CICO) to execute the woks at a lower price.

The court documents indicate that CICO had earlier on been part of the prequalification but had been eliminated at that stage of the procurement for having been found incompetent.