Two employees of the Uganda Railways Corporation (URC) charged with causing financial loss of $38,200, equivalent to shillings 146 million, to the government, have been released on bail.

Nicholas Kakooza, a mechanical engineer, and Peter Chrys Katwebaze, the assistant chief mechanical engineer, were on Thursday (March 21, 2024) charged at the Nakasero-based Anti-Corruption Court.

They were charged with one count of causing financial loss contrary to section 20(1) of the Anti-Corruption Act of 2009 as amended   

Senior Principal Grade One Albert Asiimwe on March 22, 2024, freed Kakooza and Katwebaze on a cash bail of shillings 3 million

Magistrate Asiimwe stated that the three sureties presented by the accused were substantial enough to ensure the accused would appear and attend their trial.

Nester Byamugisha, the lawyer representing the accused, assured the court that his clients would attend their trial wherever they are required, reaffirming their commitment to comply with the bail terms.

“After considering the arguments presented by both the defence and the prosecution, I find the sureties presented to be substantial. Therefore, I hereby grant bail to the accused persons," Asiimwe said

 Prosecution’s case

It is alleged that Kakooza and Katwebaze, during the month of August 2021 at the Uganda Railways Corporation offices at Plot 57 Nasser Road in Kampala City, while employed by URC as a mechanical engineer and assistant mechanical engineer respectively, caused irregular payment of an additional $38,200, approximately sh146m, to the Kenya Railways Corporation for security and transportation of four locomotives procured by URC.

The prosecution, led by Chief State Attorney Gloria Inzikuru from the Office of the Director of Public Prosecutions (ODPP), alleges that the locomotives had been procured from Chwengamwe in 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.

 What the law says

Under section 20(1) of the Anti- Corruption Act, the offence of causing financial loss elicits 14 years in jail or a fine not exceeding sh6.7m