Solicitor General did not endorse sh1.3b NAGRIC semen deal

KAMPALA - The sh1.3b contract between the National Animal Genetic Resources Centre and Data Bank (NAGRIC & DB) and Kibbubu Agro Suppliers Ltd for the supply and delivery of animal semen was not cleared by the Solicitor General, as required by law, the court has heard.

The revelation emerged on January 16, 2025, when Faith Nyamwenge, a senior state attorney from the justice ministry and the prosecution’s 11th witness, testified in a case involving NAGRIC former chief Dr Charles Lagu, and nine others.  

The accused are alleged to have fraudulently procured animal semen worth sh1.3b.

Others are procurement officer Eziekel Phillip Mukani, farm manager Clement Nuwamanya, veterinary officer Dr Patrick Mawadri, deputy technical manager production Dr Wilfred Anthony Ntaate, Tadeo Mbazira, Charles Ezati, and Benda Katali. Mathias Wakulira and Yasinta Nabukenya, all directors of Kibbubu, are also charged.
During the testimony, Nyamwenge was guided by chief state attorneys Abigal Agaba and Gloria Inzikuru before Justice Lawrence Gidudu, the head of the Anti-Corruption Division of the High Court.

“The contract was signed prior to receiving the Solicitor General’s advice,” the witness stated.

According to Nyamwenge, the contract was signed on September 3, 2019, whereas the Solicitor General’s office received NAGRIC’s request for clearance of the draft contract on September 5, 2019.

Furthermore, the Solicitor General responded to NAGRIC’s request on September 24, 2019, nearly three weeks after the contract had been signed.

The witness testified that she had required two conditions for approving the contract. Firstly, she required the entity to replace the performance insurance security with a bank guarantee, as mandated by law, since the Bank of Uganda regulates banks, not insurance companies.

Secondly, she instructed the entity to amend the dispute resolution mechanism to include Arbitration and Conciliation Act, Cap 4.

However, the witness did not disclose whether the NAGRIC management complied with these directives.

But the judge stated that the court will examine whether the NAGRC management replaced the insurance security with a bank guarantee, as advised by Nyamwenge on behalf of the Solicitor General.

Citing the Public Procurement and Disposal of Public Assets (PPDA) Regulations, the witness emphasised that performance security must conform to the format provided in the bidding documents and security.

Asked by defence lawyer Grace Karuhanga where she took the letter after identifying the anomaly, Nyamwenge said she took the file to her boss, the Director of Legal Advisory Services.

During cross-examination by defence lawyer Gerald Batanda, the witness said she did not record a Police statement in relation to the matter.  

Allegations

Prosecution alleges that Lagu and Mukani on September 3, 2019, at NAGRIC, Entebbe municipality in Wakiso district, in abuse of their offices, signed and witnessed a shillings 1.3 billion contract between NAGRIC & DB and Kibbubu Agro Suppliers Ltd, for the supply and delivery of animal semen without clearance from the Solicitor General as required by law.

It is purported that Lagu approved a request for procurement for the supply and delivery of semen when he was not from the breeding department and did not conduct a market survey, contrary to the procurement laws and regulations.

Prosecution further states that Lagu and Mbazira in November 2019, approved and effected payment of sh244m to Kibbubu for breeds that were delivered more than what was requested in the contract for animal semen.

The duo also allegedly approved and effected sh482m to Kibbubu for breeds that were not requested for in the contractor supply and delivery of animal semen.

Meanwhile, Kibbubu directors are accused of receiving money from NAGRIC, for the supply and delivery of breeds that were delivered more than what was requested in the contract, knowing it would cause financial loss to the Government.