MPs probe NFA sh4.6b pay to local firm

Beachside Development Services (BDS) through a one Charles Twagira in 2005 applied for a license from NFA to undertake eco-tourism business in 209-hectares wide Kyewaga central forest reserve in Entebbe.

 

However, a contention broke out when Twagira alleged that the authorized tree planters on the reserve were encroaching in the said land. Officials before the committee led by, Gershom Onyango, Acting Executive Director, said as a result $6000 BDS had paid was refunded and no license was issued to it. 

 

However, BDS sued NFA. Consequently, a consent judgment was entered before Justice Joseph Mulangira between the then NFA lawyer, Molly Kyepaka Karuhanga and BDS counsel, Enock Barata.

 

It enjoined NFA to pay the firm “special damages, general damages for loss of prospective business and profits that would have accrued to it in 25 years the license would have run. The amount would also include costs and 25% interest per annum from the time of the suit to full payment.

 

After NFA lost appeals to the Court of Appeal and Supreme Court, it embarked on payment early this year. On February 21, 2011 NFA paid BDS $650,000 (sh1.7b) while on April 1, 2011 it made another installment of $135,000 (Sh368m). On May 3, 2011 another amount totaling to 150,000 (sh409m) was cash while in September $165,000 (Sh540m) was paid.

 

The balance of $100,000 (Sh270m) must be paid before December 31, 2011. However, MPs were surprised that the company will in another deal be allocated 7.4 hectares of land as a settlement for $200,000 (Sh546m).

 

The oversight committee chaired by, Maxwell Akora Ebong (UPC, Maruzi) wondered how NFA would enter into business without an advertisement and be forced to compensate a company with which it had not contract. MPs were awed when they were shown unfinished huts on the disputed land as developments BDS had made.

 

The NFA Director of Natural Forests, Hudson Andrua told MPs that Twagira was never issued with a license whole the Manager Legal Affairs, Peter Nyombi Maloba added that “absence of gardens rules out validity of any claims.” “This is where we have a problem. There was no case,” Maloba stated.

 

“If there was no license issued, money was refunded and you say there was no connivance, how did you enter a consent judgment?” Vicent Kyamadidi (NRM, Rwapara) asked. Asked where the case was bungled from, Maloba quipped: “It begins with the consent agreement. It’s like you are telling the judge, ‘this is what we have agreed about.”

 

The committee learnt that while other officials; Damien Akankwasa (former ED) and Molly Kyepaka involved in the deal are out of office facing charges brought by the IGG, Reuben Arinaitwe (Range Manager) was still in office.

 

While NFA boss Onyango said Arinaitwe was excused, MPs insisted that according to standing orders, public servants facing court charges are interdicted and step aside on half pay.

 

“It’s strange for him to be appearing before the committee when you have a charge sheet with his name on it. Don’t you think its abdication of your responsibilities? From any innocent bystander it’s out of order. Go put your house in order,” Akora told Onyango.