Bassajja, Mugyenyi claims inflated
Sep 29, 2011
MPs on an inter-ministerial committee that is said to have awarded claims for cancelled city contracts for Haba Group and Rhino Investments have denied inflating compensation claims for the two companies.
By Mary Karugaba
MPs on an inter-ministerial committee that is said to have awarded claims for cancelled city contracts for Haba Group and Rhino Investments have denied inflating compensation claims for the two companies.
MPs on the public accounts committee yesterday said the inter-ministerial committee increased compensation claims for Haba Group from sh54b to sh142b and those of Rhino from sh6.8b to sh14b.
Appearing before the parliamentary committee yesterday, Ruhweza Kazahura, who chaired the inter-ministerial committee, said after evaluating the claims they recommended payment of only sh54b to Haba Group and sh6.8b to Rhino Investments.
“We do not know who revised the figures,†Kazahura said.
Kazahura’s committee was composed of representatives from the justice, finance, lands, works and local government ministries.
It was appointed by the Solicitor General to evaluate the legality of claims for compensation by the two companies.
MPs found out that the committee recommended compensation despite the fact that the original contracts were never approved by the Attorney General as required by law.
During the hearing, three senior State Attorneys Jeffrey Atwine, Mary Nankabirwa and Patricia Anabo, who were part of the team, failed to explain why they approved the compensation.
“You were appointed to the committee to give guidance on legal issues. Why did you approve the claims without authority? committee legal counsel Gerald Karuhanga asked.
He cited the Constitutional Court ruling in a case between Nsimbe Holdings and the Attorney General, where it was ruled that any contract above sh50m signed without approval of the Attorney General was null and void.
Nankabirwa explained that they considered the contracts to be legal since there was an offer and acceptance letter.
“We pointed out that weakness. However, there was a valid contract document. We did not address ourselves the Nsimbe case. Secondly, the President had directed that the company be compensated,†she said.
MPs tasked Nankabirwa to avail the documents but she failed.
The MPs rejected her explanation, saying the President’s letter asked the committee to analyse the legality of the claim but not to determine the figures for compensation.
“We conclude that the lawyers who were appointed to advise the Government did not do their work. They did not provide the legal advice that was needed. As a result, Government lost money,†Fred Kwizera said.
The legislators also argued that the committee caused a loss of over sh1b in taxes.
MPs on an inter-ministerial committee that is said to have awarded claims for cancelled city contracts for Haba Group and Rhino Investments have denied inflating compensation claims for the two companies.
MPs on the public accounts committee yesterday said the inter-ministerial committee increased compensation claims for Haba Group from sh54b to sh142b and those of Rhino from sh6.8b to sh14b.
Appearing before the parliamentary committee yesterday, Ruhweza Kazahura, who chaired the inter-ministerial committee, said after evaluating the claims they recommended payment of only sh54b to Haba Group and sh6.8b to Rhino Investments.
“We do not know who revised the figures,†Kazahura said.
Kazahura’s committee was composed of representatives from the justice, finance, lands, works and local government ministries.
It was appointed by the Solicitor General to evaluate the legality of claims for compensation by the two companies.
MPs found out that the committee recommended compensation despite the fact that the original contracts were never approved by the Attorney General as required by law.
During the hearing, three senior State Attorneys Jeffrey Atwine, Mary Nankabirwa and Patricia Anabo, who were part of the team, failed to explain why they approved the compensation.
“You were appointed to the committee to give guidance on legal issues. Why did you approve the claims without authority? committee legal counsel Gerald Karuhanga asked.
He cited the Constitutional Court ruling in a case between Nsimbe Holdings and the Attorney General, where it was ruled that any contract above sh50m signed without approval of the Attorney General was null and void.
Nankabirwa explained that they considered the contracts to be legal since there was an offer and acceptance letter.
“We pointed out that weakness. However, there was a valid contract document. We did not address ourselves the Nsimbe case. Secondly, the President had directed that the company be compensated,†she said.
MPs tasked Nankabirwa to avail the documents but she failed.
The MPs rejected her explanation, saying the President’s letter asked the committee to analyse the legality of the claim but not to determine the figures for compensation.
“We conclude that the lawyers who were appointed to advise the Government did not do their work. They did not provide the legal advice that was needed. As a result, Government lost money,†Fred Kwizera said.
The legislators also argued that the committee caused a loss of over sh1b in taxes.