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Ex-dfcu boss queried over sh350m

By Vision Reporter

Added 17th January 2006 03:00 AM

Former dfcu general manager Robert Katuntu was on Monday queried about his relationship with a city lawyer, who got a sh350m commission from dfcu for soliciting the opening of a Global Fund account in the bank.

By Apollo Mubiru

Former dfcu general manager Robert Katuntu was on Monday queried about his relationship with a city lawyer, who got a sh350m commission from dfcu for soliciting the opening of a Global Fund account in the bank.

Katuntu told the commission of inquiry into the alleged mismanagement of the Global Fund chaired by Justice James Ogoola that Kituuma Magala was a person he occasionally played golf with but was not a close friend.

Magala had told Ogoola that he visited Katuntu’s home in Muyenga for his birthday party and that Katuntu had twice sold him pork from his farm.

Magala yesterday said he had asked for a sh450m commission out of the $80m grant but the bank reduced it to sh350m and by the time Global Fund was suspended, he had only received sh295m.

Asked which formula was used to arrive at the amount and with whom he negotiated, Magala said, “What is sh450m? I negotiated it with the bank’s general manager, Robert Katuntu. I don’t remember discussing it with any other bank official”.

Asked by the lead counsel Angella Kiryabwire how he got the tip that the Global Fund was about to send the grant to Uganda, Magala said a West African friend, whose name he could not recall, tipped him.

Ogoola wondered how a friend could give Magala a tip worth sh295m and he simply forgets his name. But Magala insisted, “I saved his name on my laptop. I cannot recall it unless I retrieve it.”

He said he did not recall the website and any related details where his friend got the tip. He denied knowing the ministry of health permanent secretary.

He also said he did not recall the date and the time he passed on the tip to dfcu but said it was around August 2003.

Ogoola asked Magala to tell the commission through which documentation the tip was paid.

Asked when the Global Fund account was opened in dfcu and how much was deposited on it, Magala said he did not know because he was not an employee of dfcu.

Ogoola asked Magala to explain why it took eight months to get his commission. Magala said, “As to when and why, the bank is more competent to answer that.”

But Ogoola said, “You can’t tell me that you collect debts for the bank and when it comes to your commission, you sleep on your rights. It is not logical unless you were sleeping.”

Magala and his daughter, Harriet Magala, who doubles as his partner, formed Sandwell & Hundson company to collect commission on their behalf, which Ogoola said was intended to fatten their commission from dfcu.

Ex-dfcu boss queried over sh350m

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