Firm denies sh2.8b payment from OPM

Mar 01, 2013

As investigations into the mismanagement of donor funds in the Office of the Prime Minister continue, MPs are yet to establish who took sh2.8b extra funds reportedly paid to Farm Engineering Limited.

By Mary Karugaba

As investigations into the mismanagement of donor funds in the Office of the Prime Minister continue, MPs are yet to establish who took sh2.8b extra funds reportedly paid to Farm Engineering Limited. This was after Farm Engineering managing director Taranjeet Pandhaal told MPs that he got sh700m out of the sh2.8b reportedly paid to the company.

Documents tabled before the committee indicate that OPM paid the company using the same voucher fi ve times. The payment was for ploughing and harrowing of land in Amuria and Gulu districts.

The OPM undertook to a programme to provide tractor hire services for 12 months in Moroto, Amudat, Kotido, Kaabong, Nakapiripirit, Napak and Abim districts. Each acre cost sh345,000 to plough, but it was later increased to sh540,000. “I only received sh700m from OPM for the work done in Gulu and Amuria. It is not true that I was paid sh700m fi ve times,” Taranjeet told MPs. He was on Wednesday appearing before the committee to clarify on issues raised by the Auditor General’s report.

The report also indicated that in a number of instances, payments with the same voucher narration were made up to nine times on the same day, a fact that suggests duplicate payments. The auditors also noted that sh13.7b was paid to the company, but there were no adequate records availed to support the expenditure.

Taranjeet told MPs that so far, the company has done work for OPM worth sh23b. “We signed three contracts to plough, plant and harrow land in Karamoja and northern  Uganda regions.” “So far, OPM has paid us sh20b and we are demanding for sh3b,” he said.

Meanwhile, the MPs will travel to northern Uganda and Karamoja regions to carry out an on-spot check of the projects that were reportedly done using the donor funds.

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