Comedian Anne Kansiime unwittingly dragged into Katosi saga

Former Works Minister Abraham Byandala (L) with Joe Ssemugooma and Berunado Ssebbugga (R) during a court break at the Anti-Corruption Court. Photo by Hajarah Nalwadda

Comedian Anne Kansiime.

Comedian Anne Kansiime was on Tuesday unwittingly dragged into the Katosi Road scam in which government lost over sh24.7b.

Court heard that she signed and approved the advance payment security guarantee which enabled Eutaw Construction Company, which is under the stewardship of Apollo Senkeeto, to win the contract to upgrade the Mukono-Katosi road.

Comic scenes played out during cross examination of two witnesses, when defence lawyers demanded to know why the comedian had not arrested yet witnesses had presented incriminating evidence against her.

That came despite several reminders that it wasn't the comedienne, the lawyers kept on referring to her instead of then Housing Finance Bank head of corporate banking, Mary Kansiime Nyende

The lawyers who seemed obsessed with the comedienne demanded to know under which authority she operated on and why she had signed the documents. They were brought back to reality when court broke into a thunderous laughter, and in a chorus, corrected them.

In his defence, counsel William Were said that Kansiime is a personal friend and that is why he kept on referring to her.

Senkeeto is currently battling charges of theft, uttering false documents and conspiracy to defraud government of the sh24.7b. Charged together with him are, Abraham James Byandala, former works and transport minister and former UNRA Executive director, Berunado Ssebbugga Kimeze.

Others are UNRA's lawyer Marvin Baryaruha, Joe Ssemugooma, acting director finance and administration UNRA, Wilberforce Senjako, regional accountant and former Housing Finance Bank relationship manager, Isaac Mugote.

The two witnesses told court that Senkeeto forged the advance payment security guarantee and two performance bonds in order to defraud government, with the help of Mary Kansiime Nyende.

Paul Nuwagaba, the bank's head of business banking, said that the advance payment security guarantee dated December 23, 2013, presented to UNRA by Eutaw Construction Company purported to be from the bank and signed Nyende was forged.

He said that the document lacked the font, seal, stamp and signatures of the company's directors who hold the mandate to approve such documents.

(L-R) Joe Ssemugooma, Abraham Byandala and Berunado Ssebbugga chat during a court break at the Anti-Corruption Court . Photo by Hajarah Nalwadda

"It appears the letter was issued on the same date Senkeeto opened accounts with the bank. For the bank to issue such a guarantee, the accounts must have spent at least one year," Nuwagaba told court.

He said that the credit policy at the bank is that for any transaction beyond sh1b, the banks managing director, the secretary and the Executive Director must approve, which was not the case.

Dorothy Nsekakiyaga, the general manager internal audit at Housing Finance Bank, told court that the Financial Institutions Act, 2014 stops financial institutions from granting single borrowers credit beyond 25% of their total capital.

"Advance security payment of sh24.7b was beyond the limit of the bank. By December 31, 2013, the bank had sh82b; sh24.7b would take you to 30% of the banks total capital. Therefore, Housing Finance would not be able to grant credit," she told court.

Nsekakiyaga told court presided over by Justice Lawrence Gidudu that when Mugote's emails were retrieved during their investigations, they came across several communications in regard to the sh24.7b between him, Senkeeto, Ssemugooma and Nyende.

Led by IGG prosecutor Thomas Okoth, Nsekakiyaga said that Senkeeto, Michael Olivey and Niu Hong opened a shillings and dollar accounts with them on December 23, 2013. On January 28, 2014, the sh24.7b was deposited in their accounts.

In February a telegraphic transfer of sh17.9b to SGI Africa, China Chong Qing International Construction Company and Kiwanuka and Karugire Company, was done. A board resolution was made to change signatories from three to a sole signatory, Senkeeto.

Between March and May sh748m was withdrawn to buy dollars by Senkeeto and on May 22, his wife, Nakku withdrew sh196.2m. The case was adjourned to September 31, for further hearing.