Agony as Parliament interrogates South Sudan traders

It takes self-sacrifice, hard work and courage to rise from being an orphaned girl in a war-ravaged Northern Uganda to a prominent trans-border trader owing property in the City of London.

But for such a single mother to lose not only what she has worked for her entire life but also her health by a mere stroke of a pen is pain beyond imagination.

Unfortunately, Joan Akello (age) whose sweat puts food on the table for sixteen children, is among grieving directors of 23 companies that lost their investments during the South Sudan conflict but whose compensation hangs in balance.

The decision by the ministry of finance to consider payment of the $41m (about Sh150b) in compensation to only 10 companies, Akello claims, is partly to blame for the heart complications that have now hospitalised her for months.

Appearing before a select parliament committee probing the controversy shrouding compensation of these traders last week, Akello who was on crutches, alleged that, "I have moved to all offices including the Prime Minister's (Ruhakana Rugunda) for help but in vain. He actually told us that there is only money for the special 10 but early this year, when I went to (David) Bahati's (minister of state for finance) office, he sealed our fate and that's where I collapsed from only to regain conscious at Nakasero Hospital but I hear he helped save my life."

Minutes after her submission in which she claimed that another trader called Hellen Layet also collapsed in Bahati's office and is currently admitted at St. Frances Hospital, Nsambya. Akello's heart failed her again before she collapsed to the ground, sending the Parliament committee session into a panic.

In December last year, Bahati wrote a letter labelled ‘without prejudice' to the managing director, Centenary Bank requesting the institution to stay action in relation to Sh310m as an outstanding debt obligation by Layet.

In the letter seen by New Vision, Bahati contends that "Layet has requested Government to expedite debt arrangements with Government of South Sudan as one of the verified claimants. This, therefore, is for you to consider restructuring for three months actions on her debt obligations. Uganda is about to conclude guarantee agreement with South Sudan for equivalent $41m, which includes Layet's payment."

Layet's company, M/S Makpaco is among 23 companies in schedule A of the parliament resolution who are yet to be compensated.

When contacted, Bahati's telephone went unanswered but in a separate interview two weeks ago, he rubbished reports about people collapsing in his office as unfounded.

The select committee chaired by Kyankwanzi Woman MP, Ruth Nankabirwa is among others meant to lift the veil on the legitimacy of the beneficiaries and probe allegations that partial payment of Sh40b to the 10 companies was marred by irregularities.

Other witnesses that moved the MPs to near tears were Nelson Mashiringi of Menelco Stores who speaking spoke in vernacular, said that besides losing his two wives and houses, he is at the verge of facing imprisonment if Government doesn't compensate him to pay off a Stanbic Bank loan whereas a one John Baptist Okware claimed that, "I used to send to Uganda $2m (about Sh7b) annually but now I even have nowhere to stay, I sleep in a church in Nsambya."

On March 16, New Vision reported that Ministry of Finance had insisted that the Sh150b compensation was exclusively meant for the 10 companies that were verified by Government of South Sudan (GOSS) and Uganda, leaving the 23 other companies that suffered similar losses in the cold.

This came after the ministry of finance made the Sh40b partial compensation to the said 10 companies, but this paper has since reported that the payment might have been made to fake beneficiaries as six out of the 10 approved companies might be briefcase organizations.

The four are said to be registered in the names of a single director, Apollo Nyegamehe of Aponye (U) Ltd who reportedly received the Sh40b on behalf of others but he has since denied receiving the payment.

In a recent interview, Bahati explained that the 10 companies formed Uganda Southern Sudan Grain Traders and Suppliers Association and agreed that their money, be paid into a single joint account.

In 2010, Government of South Sudan verified loss claims of Ugandan traders, leading to a memorandum of understanding with Uganda for a phased settlement of $56m (about Sh207b) that the traders were demanding however, South Sudan managed to pay only $15m (about Sh55b) to 10 companies, leaving a balance of $41.6m (about Sh150b).

Subsequently, Uganda signed a bilateral agreement with South Sudan for the latter to pay off the Sh150b balance and await reimbursement from the former, however; parliament while approving the agreement, said that payment should only be made with an addendum of 23 companies to the list of 10.

In their petition, the group of 23 asked parliament to ensure that the next batch of payment worth Sh110b be distributed amongst them as they are already verified as well.

On their behalf, John Baptist Byamugisha of Ahmos Investment Ltd also urged parliament to write to the Central Bank to halt commercial banks with claimant's loans from perusing them until Government compensates them.