LCs bicycle company dished out sh4.7b in two days
Sep 22, 2011
OVER $1.7m (about sh4.7b) that was paid to a company contracted to supply bicycles for LC leaders was withdrawn from Stanbic Bank in two days.
By Joyce Namutebi and Catherine Bekunda
OVER $1.7m (about sh4.7b) that was paid to a company contracted to supply bicycles for LC leaders was withdrawn from Stanbic Bank in two days.
The money was then reportedly wired to accounts in different countries, including India and Hong Kong.
This was disclosed by the Stanbic’s legal head, Gertrude Wamala, while appearing before the public service and local government committee of Parliament yesterday.
She represented the managing director, who had been summoned to clarify the bank’s role in the transaction. The summons followed accusations by the former head of procurement in the Ministry of Local Government, Robert Mwebaze, that the bank gave a “fake†bill of lading.
Wamala told MPs that the company account was credited with over sh4.7b on March 15, 2011. However, on the same day, various money transfers were made from the account.
A total of $240,000 was paid to a middleman, Patrick Bagarukayo, who also received another $100,000 on March 16. The document she presented also indicated that there was a cash withdrawal of $20,050 to Mohinder Singh Chal (Kenyan).
It further shows that $600,000 went to Infinity Exim Fze in Hong Kong. Other recipients were Wuyi Trade ($400,000), Vinsara Impex ($110,000) and Nishita Maina (Ugandan) who received $150,000.
The account, she explained, was opened on August 26, 2010 and was to be operated by Chal and Maini, but on September 2, 2010 the mandate was amended to introduce a new signatory, Arjunan Rajasekaran.
About the withdrawals, she said: “We have no responsibility with the supplier. If you take on other people’s roles you become liable.â€
The MPs also summoned the directors of Amman industrial tools and Equipment Limited to explain why the bicycles had not been delivered, but only one of them, Mohinder Singh Chal appeared yesterday.
Chal told MPs that he left the firm before the money was paid on March 15.
OVER $1.7m (about sh4.7b) that was paid to a company contracted to supply bicycles for LC leaders was withdrawn from Stanbic Bank in two days.
The money was then reportedly wired to accounts in different countries, including India and Hong Kong.
This was disclosed by the Stanbic’s legal head, Gertrude Wamala, while appearing before the public service and local government committee of Parliament yesterday.
She represented the managing director, who had been summoned to clarify the bank’s role in the transaction. The summons followed accusations by the former head of procurement in the Ministry of Local Government, Robert Mwebaze, that the bank gave a “fake†bill of lading.
Wamala told MPs that the company account was credited with over sh4.7b on March 15, 2011. However, on the same day, various money transfers were made from the account.
A total of $240,000 was paid to a middleman, Patrick Bagarukayo, who also received another $100,000 on March 16. The document she presented also indicated that there was a cash withdrawal of $20,050 to Mohinder Singh Chal (Kenyan).
It further shows that $600,000 went to Infinity Exim Fze in Hong Kong. Other recipients were Wuyi Trade ($400,000), Vinsara Impex ($110,000) and Nishita Maina (Ugandan) who received $150,000.
The account, she explained, was opened on August 26, 2010 and was to be operated by Chal and Maini, but on September 2, 2010 the mandate was amended to introduce a new signatory, Arjunan Rajasekaran.
About the withdrawals, she said: “We have no responsibility with the supplier. If you take on other people’s roles you become liable.â€
The MPs also summoned the directors of Amman industrial tools and Equipment Limited to explain why the bicycles had not been delivered, but only one of them, Mohinder Singh Chal appeared yesterday.
Chal told MPs that he left the firm before the money was paid on March 15.