IGG halts sh500m dam pay

Jul 07, 2004

THE Inspector General of Government, Jotham Tumwesigye, yesterday ordered for the immediate halting of the payment of over sh500m to Basangira Building Contractors, pending the conclusion of investigations.

By Cyprian Musoke

THE Inspector General of Government, Jotham Tumwesigye, yesterday ordered for the immediate halting of the payment of over sh500m to Basangira Building Contractors, pending the conclusion of investigations.

The company, which was reportedly responsible for the mismanagement of the US$3.4m (about sh6.8b) valley dams project, on Friday received a sh500m cheque, against the advice of the IGG and the President’s Office.

The company, owned by businessman John Bosco Basangira of Nalukolongo, was on February 24 contracted to complete nine dams and valley tanks by the Directorate of Water Development through Engineer Sottie Bomukama.

Basangira threatened to sue the Government over alleged breach of contract and non-payment.

Appearing before the legal and parliamentary affairs committee, Tumwesigye said he would also investigate the award of another sh2.5b tender to the same company to complete the dam work.

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