IGG blocks railways deal
Apr 16, 2007
The sale of the Uganda Railways Corporation properties has taken a new twist,
The sale of the Uganda Railways Corporation properties has taken a new twist, reports Felix Osike.
The Inspector General of Government, Justice Faith Mwondha, has stopped the deal with American Procurement Company (AMPROC), a locally registered company, citing serious flaws.
AMPROC last month won the bids to purchase properties belonging to the corporation.
It offered sh1.7b for a four-storied residential building on Plot 34 on Elizabeth Avenue Kololo, and sh1b for plots 94, 96-98 at Lake Drive Port Bell in Luzira.
The company’s director, Robert Mwesigwa, was also the highest bidder for plots 72, 74 and 78 Chorley Crescent Port Bell, Plot 976 in Mulago and Plot 872 Mutundwe, at a total price of sh579m.
The sale agreements were signed between the Uganda Railways Corporation and the company on March 7, a deposit was paid and the outstanding payment of over sh3b was required within four weeks.
However, in a letter of March 27, 2007, Mwesigwa claimed the Government owed his company sh4.3b.
Referring to a court order, civil suit NO. 735 of 2006, of sh4.1b plus interest of sh182m, he requested the Solicitor General to swap the debt with the amount he had to pay for the properties to the Privatisation Unit.
Two days later, the Solicitor General signed a deed of assignment with AMPROC, acknowledging the sh4.3b debt by the Ministry of Justice and Constitutional Affairs and agreeing to the swap.
“The assignee (Privatisation Unit) undertakes to execute transfer of the properties above in favour of AMPROC upon execution hereof,†the agreement concludes.
But Justice Mwondha said the sh4.3b, demanded by the company, was being investigated by her office and the court had not given a final verdict on the matter.
“This office is investigating the manner in which the deed of assignment was executed by the parties,†she wrote to the Auditor General on April 4. She advised him not to clear the payment until her office concluded the investigations.
“AMPROC was the highest bidder but has failed to pay the money,†Mwondha told The New Vision. “They now want to use government money to acquire private property. This is fraud of the highest nature. It is a hoax.â€
AMPROC took over from the Swiss company, SWIPCO, which had been contracted to oversee government procurements but was stopped by Parliament amid controversy.
The Inspector General of Government, Justice Faith Mwondha, has stopped the deal with American Procurement Company (AMPROC), a locally registered company, citing serious flaws.
AMPROC last month won the bids to purchase properties belonging to the corporation.
It offered sh1.7b for a four-storied residential building on Plot 34 on Elizabeth Avenue Kololo, and sh1b for plots 94, 96-98 at Lake Drive Port Bell in Luzira.
The company’s director, Robert Mwesigwa, was also the highest bidder for plots 72, 74 and 78 Chorley Crescent Port Bell, Plot 976 in Mulago and Plot 872 Mutundwe, at a total price of sh579m.
The sale agreements were signed between the Uganda Railways Corporation and the company on March 7, a deposit was paid and the outstanding payment of over sh3b was required within four weeks.
However, in a letter of March 27, 2007, Mwesigwa claimed the Government owed his company sh4.3b.
Referring to a court order, civil suit NO. 735 of 2006, of sh4.1b plus interest of sh182m, he requested the Solicitor General to swap the debt with the amount he had to pay for the properties to the Privatisation Unit.
Two days later, the Solicitor General signed a deed of assignment with AMPROC, acknowledging the sh4.3b debt by the Ministry of Justice and Constitutional Affairs and agreeing to the swap.
“The assignee (Privatisation Unit) undertakes to execute transfer of the properties above in favour of AMPROC upon execution hereof,†the agreement concludes.
But Justice Mwondha said the sh4.3b, demanded by the company, was being investigated by her office and the court had not given a final verdict on the matter.
“This office is investigating the manner in which the deed of assignment was executed by the parties,†she wrote to the Auditor General on April 4. She advised him not to clear the payment until her office concluded the investigations.
“AMPROC was the highest bidder but has failed to pay the money,†Mwondha told The New Vision. “They now want to use government money to acquire private property. This is fraud of the highest nature. It is a hoax.â€
AMPROC took over from the Swiss company, SWIPCO, which had been contracted to oversee government procurements but was stopped by Parliament amid controversy.