Ex-Posts chief caused sh1b loss
Mar 29, 2007
AFTER being grilled by MPs and the Police detaining him, Edward Ssempala Mbuga, the former Uganda Posts and Telecommunications chief, has admitted that he signed an agreement which caused the company a loss of sh1b.
By Paul Kiwuuwa
AFTER being grilled by MPs and the Police detaining him, Edward Ssempala Mbuga, the former Uganda Posts and Telecommunications chief, has admitted that he signed an agreement which caused the company a loss of sh1b.
The deal was signed in 1996 with General Mentor, a Kenyan firm that was supposed to collect rent from Telecommunications House on Colville Street on behalf of the posts corporation.
However, according to the Auditor General’s report for 1997/1999 the contracted firm failed to submit over sh1b collected as revenue from rent and instead banked the money on its account.
The report indicates that Mentor General closed business and fled the country, leaving debts of over sh50m.
Mbuga, on Tuesday while appearing before the committee of commissions, statutory bodies and government enterprises, took responsibility for signing the agreement but claimed he was misled by Johnson Kwesigabo, the company secretary.
“As the accounting officer, I over relied on the advice of the company secretary.â€
When pressed by MPs to explain why he let Mentor sub-lease companies like Dragados to maintain the building yet it was not catered for in the agreement, Mbuga, 62, a chartered accountant, became even more apologetic.
“I am responsible for the losses and negligence. But I over relied on Kwesigobo who drafted the agreement. I just signed after reading.â€
Mentor sub-contracted Dragados, Saracen Security Company and Roko Construction Limited but never paid them. The debts were later cleared by the Uganda Communications Commission.
Mbuga also admitted ignorance on the contents of the agreement. “It contained technical information only known to lawyers.â€
The MPs were however not convinced that a professional accountant could fail to understand details of a business agreement.
“Accountants study company and contract laws. How could a professional manager fail to understand documents before signing them?†Fred Bukeni (BubuloWest) asked.
Committee chairman John Odit told Mbuga that he had to refund the money.
“The law states that any person holding political position or public office is held accountable for financial loss, even if he leaves that office.â€
The MPs also resolved to summon Kwesigabo to answer accusations labelled against him.
AFTER being grilled by MPs and the Police detaining him, Edward Ssempala Mbuga, the former Uganda Posts and Telecommunications chief, has admitted that he signed an agreement which caused the company a loss of sh1b.
The deal was signed in 1996 with General Mentor, a Kenyan firm that was supposed to collect rent from Telecommunications House on Colville Street on behalf of the posts corporation.
However, according to the Auditor General’s report for 1997/1999 the contracted firm failed to submit over sh1b collected as revenue from rent and instead banked the money on its account.
The report indicates that Mentor General closed business and fled the country, leaving debts of over sh50m.
Mbuga, on Tuesday while appearing before the committee of commissions, statutory bodies and government enterprises, took responsibility for signing the agreement but claimed he was misled by Johnson Kwesigabo, the company secretary.
“As the accounting officer, I over relied on the advice of the company secretary.â€
When pressed by MPs to explain why he let Mentor sub-lease companies like Dragados to maintain the building yet it was not catered for in the agreement, Mbuga, 62, a chartered accountant, became even more apologetic.
“I am responsible for the losses and negligence. But I over relied on Kwesigobo who drafted the agreement. I just signed after reading.â€
Mentor sub-contracted Dragados, Saracen Security Company and Roko Construction Limited but never paid them. The debts were later cleared by the Uganda Communications Commission.
Mbuga also admitted ignorance on the contents of the agreement. “It contained technical information only known to lawyers.â€
The MPs were however not convinced that a professional accountant could fail to understand details of a business agreement.
“Accountants study company and contract laws. How could a professional manager fail to understand documents before signing them?†Fred Bukeni (BubuloWest) asked.
Committee chairman John Odit told Mbuga that he had to refund the money.
“The law states that any person holding political position or public office is held accountable for financial loss, even if he leaves that office.â€
The MPs also resolved to summon Kwesigabo to answer accusations labelled against him.