NSSF minority report out

Oct 30, 2008

<b>Main arguments & recommendations</b><br><i>- Mbabazi, Suruma innocent<br>- Jamwa lied under oath<br>- Evidence tampered with <br>- PPDA Act should change<br>- Main report should be quashed <br>- Land deal was not a procurement</i><br><br>Security minister Amama Mbabazi and that of finance

Main arguments & recommendations
- Mbabazi, Suruma innocent
- Jamwa lied under oath
- Evidence tampered with
- PPDA Act should change
- Main report should be quashed
- Land deal was not a procurement


By Mary Karugaba and Milton Olupot

Security minister Amama Mbabazi and that of finance Dr. Ezra Suruma committed no offence in the NSSF Temangalo land purchase, according to the minority report of MPs investigating the deal.

The dissenting MPs also said the evidence of NSSF chief David Jamwa to the committee had been tampered with.

They recommended that the main report which accuses the ministers of influence-peddling and conflict of interest, should be nullified and fresh investigations carried out. NSSF bought land from businessman Amos Nzeyi and Arma Ltd, a company linked to Mbabazi, at sh11b, in Wakiso district in January.

When the deal became public, the ministers were accused of using their positions to pressure NSSF to buy the land at a higher than market price and that the procurement procedures were violated.

To get to the truth, Parliament ordered its state enterprises committee to investigate the matter.

In their main report, the committee blamed the ministers on all the allegations and recommended that Suruma and Mbabazi resign or be dismissed because they allegedly contravened the Leadership Code Act.

The minority report, however, says Suruma, who authorised the purchase, and Mbabazi did not break any law over the matter. The dissenters said when Jamwa first appeared before the committee, he did not say he had been pressured to sign the Temangalo deal but only said so after the committee called him again.

“Jamwa’s statement that he was put under political pressure in his second appearance shows that he was an unreliable witness, lied to the committee on oath and his testimony could not be credible,” the MPs said.

They also said the record of his second appearance then went missing and that the record which the clerk to the committee gave them was tampered with. They wondered why some members of the committee were determined to bend the rules at all cost.

Whereas Mbabazi had personal interests in the Temangalo transaction, the dissenters argued, he did not participate in the negotiations. Although Suruma approved the deal, he neither participated in the negotiations nor was he a beneficiary, they further added.

The dissenters are Steven Tashobya, Pereza Ahabwe, Tress Buchanayani, Erisa Kaahwa, James Kakoza and Rose Munyira.
Ssekandi regretted the delay in the presentation of the report, but stressed that dissenting was not a crime.

He urged the MPs to debate the report maturely when it comes up next week.

The dissenters also said the terms of reference of the probe committee read differently at the time of writing the report.

The MPS also disputed the description of Temangalo purchase as procurement rather than investment. As an investment, the Temangalo deal would be governed by internal NSSF policies while as a procurement, it would be a public matter, guided by the PPDA, the organisation that supervises public procurement.

The PPDA issued its own report in which it said the NSSF broke the procurement laws. But NSSF wants the court to declare it null and void.

The dissenters also said the vote of Abdu Katuntu, the vice-chairperson of the committee, was invalid. They argued that Katuntu was not a member of the committee but the lead counsel until John Odit, the former chairman, was sacked. But, they said, the speaker ruled that the sacking was illegal.

The minority report also said the price of the land was not inflated and accused their colleagues of ignoring Maj. Gen. Jim Muhwezi’s testimony that he sold his land in the same area at sh28m per acre. Arma and Nzeyi sold theirs at sh24m an acre.

The dissenters also accused the committee of ignoring Mbabazi’s response to NEMA, the environment watchdog, that said part of Arma’s land was a wetland. Mbabazi said NEMA was referring to man-made fish ponds.


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MUSEVENI CALLS NRM CAUCUS OVER NSSF REPORT

By Vision Reporter

PRESIDENT Yoweri Museveni has called the National Resistance Movement (NRM) caucus to discuss the two reports on the National Social Security Fund.

In the past, Museveni said he would wait for the report before NRM takes a position on the matter.

Ssekandi yesterday said the report would be tabled today and debated next week.

NRM publicity secretary Joseph Kasozi said all party members have been invited to discuss the report on Monday.

The caucus will be sitting for the third time to discuss the matter and the President is expected to chair the meeting.

“Members have been summoned to discuss the recommendations of both the main and minority reports on NSSF. As a party, we must reach a neutral position before we discuss the matter in Parliament,” Kasozi said.

The main report of the committee that investigated the Fund’s purchase of land in Temangalo accuses NRM secretary general Amama Mbabazi, who is also the security minister, and finance minister Ezra Suruma of conflict of interest and political influence-peddling.

The main report by the Parliamentary committee on commissions, statutory and state enterprises was handed to Speaker Edward Ssekandi last Thursday.

However, six dissenting MPs have written a minority report, which they handed to Ssekandi yesterday, exonerating the ministers of any wrongdoing.

The two-month probe into the purchase of the sh11b land alleged that Suruma contravened the Leadership Code Act, and therefore sanctions therein should apply to him.

The committee also said Mbabazi had flouted the same rules.

The 97-page report said that Suruma contravened the Leadership Code Act by not objecting to the purchase of the land by NSSF from his co-share holders in the National Bank of Commerce.

“For the purchase of majority shares of their bank put him in a position where his interests as a co-shareholder in the bank could easily conflict with his duties and responsibilities as a minister,” the report said.

The report also highlighted that although powers of attorney were granted to businessman Amos Nzeyi to ‘manage the conflict of interest’ which had been highlighted by the NSSF board, the proceeds from Temangalo land were paid directly to the joint account of Mbabazi and Nzeyi.

As a minister in charge of security, although not direct, his role in the deal was collective, the report added.

“Although there was no evidence of physical contact between Mbabazi and NSSF managing director David Chandi Jamwa, the committee observed that the minister was involved in influence peddling through his attorney Nzeyi.”

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