Minister Rukundo named in CHOGM scam
STATE minister for tourism Serapio Rukundo was yesterday accused of smuggling J&M hotel at Bwebajja onto the list of CHOGM venues.
By Cyprian Musoke
STATE minister for tourism Serapio Rukundo was yesterday accused of smuggling J&M hotel at Bwebajja onto the list of CHOGM venues.
According to the Auditor General’s report, J&M hotel received sh2.7b two days before the Commonwealth summit yet it was not on the list of approved CHOGM venues.
“In fact, no CHOGM activity was held at the hotel,†the report said, adding that by the time the summit started, the hotel had not opened for business.
Appearing before the public accounts committee yesterday, the Commissioner for Tourism, Grace Mbabazi, said their minister directed that it should be funded after inspecting it.
“So he is the one who came up with the idea of J&M?†asked Oduman Okello (FDC).
“I am sure the owner of the hotel requested him after seeing other hotels getting funding,†Mbabazi replied.
She said nobody asked their opinion on the matter. Asked who was in charge of advising the minister on the eligible venues, she said at that point they were so stressed that no one was playing a specific role.
She said when they visited the venue to ascertain the availability of rooms, they thought that if the hotel was assisted, it would help address the accommodation gap. The hotel’s structures were already up, with some model rooms furnished, she noted.
On his inspection tours of J&M, Rukundo went with one of their staff, Rosemary Kobutagi, and later with ministers Jachan Omach and Isaac Musumba, she further revealed.
According to minutes of a Cabinet meeting on July 20, 2007, chaired by the President, J&M hotel was not on the list of hotels to benefit.
“Can we conclude that it is Rukundo who later took it to State House to be listed?†committee chairman Nandala Mafabi asked, to which Mbabazi answered in the affirmative.
The MPs also wondered why the hotel used the name “Bwebajja Protea†on agreements with the Government, implying that the hotel would be managed by the Protea group.
“The name Protea was being misused to mislead the Government in terms of capacity and competence of the hotel for purposes of getting money,†noted Oduman Okello (FDC).
The MPs asked the ministry officials to produce the report Rukundo wrote after his visits to justify the inclusion of J&M hotel when they appear next time.
Foreign affairs Permanent Secretary James Mugume told MPs that the President sanctioned the release of the money acting on a list forwarded to him from the Cabinet sub-committee.
Nandala confirmed that on October 26, there was a directive from State House for the release of the money but vowed to find out who lobbied for the hotel.
Sekikubo observed that the President never visited any of the hotels and it was important to find out who was behind the deal.
In his April 2008 report, the Auditor General noted that the Government had not yet received the share certificate for its contribution.
“The implication is that the Government advanced an interest-free loan to a private company.â€
The MPs yesterday also queried how sh800m was used to renovate the National Theater yet that amount would have built a new structure.
However, no satisfactory explanation was given. They further inquired why sh5.5m meant for toilet construction at a mosque in Namugongo was not given to the Muslim community, and why the toilets constructed for the Protestants’ shrine had no water facilities. The ministry officials said disbursement of funds stopped at one point.
Also questioned was sh360m allocated for delegates’ tours that never took place. The officials said the money came late and they returned it to the CHOGM account but no evidence was presented to that effect.
STATE minister for tourism Serapio Rukundo was yesterday accused of smuggling J&M hotel at Bwebajja onto the list of CHOGM venues.
According to the Auditor General’s report, J&M hotel received sh2.7b two days before the Commonwealth summit yet it was not on the list of approved CHOGM venues.
“In fact, no CHOGM activity was held at the hotel,†the report said, adding that by the time the summit started, the hotel had not opened for business.
Appearing before the public accounts committee yesterday, the Commissioner for Tourism, Grace Mbabazi, said their minister directed that it should be funded after inspecting it.
“So he is the one who came up with the idea of J&M?†asked Oduman Okello (FDC).
“I am sure the owner of the hotel requested him after seeing other hotels getting funding,†Mbabazi replied.
She said nobody asked their opinion on the matter. Asked who was in charge of advising the minister on the eligible venues, she said at that point they were so stressed that no one was playing a specific role.
She said when they visited the venue to ascertain the availability of rooms, they thought that if the hotel was assisted, it would help address the accommodation gap. The hotel’s structures were already up, with some model rooms furnished, she noted.
On his inspection tours of J&M, Rukundo went with one of their staff, Rosemary Kobutagi, and later with ministers Jachan Omach and Isaac Musumba, she further revealed.
According to minutes of a Cabinet meeting on July 20, 2007, chaired by the President, J&M hotel was not on the list of hotels to benefit.
“Can we conclude that it is Rukundo who later took it to State House to be listed?†committee chairman Nandala Mafabi asked, to which Mbabazi answered in the affirmative.
The MPs also wondered why the hotel used the name “Bwebajja Protea†on agreements with the Government, implying that the hotel would be managed by the Protea group.
“The name Protea was being misused to mislead the Government in terms of capacity and competence of the hotel for purposes of getting money,†noted Oduman Okello (FDC).
The MPs asked the ministry officials to produce the report Rukundo wrote after his visits to justify the inclusion of J&M hotel when they appear next time.
Foreign affairs Permanent Secretary James Mugume told MPs that the President sanctioned the release of the money acting on a list forwarded to him from the Cabinet sub-committee.
Nandala confirmed that on October 26, there was a directive from State House for the release of the money but vowed to find out who lobbied for the hotel.
Sekikubo observed that the President never visited any of the hotels and it was important to find out who was behind the deal.
In his April 2008 report, the Auditor General noted that the Government had not yet received the share certificate for its contribution.
“The implication is that the Government advanced an interest-free loan to a private company.â€
The MPs yesterday also queried how sh800m was used to renovate the National Theater yet that amount would have built a new structure.
However, no satisfactory explanation was given. They further inquired why sh5.5m meant for toilet construction at a mosque in Namugongo was not given to the Muslim community, and why the toilets constructed for the Protestants’ shrine had no water facilities. The ministry officials said disbursement of funds stopped at one point.
Also questioned was sh360m allocated for delegates’ tours that never took place. The officials said the money came late and they returned it to the CHOGM account but no evidence was presented to that effect.