Police quiz Mutebile over Bassajja money

By Mary Karugaba

DETCTIVES Thursday interrogated Bank of Uganda Governor Emmanuel Tumusiime Mutebile for hours seeking explanation on how the Bank cleared and guaranteed city businessman Hassan Basajjabalaba sh142b.

According to sources from Police, a team of detectives quizzed Mutebile for hours.

The controversial money is awarded to Bassajja as compensation for the loss of business for the city markets.

Although the source did not divulge much of what took place during the interrogation, it said much of the issues were on the account from which the money was paid out and the procedures involved in the management of the account.

  “Yes it's true the team went there and interrogated him. The team was mostly concerned with the operations of the account. They are a lot of things coming up and need to follow up, the source said.

Mutebile is among the top three Government officials that were implicated in the controversial payment by Parliament's Public accounts committee. The report recommended that Mutebile together with Prof. Khiddu Makubuya (General Duties) and Syda Bbumba be fired for their involvement.

The two ministers have since resigned. Although the MPs demanded that Mutebile also resign, Prime Minister Amama Mbabazi pleaded for more time to enable the Cabinet sub-committee set up by the President and chaired by Defence Minister Crispus Kiyonga first interact with the governor.

Mutebile is indicted for writing letters of comfort to four commercial banks that guaranteed Bank of Uganda to repay loan facilities taken by Basajjabalaba's Haba Group of Companies in expectation of his compensation from government.

The committee concluded that Mutebile should be fired from office and be held personally responsible for loss of taxpayers' money, a recommendation that presents President Museveni with some tough choices.

While appearing before the committee last year, Mutebile said half of the money had already been paid out to the Banks.

When the deadline reached, and Government had not paid Bassajja, the Banks demanded for their money. The payment was on understanding that it would be deducted immediately Government clears the debt, Mutebile said.

Mutebile added that when the money rose to sh142b, he questioned the figures and stopped further payments.