Energy ministry under fire over sh5b rent fees

By Mary Karugaba

Ministry of finance wants that of energy and mineral development to account for sh5b that was reportedly remitted to the latter ministry for rent but was never utilized and it disappeared.

State minister of finance in charge of privatization, Aston Kajara told MPs on natural resources on Monday that although the ministry of finance remits money every financial year for rent and pays for utilities and maintenance, the energy ministry has not paid rent for the last four years.

“Energy last paid rent in 2008 yet we have been remitting money for rent every year.  They chose to use it for other purposes. They now owe the company sh5b. Where did they put this money? They should explain,” Kajara said.

He added that because of rent arrears, the company at one time had to close their office. It only took the intervention of the ministry of finance which deducted their money at source to clear some of the debt. 

“Non-payment of rent by the ministry was even queried by the Auditor General in his reports and advised on ensuring collections,” he said.

His statement however angered the energy ministry officials headed by the State minister of energy in charge of minerals, Peter Lokeris to provide evidence that the ministry had received the said money.

Although Lokeris agreed that they owe Amber House sh5b, he said the ministry of finance has not been remitting the money.

“When this issue was raised in 2010, we wrote to the finance minister explaining that Parliament directed that there should be no money for rent since the House belonged to Government. Which rent then are you talking about? May be for the ministry offices in Entebbe,” Lokeris explained.

The officials were appearing before the committee to answer questions why the ministry of finance has declined to transfer Amba House back to the ministry of energy.

The MPs argued that it was not logical for the energy ministry to continue paying billions of money to a company yet the House is owned by Government.

“You are embarrassing us; you should have ironed out these issues before coming to the Committee. Who then should we say is telling the truth?”  Committee chairperson Michael Werikhe demanded.

Quoting the recent investigations of the loss of billions of shillings from the Prime Minister’s office, MPs Eddie Kwizera, Alex Ruhunda and Reagan Okumu cautioned the committee against taking things for granted and demanded that an investigation be carried out to establish the truth.

“Mr. Chairman we know what took place at the Prime Minister’s office. Let’s not take things for granted. We need to look at their books of account,” Ruhunda said.

The committee also demanded to know the whereabouts of the sh4.7b that the company collects as rent.

Kajara explained that the money was on the company account in Dfcu bank awaiting the beginning of the construction of another property.

The MPs were also stunned that the company spends sh500m every year on rehabilitation and maintenance of the structure.