MP Fox Odoi in sh4b compensation scandal

Nov 20, 2013

A report by the public accounts committee has pinned West Budama County MP Fox Odoi and Justice Joseph Murangira ina sh4b scandal.

By Moses Walubiri and Joyce Namutebi

A report by the public accounts committee has pinned West Budama County MP Fox Odoi and Justice Joseph Murangira in a scam that saw a ‘shadowy’ company compensated $1.6m ( but later increased to $1.9m on appeal) for alleged loss of business. Odoi is a shareholder in the company.

The compensation to Beachside Development Services Ltd (BDS) followed an unsuccessful attempt by BDS to construct an eco-tourism site on five acres in Kyewaga forest reserve in Entebbe on the eve of the 2007 CHOGM summit in Kampala.

The report paints a sordid picture of collusion and influence peddling by the top echelon of National Forestry Authority (NFA) and lawyers, with President Yoweri Museveni, at some point, ordering the then Attorney General, Prof. Khidhu Makubuya, to do everything humanely possible to “stop the fraudsters in their scheme.”

“The higher courts cannot accept NFA being condemned to pay more than sh3b for no legal breach on its part,” the president letter of January 7, 2010 reads in part, highlighting the obvious lack of genuine contract between NFA and BDS to inform the compensation.

The land in question, according to the report, had been given to private tree planters, whose trees were mowed by BDS without compensation.

At that time, BDS had not secured an eco-tourism license from NFA, although the former had already parted with USD$6000 for one.

BDS authority to start work on the site without a license was premised on a hand written note by NFA Range Manager Lakeshore Region, a one Reuben Arinaitwe, dated June 8, 2006: “BDS, start working at the site, the license is being prepared,” the note reads.

Following BDS’s complaint about NFA’s delay to furnish it with a license, the latter promptly refunded the former’s $6000 in September 2006, whereupon BDS issued a notice of intention to sue NFA for breach of contract.

In a subsequent High Court case, NFA stridently rejected talk of a contract with BDS, noting that the refund of $6000 absolved it of any such obligation with the latter.

The knotty issue, however, is Justice Joseph Mulangira entering judgment in favor of BDS premised on a consent judgment that has since been rejected by then NFA lawyer, Molly Kyepaaka Karuhanga.

“Karuhanga made evidence to the committee that there was no consent and that the consent alluded to by the trial judge does not exist,” the report reads.

The committee has since failed to get access to a signed consent judgment between the parties, further giving credence to Karuhanga’s assertion.

A visit to the site by legislators indicates that BDS had not expended considerable sums of money at the time it pulled out, with MPs stumbling upon a fish pond and three incomplete chalets.

BDS claimed it had built 10 chalets – thus getting compensated $551,985.

As suggested by Museveni, MPs want Murangira referred to the Judicial Service Commission for disciplinary measures, while for Odoi, only a refund of the money “irregularly” paid to a company in which Justice Ralph Ochan is also a shareholder, will suffice.

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