State concludes prosecution in Onegi-Obel NSSF case

May 22, 2014

The State has concluded its prosecution evidence in the case where former chairman of the National Social Security Fund(NSSF) Geoffrey Onegi-Obel is battling corruption charges over the botched Nsimbe Estate Housing project.

By Andante Okanya

The State has concluded its prosecution evidence in the case where former chairman of the National Social Security Fund(NSSF) Geoffrey Onegi-Obel is battling corruption charges over the botched  Nsimbe Estate Housing project.

On Wednesday, at the Anti-Corruption  Court in Kampala, the Director Legal Affairs at the Inspectorate of Government Sydney  Asubo, closed the prosecution case.

In the court presided by Justice Margaret Tibulya, two prosecution witnesses testified, bringing the total number of state witnesses to nine.

Onegi-Obel is accused of abuse of office and causing a financial loss of about sh8b to the fund.

Wearing a pensive look but calm and composed, Onegi-Obel was present in court, together with his two lawyers Francis Gimara and Ronald Oine.

Former acting  managing director of Mugoya Estates Limited Samuel Owori, gave court a narrative of events that preceded the ill-fated partnership between the company and NSSF.

During examination by Asubo, Awori, stated that  seven meetings were held in 2004 between June 15 and August 20,as systems were set up to commence on the project.

He stated that all the meetings were chaired by Onegi-Obel, save for the first  one where he was selected to chair the project.

Owori stated that Nsimbe Holding embarked on a marketing trip to America and the United Kingdom, which yielded positive response from Ugandans who were eager to be part of the project.

But Gimara, asked court to note on record that Onegi-Obel’s legal team had observed that none of the minutes were confirmed.

However,  during cross-examination by Oine, Owori bemoaned on what might have been, saying the project was destined for success.

“What I would say is that the project was well-thought and based on good plans .It meant that for the  first time, Ugandans had an opportunity to have gated, comfortable, developed, secure, and self-contained,” Owori stated.

He  dispelled the notion being peddled that there was a risk in the project, emphasising that there was zero risk.

Owori, currently the chief executive office of  Institute of Corporate Governance, said Housing  Finance Bank was to provide mortgages, and deliver turn-key ready to occupy  houses.

The last witness Christina Kakeeto, 40, the then NSSF project manager, explained that Mugoya Estates sailed  through the procurement process in the run up to the joint venture.

Kakeeto who left the fund manager in 2004, lamented and purported that during investigations by Police, she was subjected to lengthy grills.

 She said despite being asked to agree with Police’s perception, she remained adamant and stuck to what was a clear depiction of events surrounding the project.

Gimara informed court that Onegi- Obel’s legal team would make written submissions on a no case to answer. Accordingly, court was adjourned to June 20, and Onegi-Obel’s bail was extended till then.

Prosecution purports that between 2003 and 2005, Onegi- Obel  acted arbitrarily when he allegedly floated on behalf NSSF an illegal private business entity known as Premier Developments Ltd as a Special Purpose Vehicle (SPV).

It is alleged that together with his accomplices, they made a joint venture with a private company Mugoya Estates Ltd.

Prosecution states that Onegi-Obel did not ensure financial viability of the value of the money for the investment and in flagrant violation of the provisions of the NSSF Act.

The prosecution further alleges that  Mugoya Construction was procured without any competitive bidding and that the money sh5b paid to do the construction was in excess.

Consequently,an assessment by the Works, Housing and Communication ministry, determined that the works executed were worth sh1.2b and yet the construction firm had received over sh6.8b.

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