'Ugandan traders in South Sudan inflated claims over lost goods'

Sep 23, 2020

An audit of the claims by Ugandan traders, who supplied goods to South Sudan has established that out of sh1.5 trillion claimed, only sh25b is genuine.

Finance permanent secretary Keith Muhakanizi citing the findings of an audit report carried out by Ernst and Young, an audit fi rm contracted to conduct fresh verifi cation of claims, said most of the claims were fi fictitious and will not be paid.

Muhakanizi, without going into the details of the report informed Parliament's public accounts committee on Monday that the ministry had since written a cabinet paper, which awaits debate and approval. This was after the committee chairperson, Nandala Mafabi, asked him to explain why the ministry had not paid the traders, despite a directive and approval of funds by Parliament.

"Most did not meet the criteria, had no supporting documents, and did not sign any contract with South Sudan government. Some of them signed contracts with individuals in South Sudan, which was not right and others were not even captured by the system at the point of entry making it diffi cult to pay," Muhakanizi said.

Last year in May, Parliament approved sh900b for traders that supplied goods and services to the South Sudan government between 2008 and 2010. The traders were not paid following the outbreak of the conflict in 2013.

In 2010, South Sudan and Uganda entered into a mutual agreement which ensured that Uganda clears the debt and treats it as a loan to the government of South Sudan. 

The MOU initially signed between the Government and that of South Sudan covers 10 companies namely Rubya Investments, Kibungo Enterprises, Aponye (U) Limited, Afro Kai Ltd, Swift Commodities Establishment Ltd, Sunrise Commodities, Ms. Sophie Omari, Apo General Agencies, Ropani International and KK Transporters.

Muhakanizi informed MPs that when fi nance halted the payment for the 10 companies, they took the matter to a Ugandan court, which issued a mandamus ordering fi nance to pay.

Last week, the Speaker of Parliament, Rebecca Kadaga, asked fi nance minister Matia Kasaija to appear before the House and answer questions on the delay in paying the traders. The matter has been on the order paper for over two months now. Kasaija was supposed to appear on Tuesday last week, but did not. 

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