Ex UNRA engineer pinned over ghost roads

NEWS  | COURT  | UNRA


A former engineer with the Uganda National Roads Authority (UNRA) has been pinned over fraud in which the Authority lost over sh700m in payment for ghost roads construction under a project worth sh3.1b.

Umar Katongole, who is also battling other court cases, including illicit enrichment estimated at sh6.2b, is accused of flouting procurement laws, which cost government sh724m.

The authority's director of roads maintenance, Joseph Otim, made the revelation on Monday at the AntiCorruption Court in Kololo, Kampala. Otim said he was part of a committee that was constituted by UNRA on July 10, 2015, to handle a matter of mismanagement of road maintenance funds at Moyo and Hoima stations under Katongole then. He said government had both oral and documentary evidence to show that payment was made for no work done.

Guided by senior inspectorate officer Thomas Okoth, Otim said the committee recommended to management the dismissal of Katongole from UNRA with immediate effect.

"We recommended to the executive director that management should consider dismissing Katongole over lack of integrity, unprofessionalism and conflict of interest," Otim said.

In addition, Otim said the committee members recommended that Katongole should refund sh724m because the work was not done and the Government incurred a loss.
Asked by Okoth whether Katongole refunded sh724m as recommended by the committee, Otim said he was not aware.

Otim, who testified as the first prosecution witness on Monday, said the adhoc committee comprised eng. James Okiror (chairperson),William Tumwine (legal counsel) and Rashid Kamoga (secretary).

"When the committee was appointed, we were given tips to find out the ownership of companies highlighted in the audit report," Otim said.

He said the committee relied on an audit report for Moyo and Hoima and wrote to the Uganda Registration Services Bureau (URSB) to ascertain the ownership of the companies cited in the audit report.

"In the report we made, we found that Katongole inflated payment for no work done at sh724,908,112 for Moyo and Hoima roads," Otim said.

Court heard that Katongole's wife, Hawa Sengendo, had 10 shares in companies identified by Otim as Kopline Services Ltd. Katongole had 70 shares in Topline Uganda Construction and Maziga Construction Supply Ltd. Sengendo and Adam Kakooza, the late father of Katongole had 30 shares.

Otim alleged that investigations and audit report indicate that UNRA paid money to companies in which Katongole, Sengendo and Kakooza had shares adding that it was a conflict of interest.

Other charges
Katongole is also facing trial together with Sengendo, over illicit enrichment estimated at sh6.2b.

Inspectorate of Government (IG) accuses Katongole of being in possession of wealth which is disproportionate to his income, past known sources of income and not commensurate with his salary as the then government engineer.
According to IG, Katongole's assets during the period of 2008-2015 were estimated to be sh316m.

IG said as the then station engineer at (UNRA), Katongole owns land comprised in Block 26, Plots 280, 281, and 282 Mengo valued at sh6b, which is disproportionate with his salary. IG said Katongole also owns land Block 260, Plot 722 Kyadondo at Ziranumbu. He is a proprietor of Block 11, Plots 587 and 826 Kibuga at Kabowa, untitled land at Lusaka zone Makindye and Block 180, Plots 677, 877,1395 and 1782 Kyadondo.

Laundered money 
On the charge of money laundering, it is alleged that Katongole in August 2015 in Kampala district concealed source of his properties comprised in Block 180, Plots 1395, 1782 and 877 in Wakiso district.

Okoth said Katongole later transferred the land to Darkins Uganda Ltd when he knew that property was proceeds of crime.

Prosecution accuses Sengendo of concealing the transfer of another piece of land on Block 26 Plot 280, 281 and 282 land at Mengo to Darkins Uganda Ltd.
It is alleged that Katongole and Sengendo between April, 2011 and August 2015 at Tropical Bank Ltd deposited sh2.8b in Tropical Bank and concealed its source, yet they knew it was proceeds of crime.

IG alleged that for purposes of concealing the source of another sh380m, Katongole withdrew the money from Tropical Bank Ltd that they owned jointly and transferred it to another account in Tropical Bank Ltd, Kampala main branch to Sengendo's account.
On the last count of money laundering, prosecution said on July13, 2015, Sengendo deposited sh466m on another account in Tropical Bank Ltd so as to disguise the source of the funds, yet she knew it was a proceed of crime.




Under section 31(2) of the Anti-Corruption Act, any person found in possession of illicitly acquired resources or property, commits an offence and is liable on conviction to a sentence not exceeding 10 years imprisonment or a fine of sh5m or both.
Section (3) (1) of Anti-Money Laundering Act, attracts 15 years of imprisonment or a fine not exceeding sh2b.
Sengendo is also alleged to have disguised the transfer of another piece of land on Block 26 Plot 280, 281 and 282 at Mengo to Darkins Uganda Ltd.
IG said Katongole and Sengendo between April, 2011 and August 2015 at Tropical Bank Ltd deposited sh2.8b on account 0010102561 in Tropical Bank and concealed its source yet they knew it was proceeds of crime.