Badru D. Mulumba
23 August 2002
The World Bank will not fund Bujagali hydropower projects until corruption allegations have been fully investigated.
A Norwegian magazine, Development Today, reports that the bank wants the $10,000 (Shs 18m) that a subsidiary of a Bujagali dam contractor, Veidekke, allegedly gave former Energy minister Richard Kaijuka fully probed.
Veidekke allegedly gave the bribe while it was working on the proposed Karuma Power Project in 1999.
Development Today says in its current issue that "Peter Woicke, the Executive Vice President of IFC, has said that until they are fully satisfied that all allegations of corruption are being addressed, the World Bank Group will not proceed with the financing of this project."
International Finance Corporation (IFC) is World Bank agency responsible for Bujagali money.
The Bank wants Uganda and Norway to do the investigations.
Veidekke's vice-president Kai Kruger Henriksen denies involvement of Norwegian nationals in the bribery.
"As for the $10,000 payment to Kaijuka, Henriksen says¼no Norwegians were involved," says the magazine.
Kaijuka, a World Bank Alternate Executive Director, says the $10,000 was for work his son did for Veidekke.
IFC communications officer in Washington, Joseph Ludwina declined to comment on the investigation status and results.
"As already indicated, the matter has been referred to the relevant member governments to investigate. Therefore, it would not be appropriate for us to comment," he said.
Inspection General of Government Jotham Tumwesigye says Uganda's probe has stalled.
"I have not made much headway because of the problems beyond my control," Tumwesigye said in an interview Tuesday.
"And until those difficulties are resolved, I don't hope to make any headway."
Asked what the difficulties are, he said, "The people I want are outside this country."
Prime Minister Apolo Nsibambi said on phone Tuesday that he asked the IGG to expedite investigations.
Meanwhile, Development Today says that the probe in Norway ends early next month.
But Veidekke is doing the probe internally, excluding the Police.
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