Sheila Naturinda, Richard Wanambwa and Elias Biryabarema
21 August 2008
Kampala — Members of the National Resistance Movement Parliamentary Caucus yesterday signed a petition to the party Chief Whip calling for Security Minister Amama Mbabazi to explain his role in the NSSF Wakiso land transaction.
The petition was signed by seven MPs and sent to Chief Whip Kabakumba Matsiko and copied to Mr Mbabazi and party leader President Yoweri Museveni. In the petition, the MPs called upon Mr Mbabazi to resign his party position as NRM secretary general if found guilty of influence-peddling in the transaction.
Mr Mbabazi, who spoke to Daily Monitor yesterday for the first time since this newspaper broke the story last week, declined to comment about the matter. "Why is it that they are passing through Daily Monitor? It's not something that I really want to spend time on.
I have a lot of other things to do," the minister said before hanging up. Officials close to Mr Mbabazi have in recent days blamed the controversy on the minister's political rivals.
The National Social Security Fund in February paid Shs11 billion for 414 acres of land in Temangalo, Wakiso District, owned by the Security minister and businessman Amos Nzeyi.
The transaction has since been surrounded by controversy following revelations that the price paid was higher than that suggested by three independent valuation firms contracted by the NSSF, and that the Fund's board advised the minister to transfer his land to Mr Nzeyi in order to avoid an undefined conflict of interest. A member of the board said the transaction was approved under "political pressure".
Mr Felix Okot Ogong (Dokolo, NRM), one of the seven MPs, who signed the petition, said: "Workers money was used in a manner that doesn't respect the workers and then a minister and a whole secretary general of a ruling party is involved? [This] is something the party won't accept."
Mr Henry Banyenzaki, the Rubanda West MP, added: "If he is guilty, then he surely knows what to do, he should resign."
Ms Matsiko could not be reached for comment by press time but the NRM Parliamentary caucus spokesman, Mr Joseph Kasozi, confirmed the office had received the petition.
"We will have to sit as the executive, see the merits and demerits of the petition and then see how to move forward," Mr Kasozi said. "Members have the right to summon the caucus any time."
MPs Theodore Ssekikubo (Rwemiyaga), Henry Banyenzaki, Wilfred Niwagaba (Ndorwa East), Bernabas Tinkasimiire (Buyaga) Hamson Obua (Youth North), Otada Amooti (Kibanda) and Sanjay Tanna (Tororo Municipality) are among those who signed the petition which is also copied to Prime Minister Apolo Nsibambi, the leader of government business in Parliament.
Other NRM MPs including Onyango Kakoba (Buikwe North), Margaret Muhanga (Kabarole) Stephen Tashobya (Kajara) and Chris Baryomunsi (Kinkiizi East), did not sign the petition but said Mr Mbabazi needs to explain his role in the transaction.
Finance Minister Ezra Suruma yesterday spoke about the controversy for the first time, and defended Mr Mbabazi's involvement in the deal. "Amama Mbabazi has rights like any other Ugandan and there is absolutely nothing wrong with him selling land to NSSF," Dr Suruma told Daily Monitor.
Dr Suruma, under whose ministry the NSSF falls, also defended the Fund's decision to triple the construction costs for Pension Towers, the building complex it is developing on Lumumba Avenue in Kampala from Shs36 billion to Shs120 billion, less than four months after construction started, and before getting approval from the Public Procurement and Disposal of Public Assets Authority.
NSSF on April 2, signed a Shs36 billion agreement with Roko Construction Ltd, which is undertaking the project but on June 18, the board approved a new Shs120 billion project ceiling after NSSF MD David Chandi Jamwa presented a paper asking for the approval, citing "broad and extensive changes in the project design that required extra money".
Dr Suruma said yesterday: "The new design is good because NSSF wants to utilise land optimally. That's why they want to build taller towers instead of expanding the project horizontally which wastes scarce land."
According to Mr Jamwa's June 18 board paper, the original architectural design, which was supposed to have had three seven-storey blocks and a single, large basement was changed to three towers where one will have 21 floors while the remaining two will have 12 floors each.
PPDA's executive director Edgar Agaba said Tuesday, that his institution would not approve the deal because the Authority doesn't issue retrospective approvals for contracts.
Mr Agaba could not be reached yesterday to respond to Dr Suruma's defence of the project but PPDA Public Relations Officer Dora Egunyu indicated that the NSSF MD, Mr Jamwa, who is the accounting officer, would take personal responsibility in the event that the multi-million procurement is not approved.
"Like we have said, PPDA cannot approve projects retrospectively," she said. "So what happens with the Pension Towers if the new construction costs are not approved? NSSF Accounting Officer who is Mr Jamwa will take responsibility."
Under section 9 of the PPDA Act, the authority can among other things, recommend disciplinary action against the accounting officer, suspension of officers concerned or replacement of the head of the procurement unit in entities which flout the rules.
Meanwhile, the Auditor General, Mr John Muwanga, on August 13 wrote to Mr Jamwa and demanded for records of the Wakiso land transaction. "Please note that I may need to conduct a value-for-money audit in the near future," sources quoted the AG's letter as saying.
PPDA's Agaba on August 18 also wrote to Mr Jamwa, demanding for documents related to the deal. Mr Jamwa on August 14 replied to Mr Muwanga's letter and defended the deal, saying that NSSF had conducted due-diligence before finalising the transaction.
Mr Jamwa said that the Fund had used restricted domestic bidding - and selected Mr Nzeyi and Arma Ltd, Mr Mbabazi's company, from a shortlist of three bidders.
Mr Muwanga yesterday confirmed receiving Mr Jamwa's letter and said the NSSF MD's explanation was still under scrutiny
"I have received information from NSSF regarding the land deal and it is being studied," Mr Muwanga said in an e-mail to Daily Monitor. He did not give further details.
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Just when you thought you had the worst of this corruption or blantant theft of public funds stories there comes one down the pike as sure and as sunrise. When is enough enough ? This is the same Mbabazi who wants to or is supposed to succeed Museveni ! What type of future does Uganda really have ? In most true or genuine revolutions these people would hang. As long as NRM continues in power these corruption stories from the highest levels of power will just keep piling. This is precisely what happens when leaders view themselves as owners of the state instead of its temporary custodians. NRM is a shameless klepotracy that needed to have been replaced yesterday.