Chris Obore
12 October 2008
Kampala — A parliamentary committee investigating the Shs11 billion Temangalo land purchase has completed writing a draft report which confirms there was influence-peddling, abuse of public procurement procedures, and political pressure applied on the National Social Security Fund managers.
According to the draft report, a copy of which Sunday Monitor has obtained, Finance Minister Ezra Suruma "imposed political pressure on the [NSSF] MD even prior to the transaction" while businessman Amos Nzeyi "on his part carried out serious political influence by proxy."
The report, however, is silent on Security Minister Amama Mbabazi.
Earlier this year, Mr Mbabazi and Mr Nzeyi sold more than 400 acres of land to the NSSF for Shs11 billion, a transaction that some say was characterised by influence-peddling and price inflation.
The Committee on Commissions, State Enterprises and Statutory Authorities that has been investigating this matter went into retreat in Entebbe on Friday night where members were expected to hammer out recommendations following their investigations into this matter that threatens the very integrity of the ruling NRM party. Mr Mbabazi is secretary general of NRM and calls are being made by elements of the party that he steps down.
Much as the draft report is silent on Mr Mbabazi's role, it is unclear how the pinning of Dr Suruma and Mr Nzeyi, who are his business associates, will affect him.
The findings of the committee also reveal that "according to the Leadership Code Act, Section 8 and 12, Dr Suruma put himself in a position where his interests conflicted with his duties and responsibilities".
The draft report further implicates Solicitor General Billy Kainemura saying "he is partly responsible for the irregularities in the transaction since he acknowledged that he cleared the transaction with full knowledge that the NSSF had breached the PPDA Act 2002, the regulations and the guidelines."
As part of his defence, Mr Mbabazi had told the investigating committee that he was under no obligation as a private individual to ensure that PPDA rules were followed by NSSF, a public institution.
The draft report reads: "... Mr David Chandi Jamwa, the Managing Director of the Fund in a revealing testimony ... informed the committee that the land was 'literally put in the NSSF's mouth'."
"In the opinion of the MD, there was conflict of interest on the part of Hon. Dr Ezra Suruma. This is illustrated by the fact that as the appointing authority of NSSF Board and a Director in the National Bank of Commerce, he pressurised the NSSF to raise money to save the bank."
The report says that Mr Jamwa confessed: "The transaction was characterised by political pressure from the very beginning. Mr Nzeyi had earlier introduced himself to the MD in October 2007 and offered to sell land to him at Shs35 million per acre."
"Hon. Dr Ezra Suruma, the Minister of Finance, Planning and Economic Development imposed political pressure on the MD even prior to the transaction. This was initialised when the two met at the Munyonyo Commonwwealth Resort on the 9th of January 2008 on the occasion of the launch of Warid Telecom.
"At the said meeting, Hon. Dr Suruma categorically asked Mr Jamwa to help him to 'save their bank' which was going to be taken over by Nigerians and urgently needed money to buy shares. The money was actually required even before the land had been purchased but the MD rejected this.
"In Mr Jamwa's words: 'all they wanted was the money, it did not matter whether there were 400 acres or 600 acres', all they wanted was Shs11 billion. They came to us with a set price."
The report observes that Mr Jamwa informed the committee that he put in place three levels of internal controls that would have helped to stop this transaction but it was approved at every level thus rendering his attempts futile.
First, he requested authority of the Solicitor General who cleared the transaction. The NSSF Board also approved the transaction thus passing the second control level and lastly, the minister responsible who is the appointing authority of the Board, Hon. Dr Ezra Suruma "gave a quick no-objection to it."
"Mr Jamwa was asked to deposit Shs.10.5 billion with the Tropical Bank in anticipation of the transaction but he 'dragged his feet' until the idea was abandoned.
"He further stated that there were personal and business connections between Hon. Dr Suruma and several of the board members thus they could not have rejected a decision where the former had interests."
The draft report also reveals that "aware that the 'Temangalo land' was owned by Hon. Amama Mbabazi, Minister for Security , according to Board minute 5 (ii), the Board decided that the Powers of Attorney for the said land be taken over by Mr Nzeyi on behalf of Arma Limited owned by Hon. Mbabazi and family.
This they stated was meant to manage the 'conflict of interest' ... In the view of the Board, transacting business with Mr Nzeyi would absolve the fact that NSSF is a government body that would have been deemed to have carried out business with Hon. Mbabazi, a government minister."
Mr Mbabazi had informed the committee as follows; "he was not involved even most remotely with the decisions NSSF made in this matter ... He stated that the allegation that there was political pressure attributed to [Board member] Mr Olweny could not stand because it did not have any reasonable basis in the first place."
But in Mr Jamwa's own words, according to the draft report, "all they wanted was the money, it did not matter whether there were 400 acres or 600 acres", all they wanted was Shs11 billion. They came to us with a set price."
The report adds: "Mr Nzeyi on his part carried out serious political influence peddling by proxy. He went as far as referring to the person of H.E the President when he told Mr Jamwa that His Excellency had approved that NSSF should purchase Hon. Amama Mbabazi's land. On another occasion he informed the MD that he had been speaking with the First Lady on phone. Mr Nzeyi wanted payment for the land to be made in February 2008 even before the transaction was regularised."
"Towards the end of February 2008, the pressure was increased and to comply with the PPDA Act became impossible," the report quotes Mr Jamwa.
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