New Vision (Kampala)

Uganda: NRM Clears Ministers on NSSF Land Deal

Kampala — THE NRM Parliamentary Caucus has agreed to adopt the minority report, which absolves ministers Amama Mbabazi and Dr. Ezra Suruma of any wrongdoing in the National Social Security Fund land saga.

Ministers Mbabazi (security) and Suruma (finance) have been subjects of a parliamentary inquiry over the controversial purchase of land by NSSF. The social security fund bought the land from Mbabazi and his business associate Amos Nzeyi in Temangalo, Wakiso district at sh11b.

The parliamentary committee on commissions, statutory authorities and state enterprises about two weeks ago released a majority report, implicating the two ministers, recommending that they either resign or be forced out of office. A section of the committee members, however, wrote a minority report clearing the two.

President Yoweri Museveni on Monday convened the party caucus and discussed the two reports at State House, Entebbe.

Party Chief Whip Kabakumba Matsiko yesterday said the position of the party was that the two ministers were innocent and warned that no member of the party was supposed to go contrary to this position when the matter comes for debate in the House. The debate was to start yesterday.

Kabakumba said the ministers were cleared of any wrongdoing on all the four allegations of conflict of interest, influence peddling, lack of value for money and flouting the procurement process.

"It is a position of consensus, this is the position agreed on by all NRM members and those who were not in the meeting are bound by it. Any member who fails to follow this will face disciplinary action," she said.

"The caucus noted that the committee received evidence from the board of NSSF and the managing director to confirm that Mbabazi did not contact the board or management to influence the transaction.

Kabakumba added that although Suruma gave a no objection to the purchase in accordance with the law, he neither participated in the negotiations nor was he a beneficiary of the proceeds of the sale.

She said the sanctions in the leadership code do not apply in this case to the two ministers. She said the caucus also noted that the enforcement of the Leadership Code Act is the exclusive jurisdiction of the Inspectorate of Government.

"Jamwa's evidence was contradictory and cannot be relied upon to suggest that Suruma exerted pressure on him.

The committee did not summon other witnesses to corroborate Jamwa's contradictory testimonies," she said.

The caucus also observed that the purchase was a viable decision and that sh24m per acre was fair, given the value of land in the area.

"The caucus noted the evidence of the board that the Temangalo Estate is to be the largest planned residential housing estate in Uganda with 5,000 housing units, recreation centres, houses of worship, schools, hospital, watershed eco-system, eco-balanced green areas as well as sports facilities.

The caucus also adopted the opinion of the Solicitor General that acquisition of real property by a government body is not a procurement within the meaning of the PPDA Act. "The transaction was an investment, which was concluded under section 30 of the NSSF Act. This opinion was confirmed by the Attorney General."

Kabakumba said the Stakeholders Transition Group report had been studied and some of the recommendation had been included in the pensions reform draft Bill due to be tabled in Parliament.

The Government has also approved a new policy on the reform of the pension sector, under which NSSF will be supervised by an independent regulator, while five representatives of workers will soon be appointed to its board.

Kabakumba confirmed that during the debate, the First Lady and Ruhaama MP Janet Museveni, among other members, demanded that the ministers either resign or return the sh11b workers' money.

But MP David Bahati said: "The First Lady's proposal was a voice of reason and conscience, but we discussed further and came up with a compromise position."

Kabakumba also said the two ministers apologised at the meeting, but denied that the apology was over the mess in the transaction.

She said Mbabazi apologised over the squatters who had not yet been resettled, while Suruma apologised over being the line minister when the transaction was sealed.


Copyright © 2008 New Vision. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 130 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

Comments Post a comment