Cabinet ministers who approved the allocation of Shs13.9 billion to construct a road and parking areas on private property ahead of the 2007 Commonwealth Heads of Government Meeting (Chogm) in Kampala must refund it, the Public Accounts Committee (Pac) ruled last week.

Confidential documents approved by Cabinet show that the Ministry of Finance "willingly" funded the construction of an access road connecting the Munyonyo Commonwealth Resort, where the heads of government stayed during the three day summit, to Lweza via Kigo.

The government also financed the construction of a marina, drive-ways and parking areas on land owned by Meera Investments Ltd, a private company owned by city tycoon, Sudhir Ruparelia. Meera Investments owns the Munyonyo Commonwealth Resort.

The revelation has now prompted Pac to demand that members of the Cabinet sub committee that approved the deal stem the loss of public funds by paying back the money.

Pac chairman Nandala Mafabi, said: "Cabinet is to blame for the loss of Shs13.9 billion. They approved the Memorandum of Understanding with Meera Investments Ltd, well knowing that this land was not part of the joint venture deal."

Under the MoU document approved by Cabinet, a copy of which Pac obtained, the Secretary to the Treasury, Mr Chris Kassami, and the former Foreign Affairs Ministry Permanent Secretary, Ambassador Julius Onen, signed the deal on March 13, 2006 at the behest of Cabinet.

The Foreign Affairs Permanent Secretary, Mr James Mugume had told the Auditor General that negotiations were on-going between Ministry of Finance, Ministry of Foreign Affairs, Ministry of Works, Justice and Constitutional Affairs to resolve the issue.

However, on Saturday Mr Ruparelia ruled out any negotiations with government on the matter.

"I had my roads and my marina. If the Chogm blue-book required the route and if it was for bigger boats then it was up to government to do it," he said. "It was the government that contracted directly and we are not in any negotiations."

The Chogm blue-book is a document that contains requirements for Chogm preparations.

Although this matter is well-documented in the Auditor General's Chogm report, Mr John Muwanga on Saturday requested for time to first look at the working documents when asked to provide details of the Shs13.9 billion deal and why he queried it.

On Wednesday, Mr Mugume said the Munyonyo assets, including the marina, the walkways should be explained by officials in the Ministry of Finance. Mr Mugume also said the money for the marina was never supposed to be recovered.

"The marina was part of Chogm security measures. There was need for an alternative route through the lake and heads of state feel safe there, but finance can give you the details," Mr Mugume said.