The Supreme Court in Kampala has upheld the 10-year jail sentence handed to John Muhanguzi Kashaka, the former permanent secretary ministry of Local Government for causing Shs 4.2 billion financial loss to the government in the infamous bicycle scandal.
Justice Catherine Bamugemereire in 2014 convicted Kashaka jointly with Henry Bamutura (former principal accountant); Robert Mwebaze (former principal procurement officer); Sam Emorutu Erongot (former assistant commissioner for policy and planning); Timothy Musherure (former consultant) and Adam Alum (member of evaluation committee) but Mwebaze has since died.
Apart from the jail terms, they were also barred them from holding any government office for ten years and ordered to compensate the government for the loss when they contracted a sham company, Ammam Industrial Tools and Equipment Limited to purchase 70, 000 bicycles from India.
The bicycles were to be used by parish and Local Council chairpersons in the 2011 general elections and up to now, they have never been delivered.
Kashaka and his fellow convicts appealed against the same in the Court of Appeal and he lost the case, prompting him to run to the Supreme Court.
On Tuesday , a panel of five justices of the highest court in the land including the Chief Justice Alfonse Owiny Dollo, Faith Mwondha, Prof.Lilian Tibatemwa, Percy Night Tuhaise and Mike Chibita upheld the decision of the Anti Corruption Court arguing that it was wrong for Kashaka to try to shift blame from himself to Bank of Uganda.
"Bank of Uganda, according to the record, wrote to the first appellant(Kashaka) informing him of the discrepancies and the issues cited above. The issues raised included change of final destination of the bicycles from the villages and parishes to Kampala, alteration of the mode of carriage of the bicycles from road to rail and non- submission of an original Delivery Note and Acceptance Certificate by the applicant. The first applicant waived these issues and instructed BoU to pay AITEL the 40% value of the letters of credit. This was paid accordingly," the court said, noting that the bank did as instructed by Kashaka.
"We therefore find this claim of shifting responsibility for the loss to Bank of Uganda, diversionary, unsupported by law or fact and without a single iota of merit."
In his appeal at the Supreme Court, Kashaka had faulted BoU for causing financial loss to government by authorizing payment of the 40% of the value of the letters of credit yet there were discrepancies.
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However the justices of the highest court in the land rubbished this claim.
The justices also rubbished Kashaka's claim that Ministry of Finance was also to blame for the financial loss caused to government .
"The attempt to shift blame to Ministry of Finance is equally appalling and without legal basis. Evidence was laid by PW6 that whereas the 1st appellant(Kashaka) assured the Accountant General that he had seen the bicycles, this was not true as has been found out. In fact, it was shown by PW5 that by the time the 1st appellant requested for authority to pay on March, 25, 2011, authority had already been given by the 1st appellant to pay."
"Having failed on all grounds of appeal, the 1st appellant(Kashaka)'s appeal hereby fails and is dismissed."
The panel of five justices of the Supreme Court also upheld the sentence for Henry Bamutura, the former principal accountant in the Ministry of Local Government.
The justices however ruled that Sam Emorut Erongot , the former assistant commissioner for policy and planning in the Ministry of Local Government was wrong convicted and consequently set him free.
