Uganda: Museveni Cleared of Basajja Refund Claims

Speaker Rebecca Kadaga has received the final report of the Public Accounts Committee on the loss of more than Shs150 billion in compensation claims to city businessmen Hassan Basajjabalaba and Col. (Rtd) John Mugyenyi.

While the details of this report remain confidential under the Rules of Procedure, PAC Chairman Kassiano Wadri yesterday confirmed to Daily Monitor that indeed, he had submitted the report to Ms Kadaga, who promised him space on the Order Paper in order to have the report debated.

However, sources who were part of the drafting of this 60-page report told Daily Monitor yesterday that members “painfully” absolved the President of any wrongdoing for fear that implicated ministers and other public officials might use his culpability as a scapegoat. Under the Constitution, the President enjoys immunity.

“We took note that the President wrote several letters, especially on Basajjabalaba’s Shs142.6 billion, but we had no choice but to ignore all his letters,” a member said. “Our fear was that if we had noted anywhere in the report that the President was the one who instructed these payments these ministers were going to escape.”

Although some members had proposed that the President’s letters on Basajjabalaba be included in the report since he was regarded a principal witness during the inquiry, majority of the NRM MPs on the committee insisted that the President’s name be left out of the report.

Most of the witnesses who have appeared before PAC, including High Court Judge Billy Kainamura and former Finance minister Syda Bbumba, have named the President in the payment of Shs142.6b to businessman Hassan Basajjabalaba and another Shs14.9b to Col. John Mugyenyi.

President Museveni has said before that Mr Basajjabalaba’s claim was “scandalous and unacceptable” and State House has dismissed claims that the President authorised the huge compensation figure claimed by the city businessman.

Appearing before PAC, Mr Basajjabalaba said he had lost business for 11 years after the government on the instructions of the President cancelled his tenders to run Nakasero, Shauriyako, St. Balikuddembe (Owino) markets and the Constitution Square.

In the report, sources said the committee recommended that ministers Makubuya and Bbumba be personally and politically held liable for the payment of billions of shillings in compensation claims to the businessmen.

Other resolutions

They have also recommended that Governor Bank of Uganda Emmanuel Tumusiime-Mutebile be relieved of his duties for authorising the payments to the businessman. The committee wanted to forgive the former Solicitor General Billy Kainamura (now a Judge) but later resolved that this judge be investigated further.

“We wanted to say the President played a pivotal role, some members refused, then we said the President played a key role, they banged tables, later we said the President played a central role, they still objected until when they succeeded in saying that the President played no role in these payments,” a member said.

“These officials didn’t advise the President and we found evidence that they be held responsible for any loss. There was a proposal that they pay back the money but we later realised that they don’t have this kind of money,” the source said.

On the payment of Shs142.6 billion to Basajjabalaba’s Haba Group, the Committee has recommended that his claims be harmonised with a view of establishing the exact amounts Basajjabalaba demands from the government. They have also recommended that the alleged forged consent judgment be investigated to establish the truth.

While the PAC chairman presented the report to the Speaker, it is unlikely that the debate will be allowed to proceed because this newspaper understands that Mr Basajjabalaba’s Haba Group recently petitioned court challenging the decision to review his payment.

He also secured an injunction in the Land Division of Commercial Court and petitioned the Constitutional Court challenging the powers of Attorney General to review the decisions of his predecessor.