Amama Mbabazi, Bigirimana ‘opposed’ Kazinda transfer:
The secretary to the treasury, Chris Kassami, today admitted before the Public Accounts Committee that the misappropriation of the funds meant for the Peace Recovery and Development Plan in northern Uganda originated from the Ministry of Finance and he was unable to detect it.
Appearing as the first witness before PAC, which is considering the Auditor General’s special report on the allegations of financial impropriety in the office of the Prime Minister (OPM), Kassami described the scam as “conspiracy to steal.”
“This was not mere corruption but a conspiracy to steal. And, indeed ever since information was unearthed about the fraud in the ministry we have taken measures to curb the financial impropriety,” Kassami said.
Two weeks ago the Auditor General, John Muwanga, following an investigation into the misappropriation of PRDP funds, submitted an audit report that shows how colossal sums were diverted to other activities. This contravened the Joint Financing Agreement (JFA) signed between the government and development partners, Norway, Sweden, Denmark and Ireland.
According to that agreement, the government was to use these funds only to cover PRDP expenditures as approved by Parliament. However, the Auditor General found that Shs 6.93bn, meant for PRDP was diverted by the treasury to an OPM account in Bank of Uganda under the name National Policy on Disaster Management Account No 000030088000013.
“This diversion was effected on 27th June 2011 on the advice of Ms Mariam Kiggundu, an economist for the Aid Liaison Department. In her letter, the officer explained that the funds that had been received from Royal Danish Kingdom (DKK 5,000,000) as well as the Government of Sweden (SEK 15,000,000) were for developing a policy on disaster management,” reads the Auditor General’s report.
Further, Shs 11.166 billion in respect of Norwegian aid was transferred to an OPM account in Bank of Uganda after a request from the Permanent Secretary, Pius Bigirimana.
“Ordinarily, the diverted funds should have been sent to the consolidated fund and released to the districts following the appropriation by Parliament, instead, these funds were sent to a project account whose activities had ceased in 2009,” the Auditor General observed, adding that this was in contravention of the JFA.
Today, PAC also met the Accountant General Gustavo Bwoch and asked him how he instructed the diversion of funds against the JFA signed with donors.