Yasiin Mugerwa
9 December 2011
A lawyer representing Burundi yesterday said Uganda still owes the country money, even as government claims it paid $14m (about Shs35b) to the country for its support during the 1981-1986 guerilla war.
Acting Secretary to the Treasury Keith Muhakanizi and Accountant General Gustavio Bwoch told Parliament’s Public Accounts Committee on Tuesday that the government paid all the money through Picfare Industries Ltd. However, Mr Joash Ssendege, told Pac that Burundi is still demanding money from the government of Uganda, even though he did not specify the amount.
Mr Ssendege, who appeared before MPs with a colleague only identified as Patel, asked the committee to give him two weeks to gather all the documents from Burundi and also consult his client about the money.
“I want to assist you arrive at the truth in this matter,” Mr Ssendege said.
“They contacted me in 1995, I flew to Burundi where I met the Finance Minister and we signed the contract. My assignment was specific (to handle the $14m deal). I was given instructions to represent the government of Burundi in this matter.”
Corruption allegations
Pac is investigating the Shs35b over allegations of corruption in the deal. The committee says the rebels did not have legal mandate to commit the country and therefore the money was fraudulently paid.
Evidence before Pac indicates that the President was aware of the deal but asked IGG to investigate why only $3.5 million was paid to Burundi yet the Ministry of Finance claims the entire amount was paid to Picfare to supply textbooks for free education in Burundi.
However, IGG Raphael Baku said he investigated the matter and found that the problem was between Picfare and Burundi.
Pac has summoned Picfare officials to appear on December 16 to account for the $14m paid to Burundi through the company. Pac Chairman Kassiano Wadri yesterday confirmed the meeting with Mr Ssendege and described him as a key witness in the ongoing inquiry into the alleged corruption in the payment of Shs35b.
“Officials in the Ministry of Finance told us they paid the money to Burundi, but the information we have indicates that the money stayed in Kampala. It appears Picfare was just used as a conduit.”
ymugerwa@ug.nationmedia.com
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