Africa
Uganda Probe Ministers' Alleged Corrupt Ties
By Afrol News 26/8/08
Aug 27, 2008 - 10:52:39 AM

Parliamentary committee on commissions, statutory bodies and state enterprises, investigating the matter, requested registrar of companies yesterday to furnish details of shareholders in National Bank of Commerce, in which some of proceeds of controversial land transaction were reportedly invested.

Committee chairperson, John Odit told media yesterday that committee wants to know whether or not Dr Suruma, has any shares in the bank.

Mr Odit further explained that committee also wanted to know if the minister was acting in public or private interest, when he gave NSSF go-ahead to buy land from Mr Mbabazi.

Dr Suruma, under whose docket NSSF falls, was however not available for comment to media yesterday.

Commenting on the matter earlier on, minister had told media last week Thursday that, "Amama Mbabazi has rights like any other Ugandan and there is absolutely nothing wrong with him selling land to NSSF."

According to media reports made on 13 August, NSSF had paid Shs11 billion (about US$6.7 million) to buy 414 acres of land from Mr Mbabazi and prominent businessman Amos Nzeyi, which was reportedly higher than price advised by three independent valuation firms contracted by Fund.

More serious queries about the deal, however, reportedly rotate around revelations that NSSF board advised Mr Mbabazi on how to structure deal to hide his ownership of part of land.

Investigations reveal that this, in turn forced one board member to allege that transaction was being forced through fund using political pressure. Both Mr Mbabazi and Mr Nzeyi are said to be shareholders in National Bank of Commerce.

NSSF officials say they paid a competitive price for land while Mr Mbabazi has described transaction as a private matter.

No public explanation has reportedly been given by either NSSF or Mr Mbabazi over allegations of political influence-peddling.

A member of the committee, who talked to media on condition of anonymity said investigations have revealed that information was being collected from various government offices about ownership of Bank and Mr Mbabazi's interest in Arma Limited, holding company through which he owned land.

Revelations come ahead of today's second appearance by NSSF's top officials before committee on commissions, statutory authorities and state enterprises, following Board Chairman Edward Gaamuwa and Managing Director David Chandi Jamwa's appearance last Friday.

It was also revealed yesterday that Mr Mbabazi, who is also ruling National Resistance Movement (NRM) secretary general, will appear before his party's parliamentary caucus on 1 September, to explain his involvement in controversial land deal.

Mr Mbabazi's appearance before NRM caucus comes after eight party MPs petitioned party's Chief Whip Kabakumba Masiko last week, demanding an explanation from secretary general.

Ms Masiko wrote back to MPs and Mr Mbabazi on Friday setting date for meeting.

"I did raise Hon Amama Mbabazi who also indicated his willingness to explain at earliest opportunity," Ms Masiko wrote. "I have accordingly included it on 1 September, 2008 Caucus agenda."

She added, "by copy of this letter, Amama Mbabazi is requested to prepare a response to raised issues for caucus' internalisation."

MPs, led by Theodore Ssekikubo (Lwemiyaga), last week wrote to Chief Whip, demanding an explanation from minister, a surprisingly strong move against a man widely considered most-powerful party official, after president Yoweri Museveni.

State minister for ethics and integrity, Dr Nsaba Buturo, told media yesterday that it is now up to Mr Mbabazi and his colleagues to come out and explain to public whether allegations made against them are true.

"The public should remain calm but I request Mr Mbabazi and his colleagues to come out and defend themselves," Dr Buturo said.

Public procurement and disposal of public assets authority is separately investigating Wakiso land transaction, while auditor general's office has said it might consider carrying out a value-for-money audit on project.