Uganda Railways employees charged, remanded over Shs146million loss

Mr Peter Katwebaze the assistant chief mechanical engineer and Mr Nicholas Kakooza, mechanical engineer in the dock at the Anti-Corruption Court in Kampala on March 21, 2024 on charges of allegedly causing financial loss of over Shs146 million to the government. Photo/Juliet Kigongo.

What you need to know:

  • Court held that although Mr Kisembo left URC two years ago, he is still construed as part of staff of URC since investigations in the matter have taken place since August 2021.


Two employees of Uganda Railways Corporation (URC) have been charged and remanded for allegedly causing financial loss of over Shs146 million to the government.

These include Mr Nicholas Kakooza, a mechanical engineer and Mr Peter Katwebaze, the assistant chief mechanical engineer.

The two were arraigned before the Anti-Corruption Court Grade One Magistrate Abert Asiimwe for plea on March 21 but denied the charge of causing financial loss contrary to Section 20(1) of the Anti-Corruption Act 2009 as amended.

However, court issued criminal summons against their co-accused Mr Stanley Sendegeya the Former Managing Director of URC after it was submitted through his lawyer that he got a mini-stroke and on constant medication.

Through their lawyer the two had applied for bail on grounds that they are senior citizens, have substantial sureties, law abiding citizens who have been religiously appearing on police bond during investigations since August 2021, and the charge against them is bailable among others.

Among the three same sureties the two presented to stand for them include; Mr Charles Kisembo, Acting Commissioner in the Ministry of Works and Transport, Mr Abuberkerere Ochaki Namara, Chief Operations Officer with URC and Mr David Tusiime, the Principal Operating Officer in charge of marines at URC.

However, the trial Magistrate rejected the three sureties reasoning that they are employees of URC and will be needed in assisting the state with prosecution.

“Considering that the discretion to grant or not to grant bail is based at the discretion of the magistrate, in my view which I believe am exercising expeditiously to all the few who could be shouldering the work at URC to be sureties in  a case where they are supposed to build prosecution case will be subjecting them to commit an offense of conflict of interest,” Mr Asiimwe ruled.

“…….. therefore without prejudice of the submissions of the state or counsel for the accused persons in light of the right of the accused persons . Counsel is advised to get other sureties tomorrow on the 22 day of March 2024 other than these ones,” he added.

Court also held that although Mr Kisembo left URC two years ago, he is still construed as part of staff of URC since investigations in the matter have taken place since August 2021.

According to the charge sheet, the prosecution led by Ms  Gloria Inzikuru states that during the month of August 2021 at the URC being employed by URC as Managing Director,  Mechanical Engineer and Assistant Chief Mechanical Engineer respectively caused the irregular payment of an extra sum of USD 38,200 to Kenya Railways Corporation for security and transportation of 4 used locomotives that had been procured by URC from Chwangamwe (Mombasa) to URC's workshop in Nalukolongo Kampala yet the said payments had already been made to provider, GPR leasing Africa  under the contract for the supply, delivery, training and commissioning of four used locomotives knowing that such extra payments would cause financial loss to the government.