Official says hotel got Shs7b Chogm cash above what was recommended
IN DEEP TROUBLE: Permanent Secretary ministry of Trade Amb. John Baptist Onen (R) with the assistant commissioner Tourism Cuthbert Baguma after they failed to account for millions used during Chogm meeting in 2007 when they appeared before a Parliamentary committee on public accounts on Wednesday. Photo by Geoffrey Sseruynage
What you need to know:
When contacted yesterday, the Foreign Affairs Permanent Secretary, Ambassador James Mugume, said his ministry signed two contracts with Imperial Royale Hotel.
Parliament
A top official in the Ministry of Foreign Affairs yesterday tabled evidence showing that Imperial Royale Hotel in Kampala was given Shs6.9 billion above what had been recommended for it during Chogm.
Ambassador Rhoda Kaisho-Sinani, who chaired the committee that negotiated deals with hotels ahead of the summit, told the parliamentary Public Accounts Committee that whereas her team had cleared only Shs1.09 billion for Imperial Royale Hotel, it got Shs7.9 billion.
The private hotel was among five others that shared a total of Shs23.4 billion from the ministry as advance booking for accommodation for delegates and hire of conference facilities.
Deal edited
“Mr Chairman, for us we had recommenced only Shs1.09 billion for the Media Centre and not Shs7.9 billion and I have the document with me,” Ms Kaisho said. “I was the committee chairperson and we negotiated as a team.”
Her testimony came at a joint committee meeting with officials from the trade ministry; where MPs accused them of conniving with Imperial Royale Hotel to cash in on taxpayers.
Committee chairman Nandala Mafabi said: “We have discovered that this hotel was not even ready at the time of Chogm but these people went ahead to advance it with billions of taxpayers’ money.”
When contacted yesterday, the Foreign Affairs Permanent Secretary, Ambassador James Mugume, said his ministry signed two contracts with Imperial Royale Hotel. “We didn’t inflate anything. It’s just that we signed two contracts; one for the media centre and another one for rooms because the decision to fully block this facility came later.”
Ms Kaisho, however, made no mention of the second contract.
At yesterday’s hearing, trade ministry officials Ms Grace Mbabazi Aulo, the commissioner for tourism and her deputy Kathibat Baguma named three ministers who helped J&M hotel on Entebbe Road to get Shs2.4 billion much as it never hosted any Chogm delegate.
Ministers named
“I remember Hon. Serapio Rukundo (State Minister for Tourism) writing a letter recommending that this gentleman (Joseph Behakanira) of J&M Airport Road Hotel be given some support. I have seen the letter and they proceeded to inspect the hotel,” Ms Mbabazi told the committee.
Other ministers named include; Minister of State for Foreign Affairs (Regional Cooperation) Isaac Musumba and State Minister for Finance Fred Omach.
“I visited and inspected the establishment (the hotel). I really commend the investors. They have come up with a unique product in a new locality,” Mr Rukundo allegedly wrote in an August 17, 2007 letter to the finance minister and other top government officials.
The MPs have asked the Police to investigate the ministers’ role in the deal.
