Museveni directed me to pay Basajjabalaba, Bbumba says

Gender Minister Syda Bbumba responds to a query at Parliament yesterday. Photo by Geoffrey Sseruyange

What you need to know:

Her testimony corresponds with that of the businessman who recently told Parliament that President Museveni okayed his claims.

Gender Minister Syda Bbumba yesterday told MPs that it was President Museveni who instructed her compensate city businessman Hassan Basajjabalaba for loss of business when his contracts to manage city markets were cancelled.

Appearing before the Public Accounts Committee, Ms Bbumba, a former finance minister, tabled letters written by President Museveni and others authored by then Attorney General, Khiddu Makubuya, the principal legal adviser of government, as evidence to prove that the President knew about the payment.

The documents tabled before PAC show a total of Shs142 billion was paid to Haba Group of Companies owned by Mr Basajjabalaba.

“I have a letter from “the government” (President Museveni) which I do not want to read in public, instructing me to handle Basajjabalaba’s matter expeditiously and conclusively,” Ms Bbumba said. “The superior directive was to the three of us.”

While Ms Bbumba had requested that the President’s letters be kept away from journalists, committee chairperson Kassiano Wadri (Terego) rejected her appeal.

“I have these letters from the President, whom you are calling Mr Government. If you do not want the public to know that he approved the money for Basajjabalaba, let me read mine,” Mr Wadri said.

Ms Bbumba replied: “Those are the letters I was referring to and they are confidential. But if you insist on reading them, you can do so, but I am not the source since you already have the documents in your file.”
In the letter titled: “Compensation for Sub-leased lands and management contracts of Haba Group and Government towards the construction of KIU Teaching Hospital Ishaka,” Mr Museveni instructed the trio to resolve all the issues within the shortest time, warning that procrastinating on the matter would cause “more anxiety to stakeholders and could possibly increase losses on either side.”

Ms Bbumba’s testimony corresponds with that of Mr Basajjabalaba, who recently told PAC that President okayed his claims.

The committee’s legal counsel Mr Gerald Karuhanga, (West Youth) tabled documents indicating that Ms Bbumba on December 3, 2010, asked BoU to pay Mr Basajjabalaba, a day after the Deputy Secretary to the Treasury, Mr Keith Muhakanizi, had written to the AG stopping the payment until further verification of the amount claimed.

Ms Bbumba said: “The directive was clear - it was to conclusively resolve the matter and it was time-bound. In my letter to BoU I did not authorise any payment.” I requested them to look into the matter as per the directives.”