Museveni knew of pay-outs, say aides

In the know. State House employees say the President was aware of Haba’s demand for an upward revision of its compensation claim

President Museveni’s aides yesterday refused to take responsibility in the payment of Shs142.6 billion to businessman Hassan Basajjabalaba, saying their boss knew all about the compensation claims.

The refusal came a day after President Museveni blamed two ministers over the ‘inflated’ compensation to several businessmen for loss of business and also disclosed he had directed the police to investigate two of his aides over the matter.

While meeting MPs on the Public Accounts Committee on Wednesday, President Museveni said he drafted some letters and others were drafted for him to sign by his aides Joy Kabatsi and Edward Muhoozi. He asked the aides to appear before PAC and explain the contents of the letters.

Ms Kabatsi yesterday said the President was aware of Mr Basajjabalaba’s Haba Group petition to revise upwards their compensation money. She also said former Attorney General Khiddu Makubuya (now minister in the Office of the Prime Minister) should answer for any losses since he approved the payments.

“Basajjabalaba petitioned the President twice and I wrote to the Attorney General, the chairperson of the inter-ministerial committee and the number one adviser to President and government to deal with these matters,” Ms Kabatsi said.

“I work for the President and he knew about my letter and it’s not wrong. Whatever, I did, I did it as a presidential assistant.”

In a July 16, 2010 letter, Ms Kabatsi wrote to Prof. Makubuya on behalf of the Principal Private Secretary (PPS), communicating a decision from the President to revise Haba claim and ensure fairness and non-discrimination.

Ms Kabatsi was responding to a petition from Haba to President Museveni dated July 7, 2010. Earlier, on November 20, 2009, Mr Basajjabalaba had also petitioned the President to review his compensation claim.
PAC also quizzed Mr Muhoozi after it emerged that he allegedly misled the President in his letter to Bank of Uganda Governor Emmanuel Tumusiime-Mutebile.

The committee heard that on January 8, 2011, Mr Muhoozi helped the President draft a letter for his signature. This was the letter, the governor used to issue letters of comfort to Mr Basajjabalaba.

But in his defence, Mr Muhoozi said: “The President signed the letter after it went through the due process.” But when pressed to explain the basis he used to claim that the Haba claim had been fully assessed, Mr Muhoozi apologised.

“I did err and I accept I made a mistake. I didn’t know this letter would be used by the governor to issue letters of comfort. I didn’t know what was going on. But Mr chairman, there was a petition on which I based my decision.”

Committee Chairperson Kassiano Wadri ordered Mr David Ngoobi, the head of CID attached to PAC, to take statements from State House officials, while Mr Muhoozi was given up to Tuesday to present the documents he used to help the President draft the letter to Bank of Uganda.

In his statement to PAC, Mr Museveni said his letters contained two positions: Basajjabalaba should be kicked out of the markets and be compensated out of natural justice, the mistakes of those who sold to him notwithstanding. The President said he strongly supported the principle of compensation but not the Shs142b.

Whereas the President has distanced himself from the compensations, the Leader of Opposition, Mr Nandala Mafabi, yesterday told journalists at Parliament that the President knew about the deal and wondered how he could sign documents containing the Shs142.6 billion figure without knowing its content.
The President on Wednesday told PAC that former Finance Minister Syda Bbumba and Prof. Makubuya should be held responsible. PAC yesterday concluded its investigation and embarked on report writing. However, it’s up to Parliament to take a final decision on the matter.

ymugerwa@ug.nationmedia.com