District staff told to refund Shs10m

Furniture in Lyantonde District Council hall whose cost is said to have been inflated. PHOTO BY PAUL SSEKANDI

Lyantonde- A probe committee instituted by the Lyantonde District Council to investigate alleged substandard furniture in the council chamber, has recommended that officials who handled the procurement refund some of the money.

According to the committee findings, the district officials spent Shs1.2m per three-seater ordinary desk made of wood, procured during the 2016/2017 financial year yet each desk costs Shs300,000 only on the open market.

The committee also said the initial total budget for the furniture and two loud speakers was Shs171.7m but it was inflated to Shs177.1m.
Of the furniture ordered, only 26 executive tables, 36 executive chairs, 12 visitors’ chairs, three coffee tables, one council podium and a five-seater sofa set were delivered. Three desks, two loud speakers and one executive table haven’t been delivered yet.

Mr Julius Mugyenyi, the chairperson of the five-member probe committee, on Monday said the whole procurement process was fraudulent.

“The procurement didn’t conform to set guidelines as indicated in the Public Procurement and Disposal of Public Assets Act. We have therefore made several recommendations to help us recover some of money,” Mr Mugyenyi said during an interview yesterday.

Refunding the money
The probe team also ordered members of the evaluation committee, contracts committee and acting chief finance officer, Mr Moses Mugabi, to refund at least Shs10.5m.

“They [implicated district officials] could have refunded all the money, but since they delivered most of the furniture, they will pay back Shs10.5m only as a fine for inflating the cost and causing financial loss to the district,” he said.

The officials were supposed to refund the money by July 15, which period elapsed and no action has been taken yet.

The directors of Getrude Multi Solutions Ltd, a firm contracted to supply the furniture, were also instructed to immediately deliver the remaining furniture.

Mr Johnson Nuwasasira, a councillor for Mpumudde Sub- county, questioned why the district paid an extra Shs5.4m to the supplier.

“How can the supplier be paid an extra Shs5.4m when even the total cost had been inflated?” Mr Nuwasasira asked. Although some councillors allege that Gertrude Multi Solutions Limited belongs to the district senior procurement officer, Mr Benjamin Kamarumba, the latter vehemently denied the allegations.

“The supplier [of furniture] is known and it is not a secret. I personally don’t have such a company and given the work I do, I am not supposed to engage in such transactions because there can be conflict of interest,” Mr Kamarumba said.

Daily Monitor has learnt that the procured furniture was not budgeted for, and council did not discuss nor endorse the transaction process.
Available records secured by the committee indicate that the money used to purchase the furniture was part of the Shs1b the district received from central government to construct its headquarters.

Imported wood
During investigations last year, the Lyantonde District Engineer, Mr Francis Kiwanuka, defended the procurement, saying the furniture was made out of expensive material which explains the cost.

“Some councillors are making noise about the furniture forgetting that the quality of product determines its price. Those desks were made from hardwood which was sourced from DR Congo” Mr Kiwanuka said then.

Mr Fred Muhangi, the district chairperson, has welcomed the recommendations, saying it will help check civil servants who misappropriate taxpayers’ money.