Legislators probe UNRA over Shs27 billion pay to lawyers

UNRA executive director Allen Kagina (extreme Right) and other officials appear before MPs yesterday. PHOTO BY DOMINIC BUKENYA

What you need to know:

Background. The money was paid by the roads agency to several law firms for arbitrating in various disputes with contractors.

PARLIAMENT.

Lawmakers are investigating circumstances under which the Uganda National Roads Authority (UNRA) agreed to pay more than Shs27 billion worth of taxpayers’ money to different lawyers in town.

Documents before the Parliament’s Committee on Commission, Statutory Authorities and State Enterprises show that the lawyers from different law firms have already been paid Shs15 billion in legal fees.

The committee chairperson, Mr Abdu Katuntu, however, told Daily Monitor on Tuesday that the problem is not with the payment of lawyers for their professional services but with “the high likelihood of money trafficking between officials at UNRA and the law firms given the high figures that were charged, and paid, and others awaiting payment.”

“We have queries arising out of the fees paid to lawyers for legal representation and or advice to UNRA between 2012 and 2015,” said Mr Katuntu.

“There seems to be money trafficking through law firms from UNRA because some of the monies payable are not only outrageous but they border on criminality,” he added.

According to the documents in Parliament, some of the law firms in question include Synergy Solicitors & Advocates, which was paid Shs1.8b for arbitration.

Kiwanuka & Karugire Advocates, partly owned by Mr Edwin Karugire, an in- law of the First Family, received Shs1.5b for representing UNRA in the case involving Chongqing International Construction against the Attorney General, UNRA and the IGG.

Speaking after appearing before the committee yesterday, Ms Mary Kutesa, the UNRA legal director, confirmed that they are not happy with the bill of costs.

“Those that were not paid by the time we got into office were reviewed and all law firms except one agreed to the changed fees that were lower,” Ms Kutesa said.

UNRA executive director Allen Kagina said although some figures are high, the authority will examine each case on its merit.
“We have to review each case on merit and ascertain that what was invoiced was commensurate with the work that was done and that’s when we will pay the law firms,” Ms Kagina said.

When Daily Monitor tried to follow the case details in the court registry, it was discovered that the specific files in question were no longer there.

Further inquiry into the documents before the committee reveals that in some instances, the money paid by UNRA to the law firms was higher than what had been invoiced.

For instance, in the case of Abaker Otim & 276 others Vs UNRA & two others HCCS 55 of 2012, Sebalu and Lule Advocates invoiced UNRA Shs400m but the documents show that they were instead paid Shs487 million.

In some cases, the law firms got less than what they had invoiced. A case in point is the Shs11.7b bill Sebalu and Lule Advocates slapped on UNRA for defending the latter in the 2014 constitutional petition with Eutaw Construction Company Inc and Apollo Senkeeto over the infamous Katosi road saga.

A total of Shs9.9b was to go directly to the law firm and Shs1.7b to the tax man. However, when UNRA protested the billing, the documents show that the law firm revised it down to Shs5.2 billion. UNRA is yet to pay.

Mr Katuntu said he will put a moratorium on further payment of legal fees from UNRA to the law firms and conduct an audit of all monies paid as legal fees to various law firms from 2012 to 2015.
“This does not, however, bar law firms with legitimate bills of cost from filing them and UNRA will have a legal obligation to pay,” he said.

The payments

Law firm Amount received
Kampala Associated Advocates Shs3.4b
Synergy Solicitors & Advocates Shs1.8b
Kiwanuka & Karugire Advocates Shs1.5b
Sebalu & Lule Advocates Shs1.1b
The Marble Law Firm Shs537m
Agaba Muhairwe & Co Advocates Shs49m