OPM scam: Key suspects heap blame on Kazinda

The suspects narrate how cash was forced on them by the former Principal Accountant and how cash exchanged hands in the Office of the Prime Minister.

The key suspects in the theft at Prime Minister’s office yesterday narrated how their bank accounts were used by the former Principal Accountant, Mr Geoffrey Kazinda, to cover-up the fraud that took place at the Office of the Prime Minister.

The officers who shared more than Shs15 billion sent in their personal bank accounts told Public Accounts Committee that Mr Kazinda had turned his office into a “mini-bank” where millions of shillings he “erroneously” credited to their accounts could be withdrawn in cash and returned to him.

A special audit by the Auditor General found substantial evidence detailing how more than Shs50 billion in aid from Ireland, Norway, Sweden and Denmark was transferred to unauthorised accounts in a sophisticated scam which resulted in the theft of the funds. The donors have since suspended aid over the scam and several officials from Bank of Uganda, OPM and Ministry of Finance have since been interdicted.

The committee heard that millions of shillings worth of foreign aid were given to a one Faizal who used to work in Mr Kazinda’s office. Mr Abdul Muwanika, a principal economist who is one of the officials named in OPM scam, told PAC that the person who used to receive cash disguised as reimbursements on behalf of Mr Kazinda was not a permanent staff. Mr Muwanika told the Committee that Faisal is apparently on the run.

“It has never occurred to me in my time of service that we could get money in our personal accounts and somebody tells you, don’t worry about the accountability only the auditors to tell you later that the money was not accounted for,” Mr Muwanika said. “Somebody (Kazinda) assures you that all will be fine, yet now you find yourself in a committee and looking as if you never went to school.”

Mr Kazinda, a former principal accountant and key suspect in the massive fraud at the Office of the Prime Minister, was charged in connection to the OPM scam. Although he is in prison, he is expected appear before PAC to defend himself.

Mr Muwanika told the committee that sometime in April 2011, Mr Kazinda called him to refund Shs88.5 million which he said had been erroneously credited to his account. He said because that day, he had come with Shs35 million for his private business, he decided to top up and refunded the money in question. When PAC chairman Kassiano Wadri pressed Mr Muwanika to explain the source of the money, he said he had a partnership with a colleague.

Mr Muwanika was also grilled for inflating costs for workshops on Millennium Development Goals (MDGS). For instance, four OPM officials at a workshop in western Uganda pocketed Shs300,000 per day, on top of accommodation and meals given to them. Instead of Shs50,000 for accommodation, OPM officials used to pay Shs120,000 per night.

ymugerwa@ug.nationmedia.com