UNRA officials in Shs22b payout to Chinese company named
What you need to know:
- According to the contract signed in 2014, Unra contracted China Railway No 3 Engineering Group Company Limited, a China-based company.
- Ms Kagina said Unra has now stopped payments to China Railway No 3 Engineering Group Uganda Ltd, which Unra had selected to build another road - Katunguru.
Kampala. Uganda National Roads Authority (Unra) boss Allen Kagina is one of five Unra officials who approved payment of Shs21.9 billion to a dubious Chinese company .
Unra gave China Railway No 3 Engineering Group Uganda Ltd the money to finance construction of the Villa Maria-Sembabule road.
The money, as
UNRA pays Shs22b to unclear company
The Uganda National Roads Authority (Unra) paid Shs21.9 billion to a company it did not contract to construct a road
Daily Monitor, was wired to the company’s accounts in July last year and in June.
The other officials named, according to a document the roads authority furnished to Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase), are head of finance Brazza Kwesiga, director of corporate services Edna Rugumayo, chief accountant John Mpanga, and Mr Ronald Kamulegeya whose title the Daily Monitor could not immediately establish.
On Thursday, Ms Kagina said the company that Unra gave the money to is not even the one currently constructing the road, although she did not say which company is doing the work.
“Yesterday [Wednesday], I said China Railway No. 3 Engineering Group Uganda Ltd is the one doing the work,” Ms Kagina told the committee.
“My apologies, I am the one who misled this committee. What we have found out is that China Railway No. 3 Engineering Group Uganda Ltd seems to be just an account receiving the money.”
Ms Kagina said Unra has now stopped payments to China Railway No 3 Engineering Group Uganda Ltd, which Unra had selected to build another road - Katunguru.
She said Unra will now carry out due diligence on all road construction companies and blacklist those that are unqualified.
According to the contract signed in 2014, Unra contracted China Railway No 3 Engineering Group Company Limited, a China-based company.
Unra claims that within days of signing the contract, the China-based company resolved to pass on powers of attorney to a Uganda-based affiliate, the company Unra paid the money.
It has since been discovered that this was impossible since by the time the China-based company was said to have delegated the Uganda affiliate, the latter had not yet been formed.
Kabale Municipality MP Andrew Baryayanga accused Unra of “serious negligence of duty”.
Mr Baryayanga said Unra officials’ omission led to the opening of accounts to which Unra wired the money to a company which Unra now acknowledges it does not have a contract with.
Kitgum Municipality MP Beatrice Anywar said Ms Kagina should “handle the Unra officials who have caused the mess”.
“If an officer can acknowledge a mistake, on my part - as a Christian, the apology is good enough,” Ms Anywar added.
Mr Katuntu said Cosase’s goal is to ensure government authorities and enterprises work efficiently.
“We want to see where the challenges are and be part of the solution. Our first directive is to stop Unra paying parties that are not signatories to the contract,” Mr Katuntu said.
Mbarara Municipality MP Michael Tusiime said Uganda could have lost corporation tax in the latest transaction.
“The inconsistence on the payee has a consequence on the tax,” Mr Tusiime said.
