Minister, two law firms named in hijacking ex-spies' Shs72b pay

A row has erupted over the payment of Shs72 billion awarded to former government spies by the High Court for dismissal from service without terminal benefits. The money was awarded to 951 former spies of Internal Security Organisation (ISO) 12 years ago.

However, the former intelligence operatives say the Shs72 billion was later dubiously revised down to Shs39 billion without their knowledge and Shs10 billion has already been paid out to leaders of their group, UVETISO, who did not share the money with the rest of the members.
The former spies have now petitioned High Court to stop the Attorney General and three others from paying the remaining balance of Shs29 billion to the same UVETISO leaders who received the initial Shs10 billion.

The former intelligence operatives have also complained to the police’s Special Investigations Unit to investigate where the Shs10b went and how the amount was reduced from the original Shs72b to Shs39b.

Asked whether police was investigating the matter, Mr Emiliano Kayima, the Kampala Metropolitan Police spokesman, said: “I can neither confirm nor deny that because it is above my scope. Mr Felix Kaweesi is better placed to comment on that.”

Mr Kaweesi could not be reached for comment as he did not answer our repeated calls to his known cellular phones nor reply our text messages. According to the documents in court, Mathew Gaira, Joseph Wawomola, James Nkojo, Paul Waiswa, Boaz Rwakiisa and Joel Twahirwa, have applied to court seeking to be declared the new representatives of the former state operatives and to order the Attorney General, “not to make any further payments of the beneficiaries” to any other party other than their group.

They want Jeff Lawrence Kiwanuka, Jamal Kitandwe, Bernard Kamugisha removed as representatives of the former spies as indicated in the 2004 civil suit in which they were awarded the money.

The court awarded them the money about four years ago. The Attorney General appealed the judgment. However, before disposal of the judgment, a Cabinet sub-committee headed by the then minister for the Presidency, Mr Frank Tumwebaze, officers from ISO, Ministry of Security, Ministry of Finance and the Attorney General, was set up on the President’s directives to handle payment of the former spies.

When contacted on Tuesday, Mr Tumwebaze, now ICT minister, confirmed he was aware of the case but said he could not remember the details about it.

“I can’t remember the details but our committee was put in place by the President to handle the issue and ensure the beneficiaries were paid. The recommendations we did were guided by the Attorney General. I also remember that the IGG (Irene Mulyagonja) came and made some recommendations on how the matter should be resolved finally,” Mr Tumwebaze said.

In their suit in court, they state that after the judgment and their payment was not forthcoming, they followed up the matter, only to discover that the awarded amount had also been mysteriously reduced from Shs72b to Shs39b without their knowledge.

“Payment was not forthcoming for nine years after judgment until we discovered that the three, Matovu and Matovu Advocates and AG without our knowledge or consent entered into a consent order on March 13, 2014 reducing the court award from shs72 to shs39billion,” the ex-operatives contend in their petition filed in the High Court on October 21.

Their lawyer, Mr Friday Roberts Kagoro, contends this consent order changing the court award was irregular and intended to reverse the judgment of court to the detriment of the former intelligence operatives.

He further states that after entering the consent order, the three respondents again executed a Memorandum of Understanding on May 21, 2014 which stated that government would pay Shs10 billion in 2013/2014 and the remaining amount of Shs29 billion would be paid in two instalments in 2015/2016 and 2017/2018 financial years.

In fulfilment of the said consent order, counsel for the ex-spies Mr Kagoro says the first payment of Shs10 billion was made to account number 0145034204600 in Crane Bank Kampala Road branch, in respect of UVETISO Ltd but the 951 former operatives didn’t get a penny of this money. They are now worried that should the Shs29 billion be released to the same UVETISO recipients, the former spies will again not get their money.

Daily Monitor was told that when the UVETISO leaders were confronted by their colleagues to account for the Shs10b received from government, they claimed to have spent Shs7 billion as costs of the case and paid shs3 billion to “some beneficiaries.”

However this newspaper was informed that a minister and two law firms (names withheld for now) shared the Shs7 billion disguised as legal costs. The former spies have since reported to the Special Investigations Unit of the police where their complaint has been entered as CRB No. GEF/56/2016.

The former spies were terminated from intelligence service in the 1994 retrenchment and staff reduction exercise.

In his affidavit in support of their petition in court, Mr Joseph Wawomola, who was senior assistant intelligence officer (1991-1994) states that the minister and the two law firms have since, “fraudulently received a part payment of sh10 billion through a company called UVETISO Limited which funds they have largely misused and failed to account for.

“They are intent on receiving more money from the AG but they can no longer be trusted to act in the interest of the beneficiaries and it is detrimental to the interests of the beneficiaries if they continue to represent them in the recovery of the money,” his affidavit reads in part.

When contacted about the matter, Ministry of Finance permanent secretary Keith Muhakanizi who signed the Memorandum of Understanding authorising part payment to UVETISO Limited said: “I cannot comment on that since the matter is in court now but we got an order to pay Shs10 billion from the Attorney General and that is what we did. If the recipients of the money are not representing the interests of the former employees, that question should go to those who gave us the order to pay.”

Background
The complainants were approached in 2004 by one Henry Waibale (now deceased) and the said minister and two law firms requesting them to allow them to represent the 951 former employees of ISO. The request was granted and the case was heard and judgment delivered on May 20, 2005 by Justice Okumu Wengi who awarded them Shs72billion. The amount included three months payment in lieu of notice, leave, transport, medical allowance, general damages and interest at 10% on all monetary awards from the date of filing the case till payment in full plus costs of the suit.

Petition
The former spies, through their lawyer Friday Roberts Kagoro, have now petitioned High Court to stop the Attorney General and three others from paying the remaining balance of Shs29 billion to the same UVETISO leaders who received the initial Shs10 billion.

What they said

“I cannot confirm nor deny the matter because it is above my scope. I can, however, refer you to the Police spokesperson, Andrew Felix Kaweesi, who is better placed to give you more details,”
Mr Emiliano Kayima, the Kampala Metropolitan Police spokesman

“I can’t remember the details but our committee was put in place by the President to handle the issue and ensure the beneficiaries were paid. The recommendations we made were guided by the Attorney General. I also remember that the IGG (Irene Mulyagonja) came and made some recommendations on how the matter should be resolved finally,” Frank Tumwebaze, ex-minister for presidency

“Reportedly made some recommendations on how the matter should be resolved finally. She recommended to the sub-committe that the former spies be paid. The committee also included officials from ISO, Ministry of Security, Ministry of Finance and the Attorney General,” Irene Mulyagonja, inspector general of government

“The consent order changing the court award was irregular and intended to reverse the judgment of court to the detriment of the former intelligence operatives. My clients are worried that should the Shs29 billion be released to the same UVETISO recipients, the former spies will again not get their money,” Roberts Kagoro, lawyer for the former spies