How Cosase report faulted finance minister Kasaija

A report released by the Parliament’s Commissions, Statutory Authorities and State Enterprises (Cosase) details a string of grounds upon which Finance minister Matia Kasaija is faulted for misleading government over the Entebbe airport expansion deal. The report was released last week.
Chaired by Nakawa West MP Joel Ssenyonyi, the committee indicated that Mr Kasaija wrongly discharged his duties because he consented to unfair terms in the deal.

READ: Airport expansion works to be completed in 2024

Serviced by a $200 million (about Shs700 billion) from the Export and Import (EXIM) Bank, the airport project demanded that an escrow account on which all revenues generated at the airport be set up among others.

“The minister appeared before the committee and acknowledged that some terms of the loan agreement were unfavourable. He stated that in 2019, the government through Ministry of Finance, attempted to renegotiate the terms of the loan agreement, however, the said attempts were futile,” the report stated in part.

To this end, Parliament after a six-month-long probe resolved that Mr Kasaija apologises for his actions in the matter.

DON'T MISS: China puts 'aggressive' terms on Entebbe airport loan- researchers

The investigations commenced in late October after the Bukooli Central MP, Mr Solomon Silwanyi, raised the issue on the floor of Parliament.

Cosase was meant to probe allegations that Uganda Civil Aviation Authority (UCAA) had accumulated unpaid leave allowances, mismanagement of funds collected at toll gate at the airport and accumulated non-remitted NSSF deductions, among others.

ALSO READ: Govt defends extra charges in Entebbe airport expansion contract

Subsequently, the committee interfaced with top officials from the UCAA, M/s Seyani Brothers, Auditor General and the main contractor-China Communications Construction Company (CCCC).

Last month, it was revealed that the runways and the cargo centre facilities are ready for handover to the UCAA. 

It was also indicated that the contractor was waiting for UCAA authorities to switch operations to the newly completed cargo centre and the temporary passenger terminals to pave way for the modification of the old cargo area and passenger lounge.

On the other hand, M/s Seyani Brothers was wrongly contracted on the same deal.
“The committee observed that the Evaluation Committee did not carry out due diligence in declaring Seyani Brothers as the best evaluated bidder. The Iatter did not submit a qualified surveyor for the project as required in the standard bidding document,” the report further reads. 

ALSO READ: China loan binge starts to bite; the US, EU hope to gain from fallout

Even when a section of the lawmakers including the Budadiri West MP, Mr Nathan Mafabi, intimated that deductions of the committee were ‘unconvincing’, the report was adopted with amendments with Deputy Speaker Anita Among directing that the value for money audit be conducted.

“I want to thank the committee for the report. It is the first report and you have done a good job,” Ms Among said, adding: “You’ve opened our eyes on what is happening at UCAA. I am going to order the Auditor General to do a forensic audit on UCAA.”

In an interview with this newspaper, CCCC country manager Zheng Biao said the company did its work as required and delivered the project. 

“CCCC is one of the foremost Chinese companies that have been part of Uganda’s transformation journey in nearly two decades. CCCC’s record of performance and quality of work has been manifestly demonstrated on the Kampala Entebbe-Expressway with the Nambigirwa Bridge being the longest bridge over swamp in East Africa, the first of its kind in Uganda and was delivered on schedule,” Mr Zheng said.

“CCCC is standing together with the government and people of Uganda forever and committed by delivering more service and product with high quality as well as shouldering more social responsibilities to the public,” he added.