A few days ago, President Museveni received a comprehensive report from the police CID operatives highlighting the culpability of top officials in the ministries of finance and energy regarding how the Chinese firm CWE (China Water) was aided to cheat GoU of more than $103m (over Shs400bn). This is in relation to the 183MW Isimba dam in Kayunga district where the Chinese were permitted to free of charge take the rock from which to get construction stones as per the Bill of Quantities (BoQs). Whereas in actual sense the Chinese were given the controversial rock, located within 1km from the site, free of charge, they billed the government of Uganda as if $103m would be spent procuring stones for the construction of the dam. Current Entebbe town clerk Charles Magumba, who at that time was CAO Kayunga district, initially claimed ownership but the energy ministry officials shut him up on grounds he couldn’t own something that belongs to government. He was instead compensated for the modest projects he had been carrying out at the land and was cowed to give way. He quietly quit and left them in peace. The works ministry guidelines require that the source of stones for such a project should be within 18km radius. The energy ministry’s Resettlement Action Plan originally indicated the rock with stones that meet the works ministry specifications was in Charles Magumba’s land and prepared to compensate him with colossal sums of money. The rock, however, became freely available to government the moment Magumba was prevailed over to denounce his claim in the same. However, the latest CID findings on the President’s behalf show that, on getting a gratification of $5m, the energy ministry officials allowed CWE to cost the contract price as if $103m was going to be spent procuring that same rock. Museveni has discovered through CID that since the rock was free of charge, the overall contract price ($568m) should have been down or less by $103m. Museveni is furious that his government was unable to save a whopping $103m simply because energy ministry officials weren’t patriotic enough to put the country’s interest first. The electricity generated from Isimba dam, whose completion is already behind schedule by 6 months, will be sold to Ugandans at 5.8dollar cents per unit yet it would have gone at 3.2 dollar cents if the $103m which is the worth of the rock/stones that the Chinese got free of charge had been factored in. The cost per unit is reflective of the $103m the Chinese/CWE purport to have spent on the rock yet in actual sense they got it free of charge in intentional connivance with energy ministry officials. Indeed when he appeared before the Justice Bamugemereire Commission of inquiry on land matters, the ex-Energy PS Kabagambe Kaliisa was furious to learn what his ministry officials did and recommended prosecution for some of them over the negligent financial loss they occasioned on the government.
CID RAIDS ENERGY MIN;
Credible Energy ministry sources have revealed that, in execution of the Museveni assignment, CID operatives last week raided the Amber House-based Ministry and forcefully carried away two sets of documents. One set was for the Bills of Quantities (BoQs) and the other comprised of the Isimba Dam-related payment certificates. “On perusing the Payment Certificates, Mzee became so furious because it showed clearly CWE billed government for rock and stones used for dam construction yet they got it free of charge,” said sources close to the matter. The big man now wonders where the money went since the likes of Magumba that originally had claims for the rock were never paid anything.
ANGRY AT ERA;
Besides being doubtful whether CWE (whose country manager is Mr. Xia who operates an office in Muyenga) will beat the October 2018 deadline to deliver the Dam, the President is furious at the ineptness of the leadership at ERA (the regulator) for allowing to be sidelined from matters like this one of Isimba Dam when the Electricity Act clearly mandates them to be involved at the level of quality assuring the entire process to ensure maximum compliance to the relevant laws and best practice principles. What reportedly angered Museveni even more is the fact that, in connivance with some Energy sector officials, CWE was able to hoodwink the Bamugemereire Commission members who a few days ago visited the Isimba site. In order to deny the probe team sufficient opportunity to have a look at the rock in contention, CWE officials opened the Dam and got water to floor the entire area and thereby preventing the Bamugemereire team from making proper observation of the situation. The rock they came to see was that day covered in water that was deliberately made to cover the whole place. Unknown to Energy sector officials and their CWE accomplishes, Museveni CID investigators had already taken photos and video clips of the same way before the Bamugemereire team passed by. Sources say this fraudulent conduct further infuriated Museveni who is now decided not to have just have heads roll at the Energy Ministry but wants culprits arrested and criminally prosecuted. Closely related is the fact that the President is not impressed with the leadership at ERA. He for instance wonders why ERA doesn’t assert its mandate to prevail on UMEME which has gone ahead to announce higher tariffs totally overlooking the prior understanding reached in State House during a meeting that had representation from UMEME, ERA and the young people who the President called Energy sector activists. Irene Muloni too attended that meeting as sector minister and after the activists presented their paper, the President owned up admitting his government had indeed let down the people of Uganda. Branding ERA officials 5th columnists, a State House official revealed that the President feels betrayed that the regulator has allowed UMEME to renege on the commitment to reduce their Return on Investment from 20% to just 8% in order to keep the tariff low. “The President feels it’s time to crack the whip because Energy sector officials have resorted to taking him for granted thinking he is old and doesn’t remember earlier commitments the regulator is supposed to follow up on,” the official said in reference to how betrayed the President feels. Even on Isimba, the President ideally expected ERA to keep regularly auditing and overseeing the costing of the Dam but none of that has been happening. For comments, call/text/whatsapp us on 0703164755.
