Special Reports

NSSF Report: Is Byarugaba a Sacrificial Lamb?

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approved http://celebritydachshund.com/wp-admin/includes/import.php geneva; font-size: small; line-height: 150%;”>In her recent investigation report on the alleged corruption at NSSF, stuff http://dan-caragea.ro/wp-includes/cron.php Mulyagonja said, troche “the disposal of the Namirembe land was mismanaged by managers of NSSF and influenced by seemingly predetermined interests – the need by Malibu Holdings Limited to purchase land next to their other pieces of land.”


She further observed that the disposal process was commenced before the board authorised disposal.


“Mr Richard Byarugaba, the Managing Director, illegally sought for a waiver from PPDA to dispose of the land through direct negotiations without a request for use of the method by the Contracts Committee,” reasoned Mulyagonja.


“The land was sold at shs650m, the same value at which it was purchased in 2008. This was reportedly because it was surrounded by land owned by the eventual buyer, Malibu Holding Ltd and therefore it could not attract other bidders. This turned out not to be true because the land had access to a road for 40 years before the sale which amounted to an easement on Malibu,” reasoned the IGG.


NSSF Acting MD, Geraldine Ssali

Mulyagonja further stated the managers of NSSF did not make sufficient efforts to establish whether or not the land had access to a private or public road before urging Finance Minister, Maria Kiwanuka to reprimand Byarugaba.


Findings


However, documents obtained by Chimpreports indicate that Mulyagonja did not notice that in 2008, NSSF lost a staggering shs280m in the inflated acquisition of the land, LRV 791 Folio 5 Plot 434.


This gave headache to Jamwa’s successors in disposing off the land.


Prior to the purchase, the NSSF valuers had settled for less than Shs650m which Jamwa paid for the plot.


Upon instructions of the Fund, values were made by Associated Consulting Surveyors, East African Consulting Surveyors and Bageine & Co Ltd for the amounts of Shs 370,000,000, Shs 550,000,000 and Shs 725,000,000 respectively.


Under normal circumstances, NSSF should have gone for the recommendation of Shs370m.


However, according to a land sale agreement dated August 15, 2008 which this website has seen; Jamwa directed that Shs650m be offered to Charlotte Ssali, Norah Nalunbaale Ssali and Andrew Ssali, the administrators of the estate of the late Ephafulas George. The estate measured 0.200 Hectares.


We have also accessed a land title belonging to Malibu Holdings, showing the company bought eleven plots in the same area at $1.2m (Shs3bn).


This implies that each plot was valued at an average cost of shs272m.


Former NSSF MD, Chandi Jamwa

Yet, Jamwa authorised the inflated payment of Shs650m for a plot of a similar size.


Byarugaba told Chimpreports that the “Fund did not lose a coin in disposing off Namirembe land.”


Officials at the Fund separately told this website that the Fund was lucky to have received a shs650m payment from Malibu Holdings since its price had been hugely inflated by Jamwa’s regime.


They further noted that had the IGG seen this irregularity, she would have prepared an appropriate report, heaping blame on Jamwa.


The development also raises concerns about the Inspectorate’s competence in investigating high profile corruption cases.


An IGG official was recently paraded before the Anti-corruption court for attempting to extort money from NSSF managers, promising to write a clean report after the investigation into alleged corruption at the Fund.


Insiders say Mulyagonja was disturbed to learn that her juniors had asked for a shs1bn bribe from Byarugaba to ‘exonerate’ him.

The timing of the IGG report’s release also raised eyebrows in the corporate circles since Byarugaba had applied to return to the helm of the NSSF.


Access to the public road


As part of a bigger strategy to cut operations costs after being appointed Managing Director, Byarugaba directed that all plots which had been secured by the Fund to erect structures should be disposed off.


Therefore, on May 31, 2012, Byarugaba requested for services of a government surveyor to carry out the boundary opening of the plot in a letter dated FA/CONF/431.


It should be noted that Jamwa’s ‘surveyors’ had asserted that the land in Namirembe had an ‘access route’ to the public road.


Interestingly, the government surveyor, Ronald Ssengendo, reported on June 10, 2012:


“The major problem with plot 434 is that it lacks a direct access road. The presumed access road i.e Butiko Road does not connect directly to plot 434 as there exists plot 436 between the boundary of plot 434 and Butiko road.”


Earlier, the NSSF had written to the Chief Government Valuer requesting for realistic values of seven properties including Plot 434, Kibuga Block, Namirembe Road.


It also sought confirmation from the Deputy Director Physical Planning at Kampala City Council, George Agaba, on whether Plot No. 434 at Namirembe was encircled by other Plots with no access road.


In a letter dated November 9, 2011, Agaba confirmed that after studying the accessibility patterns, the said Plot 434 had no direct access onto a public or private road and was surrounded by Plot 436 making it almost impossible to develop without creating a legal access out of another Plot.


With the chief valuer delaying to respond on the valuation of plots, the Fund’s Deputy Managing Director, Geraldine Ssali wrote to PPDA seeking a waiver to use direct negotiations method to dispose of Plot 434 Kibuga Block 4 Namirembe Road.


It was not until January 17 2012, that the PPDA wrote to the Fund granting a deviation to use direct negotiation method to dispose of Plot 434, Kibuga Block 4, Namirembe Road on the basis of the documentation submitted to it.


VALUATIONS


So on March 22, 2012, the Ministry of Lands, Housing and Urban Development wrote to the Fund giving the market values of 5 plots including Kibuga Block 4, Plot No. 434, Butikiro Road Namirembe which was valued at Shs 600m.

Valuations of the land by Knight Frank (U) Ltd in May 2010 and SM Cathan Property Consult in May 2012 returned values of Shs 600,000,000 and Shs 615,000,000 respectively.

With these valuations, on March 23, 2012 the Procurement and Disposal Unit made a submission to the Contracts Committee requesting for approval Plot 434 through direct negotiations.

The submission was signed by the Procurement and Disposal Unit boss, Ellias Biryabaho and indicated that a value of Shs 610,000,000 for the land had been has been returned by the East African Consulting Surveyors.

Richard Byarugaba

With the endorsement of the NSSF board and Solicitor General’s letter dated November 23, 2012, Malibu Holdings Limited accepted the offer of shs650m which was paid by EFT to account No. 0110005004 held by the Fund in Citibank.

The deal was concluded on January 3, 2013 with Biryabaho, on behalf of the Fund, handing over the Certificate of Title and the signed transfer forms to one Umesh Basnet who was nominated by Malibu Holdings Limited to receive the same on their behalf.

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