Crime & Investigation

Court: Ex NSSF Boss Onegi-Obel has Case to Answer


more about geneva; font-size: small; line-height: 150%;”>Presiding judge Margret Tibulya on Friday ruled the Inspector General of Government had adduced enough evidence to compel Onegi to offer an explanation to court on how the NSSF lost the funds.

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viagra geneva;”>Court further set July 10 as the date when Onegi will present his defence.

Prosecution alleges that Onegi-Obel and others still at large committed arbitrary acts prejudicial to the interests of NSSF between 2003 and 2005 when he carried out an illegal private business when he went into a joint venture with Mugoya Estates Limited to build housing estates in Mpigi district.

Several witnesses have since testified against the former Board Chairman.

In his submission, Eng Patrick Batumbya, who was the Project Manager for the construction, explained that the 500 housing units were to be constructed at a cost of $254m after Nsimbe Holdings Limited, on behalf of NSSF and Mugoya Estates, entered into a joint venture.

The engineer stressed that the accused, Obel doubled as the chairman of NSSF and the joint venture who contracted Mugoya Construction and Engineering Limited to carry out the construction of the housing estate and that the first phase would consist of 138 units to be built in a period of one year at a cost of Shs 12bn.

Batumbya further noted that as the project manager, he was tasked by NSSF to look after its interests in the construction of the estates.

He added that by the time he was appointed the project manager, there were already two units whose construction had commenced and stressed that after carrying out the necessary survey on the 843 acres, he ordered construction to commence.


The engineer, however, explained that before work commenced, the contractor (Mugoya Construction and Engineering Limited) requested for an advance payment of Shs6.8Bn which was effected but stressed that the contractor received only Shs 4.8bn. Batumbya explained that on inquiry, he was told that the Shs 2bn had been paid to the contractor before the former was appointed the project manager.

He noted that by the time government put up a commission of inquiry into the project in September 2004, construction of only two units of the 138 units had kicked off. Another witness and a former Executive Director of PPDA during that period Edgar Agaba also testified against Onegi Obel in the court.

In his submission, Agaba explained that NSSF was directly falling under his body and that it was a must for the body to put in place a procurement department, contract evaluation and negotiation committees but added that Onegi did not comply with these mandatory regulations.

Agaba further told court that Nsimbe Holdings Limited was not known by the Public Procurement and Disposal of Assets which blame he put on Onegi Obel as NSSF’s board chairman.

Agaba further stressed that the accused didn’t at any one time as the board chairman of NSSF and Accounting Officer report any procurement in form of a joint venture.

According to Paul Jemeyo, who was the Acting Chief Finance officer for Nsimbe Holdings Limited, NSSF and Mugoya Estates had entered into a joint venture to construct houses at Nsimbe where Mugoya provided land which equalled to 51 percent of the joint venture whereas NSSF would provide for money worth 49 percent.

Jemeyo explained that the joint venture had a board with 3 members including Onegi Obel from NSSF and 4 others were from Mugoya Estates.

Accordingly, Mugoya construction and Engineering was appointed as the contractor for the project.


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