M7 Orders Tycoon Bassaja Arrest Over Shs169bn Plunder


site geneva; font-size: small; line-height: 16px; color: #333333; text-align: left;”>The President said the money paid to Basajjabalaba is Shs 169 billion according to police reports and not the Shs 142bn that PAC had in its report. He said that intelligence reports indicate that Basajjabalaba was paid an additional Shs. 26.8 billion this year which is not reflected in the PAC report.

information pills tahoma, purchase verdana, arial, sans-serif; text-align: left; margin: 0px;”>“My investigation is ahead of yours because it is not Shs 142bn but Shs 169billion that has been stolen. The 26.8billion shillings which is not mentioned was compensation for Nakawa market and was paid this year,” the President said.

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The President clarified that he did not direct any amount of funds as payment to businessman Hassan Basajjabalaba as earlier claimed by Ministers Syda Bumba and Dr. Kidhu Makubuya, adding that the idea of compensation came up out of natural justice after the contracts were cancelled.

President Museveni who described the work of PAC as very important for the financial hygiene for the country and that it was important that it is headed by the opposition to ensure that nobody covers anything commended them for doing their work, said that Basajjabalaba should refund all the excess funds paid to him fraudulently. Mr. Museveni disclosed that although he had written a number of letters and some of his Aides had done so on the matter, nowhere did he direct any figure to be paid to Basajjabalaba.


“I have never been part of the decision to sell markets. I opposed it but because of natural justice, the idea of compensation came up. If they spend money they should be compensated. The letters I drafted never said how much because am not a valuer. Even those I signed like the one drafted by Joy Kabatsi said to use a formulae like the one used to compensate Rhino Investments. I assumed that if the government valuer had used a formulae, then he knows better. There were no figures. If I had seen these figures, it would have raised my concern, the problem was the amount which I had never heard off,” he said.

The President was today meeting Members of the Parliamentary Public Accounts Committee (PAC) at State House Nakasero. The PAC members were led by its Chairperson, Hon. Kassiano Wadri.

“I have seen Basajjabalaba claiming that I okayed Shs. 142 billion figure. This is totally false”, said the President presenting letters to that effect to the PAC members.

The President disclosed that he received intelligence information that people were trying to steal money using some of the letters he had signed. He dismissed claims by Ministers that they acted on his orders saying that they have flouted his directives on many cases, especially those involving the ordinary people.

“They trying to use letters infiltrated to me for signature. I have asked police to investigate whether Joy Kabatsi and Edward Muhoozi and Atwine could have been working with Basajjabalaba. Police will get to the truth,” he said.

In addition, the President told PAC members that there were reports that Basajjabalaba had diverted government funds intended for Bushenyi Hospital to Dodoma Tanzania. He said that the government was going to investigate the matter.

Mr. Museveni defended his decision not to sack Ministers who have been implicated in scandals. He stressed the importance of patience and fairness in decision making. He cautioned Parliament against malice.


“Do not act the Karuhanga way, presenting unauthenticated documents to Parliament, calling other people thieves before investigations. This can cause irreparable damage,” he said.

Mr. Museveni said that he had talked to Minister Syda Bumba over her claims that she acted on orders from him but Syda Bumba denied saying that she had been misquoted. She wrote a statement to this effect which was presented to PAC.

“I was ready to take action for attempting to frame me but she denied saying she was misquoted. For Makubuya I have not talked to him yet. This prompt obedience of my directive is a new thing. How many times have I directed but nothing has been done. In anycase, even if I had taken a stand, was it wrong to guide me on my stand,” he said, reffering to KCCA director who defied the Presidents directive and threw Sebagala out of the council house. He also tabled various compensation claims that were ignored.

“I wrote to Makubuya on 15th June 20I0 directing him to compensate Mzee Aramtori of Amudat district for his cows which were erroneously confiscated by the army. The cows numbering 298 which Makubuya rejected to pay. The minimum we should do is recover this money from Basajjabalaba,” he said.

Mr. Museveni said that he is always patient and fair to everybody but once he is convinced, he is always decisive.

“Syda Bumba was an active minister but when I got these reports, that is why in this new government I said maybe you can look after the women as we investigate because I wanted to get to the truth. These two ministers will be handled fairly but they will be handled. There is a problem with the Attorney Generals office and because of this I started being suspicious of it. In the oil sector, the minister of energy and Attorney general had cleared the stabilization clause and oil tax revenue but I had been warned,” he said.


“In order to stop impunity, we must investigate and find the truth and see what to do. We have been investigating and are nearing the truth, those found guilty will be held accountable. The work you see in UBC has been done by the whistle blowers and the CID and we have acted decisively,” he said.

On the US$16 million compensation to Dura Company the president was shocked with the astronomical amounts involved, adding that it wouldn’t have gone beyond US$500,000 for a company that had nothing on the ground. He said the deal to cancel the contract with dura was because it was realized that it would not be sustainable to operate two companies to mine lime as the reserves were few. Mr. Museveni promised PAC more information about the matter.

On Burundi, he said that it was true that Burundi government had provided goods to the liberated areas when NRA cut off the Southern part of Uganda in 1985. He also promised further information on the matter once investigations are complete.


Matters that the President needed to have time to talk about, included Beachside Contract where government has lost billions of shillings and why both Beachside and Picfare were paid in dollars when they are local companies.

In their contribution, many MPs asked the President to support them in censuring Ministers who have been implicated in scandals. They told the President that the public wants to see action done.

“The most important thing in the past that haunted Ugandans was killing innocent people; we have handled this and we have created monitoring centres at every level of administration; fighting corruption will be overcome”, he said.

President Museveni, however, maintained that there is need for inter-state cooperation and at times certain decisions are made for political and economic purposes.

On the LC 1 bicycle scandal, Museveni told PAC members that investigations were ongoing.

PAC chairman Kassiano Wadri expressed gratitude to the President for availing them audience and for clearing his image and that of his government that had been smeared in mud.

The Auditor General Mr. Muwanga said two critical ministries; that of Justice and Finance needed a clean-up. He also expressed concern over the so called Public Private partnerships, saying they should be looked at closely.

“Deals are being done. Presently, there is no set up of accountability systems strong enough and finances might be distorted,” he said.


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