Crime & Investigation

Ex Spy Sues Gov’t Over Shs270m “Whistle Blowing Reward”

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Only identified as Peter, the former Shift Supervisor in the Company, has asked Court to order government to immediately pay him Shs272m, being 5% of the recoveries made by government.

In his affidavit tendered in the Civil Division of Kampala High Court, Peter claims he uncovered a scandal where the company was under quoting its invoices for mineral exports especially Cobalt Metal/Copper and Nico hydroxide with intention to pay lower loyalties to government.

Peter says on July 22, 2009, he reported the matter to the Criminal Investigative Directorate (CID) headquarters in Kibuli and a case under GEF 909/2009 was opened.

“Investigations which ensued revealed that Kasese Cobalt Company (KCC) had withheld the payment of loyalties on the above minerals,” part of Peter’s plaint reads in part.

The retired informer says in a series of investigation by the police and Uganda Revenue Authority (URA), he continuously furnished the investigators with relevant information concerning KCC.

The case could expose government’s lack of commitment to fight corruption.

And failure to encourage such initiatives could dampen the mood of potential corruption whistleblowers.

Peter says following the exposure, KCC eventually admitted to have under declared its tax obligations leading to URA’s recovery of a total of Shs5.4bn in unpaid loyalties on behalf of the Ministry of Energy and Mineral Development.

According to court documents obtained by this investigative website, the recovery was done between April and August 2011.

Peter, who is represented by M/S Kaddu and Company Advocates, argues that “under section 19 of the whistle Blowers’ Act 2010 he is entitled to 5% of the recovered money within six months after the recovery.”

“Despite my sacrifice and continued collaboration with government in the recovery of the undeclared revenues from KCC, I have to this date not received any reward. Consequently I have lost my employment and government refusal to pay me has occasioned me mental anguish for which I hold it liable in punitive damages,” says Peter.

On top of the Shs272m reward, Peter also wants Justice Benjamin Kabito of the Civil Division, to order government to pay him general damages, interest and costs of filing and pursuing this case.

Government is yet to respond to the case.

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