Special Reports

Ministry PS Probed Over shs8bn LCI Bike Scandal

Parliament is investigating the Permanent Secretary in the Ministry of Local Government John Muhanguzi for non-compliance with procedures and rules of procurement that led government to lose a staggering $2m.

An MP on the Parliamentary Committee for Local government says they are probing John Muhanguzi for reportedly offering a contract to an amateur and dubious organization to supply 70, viagra http://chaosoffroad.com/wp-content/plugins/woocommerce/includes/class-wc-post-types.php 000 bicycles for LC1 Chairmen.

MP Edie Kwizera (Bufumbira East) says John Muhanguzi will have to explain to the committee why his team did not carry out a comprehensive study of the operations of the company before putting millions of tax payers money at risk.

He further revealed that President Museveni is hugely interested in the matter and has always asked committee leaders to keep him posted on the same.

“We are going to ask John Muhanguzi to give us reasons as to why he shouldn’t be held accountable for this huge loss, cost ” roared Kwizera.

A permanent secretary is the accounting officer in a Ministry.

What still baffles MPs on the committee is how a “coconut” company came to scoop a multi-million contract from government to supply bicycles. Amam is registered a company that deals in coconut trade.

Parliament sources have revealed that on August 26 2010, a city businessman identified as Patrick Bagarukayo opened an account in Stanbic bank for a company identified as Aman even before its registration.

A source says when Bagarukayo saw an advert in the newspaper on Friday August 27 2010, calling for supply of bicycles, he rushed to the bank to ensure an account was secured on time.

Bagarukayo’s company then applied for registration before Registrar of Companies on Monday August 30. Interestingly, he won the tender on September 9.

MPs were further stunned to learn that within less than fourteen days the company was born and awarded a tender!

Observers say Kashaka could face the same fate as former Vice President Gilbert Bukenya as the accusations look similar –proper procedures were not followed with due diligence.

Kwizera says there is a syndicate of government officials that smoothened the deal. He says such unscrupulous peole shall be exposed.

“We suspected that money exchanged hands. We shall recommend action. We expect heads to roll. We also intend to recover lost monies,”Kwizera affirmed.

The bicycles were to be supplied early this year.

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