The Inspector General of Government Yesterday Issued a Statement on The
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6 NEW VISION, Tuesday, November4, 2014 NATIONAL NEWS The Inspector General of Government yesterday issued a statement on the controversial Mukono-Katosi road deal Investigation on alleged mismanagement in procurement and award of contract for construction of Mukono- Kyetume-Katosi-nyenga road and fraudulent payment of sh24,790,823,522 to EUTAW Construction Company, Inc IGG stops Katosi road deal This refers to the ongoing investigation above by the Inspectorate of Government (IGG), the meeting held on September 4, at State House Nakasero, chaired by HE the President and attended by the chairperson of the Uganda National Roads Authority (UNRA) Board, the Secretary to the treasury, the executive director public procurement and disposal of public assets authority (PPDA), the deputy Attorney General (AG) and the undersigned and my letter to the chairperson of the UNRA board dated October 20. At the meeting held on September 14, the works (state) minister, Eng. John Byabagambi, expressed the view that M/s Chongquing International IGG Irene Mulyagonja Construction Corporation (CICO) be retained to complete the works since what was going on even before they had already mobilised, and were UNRA paid sh24,790,863,022 to doing a good job. EUTAW. In fact, CICO participated However, the President expressed in the disbursement of part of the the view that wrong doers should monies to EUTAW in its account in not be rewarded. Subsequently, the Florida. The facts gathered so far, deputy AG issued an opinion in from which this inference is drawn, which he stated thus: are as follows: “At this point, we cannot rule Sometime in November 2013, Works and transport minister Abraham Byandala and Tim McCoy, purportedly of EUTAW Construction out the fact that CICO knowingly Senkeeto approached Niu Hong, Company, posing with the agreement after signing at the UNRA offices in 2013 acquiesced in the illegalities by then the country director of CICO EUTAW. It (CICO) should, therefore, in Uganda, and asked him whether Hotel. At the meeting, they discussed According to Niu Hong, he ensured after the payment was made to him, not benefit from the alleged collusion CICO would be interested in details of a sub-contract. EUTAW also that all three of them would have to he began to mobilise at the site. in getting the sub-contract. CICO executing work on the Mukono- needed to know how long it would sign cheques together till he got the There was no written sub-contract is on the site illegally. It has no Katosi road. take CICO to mobilise for the works advance payment. signed yet. CICO began work around clean hands and it is, therefore, not According to Hong, he first came upon which he assured them that The registered physical address of March 2014. prudent to retain them on site. to Uganda 20 years ago as a site they could start immediately. They Eutaw Construction was stated in the It was also established that by As a way forward, our opinion inspector in a Chinese Company — also needed to establish whether bank account opening documents a letter dated February 25, 2014, is that UNRA should initiate a China Sietco. He was later employed CICO would need an advance to be Plot 85, Jinja Road, Kampala Richard Pratt, the director in EUTAW, fresh procurement process under as Assistant Manager of CICO payment, to which Hong answered in Uganda. This was confirmed from the wrote to the project director of Arab emergency situations provided under from 1995 to 1999. In 1999, he was the positive. Registry of Companies. It was also Consulting Engineers, Eng. Mostafa the law with a view of procuring appointed the country manager of After sometime, around January 6 confirmed by Hong as the address Elsibai, to introduce Hong as the another contractor to undertake the CICO. 2014, Senkeeto again met with Hong where he first met with Senkeeto. “registered country representative” of uncompleted scope of works.” Hong welcomed the idea of at the Serena Hotel. At that meeting, According to Hong, sometime after EUTAW in Uganda. By a letter dated October 15, the working on Katosi Road since CICO’s he introduced him to an American opening the account, Senkeeto called It was also established that EUTAW chairperson of UNRA’s board of work on the Fort Portal-Bundibugyo called Michael Olvey (Mike), whom him to go to the bank to transfer half Construction Co. Inc. was registered directors requested the IGG to lift the road was about to be completed. he said was the company secretary of of the advance payment to the CICO in Uganda on December 18, 2013 order dated July 17, so that UNRA Hong also knew about the works EUTAW. account. He went to the bank and the under Instrument F.2477. According can implement the guidance given because although CICO bid for the During the meeting, Mike asked transaction was effected. Statements to company form A21, the persons by the AG on achieving conclusion of project, they were unsuccessful. Hong to mobilise equipment on site. retrieved from HFB showed that on resident in Uganda authorised to the works. After sometime, Hong met with Although Hong was willing to do so, January 28, 2014, sh24,790,863,022 receive service are Hong of Plot 85 By a letter dated October 20, I lifted Senkeeto at the offices of CICO he required some money to be paid was transferred to the EUTAW Jinja Road, Kampala and Senkeeto of the order without making mention of at Plot 85, Jinja Road. Senkeeto to CICO. However, he did not know account in HFB. P. O. Box 363, Kampala, Uganda. whether CICO should be considered produced an award letter from whether EUTAW had been paid any On the February 3, 2014, It was also established that on in the new procurement or not. This UNRA. With the letter of award in money by UNRA or not. sh12,242,988,522 was debited February 3, 2014, the day on which is now to clarify the position of the hand, Hong believed Senkeeto was All the same, he insisted that CICO from that account as payment the monies were paid to CICO, IGG on the possibility of CICO being serious about offering them the be paid half of the advance payment for construction equipment and EUTAW issued Powers of Attorney to considered in the new procurement job. Hong went ahead to discuss from UNRA when received. documents retrieved from Standard Hong to act as its representative in or being granted a substantive his company profile with Senkeeto Hong also insisted that EUTAW Chartered Bank in Kampala in Uganda and, among others, to: contract. to show that CICO was capable of should add him to their account as relation to the CICO account showed n Present the company and the In the course of the ongoing carrying out the works. He also a signatory. This was to ensure that that it was paid to CICO. branches towards authorities, public investigation, inspectorate officers gave Senkeeto a document with the the money, when received, would On the same day sh4,650,112,350 and private bodies, public and interviewed employees of CICO and company profile so he would discuss be transferred to the CICO account. was debited on account of private administrators, companies, established that EUTAW and CICO it with his bosses. He undertook to have his rights as “mobilisation of road” and firms and individuals, in relation to set up a business relationship well At a later date in November, signatory withdrawn as soon as part transferred to PNC National Bank, the performance of the duties. before the signing of the contract for Senkeeto invited Hong to meet his of the advance payment from UNRA Vero Beach Florida, for the benefit n To negotiate and finalise with works on the Katosi Road Project. bosses from EUTAW. They met was transferred to the CICO account. of someone at 622 Beachland public or private administrations and The relationship which the EUTAW at the Serena Hotel and Senkeeto Subsequently, the three Senkeeto, Boulevard, Vero Beach, Florida. This corporate bodies, companies, physical representative in Uganda, Apolo introduced an American called Tim Olvey and Hong, met at Housing was also the address of EUTAW or juridical persons contracts, supply Senkeeto Kalyesubula, initiated, McCoy to Hong. The latter did his Finance Bank (HFB) in Kololo to stated in the contract. The two agreements and provisions of service commenced with a casual invitation best to convince McCoy that CICO complete the arrangement to open transactions were effected by Olvey, agreements in general. to CICO to execute works on the had the capacity to do the job. the account and add Hong as a Senkeeto and Hong. n To present the company and the Mukono-Katosi road on EUTAW’s At the end of the meeting, Niu signatory. Senkeeto made the contact On the same day, February 3 2014, branches vis-à-vis employers and/ behalf. The relationship, however, Hong was asked to wait until and asked Hong to go to the bank a resolution of EUTAW was signed or work supervisors, to approve and later grew into a partnership and EUTAW finalises the contracting. with his passport, a photograph and by Senkeeto, Hong and Olvey, stating enter into contract agreements and ultimately what looked like a total On November 15, 2013, UNRA a copy of his work permit. that Senkeeto was to remain the transaction in connection with the takeover of not only the Katosi Road signed a contract with EUTAW for Documents retrieved from HFB sole signatory to the HFB account works awarded. project, but also EUTAW’s Enterprise the upgrading of the Mukono-Katosi/ showed that on December 23, 2013, of EUTAW Construction.