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Former DFCU Bank Bosses Charged Over Global Fund Scam

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Former DFCU Bank Bosses Charged Over Global Fund Scam 4 NEW VISION, Thursday, April 3, 2014 NATIONAL NEWS Former DFCU Bank bosses charged over Global Fund scam By Edward Anyoli Lule, while employed by Lule through manipulation of 300 sub-recipients and DFCU – a company in which Former Global Global Fund foreign exchange, individuals be audited further Two former managers of DFCU the Government had shares – falsely claiming that it was and that former health minister, Bank have been charged with directed the bank to convert Fund boss Dr. commission fees for soliciting Maj. Gen. Jim Muhwezi and abuse of office, costing the $2m Global Fund money into Global Fund business. his deputies; Mike Mukula Government sh479m. the local currency at an inflated Muhebwa was last Kantuntu, Lule and Kituuma and Alex Kamugisha, be Robert Katuntu, the former foreign exchange rate of Magala (a city lawyer, who is prosecuted. managing director of DFCU sh1,839 per dollar, which was week charged with summoned to appear in court This resulted into the and Godffrey Lule, the bank’s higher than the rate of sh1,815, on April 11) are jointly facing establishment of the anti- former head of treasury, were raising a difference of sh48m. causing financial the charges with Dr. Tiberius corruption division of the yesterday charged before the On another charge, Lule Muhebwa, the former Global High Court in December Anti-Corruption Court chief is accused of fraudulently loss of sh108m Fund project co-ordinator. 2008, which has convicted magistrate. They denied the directing the bank staff to Muhebwa has been charged two suspects; Teddy Cheeye charges and were granted cash convert $1m Global Fund with causing financial loss of the presidential adviser on bail of sh3m each. money into the local currency inflated foreign exchange rate was raised by Lule through sh108m to the Government. economic monitoring and It is alleged that Lule, in April at an inflated foreign exchange of sh1,739 per dollar instead of manipulation of Global Fund Fred Kavuma, the former UTV 2004, being employed as the rate of sh1,825 per dollar, the then rate of 1,730, raising foreign exchange rates. Background to the charges production manager. head of treasury, fraudulently which was higher than the an illicit difference of sh18m. Katuntu is further accused In September 2005, President The suspect’s appearance directed the staff of DFCU then rate of sh1,810, raising an On the last count of abuse of of approving instructions Museveni appointed James in court to be charged to convert $1m Global Fund illicit difference of sh15m. office, Lule allegedly directed directing the staff of DFCU to Ogoola (then Principal Judge) followed a recent ruling by the money into the local currency Lule is further accused the bank staff to convert Global convert Global Fund dollars to head a probe into the Constitutional Court ordering at an inflated foreign exchange of fraudulently converting Fund dollars amounting to amounting to $4m at an mismanagement of the Global that the accused be tried by the rate of sh1,920 per dollar, another Global Fund money $4m at an inflated foreign inflated foreign exchange rate Fund meant for HIV/AIDS, Anti-Corruption Court. which was higher than the amounting to $1m at an exchange rate of sh1,714 of sh1,689 per dollar instead tuberculosis and malaria. This was after the court then rate of 1,908. inflated foreign exchange rate instead of sh1,700 leaving an of 1,665 creating an illicit This was after the fund’s dismissed their appeal Prosecution said Lule raised of 1,697 per dollar instead illicit difference of sh56m. difference of sh96m. secretariat in Geneva where they had challenged an illicit difference of sh12m, of the then rate of sh1,682, Prosecution said Katuntu in suspended funding to Uganda the Directorate of Public which he directed the bank causing a difference of sh15m. Katuntu charges August 2005, at DFCU bank after auditors issued a damning Prosecution on grounds that to credit onto a brokerage Prosecution alleged that Meanwhile, prosecution said office in Kampala, abused report on misappropriation of it was only implementing the account as commission fees for he did another arbitrary act Katuntu, being employed as his office when he allegedly funds. Ogoola Commission, without Global Fund business. when he directed the bank the general manager of DFCU, paid a broker sh35m that had The commission carrying out an independent It is further alleged that staff to convert $2m at an paid a broker sh56m which been fraudulently raised by recommended that the over investigation. O R G O S U W N E NRM youth D leaders Adam N Luzinda (centre) and Omodo- Omodo being accompanied ID registration kits ready by Prisons officials As the country prepares for a nationwide after being ● registration of citizens, the Government announced granted bail yesterday that over 14,000 registration kits have at the Anti- been dispersed to sub-counties. The registration for Corruption national IDs, which starts on April 14, targets citizens Court in from 16 years and above, which stands at about 18m Kampala out of the 36.6 million Ugandans, according to latest yesterday. figures from the Uganda Bureau of Statistics. Pamela Photo by Ankunda, the spokesperson of the Ministry of Francis Emorut Internal Affairs, told New Vision yesterday that 35 distribution tracks from Uganda Police and Prisons transported the kits. According to Chris Kantinti, the technology manager of the National NRM youth leaders granted sh5m bail Security Information System, the kits contain a laptop, software that reads 10 fingers at once as well as other devices that the team will require to capture the By Edward Anyoli party resolutions the two data. sought to challenge. Two NRM youth leaders, who BETWEEN THE LINES: Hope Mwesige stands surity Prosecution, led by were last week charged with Bernadette Nalule, alleged that IGAD selects Makerere abuse of office before the Anti- n Hope Mwesige, the former agriculture minister, was Omodo-Omodo, Ruzindana Corruption Court, have been one of the sureties for the two NRM party youth leaders. and others still at large, being Makerere University school of Law has been granted bail. employed by the NRM as ●selected as a centre of excellence for the The youth leaders are n Prosecution asked court for more time to enable the vice-chairpersons of the youth development of environment policies and laws for the Omodo-Omodo, the NRM Police complete investigations into the matter. league, between January Intergovernmental Authority on Development (IGAD). vice-chairperson for northern and March 2014, in abuse of Harriet Musinguzi, the spokesperson of the school region and Adam Ruzindana, their offices, were involved of Law, said their selection followed a successful the NRM vice-chairperson for Naome Karugenda, an mobilisers into signing a in arbitrary acts prejudicial proposal to IGAD, written by Assoc. Prof. Emmanuel Kampala. advocate, Godfrey Okalebo, petition calling for the party’s to the interest of their Kasimbazi. In the proposal, Kasimbazi notes that Michael Lagara, the Anti- Hope Mwesigye, a former delegates’ conference to employer. the IGAD region is endowed with various largely Corruption Court principal agriculture minister, as well challenge the NRM caucus Prosecution said without the trans-boundary environmental resources, including magistrate, yesterday granted as Ibrahim Kasozi and Evans resolution made during consent of the NRM, the two rich biological diversity that needs to be managed the youth leaders cash bail of Ruhinda. the NRM MPs retreat fraudulently solicited, bribed, sustainably. Under the agreement, Makerere will sh5m each and their sureties Omodo-Omodo and at Kyankwanzi National induced and tricked the party conduct trainings, hold seminars and conferences, are to execute a non-cash bond Ruzindana are accused of Leadership Institute recently. members and mobilisers into conduct research, develop and review existing of sh200m. bribing and tricking unnamed The charge sheet does signing a petition to convene a environment laws and policies, and advise the region’s Their sureties included NRM party members and not specify which NRM delegates conference. leaders on issues of environment..
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