PRESIDENT MUSEVENI AND HIS CABINET APPROVED A BAD CHOGM DEAL

DAILY MONITOR
KAMPALA, UGANDA

BY YASIIN MUGERWA

President Museveni and ministers on the Cabinet Sub-committee on Chogm have been accused of releasing $1.3 million (Shs2.4 billion) of taxpayers’ money to J&M Hotel, three days to the Chogm summit to furnish 200 rooms.

The revelation was made at a closed-door parliamentary Public Accounts Committee (Pac) meeting with the Foreign Affairs Permanent Secretary, Ambassador James Mugume - seeking to discuss confidential details of the J&M Airport Road Hotel deal, in which taxpayers are facing a Shs2.4 billion loss.

“Amb. Mugume has told us that it was President Museveni and his ministers on Cabinet sub-committee on Chogm, who directed that the money be given to J&M Airport Road Hotel investor, well knowing that this facility was not even part of the Chogm hotels,” a member of the committee, who requested not to be named because it was a closed meeting, said.

The revelation comes days after Daily Monitor broke a story in which it was reported that the proprietor of the Entebbe Road-based hotel, Mr Joseph Behakanira, has not refunded Shs2.4 billion to the government.

President Museveni and ministers on the Cabinet Sub-committee on Chogm have been accused of releasing $1.3 million (Shs2.4 billion) of taxpayers’ money to J&M Hotel, three days to the Chogm summit to furnish 200 rooms.

Earlier, the committee heard that the investor was given the money to complete the construction of his hotel ahead of the Chogm 2007 in Kampala.

However, Mr Behakanira has reportedly refused to surrender some shares to the State in exchange for the money he was advanced.
The Deputy Secretary to the Treasury, Mr Keith Muhakanizi, has already reported that attempts to recover the money from the investor have so far yielded no results.

While the Chogm investigation proceedings were open to journalists, Amb. Mugume later requested for a closed session where he allegedly named President Museveni and his ministers.

Higher level
“These decisions were taken at a higher level and my role was only to coordinate issues approved by the cabinet,” Amb. Mugume said.
He said he paid out the money to J&M in exchange for redeemable shares.

Asked whether the President had a role in the allocation of Shs2.4 billion to J&M Airport Road Hotel, Amb. Mugume said; “This was a policy decision and Pac is free to summon the cabinet sub-committee on Chogm on this matter otherwise, this was not my decision.”

Some of the ministers on the Cabinet sub-committee on Chogm include: Prof. Gilbert Bukenya (Chairperson), Sam Kutesa (Foreign Affairs), Eng. John Nasasira (Works), former Finance Minister Dr Ezra Suruma (now presidential adviser), Ms Beatrice Wabudeya (Presidency), former State Minister for Local Government Hope Mwesigye (now Agriculture), former information minister Al-Hajj Kirunda Kivejinja (now internal affairs minister) and the Former ICT Minister, Mr Ham Mulira among others.

Nothing changes
Addressing journalists after a closed meeting, Mr Mafabi said the Cabinet sub-committee on Chogm decision changes nothing, adding that Amb. Mugume, Attorney General Khiddu Makubuya, Finance Minister Syda Bbumba and the Secretary Keith Muhakanizi were responsible.

“These people smuggled J&M on the list of Chogm hotels,” Mr Mafabi said. “The PS told us that it was a cabinet decision which we are also investigating. Otherwise Shs2.4 billion should be recovered from J&M Hotel.”