By Patrick Jaramogi
When president Museveni appointed the firebrand and former Uganda Revenue Authority chief Allen Kagina to head and revamp the “rotten” Uganda National Roads Authority (UNRA) many thought it was “joke” or “favor”. And when Kagina swung in action and wiped out the entire board and UNRA staff following a dossier by a special intelligence squad appointed by the President on supervision of Kagina regarding allegations of widespread corruption at the roads body, many thought it was malice.
But as there was a wide public outcry regarding the massive layoffs, the affected and their families only shed “crocodile tears” because they knew the wealth they had amassed over years due to corruption would keep them alive for decades as the innocent Ugandan taxpayers burden to repay the loans mainly from the Chinese government.
Billions lost in road construction scum
Indeed it is not far since Allen Kagina joined UNRA but the latest report by the Auditor General John Muwanga reveals the high alarming levels of corruption at the roads authority. The report shows the stinking levels of how Ugandan civil servants can “siphon” government funds to their own benefit.
The report reveals how the costs for the Entebbe Express Highway were grossly inflated. It is so surprising that in a survey conducted in four East African countries, a cost of tarmacking a kilometre of a four lane road stood at between$2.4m (shs8.4b) to about $3million (shs10.5b).
The report revealed that the Kampala-Entebbe Expressway which is 53km dual carriageway starting from Kampala city at the Northern Bypass Busega roundabout and ending at Entebbe airport with a spur to Munyonyo is due to cost the Ugandan tax payers a whooping $476 million (shs1,618,400,000,000).
Under the agreement the Chinese government through funding from its Exim Bank was to award a loan of 85% ($350m) for the construction of the road works while the Uganda Government was to meet the remaining 15% ($126m)
Gross inflation
The Auditor General notes that the road works costs for the 53km road were grossly inflated. The cost of the road that would normally have been put at $2.5m per kilometer was raised to $9.4m per Kilometer. Literally meaning that a total of $6.9m (shs24.15bn) was chewed per kilometer. The report unearths how the rogues at UNRA ‘ate’ $365million for the entire 53kilometer road works due to gross inflation. In contrast Uganda lost $365 million to highly gross inflation. Let’s not look further, those who have been to Nairobi, and seen the 8 lane 53 kilometer Nairobi Thika Highway, can attest to this. This highway also funded by the Chinese government through the Exim Bank of China cost only $350m so how can a 4 lane 53 kilometer road cost $476m yet an 8 lane 53 km cost $350m?
Muwanga argued that the northern Bypass was constructed at a cost of $2.5m per kilometer and wondered why despite the inflation and high cost of materials the Entebbe Express Highway would cost $9.4m (shs32.9bn) per kilometer.
The Ugandan government according to the Chinese and Uganda Government understanding is supposed to repay the money in 40 years (split into two parts) with an interest of 2% per annum. In 40 years at a rate of 2% per annum, the Ugandan tax payers will fork out$630million. According to Finance Minister Matia Kasaijja, Uganda’s external debt now stands at over $7 billion.
The project currently underway and on schedule despite the challenges due to delayed compensation will comprise construction of a 4 – lane dual carriageway of 37.23km road connecting Kampala North Bypass at Busega with the existing Kampala – Entebbe road at Abayita Abababiri; and 14.13 km road connecting Munyonyo through Lweza. The Auditor general advised that the issue of monopolised bidding be ceased to allow international competition to wipe subdue corruption. ‘Government should devise mechanisms that allow for international bidding. It is so sad that a government that gives you the loan is the same that brings its contractors,” said Muwanga.
Another theft sighted in Karuma dam
The vice (corruption) seems not only to be at the Uganda National Roads Authority (UNRA) but even in the dam construction. Scaring reports also reveal the massive corruption in construction of the Karuma Dam. What is surprising that the Karuma dam that will generate 600 Megwats is being constructed at a cost of $1.7billion. in a nutshell, each megawatt is costing Ugandan tax payer $2.88million.
Karuma Dam Construction
But surprising is that the Grand Ethiopian Renaissance Dam being constructed by the Ethiopian government, and presumed the biggest dam in the continent (Africa) that will generate 6000 megawatts of electricity is costing $4.6 billion. The Ethiopian Government is spending just$80,000 per megawatt compared to Uganda’s $2.88 million. If you are sharp in calculations you can notice that if the Ethiopians were constructing the Karuma dam, it would cost only $488 million. This means that another over $ 1million was pocketed in related corruption and inflation costs.
Museveni promises fire
For those who thought they will continue stealing with impunity tax payers money, they better think twice. Close sources to President Museveni have revealed to the Investigator that Museveni is “too annoyed” and is willing to “BITE” this time. ‘Let us finalise with investigations and have them arrested and arraigned in courts of law. The law must also be amended to deny bail to those civil servants who steal money meant for government projects,” Museveni was heard warning during a closed door meeting in State House.
To ensure the perpetrators are put to order, the Investigator has learnt that President Museveni wants an amendment to Anti Corruption Bill that will see properties of those implicated in corruption scandals attached. The amendment to the bill is already in Parliament.
Similarly after the special investigations squad unearthed the massive theft of money in the road construction including the Katosi road saga, Museveni ordered for a special inquiry that was carried out by Justice Catherine Bamugeirerwe. And as we talk big shots like sacked UNRA boss Eng. Ssebanakitta and former Works Minister Abraham Byandala are in court over the same.
The UNRA officers and scores of others will have to explain how the Chinese company, China Communications Construction Company (CCCC) got the deal to design and build Entebbe Express Road without competitive bidding as required by the procurement laws of this country.
We have heard that President Museveni wants all those named in the commission of UNRA corruption inquiry arrested and produced in court. They should also be forced to pay back what they stole. The commission heard from numerous witnesses how UNRA officials fraudulently acquired gazetted government land including swamps that they compensated to individuals using pseudo and fictitious ownership.
Those expected to face fire are the former UNRA chief executive Eng. Peter Sematiko (already in court) and Pamela Ayebale the former Land Acquisition expert at UNRA among others. Pamela Ayebale is on the spot for approving compensation to claimants who said they owned land in swamps that was gazetted by government.
UNRA has according to its reports paid up to shs83 billion in compensation claims to over 1,800 property owners affected by construction of the 53 Entebbe Express Highway, though investigations reveal this money is far too exaggerated.
Next time we explore how the just launched standard Railway line project cost was inflated too