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How Masaba Cooperative Union was overpaid but also got milling, printing machines

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The controversy surrounding the theft of billions of shillings meant for compensation of cooperatives that lost properties during the previous wars in Uganda continues to take different angles and shapes.

According to documents from the Internal Auditor General seen by Eagle Online, Masaba Cooperative Union was overpaid over and above the amount the original verified claim.

The report showed that the Cooperative was paid Shs9, 762, 500,000 which was above the verified amount of Shs7, 838, 499,100.

But even after getting overpaid, the Cooperative was given money to buy a flour milling and processing machine and commercial printing equipment.

The former Permanent Secretary Ministry of Trade, Industry and Cooperative Grace Choda and Eng Jacob Lumonya allegedly influenced the process to pay the cooperative.

According to the letter written by Eng. Lumonya on behalf of Ps Choda dated August 2, 2021, he said a market comparative survey was done and put the figure of flour milling and processing machine at shs1.3b. Eng Lumonya who works with the ministry of Works and Transport was a member of the Inter-Ministerial Committee to do verification of the cooperatives’ claims. 

“By Comparative analysis and inflation, the fair market value of the plant and machinery of M/S SIMU MILLS is in the region of Shs1,300,000,000” he wrote

The same Cooperative was also given additional shs5b for commercial printing equipment. But according to a dossier done by one of the investigative bodies shows Eng Lumonya single handedly without the knowledge of other members of the Inter-Ministerial Committee that was formed to do verification of these claims.

“This was done without the inter-ministerial with the Inter-ministerial committee but again single handedly by Eng Lumonya signing for the PS,” the document reads.

With this information, questions are being asked why the investigations by the Criminal Investigations Department (CID) and the State House Anti-Corruption Unit shouldn’t investigate these cases.

The Internal Auditor General report in three versions done on the cooperatives dated September 1, 2021 also raises questions why it has no signatories and has different stamps.

Strangely the same report also shows how West Nile Cooperative Union which had been paid “miraculously replaced” by West Acholi Cooperative whose balances had been cleared.

“Suddenly West Acholi whose balances had all been cleared is re-introduced and now owns a claim of Shs4.952 billion,” the document says

More stories on this saga to come

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