Energy Officials on Spot Over Fraudulent Compensation for Oil Refinery
Officials from the Ministry of Energy and Mineral Development are under investigation for unclear circumstances which led to failure to compensate oil refinery project affected persons which has cost the country Shs 1.2 billion.
According to the special audit report to Parliament, the Resettlement Action Plan was meant to last eight months but it lasted four years causing several fines to government.
Officials led by the Ministry Permanent Secretary Robert Kasande were appearing before the Parliament Public Accounts Committee (PAC) on Tuesday to respond to the raised queries.
The Auditors discovered that the project contract had been extended five times leading to an increment of the consultancy fees by Shs 1.2 billion.
The Auditors blamed the delays on weaknesses in project implementation by Ministry of Energy for failure to prioritize monitoring, evaluation and compliance audits.
When asked to account how the money was spent, Robert Kasande, the Acting Permanent Secretary Ministry of Energy blamed the delays on the shifting of the graves to the resettlement area, saying part of this scope of work was not catered for.
He denied the outcomes of the audit report arguing that the Shs 1.2 billion indicated in the audit report was an additional cost incurred as a result of the balance from the first contract for unimplemented activities and increase in scope.
The legislators were not satisfied by Kasande’s submission which prompted them to provide figures to the contrary.
Masaka Municipality MP, Mathias Mpuuga revealed that Shs 1.079 billion was spent on professional fees, while evacuation of graves cost Shs 48 million, with transport and communication costing Shs 50 million.
He further stated that Shs 50Million was spent on printing and stationary, Shs 22 illion went on field rent while Shs 10 million was spent on contingency.
The MPs further found out that the residents were forced by the Consultant to sign acknowledging receipt of money prior to actual payment of the cash.
This revelation angered MPs who accused the Ministry of conniving with the Consultants to to defraud Ugandans.
Kasande concurred with the Auditor and revealed the Ministry came to know of the Consultant’s fraudulent practice three months after payment of the residents had resumed.
“Yes, this is true and this wasn’t the smartest thing to do but at that stage, we wanted something that could work and the consultant convinced us and it worked,” Kasande said.
All the responses were however not deemed satisfactory to the legislators who chose to further the probe.