Detectives interview Finance officials over corruption scam

Internal Audit boss Okonye arrives at the CIID headquarters in Kibuli, Kampala, yesterday. PHOTO BY Abubaker Lubowa. 

By Dear Jeanne

In Summary

Police say the interrogations are part of the investigations into the scam in the Public Service ministry and the Prime Minister’s office.

Kampala

Detectives at the Criminal Investigations and Intelligence Directorate (CIID) yesterday interviewed Mr Fixon Okonye, the commissioner, Internal Audit, in the Ministry of Finance over the pension scam. He is accused of fraudulently paying more than 3,000 ghost pensioners, costing the taxpayer Shs169 billion.

The Director of CIID, Ms Grace Akullo, confirmed the interrogation. Mr Okonye is alleged to have discovered the fraud in the Pension Department of the Ministry for Public Service and also knew the amount in question, but failed to act or even notify the authorities. He is also alleged to have forged a warning letter to interdicted Public Service ministry Permanent Secretary Jimmy Lwamafa after investigations had been instituted, in attempt to conceal his failure to act.

Though the alleged letter indicated it had been copied to the deputy Secretary to the Treasury, Mr Keith Muhakanizi, the latter denied knowledge of it.

Police are also inquiring into how the payrolls were audited before payment to the ghost pensioners was approved by the internal Audit department. According to preliminary investigations into the Shs63 billion lost between January and October 2011, though an internal audit was carried out, no action was taken against the suspects. Mr Okonye was summoned for questioning following two contradictory statements he made

More questioning
In a related development, the CIID also questioned three commissioners from the Finance ministry, who are alleged to have connived with officials in the Office of the Prime Minister (OPM) and Bank of Uganda (BoU) in the misappropriation of Shs7 billion in donor funds.

Among those interrogated are Mr Lawrence Kizza, the director of Economic Affairs in the Ministry of Finance, and Ms Jennifer Muwuliza, the acting commissioner Aid Liason Department.

The CIID at the weekend opened investigations into how the money was irregularly transferred from the Budget Support Holding account to the National Policy account contrary to the Memorandum of understanding between the Bank of Uganda and the Ministry of Finance Planning and Economic Development.

The Shs6.9 billion is alleged to have been transferred on June 27, 2011 as part of the Shs75.8 billion from various development partners cited in the Auditor General’s report on the fraud in the OPM.

Based on the documents recovered in connection to the funds, the police say the interdicted Principal Accountant, Mr Geoffrey Kazinda, and the Permanent Secretary, Mr Pius Bigirmana, were part of the signatories.

According to the Auditor General’s report, the transfers to other accounts other than the Consolidated Fund Account were contrary to the terms of the Memorandum of Understanding between BoU and Finance and exposed the funds to misuse.

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