Pensions scam probe: Police give DPP contradicting reports

National

L-R: Former Permanent Secretary Jimmy Lwamafa, Mr Peter Sajjabi and former principal accountant Christopher Obey and Stephen Kunsa Kiwanuka, the forme Commissioner Compensation department, at the Anti-Corruption Court last year. PHOTO BY ABUBAKER LUBOWA 

By CHRIS OBORE

In Summary

Director of Public Prosecutions spokesperson says the trial of the suspects will proceed despite the contradicting police findings.

KAMPALA- After two years of investigations into the theft of pension funds in the Ministry of Public Service, police have issued two contradicting reports of their findings.

At least Shs360 billion was lost in the ministry after some officials siphoned out the money by creating non-existing pension beneficiaries whom they paid regularly as the genuine pensioners spent years without receiving their entitlements.

Both reports from police, with different recommendations and conclusions seen by Sunday Monitor, have been forwarded to the Director of Public Prosecutions (DPP) for legal advice and further action.

“When you read the two reports, they have contradictions in material particulars,” the DPP spokesperson, Ms Jane Okuo confirmed to Sunday Monitor.

The first report dated December 30, 2013, details how Cairo Bank and Public Service ministry officials masterminded the scam. It also highlights how the bank account numbers for the fraud were availed in advance to the officials in the pension department at the ministry to have them entered on the pension payroll.

“The release of pension money to Cairo Bank found already pre-prepared accounts with or without titles ready to post credits,” reads the report.
52-page report
While the bank claims the money was paid to the alleged beneficiaries through a businessman named Peter Sajjabi, the 52-page police report says: “Cairo Bank appears not to have effectively used the alleged assignment letters by the various account holders for the bank to pay their money through a one Peter Sajjabi.

There is no any piece of documented evidence to indicate that by virtue of the alleged assignment letters that the money was paid through Peter Sajjabi and that he had indeed signed receipt of the monies on behalf of the alleged account holders,” the police report says.

The police further state that the then ministry’s permanent secretary Jimmy Lwamafa did not exercise his responsibility of ensuring proper pension budget expenditure and accused him of applying a carefree style of supervision and losing technical control of the ministry.

“Christopher Obey, the principal accountant, deliberately took advantage of lack of robust supervision and strong checks and balance by his supervisors to perpetrate the pension fraud,” the police report reads in part.
Obey is one of the suspects in the pension scam.

The report highlights a litany of Mr Obey’s failures and alleged manipulation of the payment system to divert the pension funds.

“Jimmy Lwamafa, the ministry’s accounting officer, Mr Christopher Obey, the Principal Accountant Pensions, Stephen Kunsa Kiwanuka, the Commissioner Compensation department, David Oloka Japians, senior accountant in the pensions and Stephen Lwanga be held responsible for causing financial loss and abuse of office,” police recommend.

Police also recommend: “Cairo International Bank as an institution be faulted for flouting the financial institutions’ (anti-money laundering) regulations...”

The report clears one Francis Lubega, the IT system manager, saying: “His involvement in the manifestation and perpetration of the fraud at Ministry of Public Service was insignificant.”

“He may, therefore, not be criminally responsible for a clear criminal offence,” reads the report.

It also says it was difficult to prove conspiracy against one Sajjabi because there was no evidence that he signed for money at Cairo Bank even when circumstantial evidence is that he was seen at the bank whenever money was withdrawn.
“These investigations found out that conspiracy is not simply an agreement to engage in unlawful act; it would require not only agreement and intent but also the commission of an overt act in furtherance of the agreement,” the police say.