The Criminal Investigations Department (CID) has summoned Igara County MP Michael Mawanda and his Elgon County counterpart, Nyasio Mudimi Wamakuyu over the alleged financial mismanagement of war loss compensation funds paid to cooperatives.
Mawanda and Wamakuyu are expected to report at CID Headquarters in Kibuli, Kampala at 02:00 pm on Wednesday, June 19, 2024. The summons were sent to Parliament this Monday afternoon, according to reliable source.
“Yes, CID wrote to Parliament to release MP Michael Mawanda and Wamakuyu Mudimi to report to CID to help in investigations into the theft of funds meant for cooperatives,” the source observed.
INSIDE THE SCANDAL: A Parliament investigation ordered by Speaker Anita Among on 29, August 2023 exposed massive corruption in cooperatives. Mawanda was involved in the West Mengo Growers Cooperative Society.
The cooperative union had decided to engage JM Musisi and Co. Advocates to pursue its claim of Shs 14bn from the Ministry of Trade, Industries and Cooperatives.
However, Mawanda, who was not a shareholder in the cooperative union, guided the SACCO to engage the services of a city law firm known as M/S Justin Mungoma and Co. Advocates in pursuing its claims.
The Ministry of Trade released Shs 2bn for the SACCO through the law firm recommended by Mawanda. Interestingly, only Shs 50m reached the intended beneficiaries.
Muusa Bagala, the accountant of West Mengo Growers Cooperative Society told the Parliament committee chaired by Mwine Mpaka that upon receiving reports that Shs 2bn had been sent to the Sacco, he walked to Mawanda’s office at Parliament.
“When we asked Hon Mawanda about the compensation, he suggested a Shs 50m token to the SACCO’s leaders,” said Bagala, adding that this money was received from lawyers of M/S Justin Mungoma and Co. Advocates at KCB Bank in Kampala.
Mudimi, formerly the deputy chairperson of the Budget Committee of Parliament is accused of colluding with the state and dozens of other legislators to pass the Shs 164 billion for the compensation and later becoming beneficiaries of the same fund.
Testimonies from Buyaka Growers’ Cooperative Society implicated Kirya Co. & Advocates, recommended by Leonard Kavunduria, a top Ministry of Trade official.
The law firm reportedly paid substantial amounts to several individuals, including MP Ignatius Mudimi Nyasio Wamakuyu, who allegedly received Shs 1,050,000,000.
The re-arrest of Busiki County MP, Paul Akamba is also said to be connected to the Cooperatives money.
In December 2023, the State Minister for Trade, Harriet Ntababazi told the Parliament’s Committee on Trade and Tourism that up to 30 legislators were facing criminal investigation over their alleged role in the embezzlement of the Shs164b.
“The Criminal Investigation Directorate (CID) is taking on files, around 5 files have been identified and the good thing is it wasn’t only the Ministry, there are more than 30 MPs who are into this including Opposition MPs, five active opposition MPs, very talkative and noise makers (who) will also face it rough. We shall also face it as a Ministry, but they will also face it. So, we aren’t scared, wherever it will end, God knows, let it unfold that way,” said Ntabazi.
The development follows last week’s arrest and remanding of 3 legislators to Luzira prison over corruption.
Yusuf Mutembuli of Bunyole East, who is also the deputy chairperson of the Legal Committee of Parliament, Cissy Namujju of Lwengo District and Paul Akamba were charged with soliciting money from the Chairperson of Uganda Human Rights Commission, Mariam Wangadya on the 13th day of May 2024 at Hotel Africana in Kampala.
The State said they demanded 20% of the anticipated enhanced Budget of the UHRC for the Financial Year 2024 2026, by asserting that they were able to exert improper influence over the decision-making of the Budget Committee of the Parliament of Uganda to increase the UHRC Budget, in consideration of the said undue advantage.
