COULD HAVE MONEY MEANT FOR THE BICYCLES HAVE GONE TO FUND ELECTIONS?

Legislators summon company directors over bicycle deal

By Mercy Nalugo & ISAAC IMAKA 

Posted  Wednesday, September 21  2011 at  00:00

In Summary

The MPs on two committees insist the directors appear and not their lawyers over Shs5b bicycle deal.

MPs yesterday directed Parliament’s Sergeant-at- Arms, Mr Ahmed Kagoye, to issue summonses to the proprietors of an Indian-based company that was paid Shs5b to supply 70,000 bicycles for local council chairpersons.

The bikes were reportedly never delivered and the Ministry of Local Government has lost contact with the proprietors. The proprietors of Amman Industrial Tools and Equipment Ltd (Aitel), Mr Singh Muhinder and Mr Nishita Maini, were expected to appear before the Parliamentary Public Service and Local Government Committee yesterday but they never showed up. Instead they were represented by the former head of Procurement in the Local Government Ministry, Mr Robert Mwebaze, who said they had asked for more time since their lawyer was away.

“We want them and not their lawyers. Non-Ugandans cannot register a company unless there is a local person who is a shareholder,” said the committee chairperson, Ms Florence Kintu, while addressing journalists after the meeting.

Witnesses said the Bank of Uganda, acting on the advice of the Local Government Permanent Secretary, Mr Kashaka Muhanguzi, released $1.7 billion (Shs4.7b) for the transaction.

The committee proceedings were held in camera forcing Mukono Municipality MP Betty Nambooze, to storm out, saying she could not be party to decisions arising out of a closed-door meeting.

The journalists were locked out at a time Ms Kintu was reading a letter written by the Stanbic Bank officials informing the committee that they would not make it until Friday.

Ms Kintu, however, told journalists later that Stanbic Bank informed them that they were collecting all documents concerning the transactions with the Indians and want them to appear today. New information before the committee indicates that the Indians registered their driver as a shareholder.

mnalugo@ug.nationmedia.com & iimaaka@ug.nationmedia.com