Censure hangs over Mbabazi

By Independent Team

Since the scandal over the NSSF purchase of Amama Mbabazi’s land in Temangalo broke almost a month ago, the Security minister has accepted no mistakes on his part. In his defense before the NRM caucus he said the land deal was legal, fair €“ in fact unfair to him €“ and was executed without influence.

But in a sign that the heat is still on, the finger-pointing has swung from the legal and procedural irregularities to the political realm, sucking more names for and against the minister into the scandal.  The Independent brings you interviews with some of the main players.

Meanwhile, others like Finance Minister Ezra Suruma, have already rallied to Mbabazi’s defence but his supervisory role of NSSF, his relationship with Mbabazi and National Bank of Commerce in which the money was reportedly invested raises questions about his impartiality and motive.

In a frantic move, State Minister for Local Government Hope Mwesigye sent out an SMS to some MPs asking them to €œkindly help out on Amama issue if you can€ and the NRM Chief Whip, Ms Kabakumba Matsiko issued a statement claiming the party caucus had accepted Mbabazi’s explanation but other members rejected it saying there was no such resolution.

In fact, many NRM members of Parliament like Maj. Gen. Jim Muhwezi and Henry Banyenzaki insist Mbabazi should pay the price for his alleged misconduct. Gen. Salim Saleh on his part advised Mbabazi to refund the money.

n my opinion what he tried to argue is technical, legalistic and this is not a legal matter but a political matter,€ former Health minister Jim Muhwezi who is no stranger to such controversy told The Independent (see interview) in reference to Mbabazi’s defence before the NRM caucus.

Mbabazi and NSSF’s defenders have argued about the price being right and there being an urgent need to invest in the housing sector, with the president’s manifesto being mentioned, and rosy figures being painted as to the benefits of the Temangalo investment. They have argued that the baby should not be thrown away with the bath water!

In fact, an orchestrated media campaign in the form of letters and opinion articles in the media in support of this position is visible over the last weeks. The idea is to convince the public about the fairness of the deal and justify the urgency of the need for NSSF to invest in the housing sector.

Many insist, though, that procedure is as good as the results and that in this case, Mbabazi allowed the procedures and the law to be broken for his own benefit and that the National Bank of Commerce that he reportedly invested this money in is neither for government nor for the NRM party, it’s his, so he must explain because his actions are hurting the party.

€œIgnoring the irregularities is like what some people are saying is wrong. We in Ankole say, €˜otashweka amazi okiha obutuzi’ (do not cover the faeces so as to pick the mushrooms),’ said Muhwezi, adding; €œProbably if the processes were followed, we would have got better houses and in better locations, with less expenditure of workers’ money or better land, bigger and for lower cost.€

Nearly everyday of the inquiry has uncovered a new irregularity €“ either of fact, procedure or execution. (See box)

Ideally, the litany of sins in the Temangalo deal should have sent a few people to jail already like happened over the botched Nsimbe estate deal in 2005. The politics must, however, be settled before the legalities can be executed, especially because the matter involves the influential secretary general of the ruling NRM and one of President Museveni’s most trusted lieutenants. Indeed the president has not spoken a word since the scandal broke.

Over the next few weeks, the public will be watching parliament to see whether MPs will push Mbabazi and Finance Minister Ezra Suruma to pay the political price or whether the matter will be swept under the carpet. So far indications are that MPs are sniffing blood and unless Mbabazi, a very adept political player, pulls some stops, censure will be inevitable. The last censure of a minister was under the 6th Parliament. (See box)

List of NSSF Temangalo land deal irregularities

• There was no tendering or open bidding which is mandatory for purchase of public assets above Shs 70 million of US $35,000.
• Project was handled through NSSF’s finance committee, not the investment committee
• Government valuer was not consulted, which is mandatory for public bodies.
• NSSF paid for land Shs 8 million above recommended price by three reputable valuers.
• It is not clear how NSSF arrived at decision to pay Shs 24 million per acre instead of Shs 16 million average.
• Payment was made to joint account run by Amos Nzeyi and Amama Mbabazi yet sale agreement did not mention Mbabazi.
• The Shs 11 billion deal was mooted and concluded in less than 10 days.
• Disparities in acreage purchased by NSSF; 414 acres were to be bought but payment was made for 463 acres, but are holding titles for 493 acres. Yet NSSF surveyor certified only 411 acres.
• Land has not been clearly marked and demarcated six months after transaction.
• Only three of the six land titles have been transferred to NSSF, all lands belonging to Mbabazi. Nzeyi’s titles have not been transferred.
• Contrary to NSSF claim that the land has no squatters, a recent visit by MPs found nine families on the land who have been paying ground rent (busuulu) to Mbabazi.
• Private lawyer [John Byamugisha] represented all the three parties; NSSF, Amos Nzeyi and Amama Mbabazi, even though NSSF employs six lawyers in its legal department.
• NSSF internal auditor did not know payments made to Mbabazi, Nzeyi and lawyer Byamugisha yet a stamp of approval from his office was on the vouchers.
• NSSF procurement officer’s advice was not sought.