COSASE directs Chinese company to pay back UGX 1.84bn falsely claimed on Vurra-Arua- Koboko-Oraba road project.
Discussed in the Committee on Commissions, Statutory Authorities and State Entreprises on November 24th, 2016
The COSASE committee meeting chaired by Abdu Katuntu has directed Chongqing International Construction Corporation(CICO) to refund UGX 1,84bn to UNRA by close of business Tuesday, next week.
The committee made a directive during a meeting chaired by Abdu Katuntu and attended by UNRA current and former officials led by Executive Director Allen Kagina and officials from National Management Authority(NEMA) led by Dr. Tom Okurut, the Executive Director. The meeting was also attended by CICO directors and the contract Consultant
During the meeting, the Executive Director NEMA, submitted both documentary and oral evidence indicating that they granted the Environment Impact Assessment approval to the contractor in period of 4months as opposed to the stipulated period of 6months in the law. He therefore, described the allegations and claims by the CICO as baseless because it is the contractor who made a late submission.
Both the contractor and Consultant expressed ignorance about the environmental guidelines and laws for acquiring an Environment Impact Assessment certificate from NEMA which mislead the contractor to make a claim of UGX 1.84bn that was approved by the consultant. The consultant apologised for the mistake saying his advice was based on the contract and not the environmental laws.
The committee thanked NEMA management for the good work on this particular contract and called upon them to keep on. It directed UNRA to ensure that all contracts they sign with contractors adhere to the country’s laws and also ensure that no contractor makes claims he/she is not entitled to. The committee further resolved to recommend to the house that UNRA reconsider its working relationship with this particular contractor because he was also involved in misusing funds meant for compensating projects affected persons on different road project.
The chairperson adjourned the meeting to Wednesday, next week 9am.