By our Reporter
Mbarara City – Councillors at Mbarara city council have held the former town clerk Assy Abirebe Tumwesigire at ransom over the Shs 1.2bln yet to be paid to MBJ Technologies Limited.
Currently, Tumwesigire was transferred to Mbale City and replaced by Justine Barekye from Soroti City over corruption and office mismanagement allegations.
Before his handover, councillors forced him to give clarity on some of the issues among which was the controversy about the arbitration between MBJ Technologies and Mbarara City Council.
During his submission on January 28, 2025, Tumwesigire explained that MBJ Technologies Ltd in partnership with Harsun Consults Ltd raised a claim to the arbitrator against Mbarara city council for having not been paid their consultancy fees as per the contract.
“MBK Technologies Limited in a joint venture with Harsun Consults Limited raised a claim against Mbarara city council for having not been paid their consultancy fees as per the contract.
According to Tumwesigire, this was in respect to the consultancy services for the supervision of works on Victor Bwana, Stanley and Galt roads construction by Multiplex Ltd and also supervised Buremba road under CICO Construction Company.
He contended that there was a delay in road works but the consultant was paid all his money in accordance with the agreed contract period.
“MBJ signed a contract with Mbarara city council on August 25, 2021, and commenced the work on September 01, 2021. The contract was for 12 months of substantial work and another 12 months to supervise the defects liability period but unfortunately the contractor could not complete the road works at Victor Bwana road in time” Actually Multiplex took two and a half years instead of 1 year”
“The same consultant company had a contract for supervision of Buremba road which was signed on November 14, 2023. It was for three months and initially it was supposed to end in February 2024 but was given an extension of extra two months because the contractor had also not completed” Tumwesigire said
The former Town Clerk said that MBJ Technologies Limited was paid all his money as per the contract but still, the consultant went for arbitration requesting to be paid Shs 1.2bln extra money as per the delayed contract by the contractors.
Assy Abirebe Tumwesigire- Former City Town Clerk Mbarara City who is allegedly accused for causing financial loss to the government. Joshua Nahamya
“MBJ Technologies was paid all its money as per the contract. We could not go ahead to pay any other money which was not in the contract because we were being guided by the contract” Adding that, the law requires us not to exceed 25% when we are awarding the contract” Tumwesigire noted
Despite the arbitrator’s ruling, Mbarara city council intended to appeal to challenge the manner in which the arbitrator awarded a total of Shs 1.2bln to the consultant that includes, including Shs 775mln for the contract extension, interest of Shs 189mln and Shs 147mln for supervision of Buremba road.
“We have strong grounds to appeal this arbitration ruling and accordingly we have written to the solicitor general to represent us in this matter and file an application to the high court to set aside the arbitrators’ ruling and have the whole matter reviewed by the high court,” Tumwesigire said
He added that the arbitrator awarding the consultant Shs 147mln in the second contract is in conflict with the public policy contained in Regulation 55(5) of the PPDA (Contract) Regulation 2014 (now Reg. 54(5) under the 2023 edition) which requires that the cumulative value of all amendments of contracts should not exceed 25 percent of the original contract price.
“Besides, the claimant was duly paid for the months of June-August 2023. Awarding the same to the claimant is contrary to the procurement law of the Republic of Uganda. The city council therefore wishes to seek your guidance and representation in the effort to appeal and set aside the two award decisions and subsequent challenge of the awards by the arbitrator” Tumwesigire earlier reported.
Despite all the interventions claimed by the former town clerk during his handover, Councillors were shocked during the council meeting to hear that the new town clerk together with his senior financial staff was preparing to pay the said consultant (MBJ Technologies limited) Shs 1.2bln earlier claimed.
Betty Tigefera, councillor representing Kakoba ward decried the earlier plans and move to waste and mismanage the taxpayers’ money by the former Town clerk Assy Abirebe Tumwesigire.
“She shouldn’t tell us that it was an oversight, it was not an oversight it was intentional. Let her first get the background,” Tigefera said
She also was amazed to see that the town clerk could pay the contractor sums of money without indicating proper documentation of how much money was paid during the contract.
“When you are talking about public funds, you should not say that some money was paid we need to know how much was paid to the consultant so that we can know where to begin from because this is a person asking Shs 1.2bln but before talking of Shs 1.2bln how much did we pay him as council” because you cannot tell me that the consultancy started and concluded when we have not paid him any money” what kind of contract is that,”
“We again ask MBJ is demanding council Shs 1.2bln but what was the total cost of the amount to be paid to the consultant” It is not reflected anywhere why this is total fraud that was enhanced by the former town clerk,” Tigefera added.
John Kavigi, Chairperosn Social Services presenting a joint committee report. Joshua Nahamya
She also submitted as to why the former town clerk did not involve the political wing when such a challenge was raised thus calling upon the authorities to expound on the matter.
“We are the very people who discovered this mess in our means. Now had we not discovered this, where was it going to end? If such a scenario happened why didn’t the town clerk inform us as council so that we swing in and take action? Why did he wait for us to petition for him to explain to us” We shall not leave any stone unturned this time around.” Tigefera explained
Eunice Asiimwe, councilor representing female persons with disabilities insisted that the person by then, the chief accounting officer [Tumwesigire] that caused the financial loss to the government should pay that money but not the council as they intimated.
“We are not against any individual here but we shall not allow council to collect money from the people then when it reaches here they just get all the Shs 1.2bln and give it to one person. I am of the view that let the person who caused this financial loss to the government pay this money,” Asiimwe noted
“This deal is not between one or two people. We want you to bring all the information regarding this fraud. He earlier mentioned that three months were paid but we want to know in records how much was paid to the consultant” Adding that, how can you pay the contractor without the records so I am coming from above saying that honourable speaker”. She added
Meanwhile, the new town clerk Justine Barekye, defended her predecessor that the work he was doing was for the city council as an institution not for Twesigye as an individual.
“Mr Speaker and honourable councillors it is unfair to recommend that the responsible officer be entirely responsible for this mess because the works he was doing were being executed on behalf this council not for the accounting officer as an individual,” Barekye said
She further asked for more time to read the file to understand the matter and make inquiries before advising the councilors to take action.
“You are aware I am still very new to this office so I am requesting that you give me more time. I study this matter because my work is legally to advise you on implementable matters so if I tell you to go and compel this officer to pay it may cause us some more problems. I request that you give me more time, I study it, and I engage the solicitor general’s office and then get back to you.” Barekye explained
Through the speaker, Bonny Tashobya, councilors unanimously gave the new town clerk an ultimatum of two months to report back to the council before they decide on the alleged conspiracy with the intention to cause government loss.
“Colleagues let us not be so emotional and we do some things that will cost this council again. We are here and we are not going anywhere. Let us give her a fair hearing she consults and comes back with a clear report that we can expedite to take a decision. The truth is we shall not see the money disappearing then we keep quiet, that is unacceptable.” Tashobya noted
Meanwhile, the joint committee discovered a variation of Shs of 400,000 from the unspent at the end of the last financial year on July 01, 2024.
“The committee recommended that this council adopts the unspent balance on the account statement worth 1,019,630,578 not that from the town clerk’s report 1,019,230,578.” John Kavigi chairperson of social services read the report
