UGANDA: FORMER NSSF BOSS PLACED IN CUSTODY AS HE TRIED TO FLEE TO KENYA TO ESCAPE CHARGES OF ABUSE OF PUBLIC OFFICE.

Writes Leo Odera Omolo In Kisumu City

DAVID Chandi Jamwa was yesterday morning arrested at the Uganda-Kenya border point of Malaba on his way to Kenya.The former National Social Security Fund (NSSF) managing director was later in the afternoon charged before the anti-corruption court with abuse of office and causing sh2.7b loss to the fund.

He denied the charges, but the court did not grant him bail, after prosecutor Sydney Asubo said only the High Court had the power to do so, and not the magistrates court.

Accordingly, chief magistrate Irene Akankwasa remanded Jamwa to Luzira Prisons until tomorrow when she will decide the fate of his bail application.

The court was packed to capacity when Jamwa appeared at 4:30pm.

Prosecutor Asubo, assisted by Sarah Birungi of the IGG, said Jamwa arbitrarily sold off several NSSF bonds to Crane Bank before their maturity dates, which led to the loss of sh2.7b.

This happened between September and November 2007 when Jamwa was NSSF boss, Asubo said.

Jamwa appeared nervous and sweated profusely in the dock. He constantly wiped away sweat with a hankie.

The court proceedings lasted about 30 minutes after which he was whisked to the court cell, handcuffed with another suspect and later ushered onto the prison bus enroute to Luzira. Relatives and friends looked on in disbelief.

The other inmates were excited about Jamwa joining them, calling him “the big man” who would buy them good food.

Earlier, Jamwa wearing a black T-shirt and blue jeans, was brought in the court from the IGG’s office in a white Prado escorted by two policemen.

Jamwa also had to go through Parliament, where he arrived at 2:30pm and faced the committee on commissions, statutory and state enterprises.

The MPs did not let him say anything. “We just wanted him to know that we also want him,” chairman Reagan Okumu said. “From tomorrow, he starts appearing before this committee to answer queries. It is a coincidence he is arrested at a time we also want him.”

The queries relate to questionable procurements and advances Jamwa paid to his deputy, Prof. Mondo Kagonyera.

Jamwa’s predecessor Leonard Mpuuma was also charged in 2007 with causing financial loss, abuse of office and receiving a bribe. The court fined him sh100m after he pleaded guilty, but cleared him of charges of receiving a bribe.

Jamwa’s arrest came a day after Okumu’s committee slapped a travel ban on him, Mondo Kagonyera and other embattled former bosses of the fund.

Earlier, the NSSF board had written to the IGG, Raphael Baku, asking him to prosecute the former bosses, who were implicated in an audit report on the fund.

The audit was conducted by KPMG and was ordered by President Yoweri Museveni.?

When the Police and immigration officials arrested him at 3:00am, Jamwa was travelling with three passengers in a Toyota Tundra, UAL 202V.

They were reportedly heading to Siaya in Kenya to a burial, but sources said he was attempting to sneak out of the country. Jamwa, who is in his late 30s, also had his passport.

“His moving at night created suspicion,” the head of investigations, Moses Sakira, said.

Border officials asked Jamwa to disembark when the huge vehicle with tinted glass pulled to a halt at a check-point, said the eastern Police boss, Joel Aguma.

Jamwa complied and was detained at the Malaba Police Station cells. Later, he was handed over to the IGG’s office in Tororo before being driving back 211km back to the city.

Although the Police allowed the other passengers to continue with the journey, they declined.

Explaining the arrest, Aguma said the force had already received the Parliament’s order stopping Jamwa and colleagues from leaving the country.

“We got a directive from the Inspector General of Police to ensure that he is escorted back to Kampala,” he said.

Sources said the charge sheet had been signed a few days ago and the Police had been ordered to arrest Jamwa.

In the past, Jamwa has been accused of spending workers’ money lavishly, including on gambling in American casinos, clothes and jewellry.

According to the KPMG report, NSSF lost over sh8b in just two days when Jamwa sold off government bonds to Crane Bank before their maturity date. In addition, the report said, Jamwa instructed the bank to sell two-year bonds worth sh19b and sh9.7b on November 2, 2007, some 27 days before the date of maturity.

As a result, the report added, NSSF lost the maturity value plus the final interest payment, totalling to sh1.6b.

A day later, 10 NSSF three-year bonds worth sh39b were also sold. The audit did not state what NSSF lost as a result.

The probe focused on the procurement of an integrated information management system, the purchase of land in Temangalo and the status of Nsimbe Holdings,?the misuse of credit cards, investments in fixed deposits and the sale of immature bonds.

The auditors found that “a lot was wrong with the management of NSSF” especially in procurement, salary advances, allowances and loans.

Also implicated are former board chaired by Edward Gaamuwa, the former corporation secretary, Martin Bandebire, the investment manager, Peter Mugimba, the chairman of the contracts committee, Samuel Mpiima Lubulwa and businessman Amos Nzeyi.

Former finance minister Ezra Suruma in December 2008 suspended Jamwa and Kagonyera following the Temangalo saga in which the Fund bought land belonging to businessman Amos Nzeyi and Arma, a company linked to security minister Amama Mbabazi, at sh11b.?The price was said to be inflated, but a Parliament committee found otherwise.??????

A total of 40 people have since applied for the job of managing director of the NSSF. Over the last 10 years, four managing directors have been fired amid scandals.

The NSSF’s assets stand at sh1.4 trillion, making it one of the largest players in Uganda’s economy.

In the last 10 years, its portfolio has grown from under sh200b to over sh1.3 trillion against the country’s revenue of sh3.6 trillion a year.

Ends

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