The Police anti-fraud squad is investigating the alleged mismanagement of about Shs400 billion the government has pumped into the power sector for tariff subsidies, over the last four years. Detectives on Thursday raided offices of three government institutions, Umeme and the residence of Mr Paul Mare, Umeme’s former Managing Director.
Police spokesperson Judith Nabakooba said yesterday the inquiry would uncover losses the government has incurred through suspected fraud. She declined to comment further. Mr Mare, who confirmed the Police had raided his Kololo residence, declined further comment on the matter, and referred this newspaper to Mr Edward Twine, Umeme’s Public Relations Officer. Mr Mare resigned from Umeme on May 20, saying he had decided to join his family in South Africa. He was replaced by Mr Charles Chapman.
The government has since 2005 been giving subsidies worth about Shs100 billion every year to the power sector meant to cover the losses incurred by Umeme and keep the prices for the electricity consumers low. The money is remitted to Umeme through the Uganda Electricity Transmission Company, with the Electricity Regulatory Authority (ERA) providing the audit. Both the government agencies including the office of the Energy Ministry Permanent Secretary Kabagambe Kaliisa were searched on Thursday.
Over 10 computers were confiscated by the detectives, Police sources said over the weekend. The Police inquiry is as a result of suspected connivance between the government officials and Umeme in mismanaging the funds, a matter that has reportedly been brought to the attention of President Museveni, who ordered Energy Minister Hillary Onek to have the inquiry carried out.
Mr Twine confirmed that detectives had gone to the company’s office on Thursday, carried away some computers and retrieved and copied data from others in its finance department.
He said Umeme is not aware of the basis or motivation for inquiry, adding that detectives had informed the company this was a sector-wide investigation. “We were informed that the purpose of the operation was to investigate alleged loss of government funds but this should not concern Umeme, being a private company,” Mr Twine said in a statement.
Deputy Secretary to Treasury Keith Muhakanizi told Daily Monitor yesterday that the investigation will cover all the organisations in the chain distribution of this money.
“They are trying to find out whether the money serves the purpose it’s meant for. The subsidies are given to consumers and we need to know whether this money goes to the intended purpose,” he said. The ERA Chief Executive Officer, Dr Frank Ssebowa said; “They came here and they wanted information. They got it and left.”
Despite the government’s injection of about Shs400 billion, Uganda still has the highest electricity tariffs in East Africa.
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