Uganda National Roads Authority-UNRA paid 21.9 billion Shillings to a company it did not contract, parliament has learnt today. The dubious payments were reportedly brought to the attention of the Committee on Commissions, Statutory Authorities and State Enterprises COSASE by a whistle blower.
This development comes just few days after the Parliament’s committee on commissions, statutory authorities and state enterprises (Cosase) forced four Chinese companies to refund more than Shs 26.2 billion.
The Chinese firms had been contracted by the Uganda National Roads Authority (Unra) to build various road projects and received the money as an advance to compensate people affected by works on Musita-Lumino-Busia road, Kanoni-Sembabule-Villa Maria road and Olwiyo-Gulu road.
However, the firms diverted much of the money for their own interests. The committee discovered that some of the firms fixed the money in commercial banks to earn interest while others invested the money in their personal businesses.
The three companies: China Railway 18th Bureau Company Ltd, China Railway No. 5 Engineering Group Co. U Ltd, and Zhongmei Engineering Group Ltd, are part of five firms that UNRA advanced Shs27.8b in 2015 to compensate PAPs in Mayuge, Bugiri, Busia, Gulu and Ssembabule districts.