COSASE Orders Arrest of Lawyer Kiconco Over Misappropriation of UGX39Bn NAADS Payment to Tea Farmers

Lawmakers on Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE)  ordered for the arrest of city lawyer, Patrick Kiconco Katabaazi, over the misappropriation of UGX39Bn meant for tea farmers as payment from National Agricultural Advisory Services (NAADS).

This followed a query raised in the 2021/2022 Auditor General’s report that revealed that NAADS advanced UGX39 billion to Pathways Advocates to compensate tea nursery operators who had sued government for failure to procure their seedlings, but there was no evidence furnished to auditors indicating that the intended beneficiaries received the said funds.

Kiconco informed Parliament that he was approached by 8 people on behalf of over 711 tea nursery bed operators led by Frank Byaruhanga, Francis Runumi, George Owakukiroru, Caleb Tumwesimira, Sam Arinaitwe, Julius Tumushabe, Fidelis Kanyamunyu and Rev Bernard Byamugisha to represent them against a claim they had against National Agricultural Advisory Services (NAADs) for their unpaid claims worth UGX143,621,201,500.

The lawyer also admitted that his law firm has so far received UGX39Bn and this was sent directly to the beneficiaries and the only pending payments to the farmers is UGX1.086Bn.  He remarked,

The Plaintiffs and the beneficiaries [we] represent have received money and are appreciative of our services and support. From these payments, we have been able to resolve problems relating [to] simple mistakes in computing, recording of account numbers and to date, we do not have any complaints from the Plaintiffs regarding the exercise so far.

However, his submission that farmers are appreciative of the services rendered by the law firm were contested by Richard Mubumuza (Bwamba County) who claimed to be in possession of some bank statements from some tea farmers who raised alarm on the discrepancies in the amount of funds submitted by Kiconco in his accountability report to NAADs and the amounts that the farmers received in their bank accounts.

In the first payment, according to the accountability submitted by Kiconco, one farmer Sirajje Mastiko received UGX150,928,485 that is according to the accountability you submitted. I have a copy for the bank statement for Mastiko from Centenary Bank, what the firm paid instead was UGX105M, that is a difference of UGX45M. Can Katabaazi talk to the Committee, about this? asked Muhumuza.

The MP further tabled more evidence claiming that Kiconco made a second payment on 1st December 2022 to Mastiko, when the law firm transferred UGX90,704,807 to Mastiko’s account, but on the same day UGX58,911,706 was transferred back to the law firm’s account, with the MP alleging that Pathway Advocates could have imposed a standing order which required a portion of the payment to the beneficiaries be deducted and return to the law firm’s bank account.

The Committee also was informed by Muhumuza that another farmer Henry Tukahirwa on 5th December 2022 received UGX24,298,160 on his account in Centenary Bank, but on the same day, UGX22,417,559 was debited back to the law firm’s account. “The law firm was taking more than the beneficiaries, and these are just a few of these claimants. Can you talk to the Committee about these transactions?” asked Muhumuza.

In response, Kiconco denied existence of any complaints from farmers regarding the payments noting, “Like Mastiko can confirm, we haven’t received any complaints as regards that disparity.” However, his response angered some MPs like Mpindi Bumali (PWD Representative) who called him to order for trying to insinuate that since the farmers didn’t complain, it means they were content with the way the transactions were made. Kiconco replied,

The accountability in issue doesn’t have the figures he is talking about, the accountability we submitted to NAADs is a summary of the payment that were made as at that time, and it doesn’t include schedules that have figures of that nature. That is why I am constrained to make a response to that question.

This prompted Hon Lagen David,  to ask the officials from NAADs to clarify on the schedules of the accountability they are said to have received from Kiconco, after the lawyer denied having submitted the said documents, to which Samuel Mugasi, Executive Director replied saying the schedules were generated by Kiconco’s law firm.

 LAWANG LUTEDERO