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Exclusive: President Museveni orders corruption investigations of UDC’s boss Patrick Birungi. Whisper Eye Reports
President Museveni has ordered for the immediate investigations of Uganda Development Corporation boss Patrick Birungi into the unfounded use of the agency funds in corrupt deals.
Whisper Eye has learnt that president Museveni has instructed his team to start investigations into claims that various projects have stalled under UDC and many have been hazardly implemented
The UDC boss Patrick Birungi is accused of mismanagement of various projects among which is paying dubious costs and debts to Mabale growers Tea factory when the government through UDC aimed at investing UGX 23 billion to revive the operations of the company which has caused massive loss to the government.
President Museveni didn’t agree with compensating the embattled Mabale growers tea factory in the first place however a handful of UDC officials led by Dr Birung is at and reached out to the Minister of finance that instead of buying them a machine , that the government should instead pay for Mabale tea company its debts however Minister Kasaija asked Birungi to first valuate the factory to ascertain if it was functional .
Patrick Birungi went against Minister Kasaija advice of first valuing the Mabale grower’s tea factory before paying for its compensations.
President Museveni through Minister Kasaija had advised UDC’s Birungi to first valuate Mabale growers tea factory before paying the UGX 23 billions which money was meant to be valuable to the government.
Dr Patrick Birungi disagreed to the ministers and the president Museveni advice and went ahead to release the money to embattled company without a proper valuation report.
He released the money to shareholders of Mabale growers tea factory and banks that is KCB and Stanbic
The company had been struggling to stay afloat after securing a US$4.61 million (UGX17billion) credit facility from the Kenya Commercial Bank (KCB) and a US$1.63million (UGX6 billion) from Stanbic bank for the purchase of new equipment.
The 23 billion which was released to finance the loan facilities was a bad investment for the government which has created a big loss to the government under the watch of Dr Patrick Birungi.
According to reports this money was dubiously reached upon since the UDC boss went against the advice of the president.
In other investigations president has also ordered investigations of mismanagement of Soroti Fruit Factory as Patrick Birungi is also accused of hiring his own lawyers who he allegedly paid close to 90 million to represent UDC in a case against Rock Trust company which had its contract terminated by UDC .
He advanced the said money without a formal contract as required by law and didn’t not follow the right procedure of procurement
Some staff through various reports to the president indicate that Birungi has failed to manage the agency with his mode of working at the agency.