Minister Without Portfolio and former Works and transport Minister, Eng Abraham Byandala has been sent to Luzira Prison until August 11, 2015.
According to a report by the Inspector General of Government (IGG) pinned Byandala for forcing the Uganda National Roads Authority (UNRA) to sign and advance Shs24.7bn payment to a non-existent firm, EUTAW.
It was discovered by the IGG that the EUTAW construction company that won the tender had no relations to the firm in the US that it had used as its parent company.
Eutaw Construction Company won the Shs165b road project, which President Yoweri Museveni launched on July 7 2014.
According to highly placed sources, UNRA cancelled the contract for the 74km Mukono-Katosi road project following orders from the Inspector General of Government who said Eutaw and CICO, a Chinese company subcontracted for the project, colluded to defraud the government of Shs24b in advance payment.
Upon canceling the contract on orders of the IGG, The Uganda National Roads Authority (UNRA) governing board suspended four senior staff, including the then acting executive director, Eng. Ssebugga Kimeze, Director for planning, Eng. David Luyimbazi, Joe Ssemugooma, the director for finance and Marvin Baryaruha, the director for legal all who have been arrested after serious interrogations and recording of statements from these UNRA senior staff in connection to the road scam.
Uganda National Roads Authority top officials faced a multi billion fraud scandal in which a quack US based company Eutaw was handed the road contract without due diligence.
The other suspects charged before the Kololo-based court included Mr Berunado Kimeze, 54, the former acting executive director of Uganda National Roads Authority (UNRA), Joe Ssemugooma, 54, the former acting director finance and administration at UNRA, Mr Apollo Senkeeto, alias Mark Kalyesubula, 45, a businessman and Isaac Mugote, former banker with Housing Finance Bank Ltd.
Katosi Road scam time line
In 2010. Katosi road earmarked for upgrade by the Uganda National Roads Authority (UNRA).
May 2010. Eutaw International Limited purchases bid documents.
December 2010: Eutaw emerges best bidder. But the trails, like the legal documents submitted in bidding, however, described the Eutaw in Mississippi as completely different from the one in Florida.
2010/2011: Mr Abraham Byandala appointed Works minister.
The project is shelved on grounds of lack of funds but constant meetings are held back and forth, including with President Museveni.
February 2012: The President directs the ministries of Works and Finance to accelerate discussions with Eutaw on the project.
March 2012: UNRA ponders on re-tendering the project but the idea is shot down, officials revealed.
November 2: Housing Finance Bank writes to UNRA confirming issuing performance security to Eutaw Constructions.
November 14: Mr Marvin Baryaruha, then the legal counsel of UNRA, writes back giving green light to the signing.
January 28: UNRA deposits Sh24.7b to Eutaw’s account in Housing Finance Bank.
February 17: IGG writes to UNRA questioning the contract.
March 13: CICO deposits Sh500m on Eutaw’s account.
July 2: Eutaw writes to UNRA claiming that they were conned.
July 7: President Museveni commissions the road project in Mukono.
July 9: Secretary to Treasury Keith Muhakanizi writes to IGG to investigate deal.
August 31: The UNRA board suspends Mr Kimeze, Mr Ssemugooma, Mr Baryaruha and Mr Luyimbazi.