The Commission of Inquiry into land matters has directed ministry of Finance to halt the payment of Shs 100 billion compensation to claimants of a rock underneath the Isimba power dam construction site.

The directive is contained in a June 26 letter addressed to the ministry by Justice Catherine Bamugemereire, the land probe commission chairperson.

“This letter serves to request that all payments due over funds appropriated in the 2018/2019 budget in respect of the rock reserves along Isimba hydropower project be halted. The Commission of Inquiry took interest in investigating the issue of compensation of rock reserves in respect of Isimba hydropower project,” reads the letter in part.

Bamugemereire told journalists at the National Records and Archives Centre that the Commission received a complaint about the compensation claims from Engineer Badru Kiggundu, the chairperson of the Karuma and Isimba hydropower project steering committee.

In his complaint, Kiggundu said that a number of project affected persons (PAPs) were dully compensated by the government at the commencement of the projects but lodged fresh claims for additional compensation for the natural rock formations beneath their land.  The compensation claims add up to Shs 600 billion.

Bamugemereire says their investigations into the matter show that the PAPs were indeed compensated after consenting to the valuations reports.

“The Commission has detected possible collusion between claimants and public officers in government offices such as the office of the chief government valuer, department of Geological Surveys in ministry of Energy and now perhaps, ministry of Finance,” reads the letter.

She says preliminary findings of the Commission indicate that the Shs 600 billion claim is baseless and probably driven by corruption tendencies. She, therefore, directed the Finance Ministry to withhold payment until the commission concludes its investigations into the matter and makes final recommendations.

“The Commission is perturbed by reports that not withstanding the ongoing investigations, the ministry of Finance, Planning and Economic Development has earmarked Shs 100 billion out of the budget FY 2018/19 for payment of dubious claims in respect of Isimba hydro power project.

The Commission strongly advises that any payment arising from the above claims before the Commission concludes its investigations will be premature and may in fact occasion financial loss to the government of Uganda. We therefore direct that any payment due to these persons be halted.” said Bamugemereire.

Some of the claimants for the rock at Isimba hydropower dam are Tom Musisi Kazibwe, the former Ntenjeru South MP and the former Kayunga town clerk, Charles Magumba. The two are demanding compensation of Shs 132 billion basing on a February 5, 2015 valuation report authored by the senior valuation officer, John Moses Magala.

The others are nine Bibanja holders from Kayunga district who through lawyers from Galisonga & Co. Advocates sued the government and the Isimba dam contractor for nonpayment of Shs 203 billion for the rock on their land at Nakatooke village in Nazigo sub-county, Kayunga district where the dam is being built.

The 183MW dam is being constructed at a tune of $567 million (about Shs 1.2 trillion). The dam, 40kms downstream from the newly built Bujagali hydro-power dam, is being financed by the Chinese Export and Import Bank (Exim).