KAMPALA: DPP endorses Basajjabalaba forgery charge

By ANDREW BAGALA

The Director of Public Prosecutions has given the green light for city businessman Hassan Basajjabalaba to be charged with forging a consent judgment used in evading taxes on Shs142 billion he received in compensation from the government. The validity of the compensation itself is being contested separately.

Confirmation

The Director of Criminal Investigations and Intelligence, Ms Grace Akullo, confirmed that the file had been sanctioned and orders given for Mr Basajjabalaba to be taken to court. “We have taken Hassan Basajjabalaba to court on a forgery charge. I am yet to inform his lawyers to present him to us or else we take other actions suggested by the DPP,” Ms Akullo said on Thursday. The DPP sanctioned the forgery case file more than a year after it was submitted. The delay in the investigations of the case had irritated government officials including Internal Affairs minister Hillary Onek.

The Shs142b compensation by the government arose from the reversing of the then Kampala City Council decision to sell markets of Nakasero, Shauriyako, St. Balikuddembe (Owino), and the Constitution Square to Mr Basajjabalaba.

The compensation process was marred with irregularities and led to the resignations of former Attorney General Prof. Khiddu Makubuya and Finance Minister Syda Bbumba. An audit by the Office of the Auditor General found no basis for the compensation, noting that the claims were heavily inflated in any case, and that, in reality, it was the businessman who owed government over Shs900m in unpaid taxes and fees.

According to investigators, the compensation, when received, was subject to taxation but Mr Basajjabalaba allegedly forged a consent judgement that purported to exempt the income from taxation.

The forged High Court consent judgement, dated October 6, 2010, allowed HABA Group of Companies, in which Mr Basajjabalaba is a director, not to pay Shs21bn in tax to Uganda Revenue Authority (URA).

Judicial officials denied signing or issuing the order when interrogated by detectives.

Arrest threats

A handwriting expert found that all the signatures on the said consent judgement were forged, except that of Mr Basajjabalaba. Mr Basajjabalaba and his co-directors in HABA Group of Companies had declined to appear before detectives at the CID to record statements until they were threatened with arrest.

A related case, in which Mr Basajjabalaba, Ms Bbumba, Prof. Makubuya and Central Bank Governor Emmanuel Tumusiime-Mutebile are under investigation for causing financial loss and abuse of office, is still pending at the DPP’s office.

Source: Saturday Monitor (22/12/2012): http://www.monitor.co.ug/News/National/DPP-endorses-Basajjabalaba-forgery-charge/-/688334/1649164/-/o6y5a5/-/index.html