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Parliament pins Muhwezi on National Medical Stores Debt Collection Scandal

News
Parliament has today quizzed the former Health Minister, Jim Muhwezi on his alleged involvement in the mismanagement at the beleaguered National Medical Stores.
Members of the Parliamentary State Enterprises, Commissions and Statutory Authorities committee quizzed Muhwezi on why he recommended a law firm, Rugasira, Tusubira and Company Advocates, to serve as debt collectors for the National Medical Stores. According to documents from the Medical Stores, the law firm charged commissions as high as 10 percent to collect cheques from debtors.
Both the former Managing Director and Corporation Secretary of the National Medical Stores told the parliamentary committee on separate occasions that Muhwezi influenced the appointment of Rugasira, Tusubira and Company Advocates as debt collectors.
In his defense, Muhwezi denied any wrong doing in the 2 billion-shilling debt collection scandal. He said that while he introduced the law firm to the National Medical Stores director, Robert Rutaagi, it was Rutaagi's decision, and not his, to contract the firm.
Muhwezi said he did not initiate the introduction and only participated in the matter at Rutaagi's request.
Investigations by the Inspector General of Government into the alleged mismanagement of the National Medical Stores, also accused Muhwezi of interfering with the procurement process at the stores. The IGG specifically accused the former minister of recommending firms as debt collectors and clearing and forwarding agents without going through the legal competitive bidding process.

jim muhwezi national medical stores robert rutaagi

Type Report
Freelance author No
Location Kampala, Uganda
Accepted on 2006-11-09 14:08:12

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