Corruption Whistle Blower Sues Govt

2773 Views Kampala, Uganda

In short
A whistle blower has sued government for refusing to reward him after he successfully unearthed fraud in Kasese Cobalt Company in 2009 leading to the recovery of over 5.4 billion shillings.

A whistle blower has sued government for refusing to reward him after he successfully unearthed fraud in Kasese Cobalt Company in 2009 leading to the recovery of over 5.4 billion shillings.

The informer, who only identifies himself as Peter, sued the Attorney General before the High Court recently.

He is seeking to recover over 272.5 million shillings being 5 percent of the money which was recovered after he provided information.

A copy of the suit seen by a URN reporter reads that the plaintiff’s claim against the government hinges on section 19 of the Whistle Blowers Act 2010. He is seeking a court order directing the defendant to pay him as an informer or whistle blower a reward of 272.5 million shillings being 5 percent of recoveries in under declared income in form of royalties from Kasese Cobalt Company.

In his suit, he claims to have been an employee of Kasese Cobalt Company Limited between 1999 and 2009. However, in July 2009, he claims to have unearthed fraud in the company in form of under-quoted invoices for mineral exports specifically Cobalt metal, Copper and Nickel Hydroxide with a main intention of paying lower royalties to government.

Court documents show that basing on the Whiles Blowers Act 2010; the informer reported these anomalies to the Criminal Investigations Department in Kibuli, Kampala and investigations into this alleged fraud commenced.

According to this Act, an informer is entitled to 5 percent of the monies recovered payable within six months from the date of recovery.

The informer in his suit contends that in series of investigations by the police and Uganda Revenue Authority (URA), he continuously furnished them with relevant information concerning his employer’s tax evasion before the company admitted to under declaring income to URA.

The investigations by the CID revealed that the company had withheld payments on Cobalt metal, copper and Nickel Hydroxide amounting to a total of 5.4 billion shillings being both the unpaid royalties and penalties to URA.

The informer who is now unemployed, laments that despite his sacrifice and continued collaboration with URA and the police to recover the undeclared revenue from his employer, he has never been rewarded as the law demands.
In his defense the Attorney General, however, denies the claims by the informer.

The AG states that they are ready to adduce evidence in court to show that the plaintiff’s claim is a sham, extortionist and discloses no cause of action.

Court is yet to hear the matter.