Tuesday, May 4, 2010

It is sad Andrew Kasaga (Zzimwe) is dead

Andrew Kasaga, popularly known as Zzimwe has died at a time when his company was awarded a tender to repair the dilapidated Old taxi park at Kampala city. The unfortunate bit is that shortly after the works were started on, Zzimwe's company claimed that the works to be done needed more money; in billions! It is not clear whether the company had been given any down payment of the shs 500m as offered by KCC for the works.
Contracts of this nature are becoming very controversial in Uganda,it is like they are a way to siphon off taxpayer hard earned money. many times the contracts are awarded and thereafter we are told that the contract amount is far less than what is required to see the works complete. This makes us have a number of questions. In the case of Kampala city council, I thought the consultants of council should have 1st done the soil tests given what was to be done. Is council saying that they left this to the contractor to determine more over the amount to be paid had already been agreed to? So many questions remain unanswered.

William Kituuka
Is it Zzimwe or KCC fooling us?
Monday, 3rd May, 2010
EDITOR —I don’t know who is fooling Ugandans. Is it Kampala City Council (KCC) or Zzimwe Construction? According to KCC, pothole fixing in the city was awarded to Zzimwe and the dates for completion of the work published. But we do not know who is supervising Zzimwe.
Is it Kakooza Mutale or the resident district commissioner of Kampala? Zzimwe digs up roads, making the holes deeper and worse than they were before. Zzimwe does not care about the dangers this causes to cars. The most annoying thing is that they take forever to fill the holes. Take the case of Bombo Road from Watoto Church Central to Wandegeya and Mukwano Road, among others.
These roads were dug about a month ago and Zzimwe has never cared to fill them up! Then there are those roads that were dug up last year on Kyaggwe Road at Misseka market and at the Kayunga Road — Tufnell Drive junction. The most puzzling was the Old Taxi Park deal where kcc and Zzimwe agreed on a sh500m contract.
But as construction was going on, Zzimwe asked for more money. What happened to the road equipment China gave KCC?
Jeff Kibirige Kampala

KCC to repair old taxi park
Monday, 28th September, 2009
By Jude Kafuuma
KAMPALA City Council (KCC) has contracted Zzimwe Construction Company to repair the old taxi park. The total cost for the pothole repairs in the taxi park is estimated at sh1.8b but only sh500m is available for the entire project.
The city town clerk, Ruth Kijjambu, said repairs for the old park were supposed to start after signing the contract but the Uganda Taxi Operators and Drivers Association (UTODA) has to first sensitise the business community using the park.
According to the KCC publist, Simon Muhumuza, the sh500m will be in the first phase to be undertaken by Zzimwe. “The first phase will be completed this financial year and more repairs will be carried out in the next financial year when more funding if provided.”
The repairs were expected to start early this year but were delayed when bids took long to open. UTODA manages the park on behalf of KCC.
UTODA which manages about 7,000 commuter taxis in the city has accused KCC of failing to maintain the taxi park. UTODA, who are the main stakeholders in the park, have requested KCC for two weeks to sensitise users and also work out ways of relocating the various activities as repairs go on.
UTODA chairperson and national treasurer, Hajji Musa Katongole, said the association would sit with KCC and the contractors to answer queries about the project.
Katongole said KCC over looked the sewage system leading to floods during rainy seasons. “When the contractors came to us after signing the contract with KCC, we agreed that they would work on the sewage system that passes through the old taxi park.
This means revising the costs to include the sewerage repairs,” Katongole added. At the beginning of the year, relocation of taxis from the taxi park became contentious when UTODA demanded space at Nakivubo Blue and Nakivubo Settlement primary schools.
Kampala mayor Hajji Nasser Sebaggala had agreed to relocate the park to Nakivubo Blue Primary, saying it was impractical to carry out repairs while taxis still used the park.
The Kampala Resident District Commissioner, Alice Muwanguzi, protested Sebaggala’s move. Recently, Kampala Central MP Erias Lukwago and the spokesperson of the Democratic Party, Betty Nambooze, vowed to seek legal redress to halt the plans of shifting the park to a school to pave way for developments.
“Under the new contract with Zzimwe, taxis will not be relocated. Repairs will be done while taxis occupy parts that are not being worked on,” Kijjambu said.

Zzimwe Not Solely to Blame
4 November 2009 (The New vision Editorial)
Kampala — THE Uganda National Roads Authority has threatened to cancel Zzimwe Construction Company's sh1.9b contract for the rehabilitation of the Arua-Koboko-Oraba road over poor performance.
One month before completion date, the company has only executed 10% of the works on the 70-kilometre stretch. The consultants have attributed the delay to the absence of key personnel and equipment. They have also blamed poor cash flow on the side of the contractor.
While it is the authority's right to complain, it bears part of the responsibility. Zzimwe is not a new company in Uganda. There are standard criteria, such as the financial and human resource capacity of a company and its track record.
How could the authority have failed to detect that Zzimwe did not have the right equipment and personnel during the bid evaluation stage?
If Zzimwe had indicated that it would hire appropriate equipment and personnel on a contract basis, why did it take the road agency so long to realise the problem?
The road in question is a key link to Southern Sudan. The roads authority should have had a keen interest in its timely completion, not only for trade but also for strategic reasons.
Ugandan tax payers have lost colossal sums of money to construction companies as a result of questionable procurement processes or poorly negotiated contracts.
The rot unearthed by the Auditor General as to the CHOGM road works is a case in point. The Attorney General, the Inspectorate of Government and the Criminal Investigations Department of the Police should take a keen interest in the award of public contracts.
The officers responsible for flouting procurement rules should be brought to book. Poorly performing construction companies should be exposed and blacklisted on the Internet.
But that might not be enough. The whole bidding process might need to be reviewed, and additional safeguards might need to be introduced to make the process foolproof.

Zzimwe Faces New Sh3b Scam
From New Vision (Uganda) - AAGM)
Byline: Felix Osike
THE Inspector General of Government (IGG) has queried payment of sh3b to Zzimwe Construction Company for repairing potholes in the city, saying the work was shoddy.
The IGG said some of the roads had developed new potholes shortly after the repair.
The contract, investigators said, was irregularly awarded by the District Executive Committee without the Tender Board input.
Zzimwe is already under investigation after his Barclays Bank account in Kampala was recently credited with over US$1m fraudulently transferred from the Chartered Bank headquarters in Nairobi.

Kampala’s exclusive billionaires club
By Arthur Baguma
and Moses Mugalu
IN 2006, Kikuubo Kwagalana Group met President Yoweri Museveni to negotiate for better investing conditions. According to records, the President assured them of the Government’s commitment to “giving them fair taxation because they qualify for incentives given to investors whose projects are worth $500,000 (about sh1b) and above”.
Over a decade later, what started as a lobby group is now an exclusive club of Kampala’s richest tycoons. The average net worth of each member is about $15m (sh30b). Now called Kwagalana Members Club, they own businesses and real estate. They own prime buildings and land in downtown Kampala and the central business district. A source conversant with land matters in the city said that a plot of land in the city centre goes for between $2m and $2.5m. And a building goes for about $4m-$4.5m (between sh8b and sh9b). They live like one family. They gather in both good and bad times.
When Sudhir Ruparelia, a member of the group, lost his mother, they boarded the next plane to go and mourn with him in London. They also ran a full-page condolence message in the newspapers. The advert included a list of all their names.
If a member of the club has a social function like a wedding of a son or daughter, the club will take charge of the budget and organisation.
A few of the members went through the formal education system or are employed by the State. Their 40-member club is exclusive and no one can become a member regardless of their status.
Out of Kwagalana emerged another club, Twagalane, which comprises young ‘tycoons’, mainly sons and daughters of the Kwagalana members. The young professionals sought the blessing of their seniors and started their own club last year.
At a highly billed launch of the club, a group of 50 young professionals, launched Twagalane Club to break away from their mentors’ wings.
The launch started off on a high notch with sh55m on the club’s account within hours of its inception in July last year.
Impressed by the young professionals’ vision, Kwagalana members forked out sh2m as a token to the young professionals.
Top on the young club’s agenda is charity work and investing in real estate. All the 50 members who are mainly into business are worth $3m (about sh6b).
Who are the members of Kwagalana Club and what do they own?
Godfrey Kirumira
(club chairman)
Total worth: About $60m (sh120b).
He is an importer, dealer in general merchandise and owns several buildings in the city centre. He is the proprietor of Kirumira Towers on William Street, Royale Complex on Market Street, BTC Building in Ndeeba, Hotel Havana and Muyenga Hotel (former International Hotel). He is a former chairman of Express Football Club, where he was dubbed ‘Perez’ after the former Real Madrid president. He is also the proprietor of a chain of fuel stations and private schools — Bright Future in Bwebajja and St. Mary’s Junior Nabbingo.
Kirumira is also proprietor of Royal Cash Forex, Money Point Forex, a bus company, BTC Transporters; KPI Security Company, KPI Petroleum Ltd, Premium Commodities, which deals in produce — maize and beans; and Baggery Trading Company. He’s the leading importer of bales of second-hand clothes and shoes.
Eriya Sebunya Bugembe (treasurer)
Total worth: About $25m (sh50b).
He is popularly known as ‘Kasiwukira’ after his famed Kasiwukira Studios, one of Uganda’s pioneer music production studios. Bugembe’s fortune includes Najjanankumbi-based SEB Industries, which produces tiles and pavers. He owns buildings like Nalubwama Arcade on Ben Kiwanuka Street and Temuseo Mpoza on Luwum Street. He also owns several other properties in the city suburbs.
Sudhir Ruparelia
Total worth: About $100m (sh200b).
He owns a quarter of the buildings strategically located in Kampala’s central business district. Sudhir is the founder and chairman of the Ruparelia Group of Companies, which include banks, hotels, insurance, forex bureaus, schools and other investments. He owns Crane Chambers on Kampala Road, City House on Luwum/William streets; Raja Chambers, Baumann House, the building housing the Police headquarters and Development House — all located on Parliamentary Avenue.
He also owns Platinum House on Market Street and Club Sway on Kampala Road. He has built a few, but most of his buildings have been acquired from people who default on loans from his moneylending services.
Sudhir’s business empire includes hotels: Speke Resort Munyonyo, Kabira Country Club, Speke Hotel on Nile Avenue and Tourist Hotel on Dastur Street. He owns Crane Bank, Crane Forex Bureau, Meera Investments and Gold Trust Insurance Company. He is also into agri-businesses like flower growing (Rosebud) and the education sector, running schools like Kabira International School and Kampala Parents School.
Joseph Bbosa
Total worth: About $15m (sh30b).
Based in Kikuubo, Bbosa is the main agent for Orbit, a chewing gum brand. He owns three commercial buildings in Kikuubo and owns the biggest private hostel at Nkozi University.
Joseph Yiga
(assistant treasurer)
Total worth: About $9m (sh18b).
He is a property dealer. He owns Hardware Deals House in Nakawa Industrial area. He owns several other business premises, land and real estate in the city.
Andrew Kasagga
Total worth: About $20m (sh40b).
He is a construction magnate who has bagged some of the country’s major road building and housing contracts through his Zzimwe Construction Company.
His works include the much criticised reconstruction of several Kampala roads and the refurbishment of State House, Entebbe.Kasagga owns residential houses in affluent city suburbs, but his country home in Seeta, valued at over $1m, is said to be the most expensive in the country. The sprawling home on a 68-acre hill has a 4km tarmac road and driveways where two trailers can park.
Epimac Kagoro
Total worth: About $15m (sh30b).
He is believed to be the leading private transporter of goods in the country. He has about 50 trailers. He also owns buildings in downtown Kampala.
Haj Yusuf Matovu
Total worth: About $15m (sh30b).
He is an importer and trader in tiles and sanitary hardware. He owns Youma Building on Kampala Road and about six mansions in the affluent Muyenga suburb.
Gaster Lule ‘Ntake’
Total worth: About $10m (sh20b).
He is the proprietor of Ntake Bakery and wheat suppliers in Nalukolongo, Masaka Road. Lule owns Gadith Building on William Street and recently bought another prime plot in Nakasero near Centenary Bank. He has a lot of land in and outside Kampala.
Godfrey Kyeswa
Total worth: About $10m (sh20b).
He imports general merchandise and owns a number of commercial buildings in downtown Kampala. He owns Gazaland Shopping Arcade on Luwum/William streets.
Other members of Kwagalana
James Bwogi
Total worth: About $10m (sh20b).
Kikuubo-based general merchandise trader/importer and fuel dealer. He owns residential houses in Kololo.
Dick Kizito
Total worth: About $8m (sh16b).
Owns Kizito Towers on Luwum Street, several business premises and residential houses in affluent Ntinda, Naguru and Kansanga suburbs
Francis Kakumba
Total worth: About $7m (sh14b).
Proprietor of HAKS car bond, which he purchased from Hassan Basajjabalaba. He also owns Embassy Hotel in Kabalagala.
Viva Bukenya
Total worth: About $7m (sh14b).
Agent for Hima and Bamburi cement, owns a number of hardware shops in Kampala and has a building in Ndeeba.
Medi Sebaggala
Total worth: About $6m (sh12b).
He’s the proprietor of Kiyembe Lane-based Sebaggala and Sons Electronics and World of Lights on Kayunga Road in Kamwokya. He also owns a luxurious residential house in Kololo rented by the US embassy.
Mutaasa Kafeero
Total worth: About $15m (sh30b).
Owns hotels Triangle on Buganda Road and another in Jinja, Mutaasa Kafeero Mall on Luwum Street and Zainabu Aziza Emporium on Wilson Road.
Robert Mulinde
Total worth: About $5m (sh10b).
Imports motorcycles in Ndeeba, owns Kings View Hotel, has a building on Luwum Street and a farm in Mpigi.
Charles Kakumba
Total worth: About $4.5m (sh9b).
Imports used Japanese car spare parts. He owns a commercial building in Katwe.
Tom Mugenga
Total worth: About $4m (sh8b).
Proprietor of Speedy Flight.
James Bakaluba
Total worth: About $4m (sh8b).
Has huge chunks of land in Kisozi and buildings in Old Kampala and Nabugabo.
Jolly Lutaaya
One of the Kabaka’s strongmen, he owns Marvel Road Contractors, has several plots of prime land in Kampala and huge chunks in Butambala.
Tom Kitandwe
Total worth: About $10m (sh20b).
He started as a wheat agent in Kikuubo. His buildings include Giant Shopping Arcade in Kikuubo, Nakasero Complex on Nakivubo Road, Mid City Arcade on Nakivubo Road and Mackay Building on Old Rashid Khamis Road near New Taxi Park.
Mansur Matovu
Total worth: About $15m (sh30b).
Imports motorcycles (bodabodas) and owns several buildings: Zayi Plaza on Kiyembe Lane, Ivory Plaza and Sunset Arcade on Wilson Street.
Babirye Mugerwa
Total worth: About $10m (sh20b).
Cosmetics importer from Dubai and owns buildings in city centre: Park View, Yamaha Centre, H & B Plaza.
Muwanga Kibirige (BMK)
Total worth: About $20m (sh40b).
Imports automobiles and spare parts. Also a hotelier, industrialist and construction tycoon. He set out as a small- scale trader in used Japanese car spare parts and has made it to the big scale to expand his wings into other businesses. He owns Hotel Africana on Wampewo Avenue and has several buildings in city suburbs like Katwe and Ndeeba. He produces polythene bags and runs a forex bureau.
Kizito Kabonge
He is into plumbing and hardware and owns a hardware shop in Nakasero.
Deo Kiweewa ‘Kirowoza’
He is a trader in ladies’ clothes (busuuti), based on Luwum Street, from which he has amassed wealth over the last two decades.
He’s constructing a seven-storey building below Capital Shoppers in Nakasero near the Indian temple in Kampala.
George Batte
He is a car spare parts and tyres dealer based on Ben Kiwanuka Street. He also owns a commercial building in Ndeeba, a city suburb.
The other club members are: Christopher Ssaazi, Haj Swaibu Kiyemba, Haj Badru Muwanga, Frank Ssonko, John Bagambe, Jimmy Kiwanuka, Nasur Musosi and Fenekansi Mwesigwa. They are mainly traders dealing in hardware, electronics, spare parts, real estate and general merchandise based in Kikuubo, Nakasero, Katwe and Ndeeba.
Published on: Saturday, 7th March, 2009

Kenya has germinated on this Zimwe thing.
Zzimwe has case to answer'
By Simon Kasyate
Jan 30, 2005
KAMPALA — Embattled businessman Andrew Kasagga Zzimwe cannot yet
afford to sit pretty.
Kenyan authorities insist there is overwhelming evidence linking
Zzimwe to alleged theft and attempted theft of money from a Kenyan
commercial bank.
Zzimwe is accused of stealing $1 million (Shs1.8 billion) from the
Standard Chartered Bank of Kenya in September 2003.
"The Attorney General [of Kenya] clearly stated in his letter that
there is sufficient evidence for the culprits to be extradited here
for trial," said an officer with the Banking Fraud Investigations
Office of the Central Bank of Kenya in reference to a letter from
Kenya to Uganda over the Zzimwe affair.
The officer, who has been involved in investigating this case for
the last one year and spoke on condition of anonymity, said Kenya is
still waiting for a positive reply from the Ugandan attorney
"We are still in anticipation of the extradition of that man here to
face trial," he said of Zzimwe.
The Monitor reported on Friday that Director of Public Prosecutions
Richard Buteera had said there was no evidence at the moment to
support criminal charges against Zzimwe.
"Your DPP's argument is misplaced," the Kenyan officer said. "There
is overwhelming evidence that the transaction was a direct theft.
You cannot withdraw all that amount of money in one day or take it
from someone without proper agreement.
"If it were a genuine transaction, how come the witnesses to the
agreement have denied knowledge of the agreement?" the officer said
referring to Congolese businessman Roger Gwe, who is said to have
deposited the money on Zzimwe's Barclays Bank account in Kampala for
purchase of road construction equipment. "It is our belief that your
DPP is shielding this man."
Zzimwe operates a civil engineering business under his company,
Zzimwe Enterprises, Hardwares and Construction Limited.
Kenyan Attorney General Amos Wako requested Uganda to extradite
Zzimwe, lawyer Paul Kalemera, and Mr Fredrick Nzamba, an employee of
Stanhope Company, to Kenya for trial for allegedly stealing
$1,0500,000 in 2003.
Kenyan police say that Zzimwe and company connived with some bankers
to swindle another two batches of $2 million through Crane Bank and
Stanhope Forex Bureau in Kampala but failed.
"We already have three of their Kenyan accomplices in our custody
awaiting trial," the banking fraud officer said.
He declined to mention their names saying it would be prejudicial.
The Kenyan courts insist that the Ugandan suspects - Zzimwe,
Kalemera and Nzamba - must appear before a magistrate's court in
Nairobi on February 12.
If convicted, Zzimwe could serve up to three years in a Kenyan jail.
© 2005 The Monitor Publications

No evidence against Kassaga Zzimwe, says DPP
By Grace Matsiko
Jan 28, 2005
KAMPALA — The Director of Public Prosecutions (DPP), Mr Richard
Butera, has said there is no evidence at the moment to support
criminal charges against city tycoon, Mr Andrew Kasagga (Zzimwe).

Butera's legal opinion is contained in a letter to the Criminal
Investigations Directorate (CID) of the police in June 2004.
Zzimwe is accused of stealing $1m (about shs1.8bn) from the
Chartered Bank of Kenya.

SURVIVED: Kassaga Zzimwe

DPP: Butera
ISO: Cheeye
AG: Makubuya
This was allegedly part of the $5 million (about Shs9 billion)
the bank says Zzimwe and two others tried to obtain by fraud in
September 2003, but was detected and blocked before the money
was wired to the accused's accounts in Kampala in September 2003.
Zzimwe is jointly accused with Mr Paul Kalemera, a city lawyer
and Mr Cedrick Nzamba, a Congolese national.
Butera's statement means that Zzimwe is safe from the charges
over which the Kenyan government wanted the tycoon extradited to face
trial in Nairobi.
The Monitor on Wednesday ran a story quoting the Kenyan Attorney
General, Mr Amos Wako, writing to his Ugandan counterpart, Mr
Kiddu Makubuya, seeking the arrest and extradition of Zzimwe, Kalemera
and Nzamba for prosecution on fraud charges.
"This is to inform you that your client Andrew Kasagga and
Zimmwe Enterprises Hardwares and Construction Limited were a subject of
our investigation in connection to a fraudulent transfer of
US$1,050,000 from Standard Chartered Bank Kenya to Barclays Bank Uganda," CID Officer Mr Edison Mbiringi, wrote to Zzimwe's lawyers.
Mbiringi is the CID Officer in Charge of Serious Crime in the
Uganda Police Force.
Kalenge, Bwanika, Kimuli & Co. Advocates are Zzimwe's lawyers.
Mbiringi said in the letter dated July 14, 2004, "The
investigations were jointly carried out by both the Uganda Police (CID) and Kenya Police (CID) and our case papers were submitted to the Director of Public Prosecutions (DPP) for perusal and legal advice."
"In June, 2004 our case papers were received from the DPP in
which he stated, "the investigations have so far not established that
the suspect (Zzimwe) received the funds in question with a criminal
intent. In effect there is no basis for preferring of criminal
charges at this juncture," Mbiringi wrote to Zzimwe's lawyers.
Zzimwe's lawyer, Moses Kimuli had previously written to CID
asking the fate of his client.
"In the meantime, therefore, there are no criminal charges being
contemplated on your client. I believe this adequately addresses
your concern over the matter," Mbiringi's letter reads.
Mbiringi yesterday declined to comment on the case.
Butera yesterday put off the interview he had made with The
Monitor about the case. Through his secretary, he promised to talk to
the reporter next week.
But a CID source said Butera's opinion on the case may not have
been communicated to his Kenyan counterpart, which resulted in Wako's
extradition request in November last year.
Zzimwe yesterday declined to make any direct reference to
Butera's letter, but said the fraud story was being invented by his
enemies."Nze banna bange nfudde," Zzimwe screamed in Luganda meaning, "I
am doomed".
"Leave me alone, I have suffered enough. I can't use the media
to fight my enemies or to cleanse my image because the damage has
been done to me, my family and business. I know it is God who will
calm down these people that are witch-hunting me," he added.
He claimed two officers from the Internal Security Organisation
ISO) demanded a bribe of $200,000 (about Shs170 million) from
him reportedly to kill the alleged fraud case.
He declined to name them but said he would do it later.
"How can I give a bribe of $200,000 to someone to water down a
non-existing case. Since then these people have waged a campaign
against me. Let the law take its course but I will not bow to
blackmail," Zzimwe said.
Zzimwe and his son, Paul Kasagga described Roger Gwe, the
Congolese businessman whom the ISO's Director for Economic Monitoring, Mr Teddy Sseezi Cheeye, said was a witness to the alleged fraud, as
an impostor created by his enemies.
Lawyer Kimuli said since the investigations had failed to
implicate Zzimwe, his client was free from extradition to Kenya for trial.
"Now the concern of my client is his image and business. He
can't get jobs and working capital as potential clients and financiers
continue reading negative reports about him in the media,"
Kimuli said.
A Magistrate's Court in Nairobi had issued a warrant of arrest
against Zzimwe, Karemera and Nzamba for trial on the fraud

By Reuben Olita
in Nairobi
THE arrest warrant issued for Kampala businessman Andrew Kassaga
Zzimwe still stands, Kenya's director of public prosecutions,
Philip Murgor, has said.
Murgor said Uganda Police was not expected to investigate whether
Kassaga committed the offences, but to arrest him as directed by
the Uganda Attorney General and process his extradition to Kenya for
Murgor was responding to remarks by Kassaga's lawyer, Moses
Kimuli, that the Uganda Criminal Investigations Department had found no
evidence to warrant prosecution.
Murgor was speaking at his office at Sheria House on Harambee
Avenue in Nairobi, Kenya on Wednesday.
Zzimwe, Paul Karemera and Cedric Nzamba are wanted in Kenya over a
US$3m bank fraud. Murgor said Kenya was still waiting for Zzimwe's
"It will be the duty of the court to order their extradition,
depending on whether the subjects are identified as people
required in Kenya and whether there was a connecting factor between the
subjects and the offences alleged to have been committed," Murgor
Murgor said Moses Kimuli was "misinformed" about the extradition
treaties. "It's up to Uganda to act on our request in accordance
with the extradition treaty between Kenya and Uganda as contained
in chapter 76 of the laws of Kenya. We shall wait as long as Zzimwe
is still at large," he said.
Published on: Friday, 28th January, 2005

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