REVEALED! How UPPC blew shs7bn on URA, fired board & printing machine
The exit of former Uganda Printing and Publishing Corporation (UPPC) staff including board members, who some appeared at Anti-Corruption Court a week ago over fraud, left a gaping financial hole at Entebbe based Government of Uganda (GoU) printer, this publication has learnt.
These were fired by line minister (for Presidency) Milly Babirye Babalanda in August 2021 on accusations of embezzlement of the Corporation funds, abuse of office and causing financial loss to the government.
According to a source, their firing breathed new life at UPPC.
Information obtained indicates that before the sack, morale was at its lowest point at the Corporation and the atmosphere was toxic.
Some staffers and as well board members were no longer seeing eye to eye.
“Everything had stalled. Decision making had become a lengthy process. Many mistakes had already been made,” reveals a source.
We have learnt that at the time of their firing, UPPC had shs7bn on a fixed account at Kenya Commercial Bank, Uganda.
The shs7bn was part of the shs10bn deal UPPC had secured from the Electoral Commission to print a gazette for all polling stations ahead of 2021 general elections.
Shs3bn had already been shared amongst some former staff illegally and this is something the line Minister could not torelate.
They were immediately fired and now battling fraud charges.
It later emerged that shs7bn was lying idle at KCB because the fired staff and board members had shown little appetite to clear pending tax bills owed to Uganda Revenue Authority and suppliers like Elite Computer Services who had supplied a state-of-art printing machine among others.
To clear this ‘mess and mistakes’ by the fired board members and staff, a decision was taken on how these monies would be spent, sources reveal.
URA
URA was menacingly demanding Shs4.551, 341,102 billion.
As a result, using the Shs7bn on KCB fixed account this URA arrear was cleared.
UPPC paid to URA sh3,051,341,102bn in taxes on 5th November, 2021; Shs1bn on 7th March, 2022 in income tax and Shs500m on 27th April,2022 still in taxes.
UPPC provides printing and publishing services to government and private sectors.
And this implies that part of the income it generates goes to the tax collector.
PRINTING MACHINE
We have also established that the fired board had already started on the process of procuring a state-of-art digital colour press which meets printing demands of the 21st century.
This had been supplied by Elite Computer Services on credit.
As a result, shs 1,481,415,070bn (off the shs7bn at KCB fixed account) was used to clear this arrear in two instalments: Shs300m was paid on 16th March, 2022 and Shs1,181,415,070bn on 21st April, 2022.
FIRED BOARD
We have also learnt that to avoid legal battles with the fired board and staff in form of salary arrears’ demands, compensation and other attendant costs, shs1bn was used to sort that matter.
Minister Babalanda has been summoned by the Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) to clarify on this.
All this comes at a time when the minister is accused of having a hand in the shs7bn held at KCB.
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