BusinessCrime & Investigation

SCANDAL: Shell Inflated UNRA Fuel Bills by Shs 1.4bn

Court of Appeal in Kampala has set September 15th to hear an appeal in which convicted former local government permanent secretary John Muhanguzi Kashaka is seeking to overturn the ten year jail handed to him for his role in the bungled procurement of 70.000 bicycles meant for LC1 chairpersons ahead of 2011 general elections.

Deputy Chief Justice Steven Kavuma, prescription Justice Augustine Nshimye and Rubby Aweri are set to hear the appeal in a criminal session which has about 50 appeals and set to begins on 7th September to October 5th.

His woes date back to last year when the Anti -Corruption Court judge Catherine Bamugemereire on July 17 convicted him and sentenced him to ten years and ten days in prison after he was found guilty of causing government a financial loss of 4.2 billion in botched procurement of 70.000 bicycles.

Kashaka was also banned from working in public office for the next ten years plus being ordered to refund a-sixth of Shs4.2 billion lost in the bungled procurement.

Being dissatisfied with both the conviction and sentence he appealed against both conviction and sentence.
Kashaka was recently charged jointly with five other officials from ministry of local government.
Shell Uganda has been named in the illegal procurement of fuel by UNRA according to information provided to the commission of inquiry.

According to a UNRA internal audit, viagra Shell Uganda over-invoiced a sum of Shs 1.4 billion between July 2012 and February 2013 for fuel supplies to the road authority.

UNRA had made part of payment (Shs 1.1 billion) to Shell Uganda.

The audit report of 2013 raised red flags and a police investigation was initiated by Deputy Director CIID, salve Godfrey Musana.


UNRA stations across Uganda at the time used monthly cards to draw fuel from the various Shell stations in Uganda.

It’s suspected that officers in UNRA connived with some fuel stations to cause the inflated invoice payments.

In 2013, Musana commissioned Senior Superintendent of Police Charles Babwetera to lead a 5-man team to carry out investigations into the case.

UNRA recommended that investigations be backtracked to 2010.

However, the commission suspects that SSP Babwetera was influenced to drag the investigation which is evident from how the team conducted it since 2013.

He told the commission that no correspondence has been made between him and the DPP since 2013 and his last update from the investigating team was in April this year.

While appearing before the commission on Wednesday, SSP Babwetera claimed that the team lacked enough resources to facilitate their travel upcountry to investigate the theft of fuel.

He said that they visited UNRA stations and downloaded information on the fuel cards but the fuel stations where fuel was drawn were not visited.


The Shell fuel stations involved in illegal transactions include: Kyambogo, Naguru, Clock Tower, Lugogo and Malindi.

None of these stations was investigated by Babwetera’s team.

The commission was bothered by the fact that the detectives lacked facilitation to visit these stations despite being located in Kampala.

Asked why no action has been taken since 2013, the detective said: “We needed cards subjected to forensic audits. The scope was big and we didn’t have enough resources.”

The commission has also learnt that no police files have been opened for UNRA officers involved in the alleged crimes at the time.

UNRA Commission Chairperson, Justice Catherine Bamugemereire questioned the planning adopted by the police in doing investigations.

“We have evidence that UNRA facilitated you a lot and they never failed to give you facilitation and vehicles to do investigations. The commission also has information that you are protecting someone in Shell,” Bamugemereire blasted the detective.

“Give me a reason why you should stay on this case that you have showed no interest in for two years. I am surprised that an officer with such conduct is Acting Commissioner of Police.”

SSP Babwetera however submitted that his team did their best under the circumstances. He blamed commercial managers at Shell.

Babwetera is currently Commissioner of Police in charge of the Anti-Corruption desk.

Justice Bamugemereire however questioned his capacity to handle corruption cases yet the case in question has been handled with negligence.

The commission asked the detective to provide the police file, the final investigation report and the total loss from fuel stations since 2010.

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