Museveni pardons former PS involved in Shs4.2b bicycle scam

President Yoweri Museveni has pardoned the former Permanent Secretary at the Ministry of Local Government, Mr John Muhanguzi Kashaka and the late Henry Bamutura who were sentenced to 10 years in jail for causing government a financial loss of Shs4.2 billion meant to purchase bicycles for local council leaders.
In a statement issued by the Uganda Prisons Services’ Assistant Commissioner of Prisons Moses Ssentalo, Museveni's pardon, granted under Article 121(1) (a) of the Constitution, brought an end to Kashaka's imprisonment and Bamutura (posthumous) on Thursday.
In October 2023, the Supreme Court upheld the 10-year jail term handed over to Kashaka and Bamutura by the Anti-Corruption Court in 2014. Their conviction was also first upheld by the Court of Appeal in 2019. 
The Supreme Court panel of five Justices led by Chief Justice Alfonse Owiny-Dollo in October 2023 upheld Kashaka’s conviction with that of Bamutura, while Sam Emorut Erongot who had been handed the highest sentence for 13 years was set free.
The Supreme Court's decision to uphold Kashaka's conviction was based on evidence presented during the trial. The court ruled that the Court of Appeal correctly evaluated the evidence against Kashaka and Bamutura.
Kashaka and Bamutura were in 2014, convicted by the then Anti-corruption court judge Catherine Bamugemereire for various roles they played in contracting a sham company, Ammam Industrial Tools and Equipment Limited to purchase 70, 000 bicycles from India. The bicycles were to be used by Local Council chairpersons in the 2011 general elections. To date, the bicycles have never been delivered.  
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Bamugemereire sent them to jail, barred them from holding any government office for 10 years and ordered them to compensate the government for the loss.  
However, Bamutura and Kashaka challenged their respective sentences and conviction, arguing that it was harsh and not valid in law.
They also argued that the lower court judge erred in law and fact, when, she failed to apply provisions of the PPDA Act in determining the ingredients of the offence of financial loss committed by the appellants, as a result of the procurement transaction.  
The Court of Appeal upheld Bamugemerire's decision. Dissatisfied with it, they challenged it in the Supreme Court on grounds that the learned Justices of the Court of Appeal erred in law when they upheld a conviction of the offence of causing financial loss in the absence of the requisite ingredients.
They also accused the Justices of erring when they failed to examine the facts visa vis the law regarding causing financial loss and also failed to interpret the laws regarding the PPDA Act.
According to the convicts, Justice Madrama presided over the criminal matter in the Court of Appeal as well as a matter at the Commercial Court where 90 per cent of the evidence that was used to pin Kashaka and the group in the criminal case was adduced.
Court heard that before Kashaka was convicted, the Attorney General filed a case against Niko Insurance Uganda Limited that offered the performance guarantee of 470,000 dollars that the suppliers of the bicycles were required to come up with.
And when AITEL failed to supply, the Attorney General had to sue the Insurance Company that had offered the guarantee and documents like the charge sheet with the names of the convicts, procurement and contracts were brought in that case as exhibits.
Court further heard that Niko Insurance Company said in its defense that it was not liable to pay because the local government employees were involved in the fraud.
However, after looking at the evidence in the case, Justice Madrama held that the government employees were not criminally liable and therefore it was the Insurance Company to pay.
The convicts argued through their respective lawyers Macdusman Kabega and Evans Ochieng that during the case at the Anti-Corruption Court, Kashaka and others were found guilty and that 90 per cent of the evidence used was similar to that of the commercial court where Madrama said they were not liable before upholding their conviction when he again sat in the appeal at the Court of Appeal.
In their Judgment, the Supreme Court dismissed Bamutura and Kashaka 's appeals saying that the Court of Appeal correctly evaluated the evidence brought against them.
Bamutura died eight months ago outside prison.