Security investigations into a disputed Shs1.92 billion payment to a contractor involved in the upgrading of roads in Kabale Municipality have been completed, with the case file forwarded to the Office of the Director of Public Prosecutions (DPP) for further action.
The investigation centres on Hajji Jamiilu Kassajja Kaiiru, the former Kabale Municipality Town Clerk, who is expected to appear before police to record a statement concerning the payment.
Kabale Deputy Resident District Commissioner Michael Muramira Kyakashari confirmed that the investigation had been concluded and the file submitted to the DPP for review and sanctioning.
Kyakashari said security agencies took interest in the matter after the contractor continued demanding payment while municipal political leaders opposed releasing the money.
He said authorities also sought to establish the whereabouts and status of the disputed funds.
The Deputy RDC added that the Kabale Resident District Commissioner’s office had separately compiled a report on the matter and submitted it to the Office of the President.
Kassajja, who was transferred from Kabale Municipality to Kasese Municipality about three months ago, is expected to be summoned by police as the matter proceeds.
When contacted, Kassajja declined to discuss the case through the media but maintained that the disputed amount had legitimately been paid to the contractor.
The dispute stems from a road improvement project awarded in May 2021 to M/S Multiplex Limited-Detaco International Trade and Contracting Joint Venture at a contract value of Shs21.72 billion under the Uganda Support to Municipal Infrastructure Development (USMID) Additional Financing Programme.
The project covered the upgrading of Bwankosya, Bushekwiire and Rushooroza roads.
Bwankosya Road, measuring 0.76 kilometres, connects Nyerere Avenue to Kabale Central Market, commonly known as Ki-College. Bushekwiire Road covers 0.32 kilometres and links the town centre to Kabale Main Road in Central Division.
Rushooroza Road, the longest of the three, stretches 2.49 kilometres from Kabale Diocesan Headquarters to the Kabale-Katuna-Mbarara Highway in Southern Division.
The project was dogged by disagreements between the contractor and municipal political leaders, led by Mayor Emmanuel Sentaro Byamugisha, who raised concerns about delays and the quality of some of the works.
The disagreements persisted even when President Yoweri Museveni commissioned the upgraded roads in February 2025. Municipal leaders protested that sections of the project were still incomplete at the time of commissioning.
Following the commissioning, Moses Ndege Bbosa, a director of the contracting company, demanded Shs1.92 billion, which he said remained outstanding.
Municipal council leaders, however, declined to authorise the payment, arguing that the contractor had already received retention funds.
On December 10, 2025, Bbosa petitioned the Inspectorate of Government (IGG), accusing Kabale Municipality of withholding the outstanding payment. He also lodged a complaint with the Equal Opportunities Commission.
In a letter dated March 30, 2026, Deputy Inspector General of Government Dr Patricia Achan Okiria directed the Town Clerk to pay the Shs1.92 billion, citing findings and guidance from the Equal Opportunities Commission that the contractor was entitled to the money.
Mayor Byamugisha rejected the directive, maintaining that the contractor had already been paid retention funds and questioning the basis for the IGG’s position.
The completion of the security investigation now places the matter before the DPP, which is expected to examine the evidence and determine whether any criminal charges should follow.
Until the prosecution authorities make a determination, no individual has been convicted in relation to the disputed payment.
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