Ponziano Nyeko, the former Assistant Commissioner and head of the accounts section at Mulago National Referral Hospital, has been remanded to Luzira Prison on charges related to corruption.

Nyeko, who had been evading arrest, is accused of facilitating irregular payments amounting to billions of shillings to private companies Setramaco International Limited and Convention World Limited.

According to prosecution, Nyeko, along with former hospital employees and directors of the implicated companies, participated in a scheme to defraud the hospital of substantial sums of taxpayer money. The Anti-Corruption Court in Nakasero, led by Magistrate Abert Asiimwe, remanded Nyeko until July 25, when his bail application will be considered. His co-accused have already been granted bail.

The accused include Dr. Byarugaba Baterana, the former executive director of the hospital; Eng. Edward Kataha, a former senior engineer; Kenneth Wafula, a former senior hospital administrator; Christopher Okware, the former head of the procurement and disposal unit; and Adah Kamucunguzi, a former procurement officer. Others involved are Perezi Batanda, an assistant engineer, and Robert Wasike and Catherine Winfred Nabwire, directors of Setramaco Limited and Convention World Limited.

The group faces charges of abuse of office and causing financial loss related to disputed payments amounting to billions of shillings. They have all denied the charges. The prosecution alleges that Kataha and Okware misused their positions by requisitioning Shs3 billion to be paid to Setramaco International Limited for the supposed supply of consumables without adhering to public procurement procedures.

During the 2015/2016 and 2016/2017 financial years, Wasike and Nabwire allegedly used their company, Setramaco International, to invoice Mulago National Referral Hospital for Shs3 billion for non-existent autoclaves with a 1500-liter capacity, knowing that such invoicing would cause financial loss to the hospital.

In the financial years 2019 and 2020, Dr. Baterana, Nyeko, and Mwasa allegedly processed a payment of Shs1.581 billion to Setramaco International Limited for routine servicing of autoclaves without following proper procedures. This money was reportedly received by Nabwire and Wasike based on fictitious invoices and non-executed works.

Further allegations state that in the 2016/2017 financial year, Kamucunguzi, as a procurement officer, abused her position by flouting procedures, leading to the irregular awarding of a Shs7.543 billion contract to Setramaco International Limited. Wafula and Okware are also accused of awarding a contract worth Shs196.5 million to the same company for relocating and reinstalling a multi-ironer without following due process.

From 2016/2017 to 2019/2020, Dr. Baterana, Eng. Kataha, Nyeko, Wafula, Okware, Kamucunguzi, and Batanda allegedly caused multiple payments totaling Shs774,277,860 to Setramaco International Limited and Convention World Limited for work that had already been paid for. This money was received by Wasike and Nabwire as directors and shareholders of the companies.

In 2017/2018, Okware and Kamucunguzi allegedly irregularly awarded a contract worth Shs179 million for procuring Molten Blankets, Guiding Tapes, and a Conveyor Belt for the laundry unit to Convention World Limited. The same contract was awarded again in 2019 to Setramaco International Limited for Shs186.9 million, which Wasike and Nabwire received.

Additionally, in 2016/2017, Dr. Baterana, Wafula, Okware, and Kamucunguzi allegedly awarded a Shs196.6 million contract to Setramaco International Limited for relocating steam cooking pans from lower to upper Mulago. In 2019, Dr. Baterana, Eng. Kataha, Nyeko, Wafula, and Kamucunguzi allegedly caused double payments of Shs198.8 million to Convention World Limited for the same relocation work, which had previously been awarded to Setramaco International Limited, resulting in payments for no work done.

The state’s allegations highlight extensive corruption and misuse of public funds within Mulago National Referral Hospital, with significant legal consequences pending for those involved.