SHS 35 BILLION CHOGM HOTEL SCANDAL….SUDHIR REFUSES TO GIVE GOVT. SHARE CERTIFICATE

Sudhir Ruparelia’s habits of stealing from poor Ugandans started with Premier Lottery (takula ofune) and escalated with Crane Bank.

He hoodwinked government officials;  read how he has never paid Ugandan government a cent despite taxpayers’ money worth sh35bn being invested in Munyonyo Commonwealth Resort.

The Government spent a total of sh29b on construction works for the Munyonyo Commonwealth Resort, which accommodated the Queen of England and the heads of state in 2007. An additional sh9.5b was paid for hire of conference facilities and advance bookings of accommodation for delegates in both Commonwealth and Speke Resort.

The Government also supplied furniture to Commonwealth Resort worth sh600m, some of which was taken to State House. Of the sh29b, sh15b was spent on the construction of the resort itself. This was done through a joint venture between the Government and Meera Investments, owned principally by city tycoon Sudhir Ruparelia.
Another sh14b was spent on the parking, driveways and entrance gatehouse, as well as a marina at Lake Victoria meant to provide security for the delegates.

Commonwealth Resort

Under the joint venture with Meera Investments, the Government agreed to contribute 25% of the share capital, estimated at sh75b. However, the Government instead contributed to the cost of construction, according to reports of the Auditor General. The Government was made to pay 25% of the materials and works, or sh15b of the total amount of sh60b. According to the agreement, Meera was supposed to provide the land as its contribution to the venture. Having contributed 25% to the Commonwealth Resort, the Government was at the end of every financial year receive a quarter of the profits.
However, despite CHOGM and numerous other conferences which have taken place since, no dividends have been paid out to the Government as of now. The auditors for the resort, Deloitte and Touch, in 2009 gave their first report. The Munyonyo Commonwealth Resort had broken even. The then PS Foreign Affairs James Mugume said then the Share of dividends was expected in 2010. According to the Deloitte and Touch report, the resort made a net profit of sh260m in its first year of operations, ending December 2008. Since then, Sudhir has never paid a single cent to government and even says there is no document to show Shs 35bn was invested in the hotel. All well-intentioned Ugandans and MPS should take up this matter.
Every year, this resort makes more than 5bn in profits some of which should return to public coffers. Sudhir bribed taxmen to under declare his profits. Since 2009, it has made more than Shs 50bn which would construct hospitals, repair dilapidated roads and provide medicine for the poor. But Sudhir, who bribed his way to silence this story, has refused to pay back to the common man and continues to live in comfort at his plush home along Kololo Hill. Enough is enough. He should be held to account.
Lastly, why isn’t the Auditor General auditing Commonwealth Resort Munyonyo every year as required since public funds were invested in the hotel?