Monday 9 July 2012

The ‘Impossibility’ of nailing Museveni’s corrupt Ministers: Ministers Mbabazi, Onek, Kutesa cleared of oil bribery claims


Ministers Mbabazi, Onek, Kutesa cleared of oil bribery claims


Publish Date: Jul 09, 2012

By Charles Etukuri
The parliamentary adhoc committee investigating oil bribery allegations has cleared three cabinet ministers named in the saga.


A draft report seen by Sunday Vision indicates that Prime Minister Amama Mbabazi, foreign affairs minister Sam Kutesa and internal affairs minister Hilary Onek were not found guilty. The report is due to be presented to parliamentary speaker Rebecca Kadaga before the end of this month.


A source in the committee who spoke to Sunday Vision confirmed that they had drafted a report following a four day retreat held at a hotel in Entebbe last week.


Two members of the committee, Joseph Matte Sibalingana and Freedom Kwiyuchiny, confirmed separately that they had held a retreat, but refused to discuss the contents of the draft report.


“We have a draft report for our consumption, but not for the public and the final report has not yet been made because we still have a few places to visit,” Sibalingana said.


Other members of the committee are Stephen Tashobya, Hussein Kyanjo, Cecilia Ogwal, and Julius Junjula. Kyanjo did not attend the meeting because he was sick.


In October last year, Mbabazi, Kutesa and Onek were accused of receiving bribes from oil companies. In defending his accusations, the western youth MP, Gerald Karuhanga, tabled before Parliament documents, which he said proved that the trio received bribes.


But the draft report indicates that the committee could not find evidence to back the accusations levelled against the three ministers.


Finance Minister involved in UBC land row


Publish Date: Jul 09, 2012

By Chris Kiwawulo

A company linked to finance minister Maria Kiwanuka and her husband Mohan Kiwanuka, is being accused of transferring Uganda Broadcasting Corporation (UBC) land in Naguru, a Kampala suburb.


According to documents seen by Saturday Vision, Unigroup applied to rent approximately 7.8 acres from Radio Uganda (now UBC radio), from January 1994, on a monthly rental fee of sh4.7m.



But UBC claims that Unigroup has not paid them any money and instead allegedly transferred part of the land (2.6 acres), into its name. 


“After lengthy negotiations, Unigroup was served with a bill of sh4,722,950 per month as ground rent starting January 1994. Unigroup has since not paid any rent. It installed a mast on the land and fraudulently obtained a leasehold title from Uganda Land Commission (ULC),” UBC managing director Paul Kihika said in a letter to the Directorate of Criminal Investigations (CID). Unigroup has a 49-year lease.


Consequently, UBC on June 30 this year sent a sh1.8b invoice to Unigroup covering a period of 222 months (between January 1994 and June 2012) plus annual increments at a rate of 6% per annum.


Sources said Unigroup, the parent company that runs Radio One and Radio Two (Akaboozi) owned by the Kiwanukas, had installed masts for the two stations in the middle of UBC land.  


“Unigroup acquired a lease of 2.6 acres in the middle of UBC land where they erected their towers. The company had earlier applied to the ministry of information for land but the matter was not concluded. That is why their lease is not on the UBC parent title as an encumbrance,” a source in the President’s office revealed. 


Saturday Vision has also established that Unigroup shares plot M218 Factory Close, Nakawa Industrial Area, with Oscar industries, also owned by the Kiwanukas. 

According to Kihika’s letter, Unigroup has refused to pay rent to UBC and continues to enjoy commercial benefits from the land. 


This is why Kihika requested CID to investigate the matter and recover the corporation’s land. CID director Grace Akullo confirmed receiving the complaint. “I received it (on July 4) but I have not yet studied it.”


However, Unigroup official Adnan Damula dismissed Kihika’s claims, arguing that they acquired a lease from ULC and that they pay ground rent of sh1m per year. 


Damula in a July 2, 2012 letter to Kihika said: “We write to advise that there are no outstanding property rates or ground rent on the property Unigroup Limited owns on plot 8 Water Lane Naguru Hill. 


The title we hold is leasehold from ULC and not UBC. 
The lease stipulates payment of sh1m as ground rent per year.” Finance Minister Maria Kiwanuka could not be reached for a comment as she was not picking her phone.


Kiwanuka was the general manager of Radio one/Radio two from 1997 until 2011, when President Yoweri Museveni appointed her the finance minister.


When contacted on Thursday, ULC chairman Mayanja Nkangi declined to comment on the matter and referred all inquiries to the commission’s principal lands officer, Paul Idude. 


But earlier, Idude had said he was not authorised to speak to the press. 
When Saturday Vision informed Nkangi that Idude had said he was not authorised to speak to the press, Nkangi insisted that, “he (Idude) is the right person to contact for that information.”


According to documents seen by Saturday Vision, Radio Uganda and Uganda Television first acquired the freehold land title on April 1, 1962. ULC transferred the land to UBC on February 6, 2007, after Radio Uganda and Uganda Television were incorporated. 


However, ULC later parcelled plot M35 and leased it to Unigroup. 


A search in the lands ministry in December 2011 established that the land had been mortgaged to Stanbic bank in April 2008.


Another search done on May 18, 2012, showed that the Stanbic mortgage was still on with a further charge (renewed mortgage) registered on February 29, 2012 as encumbrances on the land together with a caveat placed by UBC on July 24, 2009. 


This incident comes in the wake of earlier reports implicating former information ministers; Kirunda Kivejinja and Kabakumba Masiko in the fraudulent leasing out of 49 acres of UBC land on plot M47 Kibira Road and 23.5 acres on Faraday Road in Bugolobi.


Mohan Kiwawuka, one of the directors said they acquired the lease through proper channels on January 1, 2005  after former information minister Nsaba Buturo raised no objection to their request.


He said they paid sh23.3m for the lease and that they pay annual ground rent of sh1m to ULC as well as sh999,600 to Kampala Capital City Authority in property rates. 


“My wife is not a director in Unigroup. The shareholders and directors are Metro Services Limited and Prepress Services Limited,” he said. He, however, did not give the names of the individuals behind the companies.


In numbers
2.6 acres
The piece of the 7.8 acre UBC land that Unigroup, of which Maria Kiwanuka and her husband are sole directors, is alleged to have fraudulently transferred into its name


Sh1.8b
The amount of money UBC claims Unigroup owes it in rent arrears since January 1994



Museveni Uganda’s Main Problem says –MP Karuhanga 

http://www.observer.ug/index.php?option=com_content&task=view&id=19729&Itemid=114  

Monday, 09 July 2012 00:07 


Written by WILBER MUHWEZI

Kabale – President Museveni is largely responsible for many of the problems in the country, including corruption, MP Gerald Karuhanga, said over the weekend.

Speaking during a meeting organized by West Ankole Civil Society Forum in Kabale town, the Youth MP for Western Uganda said Museveni’s name has been invoked in several scandals including Hassan Basajjabalaba’s compensation saga.

“All the investigations by PAC [Public Accounts Committee] have implicated President Museveni as the key player,” Karuhanga said.

The meeting was intended to sensitize the people of Kigezi sub-region on the bid to restore presidential term limits and review the citizens’ manifesto that was drafted by civil society organisations in the run-up to the 2011 elections. On his part, Zac Niringiye, retired assistant bishop of Kampala, said one of Uganda’s problems was the micro-management of the country’s affairs, whereby the president wants to do everything.

To illustrate this problem, Niringiye caused laughter when he narrated to them a story of a youth chairman in one of the districts in western Uganda, who asked his fellow youths to thank him for getting rice seedlings from President Museveni.

“I wondered if the President of Uganda has reduced himself to a person who distributes seedlings to Ugandans. Where is this country headed?” Niringiye  wondered.

He advised the President to reread the constitution of Uganda and embark on his real responsibilities and roles and leave micro-politics. Wilfred Niwagaba, Ndorwa East MP, told the gathering not to fear to point out wrong things in society like some legislators do.

“The MPs of Uganda are cowards. They fear the Prime Minister [Amama] Mbabazi, President Museveni and even those they should not fear,” he said.

Jack Sabiiti, MP for Rukiga county challenged the youth to come out and resist the wrongs of this government. He said during his youth, he participated in the NRA bush war; and therefore, the youth of today have to decide their destiny. The meeting was attended by Kabale Mayor Pius Ruhemurana, former Youth MP Okwiri Rabwoni, Kabale RDC Cox Nyakairu, and the influential Kitanga Catholic parish priest, Father Gaetano Batanyenda, among others.

wmuhwezi@yahoo.com

 




The untouchables: Can President Museveni fight corruption when many of
his top Cabinet ministers remain under suspicion?


By Tabu Butagira  

Posted Monday, November 15 2010 at 00:00

At least 10 ministers accused of abuse of office or other forms of
improper conduct remain in Cabinet, despite President Museveni’s
campaign pledge to fight corruption if re-elected in February.


Mr Museveni’s decision to keep the officials in Cabinet, including
protecting some of them from possible prosecution, has turned
corruption into one of the main campaign issues, with the President’s
opponents accusing him of lacking the political will to fight graft.


The UK government recently announced it was cutting Shs27 billion in
promised aid over what it said was less-than-satisfactory progress on
investigating senior ministers accused of corrupt practice and
influence-peddling over the 2007 Chogm Summit in which billions were
lost in dubious deals.


Government officials say the UK decision did not take into
consideration the on-going parliamentary inquiry into the matter as
evidence of political will to address the problem.


President Museveni and the ruling NRM have, in their re-election
manifesto, pledged to continue fighting corruption. Mr Museveni says
the NRM is committed to a policy of “zero-tolerance to corruption” and
will, if re-elected, strengthen the investigative and prosecution
capacity of anti-corruption agencies to be able to handle the new and
more sophisticated cases of corruption, including cyber crime.


Critics, both in the opposition and civil society, however, say
President Museveni has failed to act on his promises.
While many of the Cabinet ministers who have been accused have not
been proven guilty, the failure to investigate the allegations against
them has denied some of them an opportunity to clear their names,
leaving a cloud of suspicion over many Cabinet ministers.


A Daily Monitor investigation also reveals that some ministers who
have been found guilty of improper conduct have been reappointed to
Cabinet, often on promotion.


Here are the men and women who serve with the President but who have
been denied the chance to clear their names in court.


Vice President Prof. Gilbert Bukenya

The Public Accounts Committee accuses Prof. Bukenya of interfering
with the procurement process during Chogm, contrary to the law,
leading to a Shs5.6 billion loss.


Prof. Bukenya denies the allegations. He told Parliament last week
that the decisions were taken collectively by Cabinet with President
Museveni’s knowledge.


Deputy Premier/Internal Affairs Minister Kirunda Kivejinja
Accused of diverting 2,000 litres of fuel from Uganda Railways
Corporation in 1999 to help a political ally, Mr Kivejinja resigned
just as MPs prepared to censure him as Transport minister.
He returned to Cabinet in 2003 and was later promoted to his current
portfolio. He was also found guilty of electoral malpractices during a
bitter race against Abdu Katuntu for the Bugweri parliamentary seat in
2006.


Attorney General Prof. Khiddu Makubuya

The PAC report accuses Prof Makubuya of signing off advances to
private hoteliers ahead of Chogm without repayment guarantees. About
Shs8 billion in taxpayers’ money was lost in the process but Prof
Makubuya denies any wrongdoing.



Security Minister Amama Mbabazi

The PAC report accuses Mr Mbabazi, who is also the NRM Secretary
General, of interference and conflict of interest in the procurement
of a communication system for the security agencies through the ICT
ministry. MPs have also questions why the contract came in at about
Shs4.1 billion higher but Mr Mbabazi denies any wrongdoing.
A parliamentary inquiry in 2008 found Mr Mbabazi guilty of
influence-peddling in a transaction in which he and a business
associate, Mr Amos Nzeyi, sold land to the National Social Security
Fund. Mr Mbabazi was later cleared by Parliament under controversial
circumstances. The top two NSSF officials were fired and former MD
David Jamwa is currently awaiting trial at the Anti-Corruption Court
over related matters.


Agriculture Minister Hope Mwesigye

PAC has recommended that minister Mwesigye and other government
officials should be held liable for a loss of Shs280m to government
arising from a Shs7 billion contract to clean up the city ahead of
Chogm. Ms Mwesigye oversaw the process in her previous capacity as
State Minister for Local Government and is accused of authorising
payments to contractors against the advice of ministry technocrats,
and of failing to declare monies paid by exhibitors. She denies all
the allegations.


Minister of Foreign Affairs Sam Kutesa

The 6th Parliament in 1999 censured Mr Kutesa, then state minister for
planning, for conflict of interest and abuse of office after he pushed
for his company, Entebbe Handling Services, to take over the lucrative
ground-handling at Entebbe Airport. This denied the already struggling
Uganda Airlines much-needed revenue and contributed to the collapse of
the national carrier.Mr Kutesa was reappointed to Cabinet shortly
after and promoted.

MPs investigating Chogm accuse him of conflict-of-interest for
allegedly acting in concert with VP Bukenya to ensure that a company
in which the minister, until 2005, owned a majority stake, supplied
cars for the summit delegates. He denies all allegations.


Trade and Tourism Minister Kahinda Otafiire

Gen. Otafiire resigned his ministerial position in the mid-90s after
he drew a pistol on Jennifer, the late wife to Foreign Affairs
Minister Sam Kutesa. In the incident over a drink at Fairway Hotel,
Maj. Gen. Otafiire accused late Jennifer of having “sucked” the
country to its “bone marrow”.


A 2002 UN Panel of Experts report accused Gen. Otafiire, alongside
other senior army officers, of various transgressions in the
Democratic Republic of Congo (where he’d been deployed after leaving
Cabinet), including working with brutal allied local militias to
“plunder and pillage” DR Congo resources.


Gen. Otafiire in self-defence said there was nothing worth picking
from DRC, and a government created Justice Potter Commission later
exonerated all Ugandan officials implicated in the UN report.
He was later reappointed to Cabinet but his stints in the Lands, Local
Government and Trade and Tourism ministries have been marred by
controversy over the management of public assets and resources.


Transport Minister Eng. John Nasasira

One of the longest-serving cabinet ministers (and the longest serving
in the same ministry), Eng. Nasasira is named in the Chogm report
together with VP Bukenya for interfering with procurement of the Chogm
cars, contrary to the law.


Mr Nasasira is also accused of neglect of duty and of bending
procurement procedures to favour one of the bidders.
State Minister for Regional Cooperation Isaac Musumba
The State Minister for Regional Cooperation was embroiled in a scandal
over the procurement of a National Identity Card project when a
personal cheque he presented of Shs28 million to facilitate an
11-member team to visit pre-qualified companies bounced.
The minister’s personal involvement in the matter contravened the
Public Procurement and Disposal of Public Assets Authority regulations
but he was never held accountable.


The project, which was halted following complaints from one of the
bidders, is yet to get off the ground. Mr Musumba is still in Cabinet.


State Minister for Tourism Serapio Rukundo
As State Minister for Tourism Serapio Rukundo solicited for $3m (sh6b)
from the finance ministry to help the proprietor of J&M Airport Hotel
complete it ahead of the 2007 Commonwealth summit.


According to the Auditor General’s report, J&M was not on the list of
approved Chogm venues and no activity was supposed to have been hosted
there. The government gave the hotel $1.3m (about sh2.7b) to complete
200 rooms two days before the summit.He denies any wrongdoing.


Ethics minister Dr Nsaba Buturo
Ethics minister Dr Nsaba Buturo, who has chided top bureaucrats for
involving in graft came under the microscope for irregularly picking
Shs20 million from Mega FM in Gulu to facilitate the making of a
government documentary.
He later had the money reimbursed following public outcry.

Additional reporting by John Njoroge

 

 

Museveni’s Hypocrisy : Arrest  CHOGM Scandal culprits 


Museveni Orders CHOGM Arrests


Tabu Butagira
The New Vision, 5 May 2010
Kampala — Ministers and other government officials implicated in corruption during the 2007 Commonwealth Heads of Government Meeting should be arrested, prosecuted and face other disciplinary action, President Museveni has said.

President Museveni, citing threats by donors to slash aid, on March 11 directed Prime Minister Apolo Nsibambi to action against all thieving government employees and private service providers that the Auditor General, Mr John Muwanga, named to have fiddled with Chogm resources.

Bad deals
In the audit report, which forms the bedrock for the winding investigations by Parliament's Public Accounts Committee (PAC), ministers and permanent secretaries are accused of inflating bills to enrich themselves, bypassing procurement rules and forcing through bad contracts.

In the letter copied to the Ombudsman and the Director of Public Prosecution, among others, President Museveni wondered why no action had been taken against those culpable yet the country is on the edge of losing support from nervy development partners.

"Whereas it is true that we made a number of policy decisions to expedite the preparations for Chogm, there was no reason why government officials should not have followed laid down procedures in implementing the decisions," the letter reads in part.

The President has now ordered that contracts of accounting officers associated with the Chogm mess should not be renewed and efforts be made to fully recover finances disbursed to hotel owners or other private individuals who offered unsatisfactory services.

"(The) government's lack of action on the (Auditor General's) report is being perceived as if we are accomplices to the misdeed... I am, therefore, instructing you to cause disciplinary and any other action against officials who were found not to have followed financial and procurement rules and regulations as provided for in the Public Service Standing Orders as well as public financial management and procurement laws," Mr Museveni wrote.

Prime Minister Nsibambi was not available for comment yesterday but DPP Richard Butera told this newspaper last night that his office is already secretly investigating "a number of cases" forwarded by PAC.

"Yes, we are making some progress but I can't discuss the details until we finalise the ongoing investigations," he said.

Mr Raphael Baku, the acting inspector general of government, said his officers are itching to prosecute the Chogm suspects once the Ministry of Finance avails their details.

He said: "The Ministry of Finance had given all accounting officers up to end of April 2010 to submit accountabilities for Chogm expenditures and once we get their report and outstanding areas, we shall take over from there."

The ombudsman said they are also awaiting the PAC report to avoid duplication and waste of resources. All individuals and bureaucrats, including President Museveni and his vice Prof. Gilbert Bukenya, interviewed by the MP Nandala Mafabi-led Pac team have denied any wrong doing in organising the Shs500 billion summit graced by Queen Elizabeth of England.

In the aftermath of tough questioning in Parliament, various technocrats pointed accusing fingers at their political supervisors alleged to have used their executive clout to force down bad deals.

 

Also See,

Uganda’s sectarian Director of Public Prosecutions and selective justice : Hon. Kabakumba Masiko cleared after six months whereas Buganda riot suspects were kept in prison for over 30 months without being produced in court.