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@observer Wed, 10 Jul 2024 08:18:14

Oulanyah, Otto, MPs implicated in cooperative funds scandal

It’s been almost a month since the arrest of three members of parliament: Cissy Namujju (Lwengo Woman), Yusuf Mutemebuli (Bunyole East), and Paul Akamba (Busiki County) on corruption charges. They were later joined by MPs Michael Mawanda (Igara East) and Ignatius Wamakuyu Mudimi (Elgon County). Akamba, Mawanda and Wamakuyu were charged in connection with the misuse of cooperative societies’ compensation funds. The charges against these MPs stem from a report by the Parliamentary Sectoral Committee on Tourism, Trade and Industry, which investigated the governance and value for money of budgetary appropriations to cooperatives. The committee, chaired by MP Mwine Mpaka Rwamirama of Mbarara City South Division, produced a damning report implicating several senior government officials, both current and former, as well as members of parliament from both the opposition and the ruling National Resistance Movement. The report, published in October 2023, called for the director of public prosecutions (DPP) and the police’s Criminal Investigations Directorate (CID) to conduct further investigations to establish criminality. When the report was presented to parliament for consideration, Speaker Annet Anita Among forwarded it to the police, the Inspector General of Government (IGG), and the DPP for further management. As the arrest and possible prosecution of those implicated continues, The Observer has revisited the 210-page report to highlight the key individuals likely to follow the four MPs. The most senior person identified in the report for exercising undue influence, leading to various cooperatives losing significant sums of money, is the state minister for Cooperatives in the ministry of Trade, Industry and Cooperatives, Fredrick Ngobi Gume. Gume is repeatedly named for recommending that cooperatives use particular law firms to receive their compensations. Cooperatives that refused to cooperate experienced delays in their payments, while those that complied were promptly compensated. One of the cooperatives coerced to hire a specific law firm was the West Acholi Cooperative Union. The minister ordered the cooperative to hire the services of Century Advocates just weeks before the compensation was made. According to the report, the law firm charged the cooperative 50 per cent of the compensation money received from the government. “The Secretary Manager, Mr. Oyen Patrick, and the Chairperson of the Union, Mr. Oyugi Jackson, while interfacing with the Committee, informed the Committee that the Union contracted the legal services of M/S Century Advocates upon recommendation by the State Minister for Cooperatives, Hon. Gume Frederick Ngobi. Subsequently, the Union undertook an MOU with the said law firm in which it was resolved that a ‘commission of 50% of any amount paid by the Government to be paid to M/S Century Advocates,’” the report reads in part. The report adds that the committee was left bewildered as to what role the law firm was to play in the compensation process apart from accessing unjustified payment from the union. The minister is also implicated in asking for 50 per cent of the compensation money from North Bukedi Cooperative Union Limited because he helped them access their compensation. “The Union Chairperson, Mr. Gundi Farouk, informed the Committee that he rejected the said proposal by the Minister and was later not surprised when the Union received only Shs 600 million,” the report reads. Shs 11.4 billion had been verified as compensation for the union. The minister also forced the East Acholi Cooperative Union Ltd to hire the legal services of M/S Odonga Otto & Co. Advocates, a law firm belonging to the former MP for Aruu county, Odonga Otto. The law firm was to take 30 per cent of the compensation money from the cooperative union. “The Chairperson of the Union, Ms. Aceng Allen, informed the Committee that M/S Odonga Otto & Co. Advocates was imposed on the Union by officials from MTIC who advised them to use his services to claim for war loss compensation. It was her submission that when she, on behalf of the Union, objected to the same, the said law firm instituted a suit against the Union for non-compliance,” the report reads in part. In the end, they were forced to agree to consent out of court on the same terms set out by the minister. When the Union was given Shs 1 billion, Odonga Otto was paid Shs 300 million. The report also notes that the same cooperative society was asked for Shs 300 million by the former speaker of parliament, Jacob Oulanyah, if they were to ever access their compensation. “Ms. Aceng Allen, the Chairperson of the Union, testified before the Committee that she, together with the Union Treasurer, Mr. Opio Severoni Asony, met the late Rt Hon. Speaker, Jacob Oulanyah, in Arua in October 2020, where he tabled the proposal that the claim of the Union would be paid at once but at a cost of Shs 300 million. Since the Union did not have such an amount of money at the time, it was the testimony of Ms. Aceng Allen that the Treasurer and herself delivered Shs 100 million in December 2020 to the late Rt Hon. Speaker of Parliament of Uganda at his residence in Muyenga,” the report reads in part. Shs 5.5 billion had been verified for compensation for East Acholi Cooperative. The report also indicates that Gen Salim Saleh and an individual named Lubega were paid Shs 1 billion from the compensation given to Banyan- kore Kweterana Cooperative Society, “for loan repayment that had earlier been obtained from the bank and they had failed to repay.” The report names several members of parliament from both the opposition and the ruling National Resistance Movement who received large sums of money by exerting influence. These MPs either forced cooperative societies to hire their selected lawyers to pursue compensation from the government, with the lawyers charging as much as 50 per cent of all the money the cooperatives received. Michael Mawanda, the MP for Igara East, is the most frequently cited MP implicated in taking billions from cooperatives. Among the cooperatives that Mawanda allegedly deprived of their compensation are West Mengo Growers Cooperative Union and Buyaka Growers Cooperative Society Limited. “The Committee recommends that the Criminal Intelligence and Investigations Department (CIID) should conduct investigations into the circumstances under which Members of Parliament Mudimi Ignatius Wamakuyu and Mawanda Michael Maranga got involved in the war loss compensation payments,” the report reads in part. The report also implicates several MPs in various compensation claims. MP Wamakuyu Mudimi is cited for involvement in the compensation claims of Lambuli Central Pulpery Cooperative Society Limited, Bumwambu Growers Cooperative Society Limited, Masaaba Cooperative Union Limited, and Buyaka Growers Cooperative Society Limited. Ann Maria Nankabirwa [NRM], the former woman MP for Kyankwanzi district, is mentioned for her involvement in the compensation of Wamala Growers Cooperative Union Limited. John Musila [NRM], the MP for Bubulo East, is noted for failing to account for billions given to Uganda Cooperative Transport Union Limited. The report also names opposition MPs. Geoffrey Ekanya [FDC] is highlighted for failing to account for Shs 500 million given to South Bukedi Cooperative Union Ltd. Although Nandala Mafabi [Budadiri East] is not named explicitly, Bugisu Cooperative Union, of which he is chairman, is accused of failing to account for over Shs 2 billion given in compensation by the government. Maxwell Akora [UPC], the MP for Maruzi, is also cited for failing to account for Shs 500 million given to Lango Cooperative Union Limited, where he serves as chairperson. Additionally, Kasilo MP Elijah Okupa [Independent, formerly FDC] is implicated in the compensation saga of Teso Cooperative Union, where over Shs 140 million couldn’t be accounted for. mmkakembo@gmail.com {loadposition inarticle}

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@observer Wed, 10 Jul 2024 08:04:49

Ugandans likely not to see reduced pump prices - Minister Nankabirwa

Energy and Mineral Development minister, Ruth Nankabirwa has revealed that Ugandans are likely not to see reduced pump prices even when Uganda’s first petroleum consignment arrived last Wednesday. This shocking revelation comes after Kenya increased bond fees of $40 million (about Shs 148bn) at Vitol terminal in Mombasa where Uganda is offloading and storing its products. “We expect the prices to be manageable, to be more competitive as long as we are not pushed to incur costs at the port. Because as I speak now, I will be going back to Kenya to meet my colleague Hon. [Davis] Chirchir because of one thing. They have increased the bond fee at Vitol terminal where we are going to offload and store our products. When you increase the bond fee to a tune of 40 million, that means you are pushing UNOC to also increase and, therefore, Ugandans are likely not to see reduced prices,” she said. ‘‘Forty million dollars is a deterrent, and this is not how the East African Community should operate,’’ she added. “So, Ugandans should wish me success in my negotiations so that the bond fees pull down.” she said. Last year, Uganda made a policy shift in the manner in which it sources, imports and supplies petroleum products by empowering UNOC, a state corporation, to be the sole importer and supplier of all petroleum products. The Petroleum Supply (Amendment) Bill was presented to parliament by the minister of Energy and Mineral Development, Ruth Nankabirwa in 2023 who argued that there was need to empower UNOC as the sole importer of petroleum products, diversify supply routes, and shield Ugandans from fuel cartels that have historically influenced pump prices thus causing financial strain to citizens. Subsequently, parliament approved the bill after the second and third reading and it also received endorsement by President Museveni, transforming it into the Petroleum Supply (Amendment) Act, 2023 and UNOC would, moving forward import directly from an international oil company and supply to Ugandan oil marketing companies, eliminating several intermediaries. Museveni said middlemen overpriced products, for example, Diesel price from the bulk suppliers or refiners was estimated at $83 and $118 from middlemen, Petrol was estimated at $61.5 from bulk suppliers and $97.5 from middlemen while Kerosene was estimated at $79 from bulk suppliers and $114 from middlemen. He accused some people of letting down their country. “Take the issue of importation of petroleum products. Uganda imports petroleum products of the magnitude of 2.5 billion litres per annum valued at about US $2bn. Why not buy from refineries abroad and transport through Kenya and Tanzania, cutting out the cost of middlemen?”, said Museveni in a statement on X on November 5, 2023. “We have now contracted bulk and refinery suppliers able to give us lower prices. I have discussed this with H.E Ruto, the president of Kenya and our delegation is now in Dar es Salaam, discussing with H.E Samia Suluhu”, he added. The president assured the inland East Africans of competitive petroleum products, free of distributions caused by middlemen and also assured Ugandans that they will benefit. UNOC, which now holds the exclusive role of importing petroleum products and also distributing to oil marketing companies (OMCS), received its first consignment of petroleum products last Wednesday from Kipevu Oil Terminal 11 comprising of 78 million litres of petrol and 65,000 tonnes of diesel, a development which gave light to reduction of pump prices.The minister also attributed high pump prices to scarcity. “You know one of the reasons that make the prices go up is the scarcity of the product. When there is scarcity, people tend to keep the product so that prices can go up and they make super profit,” she said. However, the minister said fuel prices will not be hiked and will remain between Shs 6000 and Shs 8000. According to Tony Otoa, the chief corporate affairs officer at Uganda National Company (UNOC), Kenya Pipeline Company currently charges a tariff of $35.06/m3 from MSA to Western Kenya plus an additional storage and handling fee of $3.74/m3. Additionally, he said that transporting the products from western Kenya to Uganda costs approximately an additional $40/m3. He also noted that Kenya’s tariff will affect the logistical costs hence influencing retail prices of fuel in Uganda. “The Ugandan demand averages 80,000 tonnes of petrol, 80,000 tonnes of diesel and a combination of Jet A-1 and kerosene growing at 7% per annum and UNOC is tasked to make this demand available to the OMCs on a monthly basis on top of the buffer stocks it will be holding in the country.” he added. {loadposition inarticle}

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@observer Wed, 10 Jul 2024 23:50:09

Museveni to courts: No bail for corruption suspects

President Museveni has asked the judiciary to include corruption on the list of unbailable cases“We should easily defeat the corruption. The only support we need from the judiciary is no bail for those accused of murder, treason, terrorism, rape, defilement, corruption (embezzlement), and village thefts if the prosecution is ready for trial,” said Museveni while addressing the ongoing retreat cabinet at the National Leadership Institute Kyankwanzi.   “Let the case be tried or use alternative justice but no bail and no impunity for the above cases...with a correct, revolutionary, and objective approach, we should easily defeat corruption,” said Museveni.    In his opening statement to the ministers, Museveni said, “It is now clear that corruption is a big problem in Uganda. IGG estimates that the country loses Shs 9.7 trillion per year because of corruption. This is not acceptable.”This is the second time that the president used figures from the Inspectorate of Government to show how much the corrupt are robbing the taxpayers. However, there is a feeling that the president has weakened the IG’s office by appointing parallel institutions to do a similar job.   Museveni’s critics have been attacking him on mainstream and social media after the creation of the unit that he said will help the government close revenue leakages and boost tax collection. Museveni also appointed David Kalemera as a senior presidential advisor and head of the unit. The appointment of Kalemera, a tax fraud convict has attracted more criticism. Kalemera was in 2022 found guilty by the Anti-Corruption court of falsifying customs documents. He had been dismissed from the URA in 2017. Without referring directly to Kalemera, Museveni told his ministers that because accounting officers had let themselves down, he decided to come in indirectly to fight those who steal government money.    “Apart from the State House Anti-Corruption Unit, I am also setting up both a tax investigation unit and an accountancy and audit unit. They will be able to investigate all tax evasions, under-declarations, money diverted by parliament and stolen, etc,” he explained. Museveni recently accused parliament of sabotage after he discovered that MPs had in the last four financial years, irregularly reallocated a over Shs 3.7 trillion. Museveni said in creating parallel structures, he seeks to link directly with the victims of the corruption of the government people and these are the people (the Wanainchi)“They have all the information. Besides, we have the young people, the Kampala Parents and allied products, who have a different attitude from the present accounting officers who are originally villagers with a careerist and mercenary mentality. The Kampala Parents group are moved more by “passion” than by “remuneration,” Museveni noted.     Forms of corruption in UgandaMuseveni said the corruption faced by the government has two dimensions. Those included the stealing of government money; taking bribes from the public to provide government services; misusing the procurement procedures to cheat the state; and corruptly handling personnel issues through nepotism and selling government jobs.The other dimension of corruption according to Museveni is employee disloyalty in a private company.  “The employees who steal from their employers, are also enemies of the country. If the employers blacklist Uganda as a country where employees steal money from their employers with impunity, Uganda’s economy will get stunted,” he said.  He reminded the police to ensure that those who steal from companies, private or government, are held fully accountable, including paying back the money, they stole on top of prison sentences.  Blocking MPs salaries    Over the years, Museveni has been accused of playing blind while the legislative arm of government increased its salaries especially after the parliamentary commission was created. Parliament has been in the limelight over allegations of corruption. Museveni told the ministers that he could have blocked the moves by the MPs to award themselves high salaries. “I opposed but did not block because it is not always correct to block everything you consider a mistake. It is better, sometimes, to oppose but also allow people to learn from their mistakes or for the issue at hand to be clearer,” he explained. He noted that the mistake by elements in the parliament could not have been solved correctly at that time.Museveni noted that it was s better that the MPs learn from their own mistakes, preserve the unity of the ruling National Resistance Movement (NRM), and give him time to improve the geostrategic situation of the region with Mobutu’s Congo, Bashir’s Sudan, Mzee Moi in Kenya who would sometimes close our borders, as well as still having a young Army that needed metamorphosis.“Besides, the MPs, unlike the other public servants, were not very many in number. Their disruption was in the bad example and not in the magnitude of the money involved. They have now learned that mistake. That is why fund-raising is now very unpopular among MPs now," he added,   {loadposition inarticle}  

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@observer Thu, 11 Jul 2024 10:35:25