By Vision Reporter

FOREIGN affairs minister Sam Kutesa yesterday explained that the CHOGM Cabinet sub-committee authorised the award of the contract to Saatchi and Saatchi to get sponsorship from companies for the Commonwealth summit.

Saatchi and Saatchi has been under fire from the CHOGM probe committee over the sh2.4b contract it won to carry out publicity campaigns for CHOGM. There were allegations that Kutesa could have influenced the award of the tender.

Kutesa, who is expected to appear before the public accounts committee today, said the firm had already been awarded another contract by the Prime Minister’s office to carry out CHOGM media activities.

“A meeting of the corporate sponsorship committee was held and decided that Saatchi and Saatchi, which was already undertaking advertisement of CHOGM, be tasked to incorporate private companies and be paid a fee of 10% of the money they raised,” Kutesa said.

Asked whether he influenced the deal, he replied: “I did not procure the contract for them. It is the committee which decided on giving them the task. As chairperson of the corporate sponsorship committee, I communicated the decision to Saatchi and Saatchi. That is my only involvement in this matter.”

Kutesa also denied allegations of conflict of interest in the acquisition of the CHOGM cars. His company, Ceci, had been a shareholder in Europcar, the firm that won the contract to supply the BMW cars.

Europcar was incorporated on April 29, 2005 and Ceci was allotted 20% shares. Four months later, in August, Ceci’s shares were transferred to Robert Kabonero.
Kutesa said this happened before it was decided that Uganda would host CHOGM. The decision was taken in Malta in November 2005.

“The contract to rent vehicles was awarded to this company in 2007, two years later.”

He said he was ready to face the committee and give his response on the issues raised.
According to URA, the purchase of cars for CHOGM was the only project Europcar ever executed in Uganda.

Kutesa’s daughter, Elizabeth Kyomugisha, was a signatory to two of Europcar’s accounts, held at dfcu bank. Kutesa said she ceased to be a signatory but he did not say when.