Ministers deny role in UBC deal

By Felix Osike & Alfred Wasike
Three ministers have denied involvement in the controversial $6.9m (sh12.1b) contract between Uganda Broadcasting Corporation (UBC) and a UK-based company.
Other government officials said vital documents relating to the deal were concealed.
On June 7 this year, UBC contracted Well Trade Services Ltd to relocate its transmission studios from Nakasero to Nile Avenue and supply new equipment.
Ethics and integrity minister Dr. James Nsaba Butoro, who was information minister when the agreement was signed on June 7, yesterday said, “I had no hand in it. Not even an inch. Much of it was done by the UBC.”
He said the matter was handled by the UBC contracts committee although he defended the relocation in the Cabinet.
He said he met the contractors only once and did not know how the $6m figure came up. “The discussion on the amount took place after I had left the ministry,” said Buturo.
Finance minister Dr. Ezra Suruma said he was not aware of the transaction. But he said, “If it requires a guarantee, it will have to go to Parliament.”
Third Deputy Prime Minister and information minister Ali Kirunda Kivejinja also denied involvement in the deal, saying UBC management was responsible for the relocation.
Vice-President Prof. Gilbert Bukenya’s press officer Lindah Nabusayi on Monday said, “The VP is not involved in appointing that company.”
The New Vision yesterday broke the news that Well Trade Services was linked to an Israeli national, Ronny Oved, wanted by Police in Kenya and Tanzania over illegal activities. Sources said Oved was the middleman in the deal.
According to the contract signed between UBC and WTS on June 7, the project cost was $6,913,880. Former UBC chief Edgar Tabaro and Godfrey Lugya signed for UBC. WTS was represented by Taly Noy and Ofir Mor as directors.
UBC was to pay the company $1,505,376. But dfcu bank fund transfer forms show $1,751,936 (sh3.2b) was swiftly wired from the bank’s Impala branch in Kampala to WTS account number 58895460, HSBC Bank Plc International branch in London on June 27, 2006.
The amount was above the agreed deposit by $246,560. The transfer was authorised on telephone numbers 0772200135 and 0772225220 from account number 2540126200 in dfcu. The telephone numbers belong to UBC board chairman Chris Katuramu and Tabaro.
The agreement said the balance of $5,408,504 was to be secured by a bankable and irrevocable guarantee and paid within six months.
While a committee appointed by Bukenya recommended a relocation cost of $3.2m, the figure shot up to $6.5m (sh12.1b). Some officials reportedly flew to London later where they met WTS officials.
The agreement exempted the suppliers from all taxes, landing, clearance, handling charges, warehouse and storage overheads.
At the time of signing the agreement, WTS said it had both new and used equipment. It promised to give the list of equipment for UBC to select. But no records of the inventories supplied is available.
The company also undertook to renovate the UBC television studios and the affiliated offices and refurbish the Kololo transmission mast and link it to the Broadcasting House.
Meanwhile, WTS has rejected an audit of the project and is demanding the balance since it claims to have imported 78% of the equipment. It wants UBC to issue a bank guarantee for $4.5m to complete the job. In a letter, WTS said the project was under a turnkey option and did not require an audit until handover.
“There is no such precondition as an audit for money before the guarantee is given,” said the letter signed by Ofir Mor.
It was copied to Bukenya and Prime Minister Prof. Apolo Nsibambi.
Ends