MPs Blame Mbonye Over Junk Choppers

By Felix Osike and John Kakande THE parliamentary select committee probing corruption in the Ministry of Defence has recommended that Dr. Ben Mbonye be held responsible for causing financial loss to government in the purchase of junk helicopters from Belarus. The report says Mbonye protected the supplier, Consolidated Sales Corporation (CSC), and victimised airforce engineer Maj Dick Lutaya who queried the quality of the helicopters and refused to sign a take- over certificate. Mbonye was the Permanent Secretary in the defence ministry at the time of procurement of the choppers. "The Permanent Secretary was not happy when Lutaya discovered the discrepancies in the deal. He wanted to protect the businessmen and cared little about the loss on part of Uganda government," the report says. Mbonye was a signatory to the contract also signed by the Solicitor General, Peter Kabatsi, and Director of Airforce Joshua Masaba. The 115-page report laid before Parliament yesterday also recommends that Emmanuel Katto, the then representative of CSC, be held criminally responsible for defrauding the defence ministry. The committee observed that there was actual loss of US$2.3m (sh4.5b) incurred from the part performance of the contract. The 14 MPs who compiled the report visited London, Bulgaria and South Africa. The report also says, "Since the transfer of ownership has not been effected by the seller to the buyer, it means the defence ministry does not own the aircraft. The helicopters may even be impounded when taken for overhaul." The report also covers the controversial purchases of T-55 tanks from Bulgaria, the undersize uniforms, the dry food rations from South Africa, the salary scam, war debts and payment of pension in the army. It says Mbonye approved a contract which favoured the seller and adopted a controversial and unguaranteed mode of payment. "He insisted and paid promissory notes to the seller despite technical advice of the Ministry of Finance and Bank of Uganda," the report says. It further says Mbonye accepted partial, defective deliveries against the contract terms and authorised an acceptance of unoverhauled choppers. The report notes that Lutaya, who was the most qualified person, was left out of the pre-shipment inspection team due to his misunderstanding with Mbonye. It says when the helicopters were delivered at Entebbe, Lutaya found they were not overhauled and the logbooks were fake. It adds that Mbonye did not trust reports on the unoverhauled choppers and hired a South African firm which also found the choppers were not overhauled. "Mbonye tried to convince Lutaya to sign the handover/takeover certificate for the choppers in vain. While in Europe, Mbonye rang Under- Secretary Robert Muhinda, instructing him to sign the documents," says the report. It says Mbonye did not tell the President the truth. The report said most officers involved were promised commission. The committee observed that the President should have made an effort to trap the corrupt officials rather than advise Maj. Gen. Salim Saleh to use the commission promised him by Katto for army for operations. The report said Katto lied to the committee that CSC was an offshore company with offices in London. It discovered that CSC had no office there and the building belonged to an Asian. The place was a takeaway. "CSC was formed for the purpose of the helicopter transaction and after which it ceased to exist," the report said. Ends