Chopper report pins senior UPDF officers
May 18, 2003
A damning report on the purchase of junk helicopters was released by the Minister of Defence, Amama Mbabazi, on Saturday
By Felix Osike and Okello Jabweli
A damning report on the purchase of junk helicopters was released by the Minister of Defence, Amama Mbabazi, on Saturday.
The 197-page report with an additional 508 pages of supporting evidence says at least US$7m (sh14b) was lost in the deal which involved high ranking UPDF officers.
The Judicial Commission of Inquiry was headed by Lady Justice Julia Ssebutinde, who was assisted by legal experts Geoffrey Kiryabwire and Maureen Owor.
The report pins Reserve Force Commander Lt. Gen. Salim Saleh, exiled Col. Kizza Besigye, who was the then Army’s Director of Engineering and Logistics, Dr. Ben Mbonye, who was the defence ministry’s permanent secretary, Kwame Ruyondo, a businessman and Saleh’s pointsman, Col. Joshua Masaba, the deputy Airforce director, Col. Getahun Kassa and the late Lt. J. B. Muwanga.
Mbonye retired from public service last year and was paid a handsome package.
Others are Cyprian Mwa, the then Director of commercial banking in Bank of Uganda, Ketrah Tukuratiire from the Registrar of Companies and Patrick Katto, the then managing director of the defunct International Credit Bank.
The involvement of President Yoweri Museveni in the transaction is also highlighted.
A decision was taken in July 1996 to acquire four Russian Mi-24 attack helicopters from Belarus at a cost of US$1.5m each together with sundry accessories, spare parts and ammunition.
In addition, the Government hired the services of several Belarussian experts to train Ugandan pilots in the operations of the machines. The Mi-24 has firepower of one battalion (600-1000 soldiers).
The defence ministry (MOD) entered an agreement with Consolidated Sales Corporation. Katto told the commission that the company was incorporated in the British Virgin Islands.
But the Commission established that CSC was dubiously registered in Uganda as a foreign company operating on plot 8/10 Kampala Road, months after the helicopter contract was concluded. The company has also not paid taxes to Uganda Revenue Authority.
Although CSC described itself as the seller and supplier, it later transpired that CSC was a “mere broker with no direct links to the suppliers in Belarus.â€
It was a profiteering company that purchased the choppers from Belarus through a series of middlemen and in turn sold them at a hefty profit to the ministry. CSC also promised to supply the choppers fully overhauled to zero hours and in full flying order.
The report says Katto lobbied top army officers, including Saleh, to win the contract and promised both Ruyondo and Saleh huge commissions if they successfully pushed through the deal. In a July 29, 1996, letter Katto offered Ruyondo a 10% commission on every contract awarded by the ministry to Katto.
The report says the airforce officers who carried out the initial inspection of the choppers were not qualified. When they went to Belarus, the logbooks were written in Russain which only the late J. Muwanga, the flight engineer could understand. The tests could not be carried out due to bad weather.
Col. Masaba is rapped for recommending that the government should purchase the helicopters, saying they were still in very good flying condition, had a long life and were worth more than the price offered. He reportedly allowed the Ugandan team to carry out a full inspection of choppers for Rwanda at the request of Dr. Emmanuel Ndahiro and without authority from Uganda.
Saleh confessed to the president after the contract had been signed that he had been offered a US $800,000 (sh1.6b) commission. Accordingly, the president advised Saleh to go ahead and receive the commission but surrender it to the army for special operations in the north.
The commission noted that the president’s advice could be misunderstood by Ugandans as a double-standard and meant to protect or exonerate his brother.
Furthermore, by advising Saleh to receive the commission, the president was essentially granting Saleh permission to apply the proceeds undefined or in his exclusive discretion.
It says to dispel suspicions, the president should at least have advised Saleh to surrender the proceeds to the Treasury or Consolidated Account.
Saleh told the commission that he preferred to assist Katto to win the contract rather than a foreign company in the spirit of patriotism and ugandanisation.
“Whereas the commission admires Saleh’s patriotism, we believe it should have been overridden by the greater national interest of ensuring MOD obtained value-for-money helicopters.â€
The commission also said Saleh’s patriotism towards Katto was influenced by an inducement that had been promised.
The report says Saleh exhibited, “the highest form of greed, self interest and corruption,†the type that is proscribed under the Prevention of Corruption Act.
When two of the helicopters were delivered at Entebbe in early March 1998, they were found unoverhauled contrary to the provisions of the contract.
There was a shortfall on various spare parts. The result was financial loss of sh14b.
The report says Dr. Mbonye caused financial loss to the government by disregarding all laid out procedures and rushing through the transaction.
It faults Besigye, Lt. Muwanga and Col. Kassa for allegedly failing to exercise due diligence on the choppers when they went for an inspection tour in Belarus. It states that Besigye, who was the team leader, was vicariously liable for failing to ensure that a full pre-shipment inspection of the helicopters was done in fine weather.
A damning report on the purchase of junk helicopters was released by the Minister of Defence, Amama Mbabazi, on Saturday.
The 197-page report with an additional 508 pages of supporting evidence says at least US$7m (sh14b) was lost in the deal which involved high ranking UPDF officers.
The Judicial Commission of Inquiry was headed by Lady Justice Julia Ssebutinde, who was assisted by legal experts Geoffrey Kiryabwire and Maureen Owor.
The report pins Reserve Force Commander Lt. Gen. Salim Saleh, exiled Col. Kizza Besigye, who was the then Army’s Director of Engineering and Logistics, Dr. Ben Mbonye, who was the defence ministry’s permanent secretary, Kwame Ruyondo, a businessman and Saleh’s pointsman, Col. Joshua Masaba, the deputy Airforce director, Col. Getahun Kassa and the late Lt. J. B. Muwanga.
Mbonye retired from public service last year and was paid a handsome package.
Others are Cyprian Mwa, the then Director of commercial banking in Bank of Uganda, Ketrah Tukuratiire from the Registrar of Companies and Patrick Katto, the then managing director of the defunct International Credit Bank.
The involvement of President Yoweri Museveni in the transaction is also highlighted.
A decision was taken in July 1996 to acquire four Russian Mi-24 attack helicopters from Belarus at a cost of US$1.5m each together with sundry accessories, spare parts and ammunition.
In addition, the Government hired the services of several Belarussian experts to train Ugandan pilots in the operations of the machines. The Mi-24 has firepower of one battalion (600-1000 soldiers).
The defence ministry (MOD) entered an agreement with Consolidated Sales Corporation. Katto told the commission that the company was incorporated in the British Virgin Islands.
But the Commission established that CSC was dubiously registered in Uganda as a foreign company operating on plot 8/10 Kampala Road, months after the helicopter contract was concluded. The company has also not paid taxes to Uganda Revenue Authority.
Although CSC described itself as the seller and supplier, it later transpired that CSC was a “mere broker with no direct links to the suppliers in Belarus.â€
It was a profiteering company that purchased the choppers from Belarus through a series of middlemen and in turn sold them at a hefty profit to the ministry. CSC also promised to supply the choppers fully overhauled to zero hours and in full flying order.
The report says Katto lobbied top army officers, including Saleh, to win the contract and promised both Ruyondo and Saleh huge commissions if they successfully pushed through the deal. In a July 29, 1996, letter Katto offered Ruyondo a 10% commission on every contract awarded by the ministry to Katto.
The report says the airforce officers who carried out the initial inspection of the choppers were not qualified. When they went to Belarus, the logbooks were written in Russain which only the late J. Muwanga, the flight engineer could understand. The tests could not be carried out due to bad weather.
Col. Masaba is rapped for recommending that the government should purchase the helicopters, saying they were still in very good flying condition, had a long life and were worth more than the price offered. He reportedly allowed the Ugandan team to carry out a full inspection of choppers for Rwanda at the request of Dr. Emmanuel Ndahiro and without authority from Uganda.
Saleh confessed to the president after the contract had been signed that he had been offered a US $800,000 (sh1.6b) commission. Accordingly, the president advised Saleh to go ahead and receive the commission but surrender it to the army for special operations in the north.
The commission noted that the president’s advice could be misunderstood by Ugandans as a double-standard and meant to protect or exonerate his brother.
Furthermore, by advising Saleh to receive the commission, the president was essentially granting Saleh permission to apply the proceeds undefined or in his exclusive discretion.
It says to dispel suspicions, the president should at least have advised Saleh to surrender the proceeds to the Treasury or Consolidated Account.
Saleh told the commission that he preferred to assist Katto to win the contract rather than a foreign company in the spirit of patriotism and ugandanisation.
“Whereas the commission admires Saleh’s patriotism, we believe it should have been overridden by the greater national interest of ensuring MOD obtained value-for-money helicopters.â€
The commission also said Saleh’s patriotism towards Katto was influenced by an inducement that had been promised.
The report says Saleh exhibited, “the highest form of greed, self interest and corruption,†the type that is proscribed under the Prevention of Corruption Act.
When two of the helicopters were delivered at Entebbe in early March 1998, they were found unoverhauled contrary to the provisions of the contract.
There was a shortfall on various spare parts. The result was financial loss of sh14b.
The report says Dr. Mbonye caused financial loss to the government by disregarding all laid out procedures and rushing through the transaction.
It faults Besigye, Lt. Muwanga and Col. Kassa for allegedly failing to exercise due diligence on the choppers when they went for an inspection tour in Belarus. It states that Besigye, who was the team leader, was vicariously liable for failing to ensure that a full pre-shipment inspection of the helicopters was done in fine weather.