State House defends sale of old jet
Mar 28, 2010
STATE House has defended the sale of the old presidential jet, arguing that if it had delayed the Government would have incurred more losses.
By Mary Karugaba
STATE House has defended the sale of the old presidential jet, arguing that if it had delayed the Government would have incurred more losses.
State House comptroller Richard Muhinda said in a statement that the Gulfstream IV, procured in 2000, needed an engine overhaul and reconfiguration, estimated at $2.4m (sh5b).
“If we had waited, we would have incurred huge expenses since the jet was due for a mandatory engine overhaul in April 2010.â€
He added that the sale of the old jet at $10m (sh20b) in its current state was a good deal to the Government.
“If the annual maintenance checks were not to be completed, the certificate of airworthiness would expire and therefore the market value of the aircraft would plummet.â€
The presidential jet was purchased in 2000 at sh60b.
Muhinda noted that by December 2009, there were 66 similar aircraft on sale on the world market, yet there were few buyers due to the global recession.
He criticised media reports alleging that there was lack of transparency in the sale of the old jet.
He explained that the President in April 2009 appointed an inter-ministerial committee to advise on how best to dispose of the old aircraft.
He said the option of outright sale was recommended by the committee and adopted after clearance from Public Procurement and Disposal of Assets (PPDA).
“The Civil Aviation Authority proposed a list of five international firms that were subsequently cleared by PPDA to provide proposals on how best to dispose of the old jet. The terms of reference were cleared by the Solicitor General.â€
He said Mike Ellis & Associates of Texas in the US was selected after due diligence was done on the firm showing a “satisfactory track recordâ€.
The $10m contract was cleared by the Solicitor General and the money had already been received by the Bank of Uganda, he noted.
Muhinda had told legislators on the public accounts committee last year that the jet would be sold at $24m (sh48b) to pave way for the purchase of the new jet.
The President in January 2009 got a new Gulfstream V plane at $48m (sh96b) amid protest from the opposition.
STATE House has defended the sale of the old presidential jet, arguing that if it had delayed the Government would have incurred more losses.
State House comptroller Richard Muhinda said in a statement that the Gulfstream IV, procured in 2000, needed an engine overhaul and reconfiguration, estimated at $2.4m (sh5b).
“If we had waited, we would have incurred huge expenses since the jet was due for a mandatory engine overhaul in April 2010.â€
He added that the sale of the old jet at $10m (sh20b) in its current state was a good deal to the Government.
“If the annual maintenance checks were not to be completed, the certificate of airworthiness would expire and therefore the market value of the aircraft would plummet.â€
The presidential jet was purchased in 2000 at sh60b.
Muhinda noted that by December 2009, there were 66 similar aircraft on sale on the world market, yet there were few buyers due to the global recession.
He criticised media reports alleging that there was lack of transparency in the sale of the old jet.
He explained that the President in April 2009 appointed an inter-ministerial committee to advise on how best to dispose of the old aircraft.
He said the option of outright sale was recommended by the committee and adopted after clearance from Public Procurement and Disposal of Assets (PPDA).
“The Civil Aviation Authority proposed a list of five international firms that were subsequently cleared by PPDA to provide proposals on how best to dispose of the old jet. The terms of reference were cleared by the Solicitor General.â€
He said Mike Ellis & Associates of Texas in the US was selected after due diligence was done on the firm showing a “satisfactory track recordâ€.
The $10m contract was cleared by the Solicitor General and the money had already been received by the Bank of Uganda, he noted.
Muhinda had told legislators on the public accounts committee last year that the jet would be sold at $24m (sh48b) to pave way for the purchase of the new jet.
The President in January 2009 got a new Gulfstream V plane at $48m (sh96b) amid protest from the opposition.