National broadcaster UBC ran ghost accounts

 

KAMPALA - The Auditor General, John Muwanga, in his report for the financial year ending June 2011, stumbled on three bank accounts in the names of Uganda Broadcasting Corporation (UBC) that management at the time was unaware of.

 

Although Muwanga raised the red flag over the issue three years ago, UBC’s top brass admitted to MPs on the committee on commissions, statutory authorities and state enterprises that they do not know the number of bank accounts the national broadcaster operates.

 

This, MPs warned, is exposing UBC to the risk of financial loss at the hands of unscrupulous characters or, at worst, use such accounts for criminal activities like money laundering.

 

“It is true, but we have written to a number of banks inquiring whether they have any accounts in UBC’s name. So far, ECO bank has replied in the affirmative and the account in issue has no funds.

 

“On assumption of office, we never got a handover report from the previous administration, so information is hard to get,” UBC’s acting head of finance Patrick Kateba told MPs.

 

UBC’s acting managing director, Angelo Nkeza, told MPs that management had since established that the three accounts — two at Standard Chartered Bank and one at KCB — were opened in relation to the land transaction with Haba Group that has since gone sour.

 

Haba paid sh11.5b for the land on Faraday Road, Bugolobi. But after a legal battle, UBC repossessed the land after court ruled that there was fraud in the transaction.

 

But committee chairperson Ssemujju Nganda ordered UBC’s top officials to inquire from all banks about possible existence of ‘ghost’ accounts.

 

“Why haven’t you written to all banks? These accounts might be conduits for some people to siphon public funds,” Kasiro County MP Elijah Okupa said.

 

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UBC Acting Managing Director Angelo Nkeza (center), Finance Manager Patrick Kateeba and another official appeared in parliament on Thursday. PHOTO/Maria Wamala

 

Nkeza also told MPs that UBC is reeling from effects of years of mismanagement, saying: “We have been in total anarchy.”

 

“We have not been operating as an entity. We need time to get some of the documents you are asking for,” Nkeza said, blaming most of the queries on the previous management led by Paul Kihika, who was kicked out of the job.

 

Among the anomalies of the Kihika led administration, Nkeza told MPs, is the sh1.5b nugatory expenditure highlighted by the AG’s report. “This money accumulated due to fines and penalties by the Uganda Revenue Authority (URA) over the failure to pay taxes on a principal sum of sh900m,” Kateba said.

 

Kateba revealed that UBC’s outstanding dues to URA are sh2.34b and to the National Social Security Fund (NSSF) is sh11.5b.

 

Of the money owed to URA and NSSF, Kateba told MPs, a paltry sh2.5b and 1.6b is the principal to the two entities respectively while sh9.74b is the result of fines and penalties.

 

“How did this money accumulate? Was money for taxes and workers’ savings not deducted?” Florence Namayanja asked. Kateba, again, blamed this on Kihika and then head of finance, Ruthra Kamukama.

 

“They were responsible because the money was simply not remitted,” Kateba said.

 

Other queries raised by Muwanga include absence of a fixed asset register and sale of prime land in suspicious circumstances.