Philippines: DILG’s directive of creating a BIT registry will make it harder for the Barangay’s officials to eat the money!

President Duterte’s unwavering political resolve to defeat corruption and bring about positive change makes our efforts all worthwhile” – Carlos Dominguez III

On the 14th May 2018, the Barangay and Sangguniang Elections are scheduled to take place in the Philippines. Therefore the Commission on Elections (COMELEC) are preparing elections. This is the local elections for the local government, meaning wards and municipalities are preparing for the coming elections, where mayors, councilors and governors are elected. Therefore, this is vital for the local democracy and the city halls. Also for the parties and the citizens as a whole to see the state of affairs and the leadership. If they need renewal of the incumbents or need new blood to generate change. If the citizens locally can change out the old and get fresh eyes to local questions and budgets. To secure better service delivery.

The good news from the Central Government and the Department of the Interior and Local Government (DILG) are preparing this for the election and future leadership of the Local Government:

As part of the DILG’s preparations for the forthcoming Barangay Elections this May, DILG OIC-Secretary Eduardo Ano is directing all incumbent punong barangays to conduct an inventory of barangay financial records and properties under their custody from the start of their term of office up to the present” (…) “Ano issued the directive this early to ensure smooth and systematic transition from the outgoing barangay officials to the incoming newly elected or re-elected barangay officials come June 30” (…) “This is also part of our efforts to sustain transparent and accountable local governance at the barangay level and to further ensure that all concerned barangay officials exercise due diligence in using barangay funds and properties,” he said” (…) “Under the directive, a Barangay Inventory Team (BIT) shall be created in each barangay to be chaired by the punong barangay. Its members shall include at least two kagawads, a barangay secretary, a barangay treasurer, a bookkeeper or city or municipal representative, and at least two civil society organization (CSO) representatives, preferably from a faith-based organization or members of the Barangay Development Council” (…) “Part of the functions of the BIT is to ensure the completeness of all barangay properties, financial records and documents (BPFRDs). BPFRDs include legislative and administrative records, transcript or minutes of meetings, list and status of complaints filed before the Lupong Tagapamayapa, updated registry of barangay inhabitants, list or inventory of current local or international development assisted projects, and all other documents containing barangay transactions” (DILG, 2018).

So this directive made by Minister Eduardo Ano is clearly setting up guidelines and the protocols to secure the funds of the Local Government. The new officials will have to keep the books and records of spending or financial transactions. This so the local officials cannot embezzle and misuse the public funds. This is yet another measure to stop corrupt behavior by President Rodrigo Duterte who has already established an Anti-Corruption Commission or the Philippines Truth Commission (PTC) in October 2017. The Philippines already have the Revenue Integrity Protection Service (RIPS), who was established in 2003 to also combat corruption, but this is made strictly for the ill-behavior in the Department of Finance. You also have the Office of the Ombudsman who has a mandate, which is specified to this: “The Ombudsman shall give priority to complaints filed against high ranking government officials and/or those occupying supervisory positions, complaints involving grave offenses as well as complaints involving large sums of money and/or properties (Sec. 15, R.A. No. 6770)” (Ombudsman.gov.ph – about us – Mandate). Final institution to look into the Finances and Assets of the Government concerning corruption is the Commission of Audit, the Komisyon ng Pangsuri. Which is also mandated to examine, audit and settle all accounts of the government. Check if the local authorities are following procedure or if they have overpaid for their services.

So Ano with the directive with Local BIT within every Barangay plus the already sufficient monitoring agents of RIPS, Ombudsman, COA and PTC. There should be such amount of measures to stop graft, corruption and kickbacks. Even if someone will always try to use their power for favors, build the most fantastic house in field outside of town or just making sure Mayor can use the ATM at the City Hall more than anyone else. Now they have the BIT to make sure the jobs of COA, Ombudsman and PTC is easier. Since the Barangay has to make sure their portfolio and their assets are verified before a transition. The local government has to deliver stocks, accounts and the lists of properties. To prove what they do have and not hide funds away from the Central Government. Clearly, this is a trick to make sure the Public Officials doesn’t misuse or hide information, values that the tax-payer pays for or even funds that embezzled from the public coffers.

If mayors or Barangay officials has misused funds and cannot account for the funds before the election. There are several bodies that can investigate it and if it is big enough, the Department of Finance might send others too. What this is a sign off, is that the Philippines are trying to tackle the amounts of corruption and known behavior it has had in the past and present. So that all the different parts of the government has to use even more effort to be able to get away with corruption. That the state now even makes list of inventory, funds and assets in general at the Barangay level. Proves the will of combating it and using stronger means stop it. It isn’t just words, since it is done right before elections. Therefore, the bragging lists and the possible truths of stocks can come forward. Because if the Barangay officials lie and someone else get elected. Finds nothing in the account. Clearly, its starting to report the previous local official to either of the bodies fighting corruption. So that the Barangay can get back the funds and assets the previous ones took from the state. Peace.

Reference:

DILG – ‘Año to brgy chiefs: Prepare inventory for turnover to next brgy officials’ (08.02.2018) link: http://www.dilg.gov.ph/news/Ao-to-brgy-chiefs-Prepare-inventory-for-turnover-to-next-brgy-officials/NC-2018-1017

Opinion: Bribes are NRM’s M.O. during elections, however EC Chairman Byabakama says its a “evil partner”.

Today I am writing about certain comments made by the guy that took over the Election Commission after Dr. Badru Kiggundu, he is legend for his ways and his math. So Dr. Kiggundu will not be forgotten, that is why I have struggled to take this fellow serious. Because Kiggundu destroyed the EC and made it look like a foolish organization filled with cronies who has a love-affair with Yoweri Kaguta Museveni. That is true and therefore, all By-Elections since the General Elections 2016 have been in favor of National Resistance Movement (NRM), except Kyadondo East, which Bobi Wine topped with his huge star-power and speeches. So that Justice Simon Byabakama hasn’t been on my radar. This because the NRM has controlled and in-certain themselves in the by-election, where the opposition parties and independents has no control. Byabakama couldn’t do anything wrong and the NRM can just do whatever. That is how it has been for various reasons, but the NRM are really not trying to have a multi-party state, that is just a piece of flesh on the bone for donor-aid, but not for reality.

So before I rant, here is the statements on the EC Boss I will discuss today:

According to Byabakama, bribery has become an evil partner with elections in Uganda. “But we are made to understand that bribery has become an evil partner with elections in this country, this undermines the quality of democracy,” he said” (…) “The law says an election result can be cancelled on grounds of bribery, despite the amount involved” (…) “Can you imagine an exercise that has cost the stakeholders, including security about sh1b being cancelled because of sh1,000 or a sachet of waragi or bar of soap? Do we really have to go to the school of economics to understand that this is not tenable in economic terms?” Byamukama wondered” (Nambogga, 2018)

Well, Byabakama have been under a rock or not followed what the party that appointed him and anointed him to become Electoral Commission Chairperson. That the Chairperson didn’t know how the ruling regime and the ruling party has acted during elections. It isn’t only misuse the army and the police as a political tool during elections. All of the state coffers and reserves are used.

Therefore, that the Chairperson Byabakama are now saying bribes are bad. He should start discussing this with the Entebbe State House. Who has sanctions the give-aways to Pastors, Residential District Commanders and others who was getting Prado’s and SUV’s within days of the Election. That is the big buys of loyalty and bribes.

The others are the voter tourism, a definition that came about because between 2015 and 2016, the NRM party and their organizers hired buses, paid t-shirts and food for villagers to bigger local rallies. They even gave smaller sums of cash to the people to listen to Museveni and the group of musicians that was also paid massively for their campaigning for the President. It is sort of hard to forget the massive amounts of shillings spent on the Campaigning of the President. Only for November 2015, the NRM Party spent massively 125bn shillings. That is something one report said and could calculate. The other months up-to February 2016. Can question the whole spending of the NRM. Every single rally before the February 2016 was biggest breaches of bribery of voters. It’s like the Chairman was blind to this or was himself in Finland while it was happening.

The evil partner of bribery is built in the system of corrupt behavior from the State House. They misuse all parts of government and all parts of society. If there isn’t loyalty, it can be shut-down. That is how Museveni works.

So my question to Byabakama: Will you ask His Excellency, if the Party has any plans of stopping to bribe the public every time there is an election?

If you do? Can you also get the New Vision to publish that too? So we can again see how to-faced Museveni is. Thanks. Peace.

Reference:

Nambogga, Jackie – ‘EC Boss warns against bribery in politics’ (04.02.2018) link: https://www.newvision.co.ug/new_vision/news/1470404/ec-boss-warns-bribery-politics

ZANU-PF preparing for Elections as in previous years – giving posh cars to Chiefs!

The are scheduled for General Election in September 2018. This has the new President Emmerson Mnangagwa after the ousting of 37 years of Robert Mugabe in November 2017. The new Zimbabwe African National Union – Patriotic Front (ZANU-PF) government, which is installed with help of the army and has initial ministries run by important military leaders. Clearly, they are gearing up to secure their livelihood and their future.

So over the weekend there are reports that the Crocodile is planning to do what the Goblin used to do. Pay off the cultural leaders and tribal chiefs of the Republic. Since they have asked for the same benefits as the Cabinet Ministers and Principals Secretaries, who are all getting posh-cars for their service and being in government. The same sort of corrupt activity is something the chiefs wants too. Therefore, this January 2018, shows that ZANU-PF is still the same. Just another figurehead. ED is acting just like Mugabe did. Nothing changes, except the for the name of the Presidency. The act of giving away 280 posh cars is something good old Bob would have done if he still was in power.

In January 2018:

The President assured all other chiefs that they will get their cars before this year’s harmonised elections. There are 52 cars here today. 26 more will arrive next week and so on. All of you will get their cars before elections but today we will distribute 48 cars, six cars per province,” said Cde Mnangagwa” (…) “I am the one who invited you to this conference. I know that it was supposed to be me visiting each one of you but I realised that you are 280 and if I had to meet one of you every week, it would take me three years to complete. I know that you might be aware of what has happened to our country but I felt it was proper for me to officially brief you on the situation. Yes I am now the new President of Zimbabwe after former President [Robert] Mugabe resigned on 21 November 2017, paving way for my swearing in on 24 November,” he said.” (ZBC, 2018)

That is how ED has done it. Now we can see how Bob did it in his day. This is just in recent years. Not even digging deep into the scandals and the cars that has been given away. Here is some reports from 2012 and 2014. That shows what happen this weekend. Could easily happen in the past. Therefore, ED doesn’t do anything different from what Bob did in his day. That should concern Zimbabweans, who thought ED would bring something new, sorry brother, he brings more of the same.

In July 2012:

As if taking a cue from cabinet ministers, the force recently purchased the 2012 models of top of the range vehicles like the BMW 328i series saloon cars, Range Rover Sports, Nissan Navara LE double cabs to latest Ford Ranger LXT and double cab Sport Utility Vehicles (SUVs) for senior officers. The delivery of vehicles comes hard on the heels of cabinet’s outrageous splash of over US$20 million for the purchase of Mercedes Benz E280s for ministers, Land Rover Discovery 4 TDis for deputy ministers, and Jeep Cherokees and Range Rovers for permanent secretaries late last year” (…) “Other senior civil servants like principal directors and directors now drive the latest Isuzu KB300Dtec double cabs while parliamentarians have received either Isuzu 300Dtec or Mazda BT50 double cabs. The police took delivery of the vehicles in the last six weeks but the cars have remained out of the public eye since they are unmarked and have no registration plates. The Zimbabwe Independent saw the new fleet parked at the designated senior officers’ parking bays at Police General Headquarters in Harare. Sources revealed that the saloon cars and SUVs were bought for senior officers from the rank of Senior Assistant Commissioner (SAC) to Commissioners and the Commissioner-General” (Zimbabwe Independent, 2012).

In December 2012:

The government is set to spend almost $9 million on an unbudgeted traditional chiefs’ vehicle scheme after a Parliamentary portfolio committee recommended that each of them receive $35 000 instead of $18 000 to buy vehicles. The Parliamentary Portfolio Committee on Local Government recommended that the 250 traditional chiefs should be allocated $35 000 each to procure vehicles of their choice, as their terms of office were much longer than those of MPs” (Zimbabwe Situation, 2012).

In October 2014:

Harare – President Robert Mugabe’s broke government is set to splash $ 11 million on off-road vehicles to appease the increasingly vocal chiefs who want to be feted like kings” (…) “On Tuesday, Finance Minster Patrick Chinamasa told Parliament that Treasury was seized with the cheifs’ request off-roader vehicles – 280 Ford Rangers – whose price averages $50,000 at local dealership” (Zvauya, 2014).

So as in 2012 and 2014, that the government are giving traditional chiefs cars for millions of US Dollars. They are doing the same in 2018. Just that its ED instead of Bob doing so. There is no difference in it and the reason behind it. The Traditional Chiefs are getting it months in advance of coming election. To make sure their loyalty to ZANU-PF is still there and taken care off. There is no gifts without a pink slip. The chiefs are getting it, because then they are in the debt of the ruling party. ED knows this and the chiefs knows this. Bob knew that too, when he was doing similar and promising similar gifts to them.

The are promises to be made and also policy changes, but this fit the ordinary pattern of Bob. Only under the new flagship sponsored also by the military leadership who toppled him. ED should be careful, but with this act during the weekend. He was just acting in the same way as Bob. For all the matters of the Traditional Chiefs, he could be Bob. If they get cars from ED or Bob is the same. They are still payed off and paid for loyalty. Not for service delivery, but for staying loyal to the ZANU-PF and the ruling regime as it is. Peace.

Reference:

Zimbabwe Broadcasting Company (ZBC) – ‘Chiefs receive cars’ (13.01.2017) link: http://www.zbc.co.zw/?p=71486

Zimbabwe Situation – ‘Chiefs cars to gobble $9 million’ (18.12.2012) link: http://www.zimbabwesituation.com/news/zimsit_w_chiefs-cars-to-gobble-9-million-newsday-zimbabwe/

Zimbabwe Independent – ‘ZRP splashes on luxury cars’ (07.06.2012) link: https://www.theindependent.co.zw/2012/06/07/zrp-splashes-on-luxury-cars/

Zvauya, Chengetai – ‘Govt to splash $11m on chiefs’ vehicles’ (04.10.2014) link: https://www.dailynews.co.zw/articles/2014/10/04/govt-to-splash-11m-on-chiefs-vehicles

A Working Paper reveals the political stakes in the Kenya-Somali Illegal Sugar Trade!

The Danish Institute for International Studies (DIIS) have had a study into the border trade and sugar exports through Somalia into Kenya. How it is used and how it gets to the market. Clearly, the market for sugar is there in Kenya. As the Sugar Industry is struggling to deliver enough sugar and the state has embargoed imports. Still, the same actors and the same politicians are doing behind closed doors agreements that put the sugar in stores through the porous borders of the Kenyan-Somalian border.

The paper itself paint the picture very well and show the importance of the export, since the magnitude on both economies are affected by it. It is also implicating big names and their organizations. As the politicians has another black-market cartel item to sell to the public. What was striking was that the importers together with local merchants are repacking the sugar into bags of the State Owned Entity (SOE) of Mumias. The Company that has been saved the state after devastating corruption and also lacking investment into the mills. Therefore, the politicians has used this name to trade illegal sugar with name. That they even used the stickers to prove it was of Kenyan quality while selling it to the public.

The quotes I have taken, is what see as important. But its compelling to show the this illegal imports into Kenya affects the politicians and the economy in general. Take a look!

The Amount of Money:

Raw sugar accounts for 10% of total Somali imports rated at US $188 billion (Observatory of Economic Complexity 2016). In other words, sugar importing is enormously lucrative and important for the local economy on both sides of the border. The sugar imported from Somalia is central for covering the production and import deficit in Kenya. Most sugar enters through Kismayu port where it is manually loaded onto trucks and driven to the Kenyan border. There it is re-loaded onto other trucks, four-wheel drive vehicles and even donkey carts to cross the border on the so-called ‘rat routes’ that circumvent the border posts to avoid the payment of bribes, random checks by the Kenyan Revenue Authority (KRA), and the occasional confiscation. Based on interviews and observation JFJ estimates that 150,000 tons of illegal sugar entered Kenya from Kismayu in 2014 (JFJ 2015). This amounts to US $400 million worth of annual revenue divided between KDF, Al-Shabaab, local businessmen and politicians, as well as local police and border patrols, including the KRA (though this is not formal revenue) (JFJ 2015)” (DIIS Working Paper, P: 10, 2017).

KRA:

The investigator explained how his unit, in collaboration with the Kenyan Revenue Authorities (KRA) and the Kenya Bureau of Standards (KEBS), had planned the raid of a warehouse in an industrial area of Nairobi. They had found tons of processed Brazilian sugar allegedly smuggled into Kenya via Somalia, and it was now being repackaged from 50 kilo sacks into 500 gram and 1 kilo bags bearing the Kenyan brand Mumias Sugar and with added stickers from KEBS showing that the product meets Kenyan standards of production and quality. The repackaged sugar is – when not confiscated by the authorities – sold to retailers as refined Kenyan sugar at a huge profit. In 2014 a one kilo sugar bag sold for KES 133 in Nairobi supermarkets, and by May 2017 prices had gone up to KES 170 with some supermarkets rationing it to one package per customer” (DIIS Working Paper, P: 12, 2017).

Political Influence:

Like the former Nairobi governor Evans Kidero, the Garissa governor Nathif Jama Adam, and the Garissa-born majority speaker of parliament Aden Duale are rumoured to be implicated in the sugar trade (Rawlence 2016: 236). These rumours reach all the way to Nairobi where they can be voiced more freely than in the north. The power of the people implicated by the rumours is more distant in Nairobi, whereas in the northern parts of Kenya the secrecy associated with the rumours points to the importance and power of those involved” (…) “With devolution, local government has become more powerful and more is at stake for locally elected officials due to their increased budget responsibilities and decision-making powers. Concomitantly, local government has become more vulnerable to pressures from local stakeholders like strong businessmen, militias and other state actors. The porous border, the circumvention of border patrols, and the implication of government officials ranging from KDF to KRA means that much of the sugar is not declared to Kenyan customs officials, making Garissa county one of the largest illicit markets in the country. The flow of goods across the border and further into Kenya formally falls under the responsibility of KRA and the national government. Yet the county government is responsible for local revenue collection and enforcement at local markets and car parks, and they also issue licenses for traders. In that sense the warehouses in the region fall under county administration. The latter thus plays an important role in the possibilities for the redistribution of smuggled goods” (DIIS Working Paper, P: 15, 18, 2017).

This here is evidence of cartels, illegal trade that is benefiting the political elites in Kenya and in Somalia. They are both having knowledge of it and its undermining the embargoes and also the activity itself. Since the politicians are the ones that has put in the provisions and the laws to stop imports to secure the local sugar industry.

This paper shows how much money that is involved. It is big business and the cartels are earning fortunes on lie, where they take foreign cheap sugar and trade it as Kenyan sugar with stickers of authenticity of KEBS. That is clearly a violation in itself, but combined with the illegal sugar, they are even using sophisticated methods to trade it to the public. To make the sugar seem like Kenya, when it isn’t.

That this money is shared by many different part of government officials was implicated int the trade from Kenya Defense Force Officials, Kenya Revenue Authority Officials, Border Patrol, Politicians and even Somali terrorist organization Al-Shabab. So the Kenyan are sending military to Somali to fight Al-Shabab, but at the same time giving them revenue with illegal sugar trade. That is a striking a fact considering the use of military to secure safety for Kenyans. Therefore, the cartels are also making sure the reason they are fighting inside Somalia are funded by the stakes into the illegal sugar industry. That should put some alarm bells on. That the politicians are playing with matches and should know that this cartel plus funding of Al-Shabab might hurt them in the long-run. Instead of being just a profitable business.

This is eye-opening and also a tale of corruption and sugar-cartels using the porous borders between the republics in favor of those dealing illegal sugar and selling it on the Kenyan market. Certainly, this sort of thing will implicate bigger names, than the ones mentioned in the paper. If investigated and looked through. You could certainly also find many bigger names who has created massive wealth within short amount of time. Peace.

Reference:

Rasmussen, Jacob – ‘SWEET SECRETS: SUGAR SMUGGLING AND STATE FORMATION IN THE KENYA–SOMALIA BORDERLANDS’ (December 2017) – DIIS Working Paper 2017:11

Opinion: Not surprised Hon. Kutesa is implicated in an FBI bribing case; He is one of the untouchable in the Kitchen Cabinet!

Well, when the news broke that the Federal Bureau of Investigations (FBI) of the United States of America, actually had a case implicating a “Ugandan Scheme” involving Honourable Sam Kahamba Kutesa, the current Minister of Foreign Affairs and previous President of the United Nations General Assembly. So clearly, even with all of these titles it is not enough for the brother-in-law to the President Museveni. As he wants more funds and more money without any consideration of the implications behind it.

The recent developments shouldn’t shock anyone. Kutesa has been in the rear-view of the corruption for decades, sometimes riding on a red-light for long, you wonder when the car was about crash into something. He has been walking on the edge and proves again to use his title and status, to again bribe and soliciting money without have proper guidelines behind it. So that the “investor” actually corrupted to get better deals in Uganda. It happen within 2016, but Kutesa has done similar within the energy and oil industry in 2012 and it goes beyond that too. Therefore, the breaking news this week, is that the U.S. Court are implicating Kutesa. Not that Kutesa is corrupt, that is open non-secret for the ones following Ugandan politics. Therefore, Kutesa or Kuteesa himself are part of an untouchable group of people, that has even been reflected upon in the past. Just take a look at the information, that fits the paradigm of what the FBI is investigating these days.

Allegedly, there is an established cartel of untouchable individuals whose business is the president and who use his name to seek business opportunities for their gratification while at the same time seeking to perpetuate the regime that provides them with the opportunity to enrich themselves. A list that includes some of the president’s relatives and close friends would include, Sam Kuteesa, Salim Saleh, Odrek Rwabwogo (who is married to one of the president’s daughters), Moses Byaruhanga (who is married to a relative of the first lady), Bob Kabonero (the proprietor of Kampala casino), Haji Habib Kagimu (a business man and close friend to President Qadaffi), Noble Mayonbo, Jim Muhwezi and a few others. These people practically decide what to do, and then the president calls in the ministers to sign. These people constitute part of the group that is commonly referred to as the kitchen cabinet. It could actually be possible to do a power mapping in Uganda that identifies the power brokers in the country. (Interview with the Director for Economic Affairs at ISO, Mr. Cheeye, October 2005)” (Amundsen, 2006).

ENHAS Part I:

For example, Museveni refused to take action against Sam Kutesa who had been accused in a parliamentary report, of using his position to defraud Uganda Airlines Corporation. The President said the evidence against Kutesa was not conclusive. However, many people attributed Museveni’s defense of Kutesa to their joint family connections. Kutesa’s wife is a sister to the First Lady, and Museveni’s eldest son, Muhoozi Keinerugaba, is expected to marry Kutesa’s daughter. (Keinerugaba was, until recently, the manager of his uncle Salim Saleh’s business empire). The damning parliamentary report on privatisation was released in December last year while a meeting of European donors was taking place in Kampala. The public expected Museveni to take tough action against the ministers and other government officials implicated, if only to demonstrate to the donors that he was serious about fighting corruption. Instead, he told the donors that those shouting about corruption were «malicious and opportunistic,» trying to settle personal scores or gain political advancement. The censure motion against Kutesa is expected to be tabled shortly. Museveni is quick to enumerate the various institutions set up under his government to deal with corruption, including the inspectorate of government, the Public Accounts Committee, the vice-president’s office, and the Ministry of Ethics and Integrity” (Kirungi, 1999).

ENHAS Part II:

Muhwezi’s counterpart and Minister of State for Finance in charge of Privatization, Kutesa, was charged with overseeing the divestiture of the cargo-handling operation of the Uganda Airlines Corporation (UAC). UAC had a 50 percent stake in Entebbe Handling Services (ENHAS), the company that handled its cargo operations, while Kutesa—in an apparent conflict of interest—owned the rest of the shares in the same company. In addition to being a shareholder, Kutesa was also chairman of the board of directors of ENHAS. This conflict of interest was contrary to clause 8(1-3) of the Leadership Code. A Parliamentary select committee, charged with investigating the privatization process, produced a lengthy report accusing Kutesa of directly influencing the decision to sell the airline’s 50 percent share to ENHAS, falsifying the company’s accounts, and evading taxes” (Smith, 2006).

ENHAS Part III:

The Paradise Papers has already proven that ENHAS profits has been tax evaded again as it has gone to a Shell Company in the Seychelles, which was a deal agreed upon in 2012. This was from ENHAS to Katonga Investment. We do not know much funds that is sent between them, but the reporting of the agreement and deals. Show that the ENHAS is a key component in the shady dealing Kutesa does. As he has previously used it to get ill-gotten gains.

As Global Witness is reporting it as: “Sam Kutesa, Uganda’s foreign minister, set up a discretionary trust in the Seychelles in 2012. Appley identified Kutesa’s companies a “high risk,” given his political role and media reports of alleged corruption and bribery involving Kutesa, during a routine review in 2015. In his response to ICIJ’s partner in Uganda, the Daily Monitor, Kutesa said “I don’t have anything to hide…”and that he established the companies, but “I have never done anything with it at all. I told Appleby to close it many years ago.” (Global Witness, 2017).

From Dorsey and Whitey Corruption Digest of January 2012:

President Museveni has announced to members of the National Resistance Movement’s Central Executive Committee that he is investigating Justice Minister Kahinda Otafiire following an intelligence briefing that the minister masterminded the leaked oil bribery documents which accused Prime Minister Amama Mbabazi and ministers Mr Sam Kutesa and Mr Hilary Onek of taking bribes to influence the award of oil deals. As reported in the November edition of the Corruption Digest, the ministers maintain their innocence. However, Parliament has resolved that those involved step aside until the validity of the documents has been investigated. According to President Museveni, the intelligence report accuses Mr Ottafiire of masterminding the oil bribery scandal to disorganise perceived detractors in government. President Museveni has vowed to investigate the matter in his own capacity before briefing the National Resistance Movement Central Executive Committee”(Dorsey and Whitey Corruption Digest, January 2012).

Recent Bribe for Energy Deal:

In or about February 2016 – after the Ugandan Foreign Minister had resumed his role as Foreign Minister of Uganda, and his in-law had been reelected as the President of Uganda – the Ugandan Foreign Minister solicited a payment from HO, purportedly for a charitable foundation that he wished to launch. HO caused a $500,000 payment to be wired to an account in Uganda designated by the Ugandan Foreign Minister, through a bank in New York, New York. In his communications, HO variously referred to this payment as a “donation” to the reelection campaign of the President of Uganda (who had already been reelected) and as a “donation” to “support” the Ugandan Foreign Minister. In fact, this payment was a bribe to obtain business advantages for the Energy Company in its efforts to secure contracts and ventures in Uganda’s financial and energy sectors. HO also provided the Ugandan Foreign Minister, as well as the President of Uganda, with promises of future benefits, including proposing to partner with both officials’ family businesses in potential joint ventures. In exchange, the Ugandan Foreign Minister assisted the Energy Company in obtaining business in Uganda, including by facilitating the Energy Company’s interest in potentially acquiring a bank” (DoJ, 2017).

The Foundation that Kutesa used the bribe through from the HO has no headquarters, no email and is not registered. So the bribe was fueled through an organization not existing in 2016. That is solicited through the checks by the investigators from the United States in November 2017. It was Special Agent Thomas P. McNulty who was looking into the case concerning Kutesa.

Clearly, there are enough scandals involving the Kitchen Cabinet Member Kutesa or Kuteesa. He has a history of corruption and misusing his position for monetary gains. He is one of them and will be surely continue to do so. Even if the United States charges him with money laundering and soliciting ill-gained funds or bribes for energy deals within Uganda. That is not surprising, as he has done that not only in 2016, but back in 2012, as well as other speculative deals getting state reserves and other funds to put in his own pocket.

If we really took a deep dive into his estates, his businesses and into his accounts. I am sure we would find more shadow agreements and more questionable money that has been earned by him and others. A man who has been used to getting bribes, surely, will appreciate it and expect so. Since the power is within reach and he can grate favors for the investors. Therefore, better pay up to get license and possible markets for their trade. This is done by paying in advance the Minister and secure profitable resources and advantages, that others wouldn’t. While also getting an okay and giving a call to the President. To make sure this is okay. Certainly, Kutesa could have maneuvered this way, all along. Peace.

Reference:

Amundsen, Inge – ‘Political corruption and the role of donors (in Uganda)’(January, 2006) – CMI Commissioned Report

Department of Justice – ‘Head Of Organization Backed By Chinese Energy Conglomerate, And Former Foreign Minister Of Senegal, Charged With Bribing High-Level African Officials’ (20.11.2017) link: https://www.justice.gov/usao-sdny/pr/head-organization-backed-chinese-energy-conglomerate-and-former-foreign-minister

Kirungi, Fred – ‘Uganda – The fight against corruption at a crossroads’ ANB-BIA Supplement (March 1999) link: http://ospiti.peacelink.it/anb-bia/nr367/e06.html

Global Witness – ‘THE PARADISE PAPERS: TRUST TRANSPARENCY IN THE EU’ (November 2017)

Smith, John – ‘Case Study on the Role of Parliament and the Media in the Fight against Corruption’ (2006)