It is now revealed that Foreign Minister Sam Kahamba Kuteesa, the former United Nations President for the General Assembly of 69th Session are now involved in the midst of the newest Paradise Papers, which is a continuation of the Panama Papers. These are revelation that shows how the wealthy are spreading their wealth to tax-havens.
The newest revelations inside the National Resistance Movement and the MoFA Kuteesa, who has been a loyal minister and NRM crony to President Yoweri Kaguta Museveni. He through help of Appleby started a holding company, that being Katonga Investment Limited. The funds came ENHAS, which is the Entebbe Handling Services. The document revealed in the transaction was signed by fellow employees of Appleby, this being Malcolm Moller and Patrick Lee Mohin, they signed the company through 30th November 2012. Kuteesa was introduced by Justin Dibb. Dibb is a financial juggernaut who has taken part in deals on the African continent, as Chief Executive Officer of Allied Resources Limited and Managing Director of Dominion Petroleum Limited. So he has clearly made friends in and around the circles Kuteesa. Clearly the Petroleum based financier and director had some good advice for him.
This for a deal made in 2012 to make sure the funds for ENHAS are secured on a holding company or a shell company in Seychelles. Appleby Company even wrote a guide called ‘GUIDE TO INTERNATIONAL BUSINESS COMPANIES IN SEYCHELLES’ which states this: “An IBC (or a shareholder thereof) is not subject to any tax or duty on income or profits accruing to or deriving from such IBC or in connection with any transaction to which the IBC (or shareholder, as the case may be), is a party (§109(1)). Notwithstanding any provision of the Stamp Duty Act 1975, (a) all transfers of property to or by an IBC; (b) all transactions in respect of the shares, debt obligations or other securities of an IBC; and (c) all other transactions relating to the business of an IBC, are exempt from the payment of stamp duty (§109(2)). The Exchange Control Act does not apply to an IBC or to any transactions relating to the securities of or in the IBC between the holders of such securities (§109(3)). The exemptions above are expressed to remain in force for a period of twenty years from the date of incorporation of a company under the IBC Act (§109(4))” (Appleby, 2014).
That would mean that Appleby Company combined with the agreements and tax exemptions in the Seychelles must surely be lucrative for ENHAS and Kuteesa. The UN Global Compact introduction of the company through the May 2013 and the words of Chief Executive Officer Georges Tytens said: “Entebbe Handling Services Limited (ENHAS) is a Ground Handling Company, handling over 20 scheduled flights at Entebbe International Airport, Uganda. We have a workforce of 729 staff. ENHAS is a registered member of UN Global Compact and we support and comply with the principles of the Global Compact” (Georges Tytens, May 2013). So the Kuteesa company are working directly on the airport and it is profitable, since it can extend their monies to secure accounts in the Seychelles.
So whatever the Foreign Minister earns on the business and ENHAS could practically go abroad and not pay taxes in Uganda. Clearly, the Appleby guidance of 20 years without paying tax as a IBC through them must have been good business for him. That is why he has done so. Peace.