What he (Mutebile) forgets is that a person can be fired for only one decision. Not standing up to the powers that be over the $750 Million will be part of his legacy.
If I as a laymen could question the pricing of the 6 jets; which should have not cost more than $350 Million, how about him as Governor?
The Bank of Uganda (BOU)as an institution does not lend money to individuals or companies. It’s relates only to other Banks or Financial institutions.
How is it possible for almost $140 Million being lent to a company (Haba) that exports Hides and Skins?
Someone pulled a fast one us all, because I am yet to find a Hides and Skins company in East Africa or Africa in general that can generate or warrant that kind of money.
By George Okello via UAH forum
Is it not brazen corruption or highway robbery going right up to Mr Museveni himself? Why would any central bank lend $140 million to a private company? A central bank is not a commercial or investment bank that can lend money. A central bank is the financial arm of any economy, its role is to mainstain fiscal discilpine, harmonise monetary policy and supervise financial institutions. It can lend money or guarntee borrowings by financial institions like commercial banks etc but it is totally unheard of for any central bank anywhere in the world to lend money to individuals. It is regarded as a very serious act of indiscpline and monetary folly for any bank governor to authorise any such lending. What makes it even very difficult to fathom is that Mr Museveni, in his personal capacity, because the articles of presidency do not allow him to issue illegal or criminal orders to any public official, orders Mr Mutebile to lend Mr Bassabababalba such a huge sum of money. This crook would never have been able to borrow such a huge sum of money from a normal lending institution eg commercial bank or investor. because the money was not lent on usual commerical terms, it had no guarantor or security so it was on the personal guarantee of Mr Museveni that the bank could lend such a huge sum of money. Dont you see this is not just sheer incompetence or naivette but wilful corruption?
Secondly, why would the central bank be directly involved in the purchase of military jets to the tune of $740 million? Why would any central bank governor lend even just one dollar to a private company, even if there is an emergency, or war situation?The purchase of these jets was not budgeted for, so the Ministry off Defence did not have it in its annual spending round. Parliament was not aware of it and was generally kept in the dark, again in breach of the law, both constitutional and criminal. What should have happened is, as soon as Mr Museveni recognised an urgent need for military jerts, he should have instrcuted his Ministry of Defence to put such an urgent remeasure before the Ministry of Finance so that an urgent Supplementary Request would be submitted to parlaiment for approval. As an urgent measure, this should not take long to go through the parliamentary process. The expenditure having been approved by parlaiment, the whole deal would then be passed on to the Government Procurement Directorate ( either the natioanl one in the Ministry of Fianance, or the one in the Defence Ministry) to carry out the tendering exercise and then final purchase of the military jets. All of these would not involve Mr Museveni as President, because I am assuming the Procurement Directorate employs competent and honest people.
As it is, Mr Museveni by-passed all of the above normal procedures for procurement of governmenet materiel and/or services and got directly involved. he decided to ignore all the government offices, preferring to handle such a potentially huge contract almost as if if it was his own private purchase, as if he was buying his underwear or nappies from the super-market. I am aware, the military market is very complex and competitive and is heavily populated by crooks, so a government like the one in Uganda will often need external advice as the people employed for military procurement often do not have the expertise or knowledge of the market. The UK Ministry of Defence advises many governments of its former colonies on defence procurement: Even though they may end up recommending purchase of British products, but atleast they will give a professional assesment of the military value of the proposed purchase as well as its cost, so the potential buyer has an accurate view of the market and the actual cost of the intended purchases. Transpareny International also now advises African governments on major purchases, including purchase of arms. The African Union, in collaboration with the African Development Bank, has set up a specialist Contract Advisory Unit, made up of eminent lawyers and allied professionals to advise African governments on major purchases and international agreements they may want to engage in. So why did Museveni not take advantage of these instititions if not because he wanted to engage in a corrupt deal?
This fact is borne out by the fact that the British Minsitry of Defence said at the time that the 6 jets Museveni bought for $740 million could have been bought from its own Defence Procurement Unit for $450 million. Transparency International said the same 6 jets could have been bought from Ukraine for $180 million if all the middlemen men were cut off. In otherwords, a government that exercised due diligence and acted in the national interests could have saved the Uganda treasury at least $500 million