Uganda Airlines persistent ghost and Museveni’s hand

Barely two years after Uganda Airlines was re-launched, in August 2019, it is navigating turbulent skies bogged with non-performance, alleged massive corruption, mismanagement, government interference and other challenges deemed serious threats to the survival of the newly revamped national carrier. Sources reveal that a bombardier CRJ99 - one of the four aircrafts owned by Uganda Airlines - is grounded at Entebbe airport for lack of spare parts.

The Auditor General Report to Parliament for financial year 2018/19 and 2019/20 highlighted that the airline had 168 million Ugandan shillings in interest financing costs on a loss. The company made only $9.9 million (10.8%) of the projected revenue of $92.8 million.

Fast forward. In May, Uganda Airlines' top management was sent on a 90 days forced leave after an audit report was carried out. The report cited massive corruption among other management challenges that threatened to bring down a company still in its infancy. The Zambian CEO, Cornwell Muleya, also sent on leave, is said to have blown the whistle and wrote several letters to President Yoweri Museveni since 2020, citing a number of problems that needed urgent attention. Sources close to Uganda Airlines say that “the letters were always intercepted and never reached the President.” 

In a dramatic turn of events, the former commercial director, Jennifer Bamuturaki, who had been fired by Muleya was recalled to act as the deputy chief executive of the airline.  Bamuturaki had been fired for mismanagement and conflict of interest after she hired a media and PR firm it is believed she had “very close relations” with. Muleya did not know that Bamuturaki is well connected to Museveni and his brother, Gen Salim Saleh.

To revenge on the man who fired her, Bamuturaki is working closely with State House investigators against the CEO who sacked her for incompetence, causing her to sue the airline for UgShs 5 billion. She lost the case and filed another for unlawful dismissal, which she withdrew days before she was reinstated. Uganda airlines has a long history of mega corruption and interference by Museveni’s inner circle.

“Deep-seated institutional malaise, incompetence and interference from regime cronies led to its collapse,” a report on the collapse of Uganda Airlines, said.  In 2001 the report revealed that the company was technically bankrupt to the tune of $11 million and its books of accounts had not been audited since 1994. The report states that well placed people in government would use the planes on private errands and never paid.

On June 1, 2000, Davis Joash Mugizi, a former commercial service manager was found killed in Bunga, a Kampala suburb.  Mugizi had appeared before the parliamentary special committee and spilled the beans on the mismanagement of Uganda Airlines before it collapsed.

After giving sensitive information that implicated “untouchables” in Museveni’s regime, Mugizi feared for his life. According to media reports, “he came back after that and pleaded with the committee and said guys, I am going to be killed… I am going to be killed for what I have told you,” Salaamu Musumba, a member of the committee, recalled.

The untouchable corruption cartels

The parliamentary committee also questioned how a company - Effort - owned by Museveni’s brother, Saleh, and another company,  Kenbe Investments Limited, owned by William Byaruhanga and Charles Mbiire were part of the consortium that took over Uganda Airlines' inflight catering services without fair competition. Byaruhanga was the Attorney General until early June 2012.

The probe further discovered that the owners of Kenbe Investment later sold 999 shares of their company to Saleh’s Efforte.  Gen Saleh’s company, in partnership with Global Airlinks, owned by former Foreign Affairs Minister, Sam Kutesa, later took over ENHAS - a ground cargo handling company believed to be “the cash cow of airlines.”

The big and untouchable fish mentioned are all well connected to Museveni. Although Kutesa was censured in 1999 by parliament for abuse of office he was never punished and remained powerful in the NRM government.  Political Analysts opine that Museveni knew very well that reviving Uganda Airlines in 2019 was not about making business because those who caused the previous loss for the company are in his living room and dine with him.

Museveni is said to have acted in haste for egoistic political reasons because he felt embarrassed that Uganda ranked behind Kenya, Tanzania and Rwanda with no national flag carrier.  On June 1, Gen Katumba Wamala, survived an assassination attempt that wounded him but killed his daughter and driver.

Analysts link the assassination attempt on the life of the works and transport minister to the ‘mafiaso’ surrounding the airline's corruption cartels - the same suspects in the murder of  Mugizi, in 2000.

As minister, Katumba made some enemies. Among his sins is that he had earlier - end April - ordered a section of the senior management team at the Uganda Airlines Corporation (UAC) to leave office for at least three months to allow for an internal investigation over allegations of corruption.