Anite blasts Muhakanizi over UTL audit

There is storm in the Ministry of Finance, Planning and Economic Development as disagreements grow over whether an audit into the books of accounts and operations of Uganda Telecom Limited (UTL) be conducted or not.

The audit was ordered by President Museveni who in a letter to State Minister for Privatisation and Investment, Ms Evelyn Anite, said, the exercise would help to confirm or clear “rumours” he is hearing about management of UTL.

UTL has since May 2017 been placed under Administration as per the Insolvency Act. This was after the Libyans who were the biggest shareholders left the company that was stressed with debts of over Shs700b.

Government with 31 per cent shares together with creditors appointed Mr Twebaze Bemanya the Registrar General of the Uganda Registration Services Bureau (URSB) as the Administrator and Official Receiver.

Responding to President Museveni’s orders, Minister Anite on July 24 directed the Ministry’s Acting Internal Auditor Mr Fixon Okony to conduct an audit into UTL within a period of one month.
But the audit has been met with resistance by Finance Minister Matia Kasaija, Attorney General Mr William Byaruhanga, and, now lately, Mr Keith Muhakanizi, the Permanent Secretary Ministry of Finance.

Mr Muhakanizi in a letter dated August 2 advised the UTL Administrator not to avail books of accounts and other details to the internal auditor of the Ministry because the exercise would be prejudice since Uganda Broadcasting Corporation (UBC) one of the company’s creditors has already filed in court seeking an order to appoint the Auditor General to do the work.

“Since the question of the Audit is now before court, I am advised by the lawyers that the proposed audit by the Internal Auditor General would be subjudice” he wrote.
“This is to advise that the audit of UTL shall be conducted as guided by Court. Accordingly, as directed by the Hon Minister of Finance, Planning & Economic Development, the Ag. Internal Auditor General is hereby instructed to halt the audit exercise to ensure compliance with the Laws of Uganda” he added.

Just hours after Mr Muhakanizi’s letter, Ms Anite who has been leading the crusade to have Mr Bemanya replaced as UTL Administrator because of lack of accountability to government, hit back saying there is no way she would allow an action in deviation of the President’s directive.

In her August 2 letter seen by Daily Monitor, Ms Anite who cites issues of “connivance” has asked the PS/ST to directly put his issues to the President who had ordered the audit instead of making parallel decisions.

“If you are seeking to reject the directive of H.E the President to me, do it formally and write to him instead of outright connivance, subterfuge, sabotage and manipulation all aimed at stalling efforts to find out the true state of UTL to inform further governance action,” reads part of Ms Anite’s charge.

The Minister who last week clashed with her senior Minister Kasaija, and the AG, has also accused Mr Muhakanizi of taking matters of failing UTL audit “personal” hence asking him to stop giving contrary instructions to the Presidential directive.

“It is regrettable that key government sector players have crafted a fraudulent scheme to frustrate a transparent audit…. The purpose of this communication is to instruct you to stop interfering with implementation of Presidential directives and by copy of this letter instruct the Ag Internal Auditor General to proceed with auditing of UTL,” she added.

It is not clear whether, Mr Muhakanizi will bow to pressure and change his mind or he would insist on taking the stand of letting Court process the UBC application to have the audit carried out by the Office of the Auditor General.

Auditor General John Muwanga in April wrote to Finance Minister Kasaija saying he was not able to audit UTL because it was being supervised by court since the telecom company was under Administration.

Ms Anite, insists that there is a “cartel” of people within the government that are bringing UTL down before selling off the assets for their individual benefit.

Government continues to look for a serious investor to buy into UTL after the deal awarded to Taleology Holdings Ltd, a Nigerian firm was canceled because they did not meet the obligation of paying Shs268b within the first three months.

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