UTL saga: Kasaija stranded between Museveni, AG orders
A photomontage of (L-R) President Museveni, Finance minister Matia Kasaija and Attorney General William Byaruhanga. FILE PHOTOS
What you need to know:
The managerial and oporational crisis in UTL emanates from the fallout between the administrator of Uganda Telecom Limited (UTL), Mr Bemanya Twebaze, and government officials, most notably the State minister for Finance (Investment), Ms Evelyn Anite, who accuses Mr Bemanya of failing to provide accountability.
The Ministry of Finance is stranded between two contradicting decisions on UTL and it could breed a stalemate on whether to uphold the law and defy the President’s order or abide by the latter and disregard the law, thus triggering a legal or constitutional crisis.
The Minister of Finance, Mr Matia Kasaija, has to choose between President Museveni’s order to audit Uganda Telecom Ltd (UTL) and the legal advice of the Attorney General (AG) William Byaruhanga, who has objected to such audit.
On July 16, President Museveni wrote directing the State minister for Finance in-charge of Privatisation and Investment, Ms Evelyn Anite, to cause an audit into UTL for government to confirm or clear the claims about the telecom company.
In the letter, Mr Museveni said he had heard “rumours” about managers of the telecom company and wrote: “This is to direct you to institute an audit in the activities that are going on in UTL. I have heard of some allegations.”
However, before Ms Anite instructed the Ministry of Finance’s Internal Auditor, Mr Fixon Okony, to carry out the audit, her senior minister, Mr Kasaija on July 23 wrote to the AG seeking a legal opinion on the President’s directive. The President’s letter had not been copied to Kasaija. It’s not clear why.
Mr Kasaija referred the AG to a previous letter of April 24 by the Auditor General, Mr John Muwanga, who declined to audit UTL because it is still under administration and being supervised by court as provided for in the Insolvency law.
The AG had said UTL, being supervised by court, could only be audited at the end of the administration period in November this year.
Is such circumstances, the AG said he would decline to carry out the audit.
In his July 23 letter to the AG, Mr Kasaija wrote: “Please also refer to letter.… dated April 24, 2019 from the AG. Wouldn’t I need to take into consideration your letter.… dated July 1, 2019 in which you provided legal opinion on how to handle the affairs of Uganda Telecom Ltd (UTL)?”
“The purpose of this communication, therefore, is to officially request for your further guidance in view of His Excellency’s directive on the above,” Mr Kasaija added.
Mr Byaruhanga wrote back on July 24 reiterating his earlier legal opinion dismissing such audit. In the letter referred to by Kasaija, the AG had said the Ministry of Finance does not have authority to do supervision over UTL, which is under administration.
Writing to Mr Kasaija on July 24, Byaruhanga reiterated that there is no need to conduct an audit into a company under administration. He insisted UTL can only be audited after one of the creditors has successfully applied to the High Court under the Insolvency Act.
“As we have previously advised (quotes two letters), the Administration of a company in financial distress is, under the Insolvency Act, a court and creditors led procedure in which the shareholders exercise no direct oversight…,” Mr Byaruhanga wrote to Mr Kasaija.
“Accordingly, the appropriate legal avenue through which the audit may be carried out, as directed by H.E the President, is having one of the government agencies on the creditors’ list apply to the High Court for an order demanding an audit within the provisions of the Insolvency Act 2011,” he added.
The AG’s letter reached the Ministry of Finance on Wednesday, the same day Ms Anite had directed the ministry’s internal auditor to start a one month forensic audit into UTL.
“Arising from H.E the President’s letter ref: PO/10 dated July 16 addressed to me, to institute an audit into UTL activities (a copy attached), I am accordingly directing you to conduct an internal audit of UTL activities and evaluate the state of affairs within a period of one month,” Ms Anite wrote.
However, the President’s Press Secretary, Mr Don Wanyama, said such contradicting decisions by Ministers can easily be handled during Cabinet sittings on Mondays.
“Every Monday, all ministers meet for Cabinet sessions. I am sure they will use their next session to productively resolve whatever contradictions they might have on the question of UTL,” Mr Wanyama said.
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