http://www.monitor.co.ug/News/National/Saleh--named--coffee--scandal/-/688334/2642812/-/wbbt23/-/index.html

Saleh named in coffee scandal

Gen (rtd) Salim Saleh

By SOLOMON ARINAITWE

Posted Thursday, March 5 2015 at 02:00

In Summary

A parliamentary probe finds the President's brother culpable of obtaining public funds through a company in which he had interests to do business with the government.

PARLIAMENT- A report by a Parliamentary watchdog committee has called for unspecified action to be taken against the President's brother, Gen (rtd) Salim Saleh and others for obtaining billions in public funds through a company in which they had interests to do business with the government.

The Committee on Commissions, Statutory Authorities and State Enterprises accuses Gen Saleh of introducing Uganda Coffee House, APS, Denmark --- a firm he and his wife Jovia Saleh had interests in, to the Uganda Coffee Development Authority (UCDA) to help the agency market Uganda's coffee in the Scandinavian countries.

UCDA subsequently signed a joint venture with Uganda Coffee House, APS, Denmark to market Uganda's coffee in 2003, with Gen Saleh signing off as the chairman of the Board and a one Kwame Ruyondo as the Director and [Secretary].
Mr Ibrahim Ssemujju's committee said for this and other unmentioned actions, "the report recommends that Gen Saleh is guilty of influence peddling and recommends action against him."

Uganda Coffee House is put down as a subsidiary of House of Coffee Ltd, a consortium owned by several Ugandans, M/S Akiba. This firm owned 70 per cent of the shares in the coffee consortium and was controlled by Gen Saleh and his wife.

By the time the venture collapsed in 2005, the government had injected more than Shs3.2 billion in the business, of which Shs2.5 billion was released in 2003 after Gen Saleh had filed a request to then Prime Minister Apollo Nsibambi.

It is reported that in August 2002, M/S Akiba, Gen Saleh's firm tabled another request of $15 million (Shs28.5b) "to add value to the Ugandan coffee and promotion in Denmark"

On August 26, 2002, Prof. Nsibambi is reported to have convened a meeting attended by then State Minister for Finance (General Duties) Mwesigwa Rukutuna and Akiba International to discuss the request for $15 million by the firm.

During that meeting, Prof Nsibambi is said to have directed Mr Rukutuna to follow up on the matter. Subsequently, on September 25, 2002, Mr Rukutana called a follow-up meeting to allow Gen Saleh to defend his request.

The report does not say whether the $15 million was provided after Mr Rukutana, who is the incoming Deputy Attorney General, arranged this meeting. A later meeting is only said to have agreed to "support companies involved in value addition".

Both Gen Saleh and Mr Rukutana were unavailable for reply as the former did not pick repeated calls while the latter's known phone numbers was switched off.
The UCDA executive director, Mr Henry Ngabirano, who signed on behalf of the authority, also never answered calls to his known telephone.

The report further shows that the joint venture which was signed between UCDA and Uganda Coffee House APS gave the coffee authority 50 per cent shares in a new company called M/S Uganda Coffee House APS. M/S Uganda Coffee House APS later changed name to M/S Mt Egon Coffee Europe APS, ultimately registering as M/S Mt Elgon (U) Ltd. The Registrar of Services Bureau, however, indicated that it has no knowledge of such a firm.

With this litany of dealings, the parliamentary committee indicated that the President's brother is guilty of influence peddling and recommends action against him while warning President Museveni to desist from "micro-managing projects from State House".

Former Solicitor General Lucien Tibaruha is faulted for advising that it is possible for government to co-invest in private companies despite objections that had been raised by Ministry of Finance officials.

In a December 18, 2003 letter to the President, Mr Rukutana gave an affirmative assessment of the deals.
The Ssemujju report is scheduled for debate next week.

Recommendations
Action against Saleh: The committee indicated that the President's brother is guilty of influence peddling and recommends action against him.
Warning to Museveni: The committee warns President Museveni to desist from "micro-managing projects from State House".
Former Solicitor General implicated: Former Solicitor General Lucien Tibaruha is faulted for advising that it is possible for government to co-invest in private companies despite objections that had been raised by Ministry of Finance officials.

editorial@ug.nationmedia.com