{UAH} Oil cash probe: Musisi regrets role as KCCA ED
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Oil cash probe: Musisi regrets role as KCCA ED
- Written by OLIVE EYOTARU
Three high-profile beneficiaries of President Museveni's Shs 6 billion cash bonus have said any slip-up by government's legal team in defending the oil tax arbitration case would have cost the economy dearly.
Jennifer Musisi, the KCCA executive director, told a parliamentary committee investigating the bonus payments paid to 42 public officers that the government team overzealously defended the $343 million capital gains tax slapped on Heritage Oil and Gas company to avert economic ramifications on the nascent oil sector.
Musisi, who served as commissioner, legal and board affairs at URA when the case was initiated in 2010, revealed that she, together with Allen Kagina, then URA commissioner general, and her successor Doris Akol, severally met the president to discuss claims by third parties questioning the tax claims.
She said they also held discussions on the level of risk to the economy if Uganda failed in its pursuit of the tax claim.
"Because there was no related precedent on the African continent and because Uganda was just venturing into the oil exploration sector, the risks far outweighed the remote benefits," Musisi explained. "Even in international meetings on oil exploration, Uganda was given as an example as a country that was taking a big risk that was likely to downgrade its investment climate and economic performance."
Musisi received Shs 50 million for her role for constituting and providing leadership regarding the taxability of the Heritage-Tullow Oil transaction. It was the same for Fred Kabagambe-Kaliisa, the former permanent secretary in the ministry of energy, who asserted that being a new case, the stakes were high, including the volumes of money that were involved.
"Having been in the petroleum industry since 1983, I had not clearly met issues of international arbitration," said Kabagambe, who was last year appointed a presidential advisor on oil and gas matters.
KCCA POSITION REWARD
Sheila Mwine, the Kiruhura Woman MP, questioned Musisi on accepting the reward and also wondered whether her appointment as KCCA executive director was not reward enough.
Without mincing words, Musisi explained that though it was not a reward, she regretted being appointed to the position, whose contract expires on April 14, 2017.
"It is not something I would have wanted to do if I had the choice. But because I love my country and wanted to make a difference, I decided to make the sacrifice. Had I known what this job involves at the time the president asked me to take it up, I would have declined and preferred to be self-employed," Musisi candidly told the visibly shocked MPs.
On her part, Kagina, who now heads the Uganda National Roads Authority (Unra), revealed that she, together with her successor Akol and assistant commissioner Litigation, Ali Ssekatawa, met the president in Rwakitura in April 2013, in which he reportedly hinted on the 'presidential handshake.'
"After the court ruling on the jurisdiction matter in April 2016, the president invited us for a meeting and said he would do something for the team. I interpreted it as a reward for the team," Kagina said.
RECOGNITION
Several legislators questioned the trio on whether they solicited the reward and whether it was right. On his part, Kabagambe said he would have opted for a medal and state recognition for his role in the case, but said he would not refund the money.
"If I had been asked for options, I would have asked for a distinguished order of service medal and certificate of special recognition, not money. On refunding the money, well, I would not have been rebellious and said I don't want it," he noted.
Musisi suggested that a comprehensive policy should be put in place to streamline issuing of rewards to public officers.
"There should be a clearer way to guide rewards because I see the president giving awards to people, religious leaders, athletes, car washers, market people; so, I don't know whether those are rewards, awards or gifts or handshakes," she said.
eyotaru@gmail.com
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