CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS
by Peter Bahemuka, Uganda, January 1999
THEME = CORRUPTION
For some years now, Uganda's economy has been favourably
appraised,
with unprecedented economic growth rates
of an impressive annual average of 6% for the last decade;
a spectacular rise in private sector investment and
an advantageous economic liberalisation and privatisation policy
With this runaway economic growth has come problems: unemployment, a high cost of living, a widening gap between the rich and the poor, unending civil wars in the north and west of the country, and worst of all, a crippling level of corruption in government.
The government has a daunting task to come to terms with the poor standard of living of most Ugandans. It has failed to do so because of the rampant unchecked corruption in government. An opinion poll conducted by an independent research group, Corridor Link Ltd, reported President Museveni's government as being the most corrupt regime in Uganda's post-independence history. The poll was based on a sample of 500 Ugandans drawn from Kampala city and its suburbs. Most of those who replied (64%) said President Museveni leads the most corrupt government since 1962, while 20% think this "honour" falls to Dr.Apollo Milton Obote's second government (1980-85). Only 12% believe ex-dictator Idi Amin's military junta (1971-79) was the most corrupt, while only a mere 3% think Dr.Obote's first government (1962-70) was the most corrupt. 1% of those who replied had no response.
A resounding 79% thought the present government is not doing enough to fight corruption, compared to 21% who were satisfied the government is doing enough. In addition, 55% thought poverty, not corruption, is Uganda's biggest challenge, while 27% thought corruption is Uganda's biggest problem. But the correlation between corruption and poverty is clear to all Ugandans.
The government has failed to check the rampant corruption. The extent of official corruption and the impunity with which it is done, is alarming. Early this year, the press rang alarm bells about the scandal of the dubious sale of the state-owned Uganda Commercial Bank (UCB) to the Malaysian-based firm, Westmont Land Asia, and reported that senior political figures were involved in it. Now there are banking industry fears that the Uganda Commercial Bank Limited (UCBL) [the new name for the UCB], has been so vandalised, that it might well collapse if no drastic action is taken. The Malaysian-born UCBL chief executive, Anandan Vijayan, was recently sacked for lending out about US $30 million illegally to various companies in the past six months, and was ordered to leave the country immediately. On 10 November 1998, the central bank, the Bank of Uganda, put its resident supervisor into the UCBL, to ensure efficiency. There are also calls for the UCB sale agreement to be nullified, and Westmont to give back what it has paid to the government for its purchase.
Other privatisation projects and public works projects offered to private tender, have given cause for concern. The extension to the Jinja Dam; the wicked sale of the Nile Hotel Complex to a consortium involving Tunisians who never paid up; the sale of the Sheraton Kampala Hotel (Apollo Hotel Corporation) turned into a fiasco when it was sold to a company which did not have the money to buy it. All these took place under the watchful eye of the Inspector General of Government (IGG), who is the government's ombudsman, and is supposed to fight corruption.
The IGG's office has got itself a bad reputation, with some of its officers being caught extorting money from the public.
Even critical issues like the purchase of arms to guarantee Uganda's national security, have been beset with dishonesty. President Museveni disclosed in October 1998 that his brother, Major Salim Saleh, had confessed to him that he had intended to make a financial gain from the recent controversial purchase of army helicopters. Museveni told journalists on 21 October 1998, that Major General Saleh and other officials in the Ministry of Defence were bent on benefitting from the deal, but they had confessed to him before he could move in on them.
Senior officers in the national army, the Uganda People's Defence Forces (UPDF) have also been accused of benefitting financially and materially from the prolonged 12-year civil war in the north. An article in the 12-18 October 1998 issue of a Rwanda-based newspaper, The New Times, accused Saleh of "reducing the UPDF to a thieving gang". Major General Saleh, who is also the presidential advisor on defence, has been under criticism for his massive wealth, and the public has questioned that as a soldier, how did he get such wealth. The UPDF's involvement in questionable business deals has alarmed the public, and in one incident a senior UPDF officer, Lt.Col.Jet Mwebaze, died in a mysterious plane crash in western Uganda with US $1,2 million on board the plane. This money went missing and has not yet been traced.
The Ministry of Agriculture, Animal Industry and Fisheries, has been attacked for chronic graft and continuously holding plush- seminars without implementing any of the programmes discussed previously. The Parliamentary committee probing the massive financial impropriety in the ministry involving US $3.4 million meant to construct valley dams in western Ug-anda, recently called for the arrest of the various ministers of state in charge of agriculture, animal industry and fisheries. Shoddy work was also recently unearthed by Members of Parliament, who conducted an on- the-spot inspection of the several valley dams reportedly constructed at over US $300,000. Whereas the ministry officials had claimed that 90% of the work had been done on the dams, the MPs found almost no work had been done.
Ministry officials also failed to account for US $1.6 million meant for the poverty eradication action plan seed project. Instead of buying the seed and giving them to the peasants, only US $600,000 was given to the seed industry. Vice-President Kazibwe (who is in charge of the government's anti-corruption crusade) announced to parliament in October 1998 that over US $25 million borrowed for agricultural extension over the past five years, has disappeared in her ministry.
The Minister of Justice, Joash Mayanja Nkangi, told Parliament on 12 November 1998, that the judiciary is corrupt, citing that racketeering was prevalent in the lower courts and among court clerks, but added that High and Supreme Court judges are mostly "clean", although some are corrupt.
It's clear that corruption is rampant in high places, so what chance does the ordinary citizen have to earn a decent living?
END
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