How Museveni got sucked into fights for jobs, deals at Uganda Airlines

The fights culminated in suspension on April 28 of top management team, including chief executive officer Cornwell Muleya, finance director Paul Turacayisenga, director of marketing Roger Wamara, human resource manager Joseph Sebbowa, and director of safety Bruno Oringi.
A week later, the seven-member board of directors led by former junior minister for Local Government, also former Rubanda East MP Perez Ahabwe, were also sent packing. 
Along with Mr Ahabwe also exited Benon Kajuna, Mr Godfrey Ssemugooma, Ms Catherine Asinde Poran, Ms Rehema Mutazindwa, Mr Charles Hamya, and Mr Stephen Aziku Zua.
The suspensions, Sunday Monitor has learnt, were forced by multiple dossiers sent to President Museveni by all interested parties.

In the immediate aftermath of the suspensions, the former minister of State for Transport, Ms Joy Kabatsi, under whose supervision the airline fell, indicated she too had been taken by surprise.
“I had called the board and the executive director for a meeting but they did not turn up. I did not hear from them again, only to hear what you are hearing,” Ms Kabatsi told Sunday Monitor earlier this month.
A few days later, the outgoing Works and Transport Minister, Gen Edward Katumba Wamala, said the group had been forced to take accumulated leave.
 
But on Monday last week, while addressing MPs after the election of the Speaker and Deputy Speaker of Parliament, President Museveni revealed that it was on his instructions that the management team and the board were sent packing.
“The airline was infiltrated immediately (it was revived) by some corrupt elements – employing their relatives, overbudgeting, inflating procurement costs, terrible! Terrible things! When I got the information, I dispersed the whole group,” Mr Museveni said.
But which terrible things did the management and the board commit?

Procurement fights
In his speech on Monday, Mr Museveni simply said the senior managers and members of the board had been dabbling in inflation of procurement costs, but if the contents of a January 27 report that Mr Muleya handed to Gen Salim Saleh for onward transmission to the President is anything to go by, the problem is perhaps much bigger than the President made it appear.

Mr Muleya indicated that some members of the board had been pushing “for the promotion of self-interest” and in other cases colluded with some managers to make quick bucks.
“In procurement specifically, management has witnessed cases where board members have met with some members of the management team with a view to find[ing] ways of invoice loading and other money-making schemes…This attempted collusion... has tended to divide the management team and has brought inefficiency...” he wrote.

Mr Muleya further pointed out that procurement managers have been colluding with people in government to steal from the airline.
Mr Ahabwe, the chairperson of the board of directors, declined to be drawn into a discussion about the accusations made by Mr Muleya.

“Merits or demerits of his allegations have been overtaken by events. The President has already suspended all of us and instituted an investigation. What you are talking about is part of the issues under investigation. If we invoke the principle of sub judice, we will be interfering with the investigation,” he told Sunday Monitor on Friday evening.
Mr Ahabwe, however, revealed that he, together with other members of the board, had written to the President and copied in ministers of Finance, and that of Works and Transport, rebutting some of the accusations levelled against them.

Sunday Monitor was able to access a copy of the said letter, in which the board explained that the standoff between Mr Muleya and the board was as a result of the board’s decision to query the extremely high insurance premiums that the airline has been paying to insurance agents.

“The board directed the management to present justification for the high prices being paid to contractors, some of whom were procured in an uncompetitive manner…It is probable that such board inquiries and formal direction to the management to review the above contracts is being perceived as interference in the procurement process,” the board’s document read in part.

READ: Uganda Airlines CEO, top bosses suspended

Minister Kabatsi case
Two days after the suspensions of the board and management team had been announced, Ms Kabatsi revealed the executive was not happy with the airline’s post-lockdown recovery.
“There are problems with the airline. Reports from there have not been good for a long time now. We are not moving in the way that we would have wanted to move. We needed to have the planes moving. The planes should not be parked,” Ms Kabatsi said.

The board is, however, of the view that Ms Kabatsi’s comments were driven by ill feelings.
“The recent outbursts by Ms Kabatsi… is derived from the fact that in December 2020, she did not only call the chief executive officer demanding $50,000 (about Shs177m) to fund her campaigns for MP, but sent her personal assistant in person to the airlines head offices in Entebbe to pick up the money from the chief executive officer…” the document further reads.
Ms Kabatsi denies the accusation, saying she found Mr Muleya very rude and difficult to engage on anything other than work.

“You can only ask when you are friendly. Somebody you don’t talk to, how do you ask for money?” Ms Kabatsi asked.
In the same document, members of the board accused Ms Kabatsi of meddling in the process of recruiting an Ethiopian national, a one Abebe, and trying to halt the process of recruiting a new commercial director following the firing in October 2019 of Ms Jennifer Bamuturaki Musiime on grounds of poor performance and conflict of interest. Ms Kabatsi denies that too.
“Did I force them to hire him? I do not even know the person they are talking about. We were just looking at the CVs,” Ms Kabatsi said.

Media and publicity
One of the biggest causes of friction has been management of the lucrative media and publicity docket, which falls under the commercial directors’ office.
According to the board, the directorate blew up Shs778,728,483 for hosting 600 people when the airline received the first CRJ900 Bombardier. 

The average unit cost of maintaining each guest stood at Shs1,297,876, which the board said was excessive. 
Most of the money is believed to have been swindled by sections of the management team.
More of the cause of tensions at the airline are expected to be revealed when the ongoing investigation ends.

Fight for jobs
Sources familiar with the revival of the national flag carrier have since revealed that senior government officials and highly connected people started lining up their children and relatives for jobs in the national airline almost immediately after the June 23, 2016 inaugural address to the new Cabinet. The President had then directed then Works minister Monica Azuba to resurrect the airline.

Sunday Monitor has learnt that before the airline put out its first advertisement in September 2018 inviting applications for several positions, a senior Uganda People’s Defence Forces (UPDF) General handed one of the ministers a list of names of people who he said were qualified to be employed by the airline.
The matter of staff recruitment is said to have become a subject of heated exchanges, which resulted in a decision by Cabinet to allow the airline use both headhunting and interviews as a means of hiring its staff.

The fights for jobs have, however, continued to be a major cause of clashes between the top management and the board. 
Mr Muleya alluded to this problem in his report.
“Internally, our areas of concern on the recruitment angle are two-fold - the involvement of the board at all levels of recruitment, which has tended to make the recruitment processes slow and labourious to meet the needs of a commercial entity like an airline,” Mr Muleya wrote.

Inflated air tickets
According to the board, some of the agencies who were recruited were found guilty of selling tickets at inflated prices and pocketing the margin. An audit report, attached to the board’s report indicates that the airline lost $26,991 (about Shs95m) between August 2019 and February 2021.
“Some of the general service agencies that were recruited outside Uganda were involved in a money-making racket. The person who appointed them was making sure only people who would engage in mischief would be recruited,” the source revealed.

Jet fuel
According to sources at the airline, one of the ministers had initially struck a deal with a local firm to supply the airline with fuel, but the board shot down the deal on grounds that the terms were not favourable as the local firm was demanding advance payments after every two weeks. 
“The airlines management [then] went to Dubai, United Arab Emirates, and procured MixedJet, which was offering a better deal. That set the management on a collision course with the minister, the source revealed.

But the board is now questioning the rationale for the procurement of MixedJet, which they claim is supplying fuel at a higher cost. The board is recommending that a local firm be procured. Such a move, it says will help the airline save between 10 and 20 per cent of what it is paying on fuel.