By Mulengera Reporters
On the evening of Wednesday 26th June, Privatization & Investments Minister Evelyn Anite dispatched a letter prompting the Attorney General to commence court proceedings aimed at halting Twebaze Bemanya’s tenure as the provisional administrator for Uganda Telecom Ltd.
She disclosed that by resisting efforts to audit his activities for the last two years, Bemanya had metamorphosed into someone the Finance Ministry (as the absolute UTL shareholder) couldn’t do business with anymore.
Instead of proceeding to court as asked, Mwesigwa Rukutana (acting as the AG) has written back to Anite a very contemptuous letter (also copied to the President) siding with Bemanya and arguing out his case why his removal as administrator isn’t possible.
In his 3-page letter copied to very many offices, Rukutana says that as the Speaker guided earlier in the week (that administration is a court-controlled process) it would be contempt of Parliament for him to proceed applying to court as directed by Anite. He says being a court-controlled process, the hands of both legislature and executive are always tied (under the relevant laws) as long as the administration period is still running.
He claims that the fact that since June 2017, the Finance Ministry has extended Bemanya’s tenure as administrator thrice is proof that they (as absolute shareholders) are satisfied with his performance so far. He says in case he filed in court as Anite directed, Bemanya would use such as evidence and court would rule in his favor.
Renowned for very intriguing legal opinions, Rukutana adds that the fact that court went ahead to ratify Finance Ministry’s grant of extension is further confirmation the man from Kanungu has done a good job as administrator. He says Bemanya’s incompetence and underperformance can only be determined against the provisions of the administration deed executed between the Finance Ministry and him as official receiver at the commencement of their relationship.
Rukutana agrees with Anite that much of the credit some is money UTL owes government agencies but says the Finance Ministry or Anite (basically GoU through the AG) can’t proceed to court demanding Bemanya ouster since the entities (like UCC etc) have their own independent legal existence capable of suing and being sued in their name. He therefore argues there is no doubt court would rule against government in case AG goes ahead and files a case in court seeking Bemanya’s removal.
The self-professed polygamist argues that the only time an audit can legally be conducted is after the conclusion of the admi8nistration period which expires on 22nd November. Rukutana also makes reference to Auditor General John Muwanga’s 24th April letter concluding it would be imprudent subjecting Bemanya to any audit now as that would complicate the process of soliciting for the strategic investor to recapitalize the company and achieve the administration period’s overall objective which is shielding the company against liquidation. Rukutana curiously argues that removing Bemanya at this point in time “would frustrate the efforts of the Administrator to achieve the purpose of the Administration Deed.” He adds that the creditors, in whose interest it is for the strategic investor to be found, may drag government to court challenging the entire process “and the company may end up in liquidation.” He intriguingly adds: “Continued interference in the administration of UTL may attract liability on government and you are advised to refrain from it.”
Rukutana, whose Justice & Constitutional Affairs Ministry mothers URSB which Bemanya substantively heads (making him official receiver by operation of the law), makes things even more complicated by bluntly stating: “The Minister of Finance has no supervisory powers over the Administrator [and] even if he had locus, there are no grounds to remove the administrator of UTL from office.” He adds: “The Minister of Finance as a shareholder has no locus to apply to court to remove the administrator and any such application is bound to fail.”
Rather sarcastically, Rukutana says he takes note of the complications Anite has encountered in dealing with Bemanya as the administrator and only consoles her by saying that’s unfortunate as the law (basically the Insolvency Act & regulations thereof) has to strictly be followed.
Dated 28th June, Rukutana’s letter comes on the heels of the Thursday night NBS Frontline debate during which the UTL issue created so much antagonism that moderator Charles Odongtho struggled to prevent a physical exchange between Nandala Mafabi and city lawyer Robert Kirunda. Nandala, who went as far as dismissing Kirunda as a “hopeless lawyer,” backed the Anite position wondering what Bemanya was still doing at UTL.
Nandala said Bemanya’s refusal to be audited was simply indefensible however much the administrator can quote the relevant sections of the law to shield himself from scrutiny. Kirunda, whose views didn’t differ that much from those Rukutana epitomizes in his letter, urged caution saying, being a relatively new piece of legislation, its understandable many are likely to misconstrue and misapply the provisions of the Insolvency Act. Nandala, whose whistle blowing in the past led to the UTL inquiry by Parliament, repeatedly told off Kirunda asking him to keep quiet because he (Nandala) knows much more about UTL than anybody else on the panel. Ofwono Opondo and the very eloquent Morrison Rwakakamba too agreed with Nandala that Bemanya’s time was up.
One of the NBS panelists referred to the 24th June 2019 notice of intention to sue UCECPS (which unites Ugandans working for telecom companies) wrote to the administrator questioning the status of Shs1,051,495,427 which UTL owes their (UCECPS) members whose employment at the company has previously been terminated. In the letter, UCECPS Chairman David Nkojjo says on being terminated the former UTL employees resorted to coming to the offices of their pension scheme demanding for their terminal benefits which the UTL administrator hasn’t yet passed on. UCECPS is one of the many UTL creditors and Nkojjo says that UTL’s total indebtedness to UCECPS stands at Shs14.7bn.
Rukutana’s latest rant, contradicting Anite’s position, simply implies there is going to be continuous polarisis among cabinet members regarding the UTL saga and President Museveni’s personal intervention is what it will take for tensions to be deescalated because, being the combative personality she is, Anite will most likely be firing back telling off Rukutana in her characteristic style (some have asked her to call in the magye/army). She remains emboldened by the fact that Bemanya’s conspicuous (some say strategic) silence could easily be construed by the public for admission of guilt. Gratefully, the two Ministers (Anite and Rukutana) have both kept the President in copy of their very explosive missives. Watch this space. (For comments, email us at Mulengera2040@gmail.com).
