Perez Godfrey Ahabwe, former chairman board of directors of Uganda Airlines

Ahabwe who was in June 2019 appointed by Monica Azuba Ntege, the then minister of Works and Transport as the chairman of board of directors to superintend over the inauguration of the national flag carrier of Uganda appeared before the parliamentary public accounts committee on commissions, statutory authority, and state enterprises (Cosase) on Thursday.

While appearing before the parliamentary public accounts committee on commissions, statutory authority, and state enterprises (Cosase) on Thursday, Ahabwe argued that the president interfered in the affairs of the airlines by issuing unlawful directives to appoint the CEO, thus usurping the role of the board.

Cosase is continuing its probe into irregularities of the airlines raised by the auditor general in his report for FY 2020/2021. The queries include lack of job grades, strategic plan, poor management of contract files, and failure to seek approval from the National Information Technology Authority (NITA-Uganda) for procurement of IT software among others.

Ahabwe and other board members were in June last year sent on forced leave and later disbanded on the directives of President Museveni through then Prime Minister Dr Ruhakana Rugunda over allegations of corruption, and mismanagement among others. But commenting on the recent controversial appointment of Bamuturaki, Ahabwe says it was a mistake that the country may live to regret because, in her previous junior post as Uganda Airlines commercial director, Bamuturaki was found to be incompetent, underperforming, insubordinate, and involved in financial impropriety. 

“President Museveni’s background is military and in military it’s orders. That is why they say lawful orders meaning there could be unlawful orders. President Museveni depends on his mood. Sometimes he can make a mistake, of course, he’s human. I have a strong feeling, and I believe in, and if I met him tomorrow, I would tell him, ‘sir, this was a mistake. You know you can not just come and say I directly appoint. No, it was a mistake. The modus operandi is clear.’ The president made an error and I have disagreed with that approach respectfully,” said Ahabwe.

“For me as a board chairman, I rely on the recommendations of the supervising officer. Now the new supervisor is the CEO. The board appoints the CEO and top managers, and directors. So when the evaluation of all this was done, the CEO comes with a report to the board recommending someone to confirm in service. But in the case of Jenifer, he [former CEO] says she is not recommended. So I write a document on financial impropriety and there is evidence to that,” he said. 

Ahabwe and Cornwell Muleya the former CEO who appeared as witnesses before Cosase on separate occasions explained that Bamuturaki influenced and handpicked Abbavater Media Agency to do public relations for Uganda Airlines. Her actions led to the over-invoicing of the airlines at $404,000 (Shs 1.5 billion) for the media promotional services instead of $172,000 (Shs 648 million) – resulting in an inflated amount of $232,000 (Shs 874 million).

The board would later discover that Bamuturaki had an intimate relationship the Mark Arnold Odeke, the CEO of Abbavater. Ahabwe pointed out that the Airlines Act and the Board Charter empower the board to hire staff, and directors including the CEO as well as discipline them if they acted contrary to the interest of the shareholders. Uganda Airlines is jointly owned by the ministry of Finance, Planning and Economic Development and the ministry of Works and Transport on 50/50 per cent shares.

Further, Ahabwe pointed out that his team discovered that procurement guidelines were grossly flouted to award the supply of staff uniforms which were of substandard quality; overpricing of food in the economy and business classes of the airlines, fuel supply, insurance and media contracts that were clandestinely benefiting top staff who included Bamuturaki. 

Ahabwe’s testimony was earlier corroborated by Muleya, whose contract was also terminated on orders of the president. Muleya who has since sued the airline for wrongful dismissal indicated that his sacking was influenced and premised on the exposure of such irregularities by his junior staff including Bamuturaki who instigated a mudslinging campaign against him before the president.

inarticle} inarticle}