Uganda Revenue Authority (URA) commissioner general today categorically denied ever soliciting for the Shs 6 billion paid to the 42 government officials for winning a tax arbitration case for Uganda against Heritage Oil and Gas.
Appearing before the House committee on Commissions, Statutory Authorities and State Enterprises (Cosase) with almost all the 34 beneficiaries of the payout from URA, Akol said it was President Yoweri Museveni, who, first ‘promised’ and then ‘offered’ the payment to the ‘economic heroes’ for winning the case.
She said there was documented evidence to support her claim and that the president even admitted as such in a recent NRM caucus meeting that he’s the one who offered the handshake.
In fact, she said the list of beneficiaries was initially generated from the office of the attorney general. The list generated by attorney general Fred Ruhindi had 24 people of would-be beneficiaries. Akol said she only got involved after she was summoned for a meeting by the president on May 17, 2015.
A revised and final list from Akol increased the beneficiaries to 42. Although she initially said she did not know how or who originated the original list, she said the number of beneficiaries increased because more people categorised as non-core and support staff were included to the core staff in recognition of their contribution on the asking of President Museveni.
Asked whether all those who contributed to winning the case were paid, Akol said only those who made ‘significant contribution’. Cosase chairperson Abdu Katuntu wondered how the contribution of each was measured. He said all the 42 beneficiaries will be summoned to the committee and will have to explain their contribution to winning of the case.
URA legal officer, Ali Ssekatawa was asked by Katuntu whether it would be legally and morally right for URA to solicit for the bonus payment. He said he doesn’t see any problem with that.
Katuntu also put it to Ssekatawa and Akol that citing the president’s name in the payout may not absolve the institution of any wrongdoing because, just like Akol herself admitted, the payment wasn’t sanctioned by the URA board – the supervisor. Katuntu reminded Akol that since the payout was out of the URA budget, the president has no power over its funds.
PAID IN DOLLARS, RECEIPTED IN SHILLINGS
Akol amused the committee when she revealed that the over $400m in capital gains was received in dollars but was receipted by URA in shillings because there was no dollar account in Bank of Uganda at the time.
Katuntu said receipting the money in shillings could have led to loss of value during the conversion of such a large sum.
Another issue in contention was on the formation of the local legal team. Akol said she did not know how legal team was constituted as it was done by the attorney general.
Ssekatawa on other hand said the legal team of 24 local “experts” on arbitration, minerals, oil and taxation was constituted to help external lawyers Curtis, Prevost Mallet. Katuntu wondered why only $4.3m was awarded in damages yet the country paid almost $10m in legal fees.
On how many trips were made by local legal team to London, Akol said she did not remember.
The “I don’t remember” answers and the continuous reference to the attorney general’s office incensed some MPs like Betty Anywar, Francis Mwijukye and Medard Ssegona who wondered whether the government institutions particularly URA and attorney general’s office were not working as a team.
“I don’t think the URA boss is being honest. She says I don’t remember on almost everything [being asked]”, Mwijukye fumed.
URA officials also did not have most of the asked supporting documentation, citing the late invitation letter to the Cosase probe.
Akol said they only received the letter last Wednesday. Katuntu tasked the officials to come back next Monday with all the documentation that is certified. He also advised them to familiarize themselves with the taxation, corruption, budgetary laws