The Secretary to Treasury Keith Muhakanizi has halted the audit on activities of the Uganda Telecom Limited.
Mr Muhakanizi's directive to the effect is contained in a letter to the UTL Administrator Bemanya Twebaze on August 2.
In the letter seen by the Kampala Post, Muhakanizi asks Bemanya to halt the audit process as directed by State Minister for Privatization and Investment. Muhakanizi cites an ongoing Court process to back his directive.
"Reference is made to a letter from the Internal Auditor General dated July 31, 2019. Further reference is made to letters dated July 31, 2019 and August , 2019 from Uganda Broadcasting Corporation (UBC) a creditor of UTL, indicating inter alia, that they have filed a case for an order in the High Court that the Auditor General be appointed to audit your activities in the Administration of UTL," reads part of Muhakanizi's letter to Bemanya.
He insists that since the question of the audit is now before Court, he has been advised by lawyers that the proposed audit by the Internal Auditor General would amount to sub judice.
"I have also discussed this matter with Hon. Maria Kasaija, Minister of Finance and he has directed that we should allow the court process take it's course and subsequently conduct the audit following this due process," Muhakanizi's letter further reads.
He also instructs that the Internal Auditor General should halt the audit exercise to ensure compliance with the Laws of Uganda.
The directive by Muhakanizi follows another one given by State Minister Anite to the Internal Auditor General last month for an audit to be conducted on activities of the Uganda Telecom Limited (UTL).
“Arising from H.E the President’s letter... dated July 16, 2019 addressed to me, to institute an audit of UTL activities, I am directing you to conduct an internal audit of UTL activities and evaluate the state of affairs within a period of one month,” read Anite’s letter dated July 24, 2019.
She further cautioned that the internal audit on UTL must be comprehensive to confirm or clear the allegations before the president.
President Museveni in a letter dated July 16, 2019, directed Anite to carry out an audit in the activities of UTL citing some allegations made against the managers of the Telecom.
It, however, remains to be seen how the standoff will be resolved as the two government officials claim to be acting with guidance from the president.