How Kabatsi Bust Uganda Airline Thieving Cartel

Kp Reporter·National·

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How Kabatsi Bust Uganda Airline Thieving Cartel

The ability to stand up and pronounce those certain actions that are not in the national interest is one of the casualties of Uganda's highly polarized...

The ability to stand up and pronounce those certain actions that are not in the national interest is one of the casualties of Uganda's highly polarized politics. It takes unwavering determination for a politician, albeit in a supervisory role to speak up against a powerful group like the recently disbanded group of board members and management at Uganda Airlines. 

Following a condemnatory report by the Auditor General of how the recently revived Uganda airlines had made financial losses, slightly a year into operations, President Museveni’s younger brother, Gen. Salim Saleh sent a brief to then State Minister for Works, Ms. Joy Kabatsi for immediate action.

A report by the Auditor General, which focused on Uganda Airline's performance in the financial years 2018/2019 and 2019/2020, indicated that the airline had posted a loss of Shs15b in the Financial Year 2018/2019 and losses of a staggering Shs102b in the Financial Year 2019/2020.

“The company was unable to realize its planned revenue, yet the expenditure on operations was way above projected costs. The company only realized $9.9m (Shs36b or 10.8 percent) of the projected revenue of $92.8m (Shs334b),” Mr John Muwanga, the Auditor General, noted in his report.

It is believed that it is against this backdrop that General Salim Saleh sent a brief to Minister Joy Kabatsi, the state minister of works and transport to swing the axe.

On April 26, the board and management team of Uganda Airlines received a 12-point letter from Joy Kabatsi titled "Pertinent Issues Regarding the Management and Operations of Uganda Airlines." The letter questioned the board’s role in recruitment and procurement for the airline, supposed delayed certification of the A330 fleet, failure by the technical department to develop operations manuals to the satisfaction of the Ugandan Civil Aviation Authority and delayed establishment of an aircraft maintenance and repair organization as per the business plan. 

Ms Kabatsi also questioned the costly recurrent training in simulators for pilots. 

The board members and management decided to ignore the Minister and attempted to plant use the media against her by leaking the letter.

On April 27, the senior Minister of Works and Transport Gen Katumba Wamala sent seven Uganda Airlines top managers on forced leave in a letter that did not clearly state the reasons for the suspension. It only pointed to the need to “pave way for investigation into serious allegations raised against their conduct of business”.  

Those implicated include Mr Cornwell Muleya, whose contract as Uganda Airlines Chief Executive Officer had just recently been extended up to September 2022. 

The suspension came as a surprise to many but what is clear is that it was ordered by President Museveni, who, acting on information, was privy to a number of issues that were not going on well at the Airline. 

While speaking after the recent election of Parliament Speaker and Deputy Speaker, President Museveni stated that Uganda Airlines was being supported by the government to do business but had been infiltrated with corrupt officials, noting: “Some elements in management and the board must face the consequences”.

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