Ms Sarah Birungi Banage, (R) the assistant commissioner – public and corporate affairs of URA.

In a press statement released on Thursday, Sarah Birungi Banage, the Assistant Commissioner Public and Corporate Affairs with URA dismissed as false recent media reports suggesting that the beneficiary officials had earlier ‘hatched a plan’ to share the oil bonanza saying the transaction was both legal and had duly been approved through the Attorney General’s office.

The entire team came from URA, Ministry of Justice and Constitutional Affairs, Ministry of Finance, Planning and Economic Development and the Ministry of Energy and Mineral Development.

“It is standard international best practice for employees to receive bonus payments/or honoraria for exemplary performance in both the public and the private sector. Equally under the Ugandan Constitution; the President has a prerogative as a fountain of honor to reward exemplary performance and this has been exhibited in the fields of health, academia, sports among others,” Banage’s  statement reads in part.

The payments which have popularly been referred to as a “presidential handshake” have caused a lot of debate among Ugandans with some members of the civil society and a section of members of parliament calling for an investigation to the transaction saying it didn’t follow the due process of the law.

According to the Observer newspaper, a section of MPs have demanded that the Speaker of Parliament, Rebecca Kadaga, urgently institute a probe into the payments since the involved officers are public servants who draw a monthly salary for their work with government.

Paul Amoru the Dokolo North MP

Dokolo North MP, Paul Amoru, is quoted to have described the payments as “irregular, uncalled for and disturbing” and called for an immediate investigation into the matter.

“For us, as concerned MPs, from the information we have, URA should answer to the Parliamentary committee whose work directly deals with that to help us answer certain questions.It is unprecedented and dangerous,” Amoru said.

He was among MPs who called for a press conference on Wednesday in which a sizeable number of them said they want to clearly understand the source of this money and the person who authorised its payment.

Reports indicate that at least 42 officials benefitted from the bonus for their role in the capital gains tax dispute, in which the Ugandan government was awarded a combined total of USD700m.

However, Banage says there has been a lot of misconstrued information published in some dailies and online publications to the fact that payments were illegal, no approvals were obtained and that government officials ‘hatched a plan’ to share the oil bonanza.

“There is a lot of inaccuracy in the amount of money and the names of beneficiaries some of whom a former and current employees of URA. For example the following people both current and former staff of URA are erroneously included in the circulating lists namely;- Kyomuhendo Irene, Nabwire Agnes W, Nyakwera Jennipher, Nanziri Justine Stella, Wabokha Robert, Sebyala Samuel, Semombwe Charles, Patrick Mukiibi, Kateshumbwa Dicksons, Saka M Henry, and Otonga Michael Ochan,” Banage wrote.

Banage explained that contrary to the public view about the payments, all the legal processes were done before approvals were made as required by the Financial Management Act and that a Commissioner General was appointed to disburse the respective payments.

She added that the payment was a fraction of less than 1% of the total money won in the case.

Media reports have named the civil servants, who benefited, including, Ms Doris Akol, Head of URA (the initiator of the suit), her predecessor Allen Kagina who now runs the Uganda National Roads Authority (UNRA), the former Attorney General, the former Secretary to the Treasury, and the head of Kampala Capital City Authority, Jennifer Musisi, who headed the tax body’s legal department at the time.

In 2010, Heritage Oil sold its interest in Uganda to Tullow Oil at over $1.5bn, and the Ugandan government decided to impose a capital gains tax on the sale. But the oil firms refused to pay and the drawn-out dispute went on to the UK court of arbitration, where it was concluded in 2015.

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MP Abdu Katuntu the Chair of the Committee.

The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (CCOSASE) recently pinned the former Uganda National Roads Authority (UNRA) directors for forging contract documents in the awarding of a 138 billion shillings contract.

According to the auditor general’s report of 2013/14 there was variation on the dates of signing and awarding contracts meant for the construction of Vurra-Arua-Koboko-Araba road.

Auditor general report also indicated that within the contract document a page was missing and a different unedited page was inserted which may have caused price fluctuations.

This caused the committee members while meeting the old team of UNRA headed by Eng.Kimeze Ssebuga to get suspicious of corruption connivance amongst UNRA officials and directing UNRA serving boss, Allen Kagina, to submit the contract documents for scrutiny by the committee.

A grader works on Vurra-Arua-Koboko-Oraba road.

The Chairperson of the Committee who is also Bugweri County MP, Abdul Katuntu, said that the contract in question should be subjected to a legal audit when given to parliament by UNRA boss by Friday this week.

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The directive was given following a discovery by the legislators that UNRA commissioned the operation of Kyoga one ferry on Zengebe –Namasare between Nakasongola and Amolter district without insurance.

The Committee Chaired by the Member of Parliament for Bugweri County, Abdul Katuntu, were shocked to learn that Kyoga one ferry has been operating on water for three years yet it has never been insured.

The discovery surfaced while the MPs grilled the Director Road Infrastructure protection at UNRA, Reuben Byaruhanga Tumwebaze.

The MPs who included; that of Kasilo County, Elijah Okupa, Woman MP for Bukedea, Anita Among said that the ferry is putting the people’s lives in danger while the travel on water.

Katuntu told UNRA officials to insure this ferry, warning that he will order police to put to rest its operations if its insurance is not secured soon.,

Allen Kagina the UNRA boss.

In her response the Executive Director UNRA, Allen Kagina, admitted that there has been a delay to secure the insurance for Kyoga one ferry, saying that it was caused by the bureaucracy with the insurance company which  they had identified to do the job.

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Allen Kagina the Executive Director of UNRA.

Kagina said this as she was appearing before parliament’s accountability committee as members on the committee raised queries on why the authority had to hire another consultation firm for the Kampala express high way yet there was a Chinese firm that had already done the same work.

The members also found that in the auditor general’s report of 2013/ 2014, it was revealed that government paid 2.3 million dollars per kilo meter on this road yet the same road in Ethiopia with the same terrain cost 1.2 million dollars.

Kagina in her response informed the legislators that UNRA had very little to do in negotiating contracts as this was a direct procurement where it was agreed between government and Exim bank that both the contractor and consultant had to come from China.

This she said was the reason they hired another consultant to compare what had been provided to them and promised to look into both work to see whether the auditor general’s query was right.

She however, agreed with the committee that in the future such agreements need to be avoided.

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He highlighted Government’s achievements which included improved infrastructure such as roads and electricity among others which he says has improved on livelihoods of Ugandans. Museveni also revealed that government has increased the budget of Ministry of Works from 374 billion in 2006 to 3328 billion shillings to date eventually leading to up grading of major roads in the country.

The president has however warned those who have been diverting money for the road sector to watch out with Allen Kagina joining the sector. Meanwhile the Speaker of Parliament Rebecca Kadaga has re-echoed the call to Government to submit the electoral bills, if any, so that parliament is not rushed into doing its work. Kadaga made the call while opening the 5th and last session of the 9^th parliament at Serena hotel where the President delivered the State of the Nation address. Kadaga says parliament needs to get the bills in time so that it consults all the stake holders.

She is also concerned that a number of bills that would be helping Ugandans have not been presented by Cabinet. The Speaker also urged Government to work with Parliament to ensure that the enactment of legislation is done within the 4th session of Parliament noting that the 5th session may not be productive as members will be busy searching for votes. She has also pleaded with members to keep around and perform their duties until May 2016 when the term of this Parliament expires.

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Bulamogi County MP Kenneth Lubogo moved the motion to recognize Kagina as an exceptional civil servant and it was seconded by Nakasongola Moman Mp Margaret Komuhangi.

Kagina transformed the image Uganda’s tax body URA from one perceived to be extremely corrupt to an exemplary institution with top-notch service delivery

During her 10-year tenure, tax collections grew to sh8.03 trillion in 2013/14 down from sh1.92trillion in 2004/05 the cost of tax collection dropped to 2.5% from 3.4% as Uganda’s Tax Body embraced electronic tax collection.

Former Commissioner for Legal and Board affairs, Doris Akol replaced Kagina as the new Commissioner General of URA in October 2014.

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URA boss Allen Kagina

The commissioner General Uganda Revenue Authority Allen Kagina said that government has been losing a lot of revenue through uncollected tax on property transfers.

She said that all property transfers and motor vehicle registrations with the value of 50 million shillings and above would be subject to scrutiny for income tax.

She clarified that this measure is implemented to force income tax defaulters to pay.

Kagina said that this measure does not apply to salaried workers already paying OPAYE (Pay as you earn) as well as Ugandans abroad who send remittances back home.

Ultimate Media

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A report released today by the Uganda Revenue Authority indicates that about 1.8 trillion shillings goes missing in the hands of smuggler though Uganda revenue struggles to fight the vice in the importation clearance process.

URA boss Allen Kagina

Although Uganda revenue authority has done a lot in enforcing tax compliance, it appear to be producing good results with increases in revenue collection, but this has not hindered millions of dollars getting lost in the hands of smugglers

The assistant URA James Kasaale says in the past government collected Ush6 trillion which is equivalent to $2.34 billion got from revenue. He says the revenue collected from the smuggled goods increased to 11.1 billion shillings in 2010/2011from Ush9.9 billion shillings in 2009/2010

Kasaale says the government estimates about 30% of total revenue is lost to tax evasion by traders
He further said, in the month of July and June 2011 a total of 46 containers of hides and skins were impounded that contributed to the recovery of about 1.65 billion shillings.

He says they also impounded a total of 30 million cigarette sticks smuggled from the Democratic Republic of Congo and Southern Sudan respectively that contributed to the recovery of 15 billion shillings

By Mugisa Isaac Mathias

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Alen Kagina has told MPS on the finance committee that hike is as a result of a fail in supply from sugar companies.

URA boss, Allen Kagina

The price of sugar has reached 3,500 shillings a kilogram from 2500 a few weeks back. Kagina has told the members of parliament that the supply was cut off after Lugazi and Kinyara sugar companies reduced supplies for purposes of holiday machine maintenance of the factories.

Kagina says she expects the price to fall to 2,800 shillings by the end of the month as the two companies resume normal supply.

She says the price is expected to fall further after parliament approves a 50% cut in exercise duty announced in the budget.

Ultimate Media

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URA boss, Allen Kagina

In the budget that was read early this week on Wednesday by the finance minister Maria Kiwanuka reviled that government could loss ( 50% ) 8.5 billion shillings in revenue from the reduction in exercise duty of 50% on sugar and 12 billion on no tax  on Kerosene.

Uganda revenue authority commission general Alen Kagina says the authority will work hard to ensure try find more avenues to generate revenue.

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