Exclusive: Museveni Probes Aide, Top Official at Attorney General’s Chambers for Asking $10m Bribe from MTN Uganda

President Museveni has commenced investigations into reports that a top ranking official at the Attorney General’s chambers sought a $10m (Shs 37bn) bribe from telecom firm, MTN Uganda.

It all started in October 2017 with MTN Uganda applying for a single term renewal of the license for another 10 years, in accordance with the provisions of the initial National Telecommunication Operators (NTO) license of 1998.

UCC asked MTN Uganda to pay a staggering US$100 million for the new license.

ChimpReports has learned that at the time, MTN Uganda was grappling with a silent internal power struggle between the once powerful legal officer, Anthony Katamba and Chief Executive Officer, Wim Vanhelleputte.

It is said a few months before the expiry of the MTN license, Katamba tried to negotiate on behalf of MTN with UCC to reduce the license fees.

Uncomfortable with Katamba, Wim quickly moved in and removed the responsibility of negotiations from the controversial MTN legal officer.

“It was about trust,” recalls a senior official at MTN who preferred anonymity to protect his job, adding, “Wim was also suspicious of Katamba’s moves and methods of work.”

Katamba, who also enjoyed solid support from MTN Uganda’s Chairman, Charles Mbiire, rushed to the Attorney General William Byaruhanga’s office where he urged officials there to take interest in the negotiation of MTN license renewal.

This investigative website has learned that a “very high level” official approached MTN Uganda, asking for $10m bribe to bring down the license fees by a substantial amount.

In the deal was a close aide of President Museveni.

The head-of-state now wants his former aide and the top official at the Attorney General’s chambers investigated and if possible arrested.

A source at the presidency says Museveni was “shocked” by the allegations of corruption and could soon fire the top leadership at the AG’s chambers.

Before traveling to Ethiopia for the AU Summit last week, Museveni ordered investigators to quickly take up the matter and give him a report as soon as possible.

UCC’s position

During a meeting with MPs in early 2018, UCC officials said they reduced license renewal fees for telecom companies following a market survey and regional comparisons.

UCC Executive Director, Godfrey Mutabazi told MPs on the House Committee on ICT and National Guidance that the reduction in fees was arrived at following an analysis of the market performance over the 20 years of MTN’s operations in the industry, as well as benchmarking processes.

The reduction benefited MTN, the largest operator in the country, whose renewal fees was reduced from the originally proposed US$100 million to US$58 million.

This prompted the President to write to the industry regulator for an explanation of the reduction and also explain the proposed measures necessary to mitigate repatriation of revenues from Uganda by MTN.

“Whereas the Uganda Communications Act 2013 gives the Commission powers to classify licenses and set fees, the Commission uses international best practices to compute fees payable,” said Mutabazi.

UCC officials told MPs that the decision to reduce MTN’s license renewal fees was also due to the fact that there are other players in the telecom industry, and apportioning a 100 per cent charge on only one of them would only be unfair.

They also said that UCC considered the initial bid amount by MTN Uganda in 1998, the inflation rate of the US dollar, and the market expansion multiplier over the years.

Officials also said that the regulations and laws of Uganda do not provide for specific computation and methodology for setting license fees.

“To date, the Commission has a total of seven licensed operators all competing for the widened market. The multiplier should have apportioned appropriately,” said Julianne Mweheire the UCC Director for Industry Affairs and Content Development.

She added that Uganda’s rates compare favourably with Kenya, Rwanda and Tanzania at US$27 million, US$500,000 and US$800,000 respectively.

Mweheire also told the Committee that the decision on repatriation by foreign investors was beyond UCC’s legal mandate, noting that some countries like Nigeria had developed policies that set legal limits on repatriation-of-profit by operators.

“Uganda has liberal policies on investment and repatriation and we recommend that this matter be addressed and included in the Investment Act before it is assented to by the President,” Mweheire.

Bribe

However, Museveni was told that as UCC conducted a survey of telecom industry, the president’s aide and the official at the AG’s chambers met at hotel in Kampala where they agreed to “make money” from the license renewal.

“Now this is the time to make some good money,” the presidential aide reportedly said, adding, “You people should facilitate the legal aspects of this matter so we can eat of this deal.”

The official in the AG’s office seconded the idea hence approaching MTN Uganda to release the bribe.

The telecom was told that if it paid the money, Museveni would be easily convinced to agree to revised rates for the license renewal.

This website was unable to establish if MTN Uganda indeed released funds to bribe the official in the AG’s office and the president’s aide.

Contacted on Wednesday for comment, Wim didn’t appear keen on responding to our questions.

He simply said, “thank you for calling.”

AG Byaruhanga’s line was unreachable when we called today morning.

MTN Uganda’s initial 20-year license to operate in Uganda expired on October 20, 2018 and is yet to be renewed. The telecom is operating on short-term extensions.

President Museveni recently told leaders of over 70 British companies at the UK-Uganda Business Forum at the Double Tree Hilton Hotel in Central London to report to him Ugandan civil servants who seek bribes from them.

“We have launched a campaign against the corrupt. It is easy to root out this evil. The public hates them. All we need are facts. We are discouraging anyone who pays bribes. Don’t deal with crooks,” said the President.

A report by watchdog GAN Integrity showed that corruption constitutes a major challenge for businesses operating or planning to invest in Uganda.

Roughly a quarter of businesses report expecting to give gifts to public officials ‘to get things done’.