Kutesa’s dodgy deals

In exchange for the bribe, the Chinese reportedly emphasised that they expected Kutesa to assist them to get “major projects” in infrastructure, finance, banking, and agriculture in Uganda.

Kutesa and his wife allegedly assured them that they could arrange a meeting for them with Museveni at short notice, and assist them buy a bank.

The bank has since been identified as Crane Bank, which BoU later acquired and sold to DFCU in an overly controversial deal. At the time, BoU was still in negotiations with the bank’s owner Sudhir Raparelia.

The revelations have now sparked claims that Kutesa, working with the named BoU official, attempted to sell Crane Bank to the Chinese firm even before concluding negotiations with Sudhir. BoU first sued Sudhir for fraud and the tycoon counter sued the Central Bank.  The cases are before the court of arbitration and The Independent cannot comment.

Also, according to the FBI, it has been confirmed that indeed Ho and a Chinese delegation were invited as VIP guests during President Museveni’s May 12, 2016 inauguration and, according to the investigating FBI officer, were treated to a private dinner with the President.  The accused Ho reportedly gave Museveni two gifts.

How Kutesa survives

International analysts claim the charges against the alleged Kutesa bribe giver, Patrick Ho Chi-Ping, are a result of America’s increasing scrutiny of Chinese business practices. According to one report, up to 13 of the 26 companies charged by the U.S. Securities Exchange Commission which enforces the FCPA for violating the FCPA last year had a Chinese connection.

The story is big internationally partly because President Trump is opposed to the FCPA, seeing it as impediment for American companies not to be able to legally offer bribes in return for business. On the other hand, Chinese companies operating in America struggle to maintain squeaky clean records and CEFC China Energy Company Ltd, which is the parent company of the implicated China Energy Fund Committee, has been engaged in efforts to distance itself.

According to the Financial Times newspaper, CEFC China issued an official statement saying “a non-governmental and non-profit organisation, (China Energy Fund Committee) is not involved in any of the commercial activities of CEFC China, and has no commercial authorisation relationship whatsoever with the company.”

Back home it is not clear whether President Museveni will take any action on Kutesa.

The Independent has been told that in the past, whenever corruption scandals have erupted around Kutesa, Museveni has been incensed. He has reportedly twice directed that Kutesa be arrested but called it off at the last minute.

Many commentators say Kutesa has survived because he is protected by Museveni. The two are closely connected by historical and family ties.

Kutesa’s first wife, the late Jennifer Kutesa was a cousin to President Museveni’s wife, First Lady and Education Minister Janet Museveni. Meanwhile Kutesa’s daughter, Charlotte Nankunda, is married to the president’s son, Maj. Gen. Muhoozi Kainerugaba.

In 2010, it is said by people familiar with the events, Museveni directed for the arrest and detention of Kutesa. He had just received documents showing that Kutesa allegedly received over 17 million Euros and then Energy Hillary Onek about 6 million Euros from Tullow Oil, an exploration company.

Inspector General of Police, Gen.Kale Kayihura had already deployed police trucks to pick up Kutesa from his home in Nakasero. At the last minute, they were ordered to stand down. Nobody knows why President Museveni had changed his mind.

Some claim that Kutesa was saved by then-Director of Public Prosecutions (DPP) and now Justice Richard Butera. Butera had been involved following investigations by the police chief, who had been instructed by President Museveni.

While there was no conclusive evidence, Kayihura wanted to go ahead and arrest the culprits. The aim was to use these documents and bring Kutesa, Onek and Brian Glover, then-country manager of Tullow Uganda, to a police station for questioning.

But Butera reportedly advised that there was no basis of prosecution because the documents were not backed by any other iota of evidence to give them credibility. If any arrest was to be made, it would have had to be a political action not aimed at meting out justice but simply at giving a signal that corruption cannot be tolerated.

Again, in 2011, President Museveni directed for Kutesa’s arrest over his role in organising the 2007 Chogm, in which over Shs200 billion was allegedly stolen. Vice President Gilbert Bukenya, who chaired the select cabinet committee for Chogm had just been jailed over the same and there was criticism that Kutesa, John Nasasira, who was chief whip and junior labour minister Mwesigwa Rukutana, were being protected.

Insiders suspect that President Museveni wanted to disprove these claims. There had been a lot of pressure on President Museveni. A 2010 WikiLeaks cable showed that the British High Commission was lobbying to have London issue visa sanctions against Kutesa and his group.

In the same cable the then U.S ambassador to Uganda described Kutesa’s corruption as egregious and noted that President Museveni was losing local support and had fallen out with donors over his failure to fight corruption.

Around the same time in 2011, the oil bribery allegations found their way in parliament and sparked off an explosive debate. MPs called for Kutesa’s impeachment over alleged corruption. But they were blocked. A lawyer, Severino Twinobusingye, who was a close ally of former Prime Minister Amama Mbabazi, who also faced the same accusations, sued the Attorney General and halted the proceedings.