Labour officer calls for mediation meeting between Uganda Airlines, former CEO Muleya

Kampala, Uganda | THE INDEPENDENT | A senior labour officer at Wakiso district, Celestine Muhumuza, has organized a mediation meeting between Uganda Airlines and former CEO Cornwell Muleya.

The meeting will be held at 2pm today, with the view of reaching an amicable settlement of Muleya’s complaint of unlawful dismissal.

Muhumuza, in a letter authored on April 12th, 2022 to Uganda Airlines, says the mediation meeting will take place at the labour office in Wakiso district local government. He however says, “failure to comply, the dispute will be referred to the Industrial Court for further handling.”

This development comes after Muleya lodged a complaint under Employment Act 2006, reference number LD.07.04.22, to the labour office on April 4. The labour dispute stems from the government terminating Muleya’s employment contract as CEO of Uganda Airlines in February.

Muleya’s woes started on April 21st, 2021 after Works minister Edward Katumba Wamala sent him and 12 other top officials on forced leave, before eventually suspending them. They were suspended on the orders of President Yoweri Kaguta Museveni to pave way for investigations into allegations of financial mismanagement, collusion, and nepotism in staff recruitment among other issues.

In mid-February this year, Muleya’s contract was terminated. Muleya, who was CEO from 2019 to May last year, now wants the government to reinstate him or pay over shillings 3.5 billion in terminal benefits.

Through his lawyers, Muwema and Co. Advocates, Muleya accuses the government of unlawfully suspending and later terminating his employment contract.

On March 28, Muwema wrote to Waiswa Bageya, as the chairman of the interim board of Uganda Airlines and Permanent Secretary of Ministry of Works over the matter, saying due process was not followed.

Muleya claims that the interim board issued him a notice to terminate his contract on February 15, 2022, in disregard of the due process.

His lawyer, Muwema says Bageya who authored the notice to terminate Muleya’s contract, did not disclose the reasons for the decision. “His contract of employment did not have a termination clause and Muleya was also “never heard in any disciplinary proceedings.”

Muwema concludes that the “purported suspension and termination of our client’s services as the Chief Executive Officer of UNACL was done contrary to all due process and the law. It presents a case of witch-hunt wrought with malice and it reeks of irregularities.”

As a result, Muleya is demanding immediate reinstatement as the CEO of the company and “an unconditional apology for the material inconvenience, reputational damage and loss suffered,” says Muwema.

He warns that should the government fail to reinstate Muleya as CEO, he will take legal action and demand his terminal benefits amounting to Shillings 3,545,186,318.  This includes salary arrears of Shillings 126 million for the month of February 2022, Shillings one billion as payment for general damages for reputation damages and Shillings 1.2 billion as payment for damages for loss of expectation interest in employment among other claims.

Muwema says the board leveled five “unsubstantiated accusations” against Muleya, which include alleged failure to supervise and curb corruption of staff under his watch, delayed operation of the Airbus A330-800Neo and the self-handling project. He was also accused of gross procurement malpractice, financial mismanagement and unethical human resource practices in recruitment.

He says the move to terminate Muleya’s contract has “occasioned immeasurable loss and damage” to his “distinguished career in the aviation industry, which he has built over the last 20 years.”

Muleya was among the officials involved in the revival of Uganda Airlines in 2019. He is a Zambian who ventured into aviation in 1995 as general manager and CEO of Air Botswana Corporation for eight years, moved on to Air Mauritius, and worked as CEO for Zambezi Airlines Ltd and ALS Limited in Kenya. Later, he was contracted as CEO of Air Uganda in 2013.

In September 2019, the Works ministry hired Muleya as CEO of Uganda Airlines and renewed his contract three times by the time he was sent on forced leave. The Ministry renewed Muleya’s contract in 2021 and it was bound to expire in September 2022.

Last month, Attorney General Kiryowa Kiwanuka in response to Muwema’s letter to the interim board chairman, said Muleya should go ahead and sue the government.

In February, Bageya told URN that the interim board had terminated Muleya’s contract after concluding investigations and disciplinary proceedings against him and 12 other suspended staff.

He said Muleya’s contract was terminated because the allegations against him were “substantial and he was found culpable.”

Bageya however said that they would pay the terminal benefits of the affected staff but failed short of mentioning the figures. He noted that  Muleya had been earning close to Shillings 120million as his monthly gross salary.

The other affected staff are the former finance director, Paul Turacayisenga, the Director of Commercial, Rogers Wamara, Procurement Manager Moses Wangalwa, sales and marketing officer Deo Nyanzi, Andrew Tumusiime (senior administration manager), Harvey Kalama (ground operational manager), Bruno Oringi (safety manager), Michael Kaliisa (quality manager), crew training manager Juliet Otage Odur and first officers Kenneth Kiyemba and Alex Kakooza.

The board also terminated Wamara’s contract while the other managers and officers were reinstated or still on suspension pending the conclusion of investigations.

Uganda Airlines now has a new board of directors chaired by Priscilla Mirembe Serukka. The new board of seven directors was inaugurated on April 1.

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URN