Inside the sale of Greenland, ICB, Crane bank

Last year, when the parliamentary committee on Commissions, Statutory Authorities and State Enterprises (Cosase) opened an investigation into the defunct banks, it needed credible information, naming names and apportioning responsibility for specific acts of a fraudulent or questionable nature. Without this insight, any parliamentary probe would find itself constrained. A year later, Bugweri county MP, Abdu Katuntu, who chairs Cosase, told The Observer that parliament is now in a firm position with the investigations and Ugandans will have value for the resources spent on the inquiry.

“It will be prejudicial to the ongoing process if I share my thoughts about the likely outcome of this process, but the information that has been discovered is so far good and worth it,” he said. Based on Cosase’s working document seen by this newspaper, the committee’s outstanding task will be to apportion blame for the commissions and omissions raised by the auditor general (AG) as well as tracing of the assets of the defunct banks.

“We have some information of who benefited from the scheme but we wait to hear from the side of those accused,” said one of the MPs who sits on Cosase, speaking off the record. This MP explained that it is against this background that parliament instructed the AG and inspector general of government (IGG) to investigate the wealth of the top leadership at BoU.

 “This can give you clues as to where we are heading,” the MP said. On November, 28, 2017, Katuntu requested the auditor general to undertake a special audit on the closure of commercial banks by Bank of Uganda (BoU). Aware that there are several investigations that have previously been carried out on closed banks like Greenland Bank Limited, Katuntu’s committee specifically asked the auditor General to shed light on “the status of the banks at closure, cost of liquidation, status of assets and liabilities of the aforementioned banks from closure to-date, non-performing assets, non-recoverable assets and liquidators.” 

Under the Financial Institutions Act (FIA) as amended, BoU can revoke the licence of a financial institution if it is satisfied that it has ceased to carry on business, become insolvent, gone into liquidation, wound up, undercapitalised or dissolved. Section 95 of the FIA provides that BoU shall, within a year after taking over a financial institution, consider and implement any of the following options: arrange a merger with another financial institution; arrange for the purchase of assets and assumption of all or some of the liabilities by other financial institutions; arrange to sell the financial institution; liquidate the assets of the financial institution. 

The parliamentary investigation seeks to establish whether the central bank exercised these powers in accordance with the law. “In specific terms, this investigation is intended to establish the status of the assets and liabilities at the time of takeover and to-date as well as find out whether they have acted in good faith and with due care as receivers and liquidators in the exercise of their general powers,” Katuntu said. Accordingly, the auditor general opened inquiries into how Teefe bank, International Credit Bank Limited, Greenland bank, Cooperative bank, National Bank of Commerce, Global Trust bank and Crane bank came to be shut down.

ATTEMPT TO BLOCK INVESTIGATIONS

Some individuals attempted to block the parliamentary investigations on ground that it was sub judice. Shareholders of Crane bank and National Bank of Commerce are battling BoU in the High court over the closure of their respective banks. Indeed, deputy speaker of parliament Jacob Oulanyah had stopped Cosase on this very ground. However, Katuntu approached Speaker Rebecca Kadaga who intervened to save the parliamentary investigations. Kadaga indicated that the inquiry did not materially touch the issues in the court.

At the same time, the Financial Intelligence Authority and the Inspectorate of Government were carrying out a parallel inquiry into suspected illicit financial transactions said to involve former BoU director for supervision, Justine Bagyenda. The FIA executive director, Sydney Asubo, told The Observer that his mandate is not to investigate, but source information.

“It is within that context that we formed ground to justify further investigations into the illicit finance flows,” Asubo said. When asked whether this is good ground to question central bank mandarins, Asubo said: “I would not advise further investigations if the information sourced is flimsy. Whereas I cannot discuss what our report says, I can confirm that we formed the ground to justify investigations.”

 We understand that the FIA report, which was shared with the speaker to parliament, IGG and minister of Finance, Planning and Economic Development, was the basis upon which Kadaga, weeks ago, called off the process of approving Bagyenda’s nomination as a new member on the FIA board. IGG INVESTIGATIONS Meanwhile, in the background, IGG’s own probe found itself almost getting muddled by a behind-the-scenes power play which threatened to further undermine the integrity of the central bank. The bank governor, Emmanuel Tumusiime Mutebile, was the subject of wide-ranging whistle-blower allegations from individual employees of BoU who claimed their rights and freedoms were being violated.

The IGG was, therefore, asked to inquire into the very competence of the bank’s top management. Matters came to a head with the appointment of one Twinemanzi Tumubweine to replace Bagyenda, as executive director supervision. This appointment was derided as having been premised on conflict of interest, nepotism and influence peddling. Tumubweine is son to Manzi Tumubweine, who has been a member of BoU’s board of directors. The petition also said Twinemanzi was unqualified for the job.

Very quickly, a war of words broke out between the Inspectorate of Government and the governor with the latter arguing that the constitutional guarantees of independence outlined in respect to BoU insulated him from investigations by the IGG. The impasse saw an exchange of several legal opinions and letters between the two constitutional bodies, ultimately prompting the intervention of President Museveni. Museveni called a meeting at State House-Entebbe attended by the governor; his deputy, Dr Louis Kasekende, the IGG, and Katuntu in his capacity as chairperson of Cosase, which exercises parliamentary oversight over both institutions.

At the conclusion of the meeting, the president set up a harmonised committee chaired by Katuntu to quietly investigate the issues and power politics at BoU. This ad hoc committee is yet to report to the president. However, along the way, the AG released a preliminary report on the defunct banks. 

AUDITOR GENERAL’S FINDINGS 

The report from his special audit of Bank of Uganda and defunct banks was released last month. Auditor General John Muwanga revealed that there were no documented guidelines/regulations or policies in place for the identification of the purchasers of Gold Trust Bank, National Bank of Commerce and Crane Bank Limited.

“There were also no guidelines to determine the procedures to be adopted by the central bank in the sale/transfer of assets and liabilities of the defunct banks to the identified purchaser. In the absence of guidelines, I could not establish the basis used to select the purchaser and determining the values of assets and liabilities transferred by BoU to the purchaser,” the AG’s report notes. The AG further noted that BoU did not carry out a requisite valuation of assets and liabilities of the three defunct banks whose fate was resolved under the ‘purchase and assumption’ arrangement. “In absence of the valuation and or documented evaluation of alternatives and assumptions used, I could not establish how the terms for the transfer of assets and liabilities in the P&A were determined.”

Whereas the AG was availed with the asset movement schedules for Greenland Bank, ICB and Cooperative bank indicating details of assets at closure, assets sold, selling price, period sale, unsold assets, performing and non-performing loans from time of closure to the year 2001, for the period starting 2002 when the liquidation role was directly performed by BoU, no asset movement schedules were availed. To that effect, the AG notes, “I could not adequately verify the movement of assets of the three banks from Shs 117.6 billion at closure to Shs 19.7bn as at 30th June 2016.” In the case of ICB, Greenland bank and Cooperative bank, the total loan portfolio sold of Shs135bn included secured loans of Shs34.5bn sold to Nile River Acquisition Company at a 93% discount.

The AG also discovered that the Crane Bank non-performing loans worth Shs 570.38bn out of the gross loans of Shs 1,159bn, were sold to dfcu Bank at what appears to be heavily discounted cost of Shs200bn. “I could not establish how the consideration of Shs 200bn was derived from the bad book of Shs 570.38bn…Further, I was not provided with the schedule of loans and the corresponding collateral transferred to dfcu.” On Friday, Cosase is expected to again meet with BoU officials to clarify on the issues raised in the AG’s report. skakaire@observer.ug

Gold Trust Bank sale agreement was signed two weeks before seizure — MPs

Members of Parliament were yesterday shocked to learn that Bank of Uganda (BOU) flouted all the procurement procedures in the sale of Gold Trust Bank to dfcu Bank. Documents presented to the parliamentary committee on commission, statutory authorities and state enterprises (Cosase) investigating the closure indicated that the bank was sold to dfcu before it was closed and that the deal was not authorised by the board.

According to the documents, BOU signed a confidential agreement with dfcu Bank on July 10, 2014 and on July 25, 2014 revoked the bank’s licence, contrary to the BOU Act.

“How can that happen? You sell before you close? The law requires you to first take over management for six months and if the institution does not comply with the prudential financial standards, then you close it. But in this case, the bank was closed and taken over on the same day,” MP Moses Kasibante said.

 The agreement was signed by the then executive director in charge of supervision, Justine Bagyenda, on behalf of BOU and dfcu managing director Juma Kisame on behalf of dfcu. Global Trust Bank was one of the commercial banks that started operations in 2008 and was closed in 2014 on account of accumulated losses to a tune of sh60b. Its closure came two years after the collapse of National Bank of Commerce in 2012.

Although BOU closed the bank in accordance with the Financial Institutions Act 2004, the Auditor General, John Muwanga, revealed that BOU sold the bank to dfcu without internal guidelines, regulations or policies in place to guide the identification of the buyer and valuation of the assets. “Therefore, I was unable to determine how the buyer was selected and also establish how the purchase and assumption agreement was arrived at. In the absence of guidelines and procurement records, I could not ascertain whether BOU selected and evaluated the bids in line with the evaluation criteria,” Muwanga stated.

During the meeting yesterday, Bagyenda and the BOU head of legal, Margaret Kasule, came under fire for exposing Global Trust Bank’s financial details to dfcu before the closure. The MPs also wanted to know how dfcu got to know about the deal. Bagyenda also came under fire for signing on behalf of BOU, yet she was reportedly not authorised.

The BOU Act stipulates that agreements are only signed by the governor, his deputy and the board secretary.

Trouble started when MP Michael Tusiime said: “Negotiationsfor takeover were done before the agreement was signed contrary to the BOU Act.For you to have signed the agreement, it means you disclosed the bank’sfinancial affairs to the buyer. Did you seek their permission as required bySection 40 (3) of BOU Act?”

 Bagyenda, however, bounced the question to Kasule, who admitted to drafting the agreement, but denied being part of it or being consulted before the signing. “So madam Bagyenda, why did you disclose the bank’s financial information to strangers, yet it had been entrusted with you as a regulator?” committee chairperson Abdu Katuntu asked.

Bagyenda said the decision was not taken by her as an individual, but the management and board of the bank. But when BOU governor Emmanuel Mutebile was asked to explain, he referred the matter to the board secretary, Hellen Susan Wasagali Kanyemibwa.

“I have the minutes of the board meeting from January2014-December 2014, this issue was never discussed,” Kanyemibwa said asBagyenda struggled to explain.

 “My view is that this confidential agreement was drafted by the legal department. I assumed that they had followed all the procedures,” Bagyenda said as MPs asked her why she signed.

Museveni briber found guilty, convicted in US

Former Hong Kong Home Affairs minister Patrick Ho Chi-ping has been found guilty by the federal court in USA of offering millions of bribes to several African leaders including Ugandan and Chadian presidents.

Ho was convicted for offering a $500,000 bribe to Uganda President Yoweri Museveni, $500,000 to Uganda Foreign Affairs minister Sam Kutesa and $2 million to Chad's President Idriss Deby. Ho was found guilty after a one-week trial before US district judge Loretta A. Preska in the Southern District of New York of one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), four counts of violating the FCPA, one count of conspiring to commit international money laundering and one count of committing international money laundering.  

The total $1m bribe to Museveni and Kutesa was in a bid to secure business dealings in railway services, infrastructure construction, fishing, hydro-energy, banking and finance as well as tourism for the Chinese conglomerate CEFC China Energy Co. Other potential deals for CEFC included; construction of a Chinatown to boost tourism on land near L.Victoria and possibly an island.

CEFC also offered profit-sharing through a partnership with the Museveni and Kutesa family businesses. Museveni's $500,000 bribe termed as "campaign donation" was delivered in May 2016 ahead of Museveni's swearing in at Kololo ceremonial grounds, never mind that the controversial elections had already been held in February.

Before leaving for Uganda and delivering Museveni's bribe, Ho asked Kutesa for help with the customs officials in regards to Museveni's bribe that was delivered in gift boxes, court heard.

Ho stated in an email also copied Kutesa's wife Edith, "As we are about to board the plan[e] to Uganda, we are preparing to bring with us some very 'nice' gifts to your President and to [the Ugandan Foreign minister] to celebrate the occasion. We shall require special assistance with your customs procedure. Please assist in whatever way you can otherwise we will have to make other plans." 

Kutesa’s $500,000 bribe was paid via a wire transfer from HSBC bank in Hong Kong (China) through an intermediary HSBC bank (USA) to Stannic bank in Uganda on May 6, 2016.

Ho’s Uganda-bribery scheme was hatched in 2014 from the time when Kutesa was president of the UN General Assembly. 

Court heard that so successful was Ho’s meeting with President Museveni, that he wrote to CEFC chairman Ye (who also worked as a special advisor to Kutesa during his time at UN) that Museveni was willing to undo already completed bids in oil blocks in order to award the concessions to CEFC.

As for the Chad bribery scheme in which $2m was paid to President Deby, it was aimed at securing oil deals in the poor West African nation. 69-year-old Ho will be sentenced on March 14 and faces up to 65 years in prison. He was found guilty on seven of eight counts of bribery and money laundering by 12 jurors (nine women and 3 men).

“Patrick Ho now stands convicted of scheming to pay millions in bribes to foreign leaders in Chad and Uganda, all as part of his efforts to corruptly secure unfair business advantages for a multibillion-dollar Chinese energy company,” said US attorney Geoffrey Berman. 

“As the jury’s verdict makes clear, Ho’s repeated attempts to corrupt foreign leaders were not business as usual, but criminal efforts to undermine the fairness of international markets and erode the public’s faith in its leaders.”

The conviction of Ho comes just days after Museveni was given a corruption fight award at the 25th anniversary celebrations of Transparency International, Uganda Chapter in recognition of his efforts to fight against corruption.

At the ceremony Museveni told the gathering that his own father was corrupt Mzee Amos Kaguta was corrupt because he had in possession at his home government branded veterinary medicines. Museveni said his fight against corruption had been frustrated by the people in civil service and politicians, who despite their good pay still steal public resources. He said on December 10, he "will announce new measures in our renewed fight against corruption. That said, there is corruption in Uganda. It stems from the colonial times."

"We also made the mistake of assuming that elected leaders would diligently serve in their people's interests. We gave people power to elect leaders, who instead of offering oversight have joined the corrupt class," Museveni said.

Adding; "However, corruption will now be defeated. The corrupt civil servants have exposed themselves. The population is angry with them. Also, we now have more educated young people. The pool from which to pick the replacements for the corrupt civil servants has grown."

Chi Ping Patrick Ho convicted of International Bribery, Money Laundering Offenses: Schemed to Bribe the President of Chad, President and Foreign Minister of Uganda

Department of Justice

Office of Public Affairs

---

FOR IMMEDIATE RELEASE

Wednesday, December 5, 2018

Former Head of Organization Backed by Chinese Energy Conglomerate Convicted of International Bribery, Money Laundering Offenses

Schemed to Bribe the President of Chad, President and Foreign Minister of Uganda

A federal jury in New York City today convicted the head of a nongovernmental organization (NGO) based in Hong Kong and Virginia on seven counts for his participation in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda in exchange for business advantages for a Chinese oil and gas company, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York.

Chi Ping Patrick Ho, aka “Patrick C.P. Ho,” aka “He Zhiping,” 69, of Hong Kong, China, was found guilty today after a one-week jury trial before U.S. District Judge Loretta A. Preska in the Southern District of New York of one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), four counts of violating the FCPA, one count of conspiring to commit international money laundering and one count of committing international money laundering.  Ho is scheduled to be sentenced before Judge Preska on March 14, 2019, at 10:00 a.m. EDT.

“Patrick Ho paid millions of dollars in bribes to the leaders of two African countries to secure contracts for a Chinese conglomerate,” said Assistant Attorney General Benczkowski.  “Today’s trial conviction demonstrates the Criminal Division’s commitment to prosecuting those who seek to utilize our financial system to secure unfair competition advantages through corruption and bribery.”

“Patrick Ho now stands convicted of scheming to pay millions in bribes to foreign leaders in Chad and Uganda, all as part of his efforts to corruptly secure unfair business advantages for a multibillion-dollar Chinese energy company,” said U.S. Attorney Berman.  “As the jury’s verdict makes clear, Ho’s repeated attempts to corrupt foreign leaders were not business as usual, but criminal efforts to undermine the fairness of international markets and erode the public’s faith in its leaders.”

According to evidence presented at trial, Ho was involved in two bribery schemes to pay top officials of Chad and Uganda in exchange for business advantages for CEFC China, a Shanghai-based multibillion-dollar conglomerate that operates internationally in multiple sectors, including oil, gas, and banking.  At the center of both schemes was Ho, the head of a nongovernmental organization based in Hong Kong and Arlington, Virginia, the China Energy Fund Committee (the “CEFC NGO”), which held “Special Consultative Status” with the United Nations (UN) Economic and Social Council.  CEFC NGO was funded by CEFC China.

According to the evidence presented at trial, in the first scheme (the “Chad Scheme”), Ho, on behalf of CEFC China, offered a $2 million cash bribe, hidden within gift boxes, to Idriss Déby, the President of Chad, in an effort to obtain valuable oil rights from the Chadian government.  In the second scheme (the “Uganda Scheme”), Ho caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by Sam Kutesa, the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly.  Ho also schemed to pay a $500,000 cash bribe to Yoweri Museveni, the President of Uganda, and offered to provide both Kutesa and Museveni with additional corrupt benefits by “partnering” with them in future joint ventures in Uganda.

The Chad Scheme

According to the evidence presented at trial, the Chad Scheme began in or about September 2014 when Ho flew into New York, New York to attend the annual UN General Assembly.  At that time, CEFC China was working to expand its operations to Chad and wanted to meet with President Déby as quickly as possible.  Through a connection, Ho was introduced to Cheikh Gadio, the former Minister of Foreign Affairs of Senegal, who had a personal relationship with President Déby.  Ho and Gadio met in midtown Manhattan, New York where Ho enlisted Gadio to assist CEFC China in obtaining access to President Déby.

Gadio connected Ho and CEFC China to President Déby.  In an initial meeting in Chad in November 2014, President Déby described to Ho and CEFC China executives certain lucrative oil rights that were available for CEFC China to acquire.  Following that meeting, Gadio advised Ho and CEFC China to send a technical team to Chad to investigate the oil rights and make an offer to President Déby.  Instead, Ho insisted on a prompt second meeting with the President.  The second meeting took place a few weeks later, in December 2014.  Ho led a CEFC China delegation, which flew into Chad on a corporate jet with $2 million cash concealed within several gift boxes.  At the conclusion of a business meeting with President Déby, Ho and the CEFC China executives presented President Déby with the gift boxes.

To the surprise of Ho and the CEFC China executives, President Déby rejected the $2 million bribe offer.  Ho subsequently drafted a letter to President Déby claiming that the cash had been intended as a donation to Chad.  Ultimately, Ho and CEFC China did not obtain the unfair advantage that they had sought through the bribe offer, and by mid-2015, Ho had turned his attention to a different “gateway to Africa”: Uganda.

The Uganda Scheme

According to the evidence presented at trial, the Uganda Scheme began around the same time as the Chad Scheme, when Ho was in New York, New York for the annual UN General Assembly.  Ho met with Sam Kutesa, who had recently begun his term as the 69th President of the UN General Assembly (“PGA”).  Ho, purporting to act on behalf of CEFC NGO, met with Kutesa and began to cultivate a relationship with him.  During the year that Kutesa served as PGA, Ho and Kutesa discussed a “strategic partnership” between Uganda and CEFC China for various business ventures, to be formed once Kutesa completed his term as PGA and returned to Uganda.

In or about February 2016 – after Kutesa had returned to Uganda and resumed his role as Foreign Minister, and Yoweri Museveni (Kutesa’s relative) had been reelected as the President of Uganda – Kutesa solicited a payment from Ho, purportedly for a charitable foundation that Kutesa wished to launch.  Ho agreed to provide the requested payment, but simultaneously requested, on behalf of CEFC China, an invitation to Museveni’s inauguration, business meetings with President Museveni and other high-level Ugandan officials, and a list of specific business projects in Uganda that CEFC China could participate in.

In May 2016, Ho and CEFC China executives traveled to Uganda.  Prior to departing, Ho caused the CEFC NGO to wire $500,000 to the account provided by Kutesa in the name of the so-called “foundation,” which wire was transmitted through banks in New York, New York.  Ho also advised his boss, the Chairman of CEFC China, to provide $500,000 in cash to President Museveni, ostensibly as a campaign donation, even though Museveni had already been reelected.  Ho intended these payments as bribes to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China.

Ho and CEFC China executives attended President Museveni’s inauguration and obtained business meetings in Uganda with President Museveni and top Ugandan officials, including at the Department of Energy and Mineral Resources.  After the trip, Ho requested that Kutesa and Museveni assist CEFC China in acquiring a Ugandan bank, as an initial step before pursuing additional ventures in Uganda.  Ho also explicitly offered to “partner” with Kutesa and Museveni and/or their “family businesses,” making clear that both officials would share in CEFC China’s future profits.  In exchange for the bribes offered and paid by Ho, Kutesa thereafter steered a bank acquisition opportunity to CEFC China.

This case was investigated by the FBI and IRS-CI.  U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Department of Justice, Criminal Division’s Office of International Affairs provided assistance.

Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section, FCPA Unit and Assistant U.S. Attorneys Douglas S. Zolkind, Daniel C. Richenthal and Catherine E. Ghosh of the U.S. Attorney’s Office for Southern District of New York’s Public Corruption Unit and the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

Adapted from: https://www.justice.gov/opa/pr/former-head-organization-backed-chinese-energy-conglomerate-convicted-international-bribery

Kuteesa and Museveni implicated in a U.S. Bribing Case!

“Our people must be taught to desist from accepting bribes. The ability to say NO, must become a core value of our nation” – Sunday Adelaja

It is such a convenience that President Yoweri Kaguta Museveni are planning an Anti-Corruption Drive and new measures on the 10^th December 2018. As he was pledging that on the 4^th December 2018. This case has been in the works, as it was revealed last year, that Foreign Minister Sam Kuteesa and Museveni was bribed for $1m by a Chinese Associate Patrick C.P. Ho. This news is vital, as it proves how untouchable both of these leaders are. As the Foreign Minister and President can do whatever and get whatever deals behind closed doors.

That Museveni and Kuteesa are doing this is not surprising, but the value and what was at stake. Shows how illicit and unknown the deals with the petroleum industry are in the Republic. They are clearly signing off deals and paying off the State House in Entebbe. As this deal shows how Kuteesa and Museveni operates. This is one of plenty, but one that is uncovered by the U.S. Department of Justice.

Look!

“In or about February 2016 – after Kutesa had returned to Uganda and resumed his role as Foreign Minister, and Yoweri Museveni (Kutesa’s relative) had been reelected as the President of Uganda – Kutesa solicited a payment from Ho, purportedly for a charitable foundation that Kutesa wished to launch. Ho agreed to provide the requested payment, but simultaneously requested, on behalf of CEFC China, an invitation to Museveni’s inauguration, business meetings with President Museveni and other high-level Ugandan officials, and a list of specific business projects in Uganda that CEFC China could participate in. In May 2016, Ho and CEFC China executives traveled to Uganda. Prior to departing, Ho caused the CEFC NGO to wire $500,000 to the account provided by Kutesa in the name of the so-called “foundation,” which wire was transmitted through banks in New York, New York. Ho also advised his boss, the Chairman of CEFC China, to provide $500,000 in cash to President Museveni, ostensibly as a campaign donation, even though Museveni had already been reelected. Ho intended these payments as bribes to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China” (Department of Justice – ‘Former Head of Organization Backed by Chinese Energy Conglomerate Convicted of International Bribery, Money Laundering Offenses’ 05.12.2018, link: https://www.justice.gov/opa/pr/former-head-organization-backed-chinese-energy-conglomerate-convicted-international-bribery).

The Ugandans should be horrified how little the President and Foreign Minister cost, as they were selling off the petroleum licenses for the Lake Albertine Graben and Region. Where there are already dozens of Companies in. Even CNOOC! That is why this would be the second company who got a Petroleum Licenses in the Republic.

The Ugandans should also be terrified that the President only cost $500k and $500k for the Foreign Minister. They only cost A Milli, which is close to nothing. Especially considering what was at stake. These gentlemen are supposed to be there for the public and serve them. But showing only self-interest.

Now, the Chinese National Ho is found guilty in New York yesterday. Therefore, the evidence and the case was solid enough. That proves the reality of how he solicited bribes with the Foreign Minister and President. Clearly succeeded until the US Authorities caught a wind of it. Also, shows how the State House and the President is corrupted. Peace.

PATRICK HO, HONG KONG BUSINESSMAN, CONVICTED FOR BRIBES TO CHAD'S PRESIDENT DEBY AND UGANDA'S GEN. MUSEVENI

Gen. Museveni and Janet Museveni, his wife and Education Minister, greet members of Ho's delegation who traveled to the May 12, 2016 swear-in. This was one of dozens of photographs the U.S. entered into evidence in the federal court trial.

Hong Kong businessman Chi Ping Patrick Ho was convicted for bribing three African leaders on behalf of a powerful Chinese business conglomerate, CEFC China Energy Ltd., in U.S. federal court in Manhattan today.

 

The jury deliberated for just over four hours beginning at 10 A.M. Ho was convicted on seven of eight counts connected to bribery, money-laundering, and related conspiracy for the crimes. The maximum penalty on all seven counts is 65 years in prison; Ho is 69 years old. 

 

Ho was convicted of conspiring to bribe and then offering $2 million in cash to Chad's President Idriss Deby in December, 2014, in a bid to secure for CEFC China oil concessions whose value was estimated at $3 billion. 

 

Ho was convicted for conspiring to bribe and then delivering $500,000 in cash to Uganda's dictator Yoweri Museveni when he attended his swearing-in in May 2016. He was also convicted of paying Sam Kutesa a bribe of $500,000 via wire transfer from New York to an account provided by Kutesa's wife. In Uganda Ho wanted to secure for CEFC interests in: rail, infrastructure construction, fishing from Lake Victoria, hydro-energy, banking and finance, and tourism. 

 

Other potential deals included the construction of a Chinatown to boost tourism on land near Lake Victoria and on an island. CEFC also offered profit-sharing through a partnership with the Museveni and Kutesa family businesses. The meeting with Museveni was so successful that Ho wrote a report to CEFC's chairman Ye that the Ugandan dictator was willing to undo already-completed bids in oil blocks to award concessions to CEFC. 

 

“Patrick Ho now stands convicted of scheming to pay millions in bribes to foreign leaders in Chad and Uganda, all as part of his efforts to corruptly secure unfair business advantages for a multibillion-dollar Chinese energy company," U.S. Attorney Geoffrey S. Berman, said this afternoon. "As the jury’s verdict makes clear, Ho’s repeated attempts to corrupt foreign leaders were not business as usual, but criminal efforts to undermine the fairness of international markets and erode the public’s faith in its leaders.”

 

Assistant Attorney General Brian A. Benczkowski added, “Patrick Ho paid millions of dollars in bribes to the leaders of two African countries to secure contracts for a Chinese conglomerate. Today’s trial conviction demonstrates the criminal division’s commitment to prosecuting those who seek to utilize our financial system to secure unfair competition advantages through corruption and bribery.”

 

The "Uganda Scheme," as the U.S. called it, was hatched in Kutesa's office at the United Nations beginning in October 2014, when he was President of the General Assembly (PGA). Some meetings occurred in Kutesa's New York City residence. The first meeting was arranged after Ho contacted Kutesa's chief of staff Arthur Kafeero.

 

Kutesa boasted to Ho in their early meetings about his family ties to Museveni; his daughter is married to Museveni's son Gen. Muhoozi Kaenerugaba. The country's powerful Special Forces Command reports to Kaenerugaba, once considered a potential successor to his father. 

 

Eventually, Ho persuaded Kutesa invite him to speak at an event at the United Nations and to appoint Ye Jianming, the CEFC China chairman, as a Special Advisor to Kutesa. Ho then invited Kutesa and his wife to Hong Kong and China where they met with Ye. 

 

It was after Kutesa's term as PGA expired that the bribe-for-businesses-scheme swung into full operation. Kutesa has been embroiled in corruption allegations dating over a period of decades. In 2014 he survived a petition seeking to block his elevation to the post of PGA that gained over 15,000 signatures. 

 

Kutesa, through his wife Edith, solicited through e-mail messages in April 2016 payment from Ho for a fake charitable foundation which the couple created as a ruse to accept the bribe payment, the jury was told. Ho agreed to send the $500,000 and asked that: chairman Ye of CEFC China be invited to Museveni's 2016 inauguration; that business meetings be arranged with the dictator and other senior government officials; and, that a list of specific Uganda business projects be compiled that CEFC could invest in. 

 

The $500,000 to Kutesa was then wired on May, 6, 2016 to Stanbic Bank Uganda Ltd., to an account that includes the Numbers 6581, according to a map presented by the U.S. as evidence that traced the route the funds traveled. Before being rerouted to the account provided by Edith Kutesa, the money was first sent by an HSBC account in Hong Kong that includes the Numbers 2838 to an HSBC U.S.A branch, also on May 6. The HSBC account holder was CEFC China Energy. The beneficiary at Stanbic was Food Security and Sustainable Energy Foundation, the alleged foundation created by the Kutesas. "Ho intended these payments as bribes to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China," the U.S. maintained. 

 

CEFC chairman Ye ended up not traveling to Museveni's swearing-in. Ho was accompanied by other CEFC executives. Ho asked Ye to provide $500,000 in cash as a "campaign donation" to Museveni that would be delivered when the delegation traveled to Museveni's May 12, 2016 inauguration. The election itself --widely reported as rigged-- had been held months earlier, on Feb. 18, 2016. 

 

On May 10, 2016, the day before departing to Uganda, Ho sent a note to the Kutesas saying, "We shall require some special assistance with your customs officials," in reference to the $500,000 in cash for Museveni, the jury heard.

 

While in Uganda Ho and the delegation in addition to meeting Gen. Museveni met with senior government officials including from the ministry of Energy and Mineral Resources. 

 

With respect to the "Chad Scheme," Ho was introduced to Senegal's former foreign minister Cheikh Tidiane Gadio, a friend of President Deby. Ho and Gadio held their first meeting in September 2014, in Trump World Towers near the U.N., where CEFC Energy owned a suite. Gadio then arranged the meeting in Chad. During the first meeting with Deby in November 2014, the Chadian president described some oil blocs available for CEFC to acquire. 

 

Instead of following up with a technical team to evaluate the potential concessions as Gadio recommended, Ho insisted that the former Senegalese minister arrange a second meeting with Deby. It was during this second visit to Chad in December, 2014, that Ho and colleagues from CEFC, presented the $2 million in cash wrapped in gift boxes. 

 

Gadio initially himself was charged with accepting a bribe of $400,000 to arrange the meeting with Deby. The U.S. dropped charges against Gadio and during trial, which started last week Monday, he testified that he wasn't aware that Ho and his CEFC colleagues intended to offer Deby a bribe. He testified that Deby rejected the bribe offer. 

 

Ho's operations in the U.S. were enabled through his U.N.-affiliated NGO, China Energy Fund Committee (CEFC NGO), which was funded by CEFC China Energy, a company that reported revenue of $40 billion in 2014. Ye, the chairman, has not been seen in public since March, 2018, and it's believed he may have been arrested by the authorities. Ho's NGO was based in Hong Kong and Arlington, Virginia, in the U.S.  The government maintained that Ho used his NGO to conduct his corrupt activities, giving him access to walk the corridors of the U.N. 

 

Ho's sentencing is March 14, 2019. He was once a home affairs minister in Hong Kong. 

KCCA, Central Bank, URA well-paid but very corrupt-Museveni

KAMPALA -

December 5, 2018

Museveni was the chief guest at the 25th anniversary celebrations of Transparency International, Uganda Chapter, in Kampala.

President Museveni has said while Ugandans were complaining of officials suspected of corruption not being put in jail, it is within the law that they have to be prosecuted first.

He however noted that while the government had put in place laws to protect public servants, there was now need for quicker methods of demanding accountability.

The President was  speaking during the celebrations to mark the 25th anniversary of Transparency International Uganda (TIU) at Imperial Royale Hotel where a national anti- corruption dialogue was held under the theme ‘Citizen’s participation in the fight against corruption: A Sustainable Path to Uganda’s Transformation.’

“The laws are there, the institutions are there but the personnel handling them are the problem. I don’t need a frightened civil service. The country needs confident and able leaders who know what is right and do what is right,” he said.

He re-echoed the people’s views that increment in the remuneration of salaries of public servants was not the cure to corruption because public servants in government institutions like KCCA, Bank of Uganda, URA were still corrupt despite the high pay.

The Bank of Uganda is under investigation by the Parliament Committee on Commissions, Statutory authorities and State Enterprises (COSASE) over fraudulent dealings.

Previously the President has accused officials in the Ministry of Finance and the Uganda Revenue Authority of corruption.

The President said that patriotism was the cure to corruption and that he would talk more on the government’s new efforts to curb corruption on 10th December 2018.

The Minister of Ethics and Integrity, Fr. Simon Lokodo thanked His Excellency for putting in place legal frame works to fight corruption.

He noted that government had gone into partnerships with international agencies whose main goal and focus was to fight corruption and demand for accountability, which government could not do alone.