In the week ending February 27, 2022, Kikubolane.com covered many business stories. Here we summarise you the stories that made headlines.
Govt terminates contract of Uganda Airlines CEO
The interim Board of the Uganda Airlines announced it has terminated the contract of the Chief Executive Officer, Mr Cornwell Muleya, eight months after suspending him and several other top level managers over allegations of mismanagement.
Waiswa Bageya, the Permanent Secretary in the Ministry of Works and Transport, has said that the interim board, which met last Friday, also decided to terminate the contract of Rogers Wamara, the Director Commercial.
Bageya also said the terminal benefits of the affected staff will be paid.
He explained that the Inspectorate of Government will conduct his own investigations against the suspended staff.
“We have concluded the case against most of the suspended officials administratively. But we are also waiting for the decision of Inspector General of Government on the matter,” the minister is quoted by URN as saying.
The minister of Works and Transport, Gen. Edward Katumba Wamala, suspended Muleya and 12 other top officials on April 21, 2021, 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.
The other affected top managers included Wamara the Director Commercial; finance director Paul Turacayisenga, and Procurement Manager Moses Wangalwa.
Also, the Sales and marketing manager 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 were suspended.
USE restores New Vision trading on stock exchange
Uganda Securities Exchange (USE) in this week restored trading of the New Vision Printing and Publishing Company Limited on the stock exchange, nearly two weeks after halting it over declining share value.
In a statement issued on Tuesday, 22 February 2022, USE Chief Executive Officer Paul Bwiso said the price decline emanated from manipulation by a single seller.
“Upon further inquiry into the trading activity on the counter between 18′ January 2022 and 10th February 2022, it has been established that the price volatility on the counter was artificially created by a series of transactions emanating from a single seller and not a true and fair representation of market forces of demand and supply,” Bwiso said.
“Whereas the Exchange recognizes that some transactions may have an impact on shares prices; if they have been executed in accordance with the market rules and regulations, and where there is legitimate commercial rationale – such transactions meet the market standard of fair trading,” he added.
Bwiso revealed that USE in consultation with the Capital Markets Authority- Uganda is pursuing the necessary action against those actors cited in the irregular trading activity.
Statistics show that in the first half of 2021/22, New Vision posted net profit of UGX396m, a recovery from a loss of UGX1.38bn over the same period in 2020/21. A 54.4% growth in turnover contributed to the media company getting back in the green.
Uganda Investment Symposium opens in Mbarara City
The Uganda Investment Symposium on Tuesday, 22 February 2022 opened at Kakyeka stadium in Mbarara City, with a call to companies and individuals to identify business opportunities that can enable Ugandans recover from the impact of the Covid-19 lockdown.
The Investment Symposium was sponsored by Uganda Development Bank (UDB) Ltd in association with the Operation Wealth Creation (OWC) programme.
Gen Salim Saleh, the national coordinator of OWC, who officially opened the two-day event on Tuesday, 22 February 2022, said Ankole Sub-region is at a stage of very serious production but no processing.
“Ankole is at a stage of serious production but very limited processing. This with the help of Uganda Development Bank will change. OWC has linked the bank to you. Engage them on agro-processing,” Gen Saleh said.
“We (OWC) value our partnership with UDB, local govt, civic and political leaders as it helps deliver solutions through a consultative and deliberate process that implements President Museveni’s agenda and govt policies to revive the economy,” he added.
Run under the theme “The contribution of Financial Innovation to the resilience of the economy for sustained growth,” the two-day event sought to identify business opportunities in the region, host business to business (B2B) engagements and convene leading local and national leaders on the question of financing for recovery and growth.
URA, Judiciary discuss legal loopholes in revenue mobilisation
Over 50 judicial officers on Tuesday, 22 February 2022 joined the senior management team in a two-day training to tighten loopholes in revenue mobilisation.
In focus, the discussion centred on the use of Alternative Dispute Resolution as a major mechanism to solve tax disputes and off-set backlog cases to generate revenue.
This was during the 10th Annual Taxation Training for the Justices of the courts of Judicature and Members of the Tax Appeals Tribunal at the Kampala Serena Hotel in Kigo.
The training was organised by the Authority and the Judicial Studies Institute under the theme: “Developments in tax law, policy and administration; delivering Uganda to economic independence.”
The range of topics in the line-up included; taxation and transparency, Alternative Dispute Resolution, prosecution as a tool for the enhancement of tax compliance, innovations in customs procedures and the role of the judiciary in the support of domestic resource mobilization in Uganda.
Other issues discussed included developments in Uganda’s oil and gas sector, appeals and appellate practice in tax litigation, the taxation of intangibles and the digitalized economy.
MPs bothered by clauses in car tracking contract with Russian firm
Parliament’s Committee on Defence and Internal Affairs has raised concern on the compulsory installation of electronic tracking devices on motorcycles and motor vehicles, known as the Intelligent Transport Monitoring System (ITMS).
According to committee chairperson, Hon Rosemary Nyakikongoro, citizens ought to comprehend the modus operandi of the contract between the Government and Russian firm, Joint Stock Company Global Security.
In a meeting on Tuesday, 22 February 2022, Nyakikongoro said the Minister for Works and Transport, Gen. Edward Katumba Wamala, wrote to the committee saying the contract was signed between the directors of the firm and the Ministry of Security.
Global coffee body accuses Uganda of closing all doors for negotiation
The International Coffee Organisation (ICO) has said Uganda can only negotiate for better terms if it is still a member of the International Coffee Agreement 2007.
It also accuses Uganda under Uganda Coffee Development Authority (UCDA) of snubbing requests for meetings to discuss their withdrawal from the global body.
UCDA has justified its withdrawal from ICO, saying that Uganda needs unconditional market access that allows for the export of value-added coffee, not only green coffee
.
It also stated that the importing countries impose escalating tariffs and restrictions on imports of value-added coffee, citing countries including Germany, Belgium and Denmark.
But in a statement issued on Tuesday, February 22, 2022, ICO said it has never received any proposals for change in any of its forums from Uganda and that Kampala officials have turned down proposals for meetings to discuss the same.
“Ugandan authorities had abundant opportunities but decided not to address these issues within the established negotiation and decision-making mechanisms of the ICA 2007 and the ICO,” the statement reads in part.
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