As Uganda Airlines today launches its maiden flight to South Africa, more details are emerging about the internal crisis that recently led to suspension of its senior management team and Board of Directors.
President Yoweri Museveni revealed days ago that he had ordered suspension the airline bosses because of corruption.
The suspended officials include CEO Cornwell Muleya, finance director Paul Turacayisenga, director of marketing Rogers Wamala, human resource manager Joseph Sebbowa, and director of safety Bruno Oringi; as well as the entire board led by Perez Ahabwe.
It has now emerged that Gen Caleb Akandwanaho (Salim Salim), the national coordinator of the UPDF’s Operation Wealth Creation was involved in the purge process, acting mostly on behalf of President Yoweri Museveni.
A source told ChimpReports that following the Auditor General report which exposed rot within their airline over the two-year period of its operation, General Salim Saleh sent a brief to Junior Transport Minister Joy Kabatsi, ordering her to take action of the airline leadership.
The Auditor General, which focused on the Airline’s performance in the financial years 2018/2019 and 2019/2020, indicated that the airline had posted a loss of Shs15b in the Financial Year 2018/2019 and losses of a staggering Shs102b in the Financial Year 2019/2020.
“The company was unable to realize its planned revenue, yet the expenditure on operations was way above projected costs. The company only realized $9.9m (Shs36b or 10.8 per cent) of the project revenue of $92.8m (Shs334b),” Mr John Muwanga, the Auditor General, noted in his report.
On April 26, the board and management team of Uganda Airlines received a 12-point letter from Joy Kabatsi titled “Pertinent Issues Regarding the Management and Operations of Uganda Airlines.”
The letter questioned the board’s role in recruitment and procurement for the airline, supposed delayed certification of the A330 fleet, failure by the technical department to develop operations manuals to the satisfaction of the Ugandan Civil Aviation Authority and delayed establishment of an aircraft maintenance and repair organisation as per the business plan. Ms Kabatsi also questioned the costly recurrent training in simulators for pilots.
On April 27, Minister of Works and Transport Gen Katumba Wamala sent seven Uganda Airlines top managers on forced leave in a letter that did not clearly state the reasons for the suspension. It only pointed to need to “pave way for investigation into serious allegations raised against their conduct of business”.
It is understood that CEO Mr Cornwell Muleya in January had written to Gen Salim attempting blame the airline’s poor performance on the board.
In the letter, Muleya said that some members of the board had been pushing “for the promotion of self-interest” and in other cases colluded with some managers to make quick bucks.
