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Top executives of MTN Uganda, led by CEO Wim Vanhellaputte are in panic after being ordered to appear before parliament’s Committee on Commissions, State Authorities and State Enterprises (COSASE) on September 2, 2019 to respond to allegations of massive tax evasion. COSASE Chairman, Mubarak Munyagwa in his letter dated August 15, 2019 and addressed to Vanhellaputte, warned MTN officials not to fail to appear before the Committee on the appointed date.  He said: Suffice to add that should you fail to appear as scheduled, the Committee shall have no option than invoking Article 90 of the Republic of Uganda and Rule 205 of the Rules of Procedure of Parliament to enforce your attendance and compel the production of the required documents.” Earlier on August 6, 2019, COSASE Chairman Munyagwa had written to Vanhellaputte ordering him to provide COSASE with the company’s business transaction documents for the period 2010 to 2018. When contacted by Eagle Online for a comment, MTN refused to comment saying the matter is before court.  The documents Munyagwa and other MPs on COSASE are interested in related to; company’s purchases and imports, suppliers, base transmission stations, landlords and mobile money dealers. Other documents required from MTN relate to; statements of commission paid to dealers and sub dealers, interconnection agreements, reconciliation of service fee charges for receiving and withdrawal transactions, sender and receiver traffic reconciliation, statements and tax clearance certificates. The documents above, according to Munyagwa’s letter were supposed to be provided on August 13, 2019 but MTN executives asked for more time to organise themselves on account that the materials asked for were voluminous. “We have noted that the information, documents and records you have requested for cover a period of nine years, and it is very extensive and voluminous. The purpose of this letter is to request for a meeting with you at your earliest convenience to get a better understanding of the context of this information request, and whether we will be responding to the information request as a witness or an alleged offender,” the company said. The latest development comes a few months after President Yoweri Museveni in late May forgave Vanhelleputte and allowed him to return to Uganda after he was in February deported for allegedly undermining the national security of Uganda. The government of Uganda had deemed him an undesirable immigrant under section 52(g) of the Uganda Citizenship and Immigration Control Act. Museveni has always complained that the company has the habit of under declaring taxes. COSASE is scrutinizing the Auditor General’s reports for financial years 2013/14-2017/18 where massive tax evasions have been cited.
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Panicky MTN executives summoned before COSASE over alleged massive tax evasion
