Uganda Police is running a mafia syndicate akin to that described in Mario Puzo’s book the God father, a new report by the International Crisis Group shows.
Only short on naming who the God Father at the helm of the syndicate is, the report says police facilitate organized crime, run protection rackets, run drug deals and engage in turf wars.
Because of that, the report notes, a force supposed to serve and protect is instead contributing to crime.
“Allegations of criminal activity within the police undermine its legitimacy. Violent crime, including murder, is on the rise as police ability to carry out regular duties declines,” the report, released this afternoon in Germany, reads in part.
The reports indictment on Police lends credence to President Museveni’s assertion that force expected to protect people’s property and lives was infiltrated by the ‘mafia’.
It should be remembered that in March this year, while grieving with slain late Assistant Inspector General of Police, Andrew Felix Kaweesi’s family in Kulambiro, Mr Museveni instructed police Chief Gen. Kale Kayihura to clean the force of criminal gangs.
The report blames the degeneration of the erstwhile professional and somewhat effective Police on its being flagrantly politicized by the Uganda’s political leaders.
The Force, the report says, is, “now more focused on disrupting opposition activity than fighting crime, and in part [contributing] to the breakdown of local order as traditional institutions cannot cope with complex societal problems.”
The rise of informal security groups, most notably the Crime Preventers only blur responsibility lines and erode accountability.
“Politicized policing has weakened the influence of better trained and disciplined career officers.
“Police officers carry out functions that are nominally intended to preserve public order yet in reality function as the president’s first line of defense against rivals. They spend much of their time disrupting opposition activities,” the report reads.
Efforts to reach the newly appointed Police Spokesman,, Emilian Kayima, were futile as his phone went answered.
Declining state of affairs
The report also notes that Uganda is gradually slumping into a failed stated due to the inefficiencies brought about by patronage politics and a downward spiral of declining governance, poor economic performance and local insecurity over the uncertainty of the country’s political roadmap.
“President Yoweri Kaguta Museveni, in power since 1986, appears unwilling to step down; supporters and detractors alike expect him to rule until he dies or engineers a handover to a close ally or family member.
He will be 77 by the next election in 2021 and is poised to amend the constitution’s 75-year age limit, despite objections from the opposition, civil society and some in his own party,” the report says.
It is however quick to point out that despite his stay in power, President Museveni retains support, particularly in rural areas, not all of which is patronage-based.
This, it says, is because Museveni’s attachment to glory is partly because he brought in peace and economic stability after the 1980s civil wars and eventually defeating the Lord’s Resistance Army rebellion.
In order to mitigate longer-term dangers of civil strife, the report advises donors to be more sensitive to the political impact of their assistance by avoiding projects that contribute to ruling party patronage.
“For its part, President Museveni’s government should: Hold a credible National Dialogue: This should be done by revisiting plans to which the ruling party itself had agreed after the February 2016 election.
“Such a dialogue should be broad-based and focus on popular consultations with Ugandan citizens to discuss issues associated with the presidential succession and reduce fears that it might end in violence. Government should take steps to professionalize the police and improve its leadership,” the report reads.
It further says, “To stop the decline in police operational capacity and address criminality within police ranks, the government should re-institute a merit-based system of promotions in the senior command and investigate and prosecute alleged crimes by members of the force.
It also should end or reduce use of informal, non-uniformed groups, particularly the Crime Preventers and improve local governance.
International Crisis Group is Belgium based and describes itself as an independent, non-profit, non-governmental organization committed to preventing and resolving deadly
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The US criminal justice system has linked Uganda’s foreign minister Sam Kutesa to a multi-million bribery case involving a senior official of a Chinese multi-billion conglomerate called Energy Company, who reportedly paid the Minister US$500, 000, while seeking business advantages to get oil and energy deals in Uganda.

The case also drags in the name President Yoweri Museveni and other members of the First Family and, according to the Justice Department, Kutesa received the money from Chi Ping Patrick Ho aka Patrick C.P. Ho, 68, of Hong Kong, China, and Cheikh Gadio, 61, a former foreign affairs minister of Senegal, at a time he was the United Nations General Assembly (UNGA) President in 2015.

According to the submissions made by a US multi-agency investigative team that includes officials from the Justice Department’s Criminal Division; Internal Revenue Service Criminal Investigation (IRS-CI); the Federal Bureau of Investigations (FBI) in New York and the Department of Homeland Security, Patrick CP and Gadio were detained after being charged with ‘conspiring to commit international money laundering and committing international money laundering.’

According to the submissions made yesterday Patrick C.P, who was the head of a non-government organization called ‘Energy NGO’, and Gadio, were allegedly acting for Energy Company, a Shanghai-headquartered multibillion-dollar conglomerate that was allegedly seeking business advantages to get oil and energy deals in Uganda and Chad. Energy Company operates internationally in the energy and financial sectors.

‘It is (further) alleged that Ho caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly (the “Ugandan Foreign Minister”),’ part of the submission indicates.

Further the submissions states: ‘Ho also allegedly provided the Ugandan Foreign Minister, as well as the President of Uganda, with gifts and promises of future benefits, including offering to share the profits of a potential joint venture in Uganda involving the Energy Company and businesses owned by the families of the Ugandan Foreign Minister and the President of Uganda.  These payments and promises were allegedly made in exchange for assistance from the Ugandan Foreign Minister in obtaining business advantages for the Energy Company, including the potential acquisition of a Ugandan bank’.

‘The defendants engaged in two bribery schemes to pay high-level officials of Chad and Uganda in exchange for business advantages for the Energy Company, a Shanghai-headquartered multibillion-dollar conglomerate that operates internationally in the energy and financial sectors.  Defendant Ho was the head of a non-governmental organization based in Hong Kong and Virginia (the “Energy NGO”) that holds “Special Consultative Status” with the United Nations (UN) Economic and Social Council.  The Energy NGO is funded by the Energy Company,’ part of the Justice Department submission states.

By press time a request for clarification over the allegations against Minister Kutesa sent to Foreign Affairs spokesperson Margaret Kafeero had not yet been responded to, while the minister was reportedly on his way to Hungary.

The full submissions by the US Justice Department:

A criminal complaint was unsealed today charging the head of a non-governmental organization based in Hong Kong and Virginia and the former Foreign Minister of Senegal with participating in a multi-year, multimillion-dollar scheme to bribe high-level officials in Chad and Uganda in exchange for business advantages for a Chinese oil and gas company (the “Energy Company”) in violation of the Foreign Corrupt Practices Act (FCPA). 

Chi Ping Patrick Ho aka Patrick C.P. Ho, 68, of Hong Kong, China, and Cheikh Gadio, 61, of Senegal, are each charged with conspiring to violate the FCPA, violating the FCPA, conspiring to commit international money laundering, and committing international money laundering.  Gadio was arrested in New York on Friday afternoon and presented on Saturday before U.S. Magistrate Judge Kevin Nathaniel Fox.  Ho was arrested on Saturday afternoon and was presented today before U.S. Magistrate Judge Andrew J. Peck and ordered detained.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director-in-Charge William F. Sweeney Jr. of the FBI New York Field Office, Special Agent in Charge James D. Robnett of the Internal Revenue Service Criminal Investigation (IRS-CI) and Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York Field Office, made the announcement.

“This alleged scheme involved bribes at the highest levels of the governments of two nations,” said Acting Assistant Attorney General Blanco.  “The Criminal Division is committed to investigating and prosecuting corrupt individuals who put at risk a level playing field for corporate competitiveness, regardless of where they live or work.  Their bribes and corrupt acts hurt our economy and undermine confidence in the free marketplace.”

“In an international corruption scheme that spanned the globe, Chi Ping Patrick Ho and Cheikh Gadio allegedly conspired to bribe African government officials on behalf of a Chinese energy conglomerate,” said Acting U.S. Attorney Kim.  “Wiring almost a million dollars through New York’s banking system in furtherance of their corrupt schemes, the defendants allegedly sought to generate business through bribes paid to the President of Chad and the Ugandan Foreign Minister.  As alleged, Ho’s Ugandan scheme was hatched in the halls of the United Nations in New York, when the country’s current Foreign Minister served as the President of the U.N. General Assembly, and then continued unabated upon his return to Uganda.  International bribery not only harms legitimate businesses and fair competition, but it also destroys public faith in the integrity of government.  And when this type of international corruption and bribery touches our shores and our financial system, as the alleged schemes did, federal criminal charges in an American court may very well be the end result.” 

“The scheme described in this case boils down to these subjects allegedly trying to get their hands on the rights to lucrative opportunities in Africa,” said FBI Assistant Director-in-Charge Sweeney.  “They were allegedly willing to throw money at the leaders of two countries to bypass the normal course of business, but didn’t realize that using the U.S. banking system would be their undoing.  The FBI, our partners in the IRS and the law enforcement community work diligently day after day to protect the integrity of our financial institutions, and stop foreign entities corrupting international commerce.” 

“IRS Criminal Investigation operates worldwide and has the expertise to identify bribery schemes such as alleged in the criminal complaint,” said IRS-CI Special Agent in Charge Robnett. “Our special agents are especially skilled at piecing together these financial puzzles, even those that involve such high level participants.”

“These individuals allegedly offered millions of dollars in bribes to foreign officials, disguised as charitable donations, in order to seek business advantages,” said HSI Special Agent in Charge Melendez.  “One used his position with a United Nations Council to further this scheme.  We will continue to aggressively investigate financial crimes committed by corrupt foreign officials while working collaboratively with our counterparts at the FBI and IRS.”

According to the allegations in the complaint, the defendants engaged in two bribery schemes to pay high-level officials of Chad and Uganda in exchange for business advantages for the Energy Company, a Shanghai-headquartered multibillion-dollar conglomerate that operates internationally in the energy and financial sectors.  Defendant Ho was the head of a non-governmental organization based in Hong Kong and Virginia (the “Energy NGO”) that holds “Special Consultative Status” with the United Nations (UN) Economic and Social Council.  The Energy NGO is funded by the Energy Company.

The complaint alleges that Ho, with Gadio’s assistance, caused the Energy Company to offer a $2 million bribe to the President of Chad in exchange for securing business advantages for the Energy Company in its efforts to obtain valuable oil rights from the Chadian government.  In particular, in exchange for the bribe, the President of Chad provided the Energy Company with, among other things, an exclusive opportunity to obtain particular oil rights in Chad without facing international competition.  Gadio, who is the former Foreign Minister of Senegal and who operated an international consulting firm, is alleged to have played an instrumental role in the scheme by, among other things, connecting Ho with the President of Chad and conveying the $2 million bribe offer to the President of Chad.  Ho allegedly compensated Gadio by paying him $400,000 via wires transmitted through New York, New York.

It is further alleged that Ho caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly (the “Ugandan Foreign Minister”).  Ho also allegedly provided the Ugandan Foreign Minister, as well as the President of Uganda, with gifts and promises of future benefits, including offering to share the profits of a potential joint venture in Uganda involving the Energy Company and businesses owned by the families of the Ugandan Foreign Minister and the President of Uganda.  These payments and promises were allegedly made in exchange for assistance from the Ugandan Foreign Minister in obtaining business advantages for the Energy Company, including the potential acquisition of a Ugandan bank.

The charges and allegations in the complaint are merely accusations.  All defendants are presumed innocent unless proven guilty in a court of law.

The investigation was jointly conducted by the FBI and IRS-CI, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) provided critical assistance. 

This case is being prosecuted by Trial Attorneys David A. Last and Paul A. Hayden of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Douglas S. Zolkind, Thomas McKay, Daniel C. Richenthal and Shane T. Stansbury U.S. Attorney’s Office for the Southern District of New York’s Public Corruption Unit.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. 

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Bank of Uganda top officials are scheduled to appear before the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprise (Cosase) tomorrow, to answer  a raft of queries including paying about Shs5 billion for litigation and management in respect to the Crane Bank, now in receivership.

According to a source, the BoU officials will also be required to give explanations about monies in a foreign bank in Germany, and also about the purchase of pens at over Shs100m.

By press time it was not possible to reach the BoU Communications Director Christne Alupo for comment.

However, the central bank has for some time now come under scrutiny over a number of transactions including outsourcing law firms MMAKS Advocates and AF Mpanga-Bowmans to represent BoU in the case involving Crane Bank and city tycoon Sudhir Ruparelia. The BoU also hired the services of accounting and audit firms Klynveld Peat Marwick Goerdeler (KPMG) and PriceWaterHouse Coopers (PwC) to manage the Crane Bank.

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