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Sudhir files defence, ‘opposite counsel’ cited in conflict of interest

Tycoon Sudhir Ruparelia

Billionaire businessman Sudhir Ruparelia has filed his defence against charges of ‘extracting US$80 million (about Shs400 billion) from Crane Bank, brought against him by the Bank of Uganda and the latter, now in receivership, about two months ago.

Mr Ruparelia, who is the 1st defendant in Civil Case 493 of 2016, was one of the Non-Executive Directors and shareholders of the defunct Crane Bank, and through his lawyers Ms. Kampala Associated Advocates (KAA), contends that at no time did he breach his obligations while serving the Crane Bank in both capacities. The second respondent in the case, Meera Investments, is another company where Mr. Ruparelia is a shareholder.

In a 62-page defence filed in the High Court Commercial Division on August 3, Ms. KAA also indicate that by representing Crane Bank, opposite counsel, Ms. MMAKS Advocates, acted in ‘conflict’ of their client, Mr. Ruparelia’s interests, since the law firm was previously retained by Crane Bank, where he was one of the Non-Executive Directors.

In Section 90 of the defence, KAA aver their client Mr. Ruparelia, while non-executive director, participated in overseeing a buoyant Crane Bank which grew from one branch in 1995 to 46 branches at the BoU took over Crane Bank in 2016. At the time, the lawyers further aver, the Crane Bank had a customer base of over 600.000 customers, with the bank acquiring assets worth over Shs1.8 trillion, a development confirmed through an annual audit report carried out by international audit firm Klynveld Peat Marwick Goerdeler (KPMG).

Further, in Section 92 KAA avers that since the takeover of Crane Bank by the Receiver, in this case the BoU, their client Mr. Ruparelia and his other shareholders have not been given any accountability by the Receiver, ‘in total violation of the Receiver’s fiduciary obligations’. The KAA lawyers also contend Mr. Ruparelia will ‘at the earliest opportunity seek disclosure of all documents relating to the Agreement between the Receiver and DFCU bank and in particular the purchase price of the Plaintiff’s (Crane Bank) assets’.

Further, in the filed defence KAA lawyers contend that in January this year Mr. Ruparelia’s representatives, Mr. Kakembo Katende and Azam Tharani attended a meeting with lawyers Masembe Kanyerezi and David Mpanga at the chambers of MMAKS, ostensibly to share the contents of ‘an alleged PWC forensic report indicating the alleged extraction of US$80 million’.

‘The Plaint contains excerpts of the report and from those excerpts the 1st Defendant (Mr. Ruparelia) has been able to establish that the alleged report is actually a draft document created by PWC on 13th November 2014

KAA also says it will line up over 20 witnesses to testify in favour of their client Mr. Sudhir Ruparelia, among them Mr. Ruparelia himself and his wife Jyostna Ruparelia; the Bank of Uganda Governor Prof. Emmanuel Tumusiime Mutebile and his deputy Louis Kasekende; the BOU Director of Bank Supervision Ms. Justine Bagyenda. Other witnesses include officials the BoU, former Crane Bank Directors and shareholders, lawyers Timothy Masembe Kanyerezi from MMAKS and David Mpanga from AF Mpanga Advocates; and officials from the audit firms of PriceWaterhouseCoopers (PwC); Deliotte and Touche and KPMG.

Other witnesses include Godfrey Yiga Masajja and Susan Wasagali Kanyemibwa from BoU; Francis Kamulegeya and Uthman Mayanja from PwC; George Opio from Deliotte and Touche and, Benson Ndungu of KPMG.

The BoU-Crane Bank- Sudhir Ruparelia standoff comes in the wake of reports indicating that top officials at the Central Bank are divided over the procedures undertaken by the BoU that led to the filing of the court case.

According to sources, some top managers argue that the BoU, through its Bank Supervision Directorate headed by Ms. Justine Bagyenda, failed to execute its mandate. The protagonists further argue that before filing the case the BoU did not exhaust all avenues that could lead to a negotiated settlement of the stand-off.

Meanwhile, other reports indicate that the BoU/Crane Bank lawyers, Ms MMAKS Advocates and AF Mpanga Advocates, have allegedly refused to share information from a PwC forensic audit that had been requested for by Mr. Ruparelia’s lawyers, Ms. KAA law firm.

By press time efforts to contact opposite counsel were futile.

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NTV employees ‘return home’ after failed stint at BBS TV

BBS TV CEO Joe Kigozi

When BBS TV went on air last year, many people rushed to occupy the then virgin posts.

Many of the ‘deserters’ were from already existing TV stations and included Joe Kigozi from NBS, Juma Kirya, one Barry and Simon Paul Etiang from NTV.

But we have since learnt that after ‘things failed to work out at BBS TV’ some of them have started running back to their former work stations.

According to information on our desk, Etiang, Barry and Kirya resigned from their posts at BBS TV last week and have since gone back to NTV.

Though none is willing to reveal the reasons as to why they left, a reliable source tells us that the trio resigned over unpaid salaries.

Apparently, workers at the station have gone months without salary the reason why the BBS TV CEO, Joe Kigozi was sent on forced leave in June.

Following his return last month, some of their salaries were cleared but only up to May; they haven’t received their salaries for June and July and this has left many employees aggrieved.

Meanwhile, we have learnt that the station also fired some employees over performance, though some of them who preferred to remain anonymous insist their firing is based on the demand for their salaries.

Those fired after hasty meeting where newsroom employees were called and compelled to pledge allegiance to the station include Hadija Mwanje and Farouk Namatiti.

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‘Pastor’ Mondo Mugisha accused of child neglect

Pastor Mondo Mugisha

Renowned city ‘Pastor’Franklin Mondo Mugisha is currently enmeshed in a child neglect misunderstanding with a one Sarah Naigaga, who says she is the mother of his six-year old child.

Ms. Nagaiga says for a while, Mondo had been looking after the child till recently when he stopped and even refused picking her calls. Apparently, Mondo had pledged to provide for the child as long as she never took it to his church. “He told me he never wanted the kid to be seen by his flock but he would be providing for him and it was okay with me…….” she said.

And left with no other option, Naigaga says she went to the church but that unlike the previous times, this time Mondo started beating her up with the help of his bouncers.

“He no longer wants to pick my calls… He blocked all of my phones. Even when I try calling him using other people’s phones, he picks but ends the call as soon as he hears my voice on the other end. Now, how else can I hear from him other than going to (his) church?” Naigaga wondered.

After the alleged beating, Naigaga said police from Wankulukuku was called in and she was arrested on allegations of threatening to burn Mondo’s church.

Naigaga said when she went to report an assault case to Katwe Police Station, she found that a parallel case had already opened up against her by Mondo. He had even expressed doubts about being the father of Naigaga’s child. “If the child is not his, then why did he name the child (after himself)”?

She is now demanding for a DNA test if Mondo insists he is not responsible for fathering the child.

When reached for a comment, Mondo did not pick our calls neither has he returned our message on Facebook where he has been active all day.

Mondo is not the first pastor to be accused of neglecting his children.

‘Pastor’ Augustine Yiga was also taken to court in 2015 when he refused to remit monthly maintenance fee of Shs150,000 to a woman he allegedly raped and fathered a child with as she sought to be prayed for at his church.

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Sugar manufacturers protest Shs10m fine against illegal factories

SUGAR PRODUCTION: Workers at Kakira Sugar Works in Jinja, Eastern Uganda

A proposal by government to slap a fine of Shs10m on individuals who establish sugar mills within a 25km radius of another firm has been rejected by sugar manufacturers, who argue that the charge is ‘very low’.

The companies under their umbrella association, the Uganda Sugar Manufacturers Association (USMA), raised the objection while appearing before MPs of the Parliament Committee of Trade, Tourism and Industry.

The team had appeared before Parliament to present their views on the Sugar Bill 2016, which is aimed at regulating activities of the sugar industry that has been bogged by unstable pries for quite some years.

In their argument, the sugar manufacturers argued that the said penalty is small and want parliament to hike the fine to Shs500m, instead of the Shs10m being proposed in the bill.

Jim Mwine Kabeho, the USMA chairman, who also doubles as Director Madhvani Group, fronted the idea while commenting on Section 13 (2) of the Bill that stipulates that no sugar mill should be set up 25km radius within each other.

According to Mwine, the low supply of sugarcane to companies has left the manufacturers grappling with shortages, limiting their exports.

He has cited out the low harvest from an acre that was initially 35tonnes, but this has since dropped to just 20tons.

Mwine also told MPs that putting sugarcane mills next to each other has created fierce competition among the players, who buy sugarcane at 12 months, yet the required maturity period for sugarcane is 18 months. Due to the practice of harvesting immature sugarcane, Mr. Mwine said, farmers are now losing an average of 4 tonnes of sugar per hectare monthly.

He also revealed that although Ugandans are exposed to the risk of consuming sugar processed from immature sugarcane, which is also the of low yield.

Deliberating about the high sugar prices, Mwine noted that Uganda has the highest price of sugar in the whole world, a trend he blamed on the high sugarcane price charged by the farmers which, at the moment, is Shs175 for each sugarcane.

Once adopted by Parliament, no one will be allowed to establish or operate a sugar mill, jaggery mill or a plant to process the by-products of sugar-cane without a valid license granted for that purpose by the Board.

If found acting in contravention of this particular section, the culprit will be fined Shs10m.

The bill also proposes for the immediate closure of the sugar mill that was established and was operating illegally.

The prosecution of a person under this section doesn’t prevent the Board from licensing the person in accordance with this Act.

The Bill also provides for the establishment of a National Sugar Research Institute that will be mandated with breeding of sugarcane varieties suited for various agro-ecological zones of Uganda.

The Institute will also take on the responsibility of conducting research and nutritional requirements of sugarcane in order to provide recommendations on the appropriate fertilizers.

 

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UNBS strengthens vehicle inspection standards

Cars in transit to Uganda. Most cars imported into the country are second hand

In an effort to strengthen the inspection procedures of secondhand motor vehicles for road worthiness, the Uganda National Bureau of Standards (UNBS) has issued new standards to be followed.

A technician testing a vehicle for road worthiness

The standard, developed by the agency’s technical committee on transport and communications, specifies safety related performance characteristics.
UNBS Executive Director Dr Ben Manyindo, said the Standard dubbed US845, comes as a response to the growing demand for standard procedures in the inspection of used motor vehicles in Uganda.

He added that the standard now awaits public review for comments until September 5, 2017, after which it will be approved and declared as a national standard by the National Standards Council.

Dr Manyindo said the new standard requires that second hand vehicles are inspected for conformity to Uganda Standards before being exported from the country of origin in what is known as Pre-Export Verification of Conformity (PVoC).  As such, cars are issued with a certificate of roadworthiness to allow them in the country. The certificate is valid for a period of one year, thereby requiring routine inspection for road worthiness on annual basis.

According to Dr Manyindo, the standards provide guidelines to streamline processes and procedures used in inspection of motor vehicles. “Motor vehicle inspectors, garages, and mechanics will find the standards useful for carrying out routine check and inspections of second hand motor vehicles,” Dr. Manyindo said.

Last financial year, the UNBS developed 357 standards which were approved by the National Standards Council.
UNBS manages the processes of standard development and enforcement to ensure consumer protection and to encourage fair trade.

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BREAKING: Orlando Pirates unveil Micho as new head coach

Serbian Sredjovic 'Micho' at the South African club Orlando Pirates

South African club Orlando Pirates have today unveiled former Uganda Cranes Coach Milutin ‘Micho’ Sredojevic as their new head manager.

The Serbian coach replaces Kjell Jonevret who resigned yesterday after failing to turn fortunes around for the six months he had been managing the club.

This is Micho’s second stint at Orlando Pirates, having initially joined in 2006 where he handled 23 games before being shown the door.

He guided the club the 2006 Caf Champions League semifinals, but resigned on the back of a bad domestic record.

In Uganda Micho has been widely praised for making Uganda qualify for the 2017 Africa Cup of Nations in Gabon, the first time in 38 years.

 

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Poor coffee handling worries Agriculture Minister

Bags of coffee beans for export

Coffee farmers in Uganda are fetching between 70 and 75 per cent on the international market price occasioned by malpractices in the sector, the agriculture minister Vincent Ssempijja has said. According to the minister, the coffee sector in Uganda faces problems of quality deterioration, poor marketing, a challenging regulatory framework and poor infrastructure mainly in the rural areas.

“Due to unscrupulous elements operating at various levels of the coffee value chain, coffee quality malpractices have also increased. This is a danger to our coffee industry both internally and at international level,” Minister Ssempijja says.

The minister fears that the international market could reject Uganda’s coffee if the malpractices are not addressed.” We do not want to face the danger of the international community rejecting Uganda coffee as it did to fish a few years ago,” he said.
The Minister said his ministry will work to improve post-harvest practices including hygiene and sanitary conditions to have Uganda coffee regain its premium quality. Further, the minister says Uganda needs to export high grade premium coffee as well as entering specialty markets by adding value.
“We will continue to sensitize the stakeholders especially the farmers, traders and coffee factory processors to appreciate the benefits of good post-harvest handling, good quality coffee. We will only close the factories, when all other avenues have been exhausted,” he says
The minister said the Uganda Coffee Development Authority (UCDA) recently closed coffee factories in Masaka sub region due to deteriorating standards in handling .

“From Masaka, the exercise will continue to Busoga, Luwero, Mubende as the harvest season proceeds in these sub regions,” he added.
According to UCDA Executive Director, Dr Emmanuel Lyamulemye, the coffee quality has improved as a result of factory closures in Masaka sub region, with farmers now getting better prices for dried coffee rather than the wet coffee which fetches lower prices.
Minister Ssempijja says farmers and traders in districts of Bushenyi, Sheema, Ibanda and Mount Egon districts of Mbale, Bulambuli and Sironko, have employed good harvesting and drying practices. “Most of the coffee cherry is harvested when red ripe and dried on tarpaulins and clean local mats,” Minister Ssempijja notes, calling upon the farmers in those districts to maintain high quality standards.
The minister encourages farmers to employ good husbandry practices in the coffee gardens , by weeding, pruning, mulching and uprooting and burning on spot trees affected by the coffee wilt.
As one of the measure to boost coffee quality farmers must harvest only the red ripe cherry, unripe cherry spoils quality. “It is the farmer’s responsibility to dry the coffee up to the required Moisture Content level before selling,” he says.
Further coffee regulations do not allow trade in coffee that is not yet well dried as it affects quality.
Since 2014, Government has intensified campaigns to give coffee seedlings to farmers increasing from 20 million to the current 200 million seedlings per annum. The minister says government targets to have 300 million seedlings planted per year up to 2018/19 coffee year.
Uganda grows both Arabica and Robusta coffee, mainly through smallholder farmers.

Uganda follows Ethiopia as Africa’s top coffee producers. But Ethiopia consumes most of her coffee domestically, making Uganda Africa’s number one coffee exporter.

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Rugby Cranes team named as Zimbabwe arrive for Saturday tie

Zimbwabwe Rugby team members on arrival at Entebbe International Airport

The 2017 Africa Gold Cup tournament comes to an end on Saturday August 5 with Uganda hosting Zimbabwe, while Senegal will travel to Tunisia in the remaining fixtures.

The Zimbabwean Rugby team today arrived at Entebbe international airport ahead of their final game against the Rugby Cranes at Legends Rugby club, Kampala.

Rugby Cranes head coach John Duncan and his assistant Robert Sseguya named the 23-man squad that will take on Zimbabwe Sables over the weekend.

Some changes were made with Byron Oketayot replacing Ronald Musajja at the blind side flank, Philip Wokorach moves to fly half from full back to cover for the injured Ivan Magomu who will start from the bench and James Odong returns from injury to start at full back.

After two wins against Tunisia and Senegal and a draw against second placed Kenya, the Uganda Rugby Cranes are third in the rankings with 11 points behind 1st placed Namibia and Kenya at 2nd.

The Africa Gold Cup serves as 2019 World Cup qualifiers. It featured Namibia, Kenya, Senegal, Tunisia, Zambia and Zimbabwe and the winner, Namibia are not only being crowned Gold Cup champions but also qualify for the World Cup.

Namibia was crowned champions after defeating Kenya 45-7 in Windhoek, going unbeaten in the competition and retaining the title for the fourth year in a row.

Meanwhile, the 2019 Rugby World Cup takes place in Japan from September 20th to November 2nd and will be played across 12 venues.

 

Africa Rugby Gold Cup

Uganda Vs. Zimbwabwe

Legends Rugby Ground, Kampala (4:30pm)

 

The Team List:

  1. Asuman Mugerwa
  2. Alex Mubiru
  3. Brian Odongo-Captain
  4. Charles Uhuru
  5. Mathias Ochwo
  6. Byron Oketayot
  7. Brian Asaba
  8. Scott Oluoch
  9. Aaron Ofoyrwoth
  10. Philip Wokorach
  11. Lawrence Sebuliba
  12. Pius Ogena
  13. Micheal Okorach
  14. Justin Kimono
  15. James Odong
  16. Syrus Watum
  17. Collin Kimbowa
  18. Saul Kivumbi
  19. Robert Aziku
  20. Ronald Musajja
  21. Kevin Makmot
  22. Ivan Magomu
  23. Fred Odur
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CSOs urge government to increase funding for malaria

Children take shelter in a mosquito net as a means of avoiding malaria

A group of Civil Society Organisations (CSOs) in Kampala has urged the government to increase funding to the malaria control programme.
The CSOs say the Malaria Control Program being implemented as part of the Global Fund initiative, has not received sufficient funds from government as outlined in the Uganda Malaria Reduction Strategic Plan, making the objectives of the plan unrealistic.
Records, according to CSOs, show that over 16 million malaria cases were reported at Uganda’s health facilities in 2013 alone, forcing government to launch the Uganda Malaria Reduction Strategy 2014-2020 with specific objectives to fight the malaria pandemic to the lowest levels possible.

Clinically diagnosed malaria is the leading cause of morbidity and mortality in Uganda, accounting for 30-50 percent of outpatient visits at health facilities, 15-20 percent of all hospital admissions, and up to 20 percent of all hospital deaths. 27.2 percent of inpatient deaths among children under five years of age are due to malaria.
Among the objectives to prop the programme, the government intended by the year 2017 to achieve and sustain protection of at least 85 percent of the population through malaria prevention measures, among them the on-going distribution of the insecticide-treated nets (ITNs).
Under the programme, by the year 2018, government also wants to achieve and sustain at least 90 percent of malaria cases in the public and private sectors and community level, with patients receiving prompt treatment according to national guidelines.
However, with the slow pace government is implementing the strategic plan, and the little money it is allocating to the programme, CSOs say not much will be achieved.
To achieve the above targets the strategic plan requires a total funding estimated at US$1.361 billion over the six year period, implying that Uganda needed to invest US$ 226.6 million (Shs793.9 billion) per year, which the CSOs say is almost the entire budget for the Ministry of Health.
The CSOs say the direct costs of malaria in Uganda include a combination of personal and public expenditures on both prevention and treatment of the disease. Personal expenditures, they say, include individual or family spending on ITNs, doctors’ fees, antimalarial drugs, transport to health facilities, and support for the patient and sometimes an accompanying family member during hospital stays.
Public expenditures include spending by government on maintaining health facilities and health care infrastructure, publicly managed vector control, education and research.
The CSOs say that a significant percentage of deaths occur at home and are not reported by any system. According to official reports, Uganda’s high rates of malaria affect young children and pregnant women in rural areas who experience extreme poverty, limited access to healthcare services, and lack of education.
A recent study shows that Uganda spends almost Shs1,200 billion on diagnosing and treating malaria annually, or about Sh40,000 per person. This includes the money spent by the Government, donors, NGOs and private patients.
The Government alone spends sh63 billion per year on fighting malaria, 10 percent of the total health budget.
“Malaria is a preventable disease associated with slow socio-economic development and poverty. The determinants of malaria have roots beyond the health sector and the roles of other sectors need to be harnessed to prevent and control malaria in this country,” the CSOs urge government.
They say that malaria prevention and control programs need to have a multi-sectorial dimension. “The slow pace in reducing the malaria burden in Uganda and the renewed international call for a multi-sectorial action necessitates reforms in Uganda’s efforts to reduce malaria,’ the agitate.
According to Word health Organization , annual economic growth in countries with high malaria transmission has historically been lower than in countries without malaria. Economists believe that malaria is responsible for a growth penalty of up to 1.3 percent per year in some African countries.
According to Ministry of Health, maleria is a major public health problem associated with slow socio-economic development and poverty and the most frequently reported disease at both public and private health facilities in Uganda.
“Malaria has negative health and economic effects, and restricts the productivity of our population. Increased ITN coverage and education, improved access to and delivery of treatment, and emergency control of malaria are essential to control malaria in Uganda,” health officials recommend.

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Archbishop Welby prays with South Sudan refugees in Moyo

A woman wraps Archbishop of Canterbury Justin Welby in a piece of cloth upon his arrival at Mirieyi settlement camp in Adjumani district during his visit to South Sudanese refugees, Uganda August 2, 2017. REUTERS/James Akena

Archbishop of Canterbury Justin Welby, spiritual leader of the world’s Anglicans, prayed on Wednesday with South Sudanese refugees in northern Uganda, home to a nearly million people fleeing a four-year civil war in the world’s youngest nation.

Around 1.8 million people have fled South Sudan since fighting broke out in December 2013, sparking what has become the world’s fastest growing refugee crisis and largest cross-border exodus in Africa since the 1994 Rwandan genocide.

Most have fled south to Uganda, whose open-door refugee policy is now creaking under the sheer weight of numbers in sprawling camps carved out of the bush.

“The Bible tells us that the refugee is specially loved by God,” Welby, leader of the 85-million strong Anglican Communion, said as he joined in prayers in a camp in the northern district of Moyo.

The Archbishop added: “Which means you who are refugees are specially loved by God, that Jesus himself was a refugee and he loves you and he stands with you and the suffering that you have is the suffering that he knows. So I pray for you, I will advocate for you.”

Officials from the United Nations UNHCR refugee agency say $674 million is needed to pay for the basic needs of the refugees this year, but so far only 21 percent of those funds have been secured.

The total number of refugees is due to pass a million in the next week, UNHCR officials said. Nor is there any sign of a let-up in the stream of desperate civilians.

Some days it is only hundreds. On others, it is thousands.

In the camps, refugees are already on half their standard food rations of 12kg of maize a month, and now critical services such as health and education are facing cut-backs, UNHCR officials said.

In Bidi-Bidi, the largest of the refugee camps, 180 South Sudanese died in the first six months of the year, nearly half of them small children.

“We came here to hide ourselves from death,” said 31-year-old Moro Bullen, standing next to a row of 16 freshly dug graves, mounds of rust-red earth arranged in three neat rows. Half of the graves were only a meter long. “We did not come here to die. We came here to be rescued.”

Although the roots of the war lie in the animosity between President Salva Kiir, who hails from South Sudan’s powerful Dinka ethnic group, and his former deputy, Riek Machar, a Nuer, it has splintered into a patchwork of overlapping conflicts.

Machar is under house arrest in South Africa, having fled there last year to seek medical attention, but there has been little let-up in the levels of conflict, especially in the Equatoria region abutting Uganda.

Refugees have told Reuters of towns and villages emptied by government forces, dominated by the Dinka, with men, women and children summarily executed, and their bodies mutilated.

Rights groups have also reported widespread rape and looting that the United Nations says indicates ethnic cleansing. It has also warned of a possible genocide in a country that only came into being in 2011, when South Sudan split from Sudan.

The government has denied the reports, and said its troops are merely conducting operations against rebel militiamen.

 

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