Sam Ssimbwa, the main suspect in the fake arms deal has been relocated to unknown location by Special Investigation Unit of police.

According to sources within police, the reason for his relocation is not to take chances as investigation can be jeopardized since it involves ‘big people’.

Before the relocation, Ssimbwa has been at Kireka based SIU holding cells. While the whereabouts of   another suspect, Capt. Ronald Muhoozi who was arrested that very week is also not unknown.

“The decision to relocate the main suspect is due to the sensitive of the matter at hand otherwise, he is safe and fine” a source preferring anonymity because he lacks authority to talk freely said.

Uganda Peoples’ Defences Forces (UPDF) Spokesperson Lt. Col. Paddy Ankunda who had previously denied the investigation and accused the media of fanning the ‘rumour’ on Wednesday ate his words when he retracted the earlier statement and admitted that indeed the army and police were investigating the fake arms deal that is allegedly involving Brig. Leopold Kyanda, Chief of Staff Land Forces.

“We would like to state clearly at this moment that sometime in 2015 fraudsters claiming to be representing the UPDF met a representative of a Polish company and in subsequent discussions the investigations have revealed an acceptance agreement was reached on behalf of the ministry of defence,” Col. Ankunda said.

However, EagleOnline has learnt that a team of investigators from the three spying agencies and namely, Special Investigation Unit (SIU), External Security Organisation (ESO) and Chieftaincy of Military Intelligence (CMI) will next week travel to Poland and engage the Irish BMP Poland SP Z.o.o officials as investigation zero on the transaction.

In September last year, conmen disguising as Ministry of Defence procurement team invited officials of the Irish BMP Poland SP Z.o.o for meeting in Bombo, the headquarters of Land Forces.

The organisers, some of them dressed in military uniform, assured top managers of the Polish company that government was planning to procure a big cache of weapons in a deal worth Euros 71 million.

After the meeting, the Poles came out of the meeting contented, knowing they would get the deal and were to pay Euros 7,000 for bidding documents.

Sam Ssimbwa, the alleged lead negotiator, who said was using his company Prima Investments Uganda, later assured the Poles that he was going to negotiate for them to get the deal.

BMP Poland SP Z.o.o later gave powers of Attorney to Prima to negotiate the deal. Ssimbwa later went to Equity Bank and secured a bank guarantee. BMP later wired over Euros 500,000 to Prima bank account in Equity Bank to cover bond security for the deal.

Below is the statement from Ankunda denying investigations

PRESS RELEASE Army speaks out on alleged arms deal

November 14, 2016.

The Uganda People’s Defence Forces (UPDF) has noted with concern media reports claiming that the UPDF High Command sat over the weekend to discuss an alleged arms deal implicating the Chief of Staff Land Forces, Brig. Leopold Kyanda. The same media reports alleged that the Deputy Chief of Military Intelligence, Col. Mbonye, has been secretly transferred to African Union Mission to Somalia as he was investigating the alleged case and that the alleged deal was signed in Land Forces Headquarter board room, Bombo. The media reports also allege that Brig Kyanda made phone calls to SIU of Police to ensure release of one Sam Ssimbwa. This is to clarify that the High Command did not sit over the weekend as alleged, that there is no case of alleged fake arms deal being investigated by Col Mbonye or the Chieftaincy of Military Intelligence, and that Brig Kyanda is not currently under investigations of any sort by UPDF. The UPDF further clarifies that the planned deployment of Col Mbonye to AMISOM is normal deployment and not secret as reported. Furthermore, the Information which the sister organs, the UPDF and UPF have shared about these claims does not in any way indicate at anytime that one Sam Ssimbwa confessed to have met Brig Kyanda or conducted such a meeting in Land Forces Board Room. Brig Kyanda has also not made any of the alleged phone calls to SIU in relations to the said case nor did he talk to the one Ssimbwa at anytime. Media houses propagating these rumours are therefore cautioned to stop these false allegations against, Brig Leopold Kyanda, for there are no any clear indications of the Brigadier’s involvement in the alleged case. The public is hereby assured that the reports are unfounded, malicious and aimed at tainting the hard earned good image of the Uganda People’s Defence Forces. The public are further informed that these reports are a psychological war launched by the enemies of the people of Uganda, targeting the top leadership of the UPDF with a view to breaking the trust the people have in their national force. The UPDF has travelled together with the People of Uganda in a long and difficult path to peace and stability that has ushered in development in the country. Any persons who try to break this bond will be stopped using the strong arm of the law. UPDF remains committed to the cause of securing Uganda and its People.

PADDY ANKUNDA

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Four Uganda Telecom (UTL) top officials have been accused of participating in a raft of dubious transactions among them conflict of interest, salary disparities, irregular and fraudulent payments and, the impending fraudulent sale of over 10 pieces of land belonging to the parastatal that is partially government-owned, with 31 per cent shares. Other shares totaling 69 per cent are owned by the seemingly defunct Libya African Portfolio Green Network (LAP GreenN).

According to a damning report after private investigations by Nathan Nandala Mafabi, the four implicated officers include UTL Managing Director Mark Shoebridge, the Chief Legal Officer David Nambale, the Chief Finance Officer (CFO) James Wilde and Chief Internal Auditor Ayub Mulumba.

In the report Mr Mafabi, a former Chairman of the Public Accounts Committee in the Eighth Parliament, says the MD Mark Shoebridge and the Chief Legal Officer Nambale masterminded the irregular sale of the said plots, all valued at Shs39.034 billion.

The said plots include Plot 41-47 on 5^th Street Industrial Area, which was allegedly sold to Magnet Construction Company Limited at US$ 4.9m (approx. Shs17.15bn on the open market) under an agreement signed by Stephen Kaboyo and David Nambale on behalf of UTL, and Shimon Halfon and Sam Ahamya on behalf of Magnet. According to Mr Mafabi’s report, US$3.94m was paid and the outstanding balance was scheduled to be paid in four installments between May 2016 and February 2017.

The other land already disposed of is Plot 1-7 Nsambya Yard, which was sold to Intercar (U) Ltd, represented by Bob Kabonero and Margeret Mirembe Gureme, at US$1.567m (Approx.Shs5.484bn). The July 8, 2015 agreement was signed by MD Shoebridge and CLO Nambale, representing UTL.

Further, according to the Mafabi report, other imminent and pending questionable sales of UTL land include: Plots 125, 128, 130. 131, 132, 133, 142, 143 and Kibuga Block 38 in Makerere, Wandegeya, with the buildings, communication equipment and infrastructure thereon, all valued at UgShs5 billion on the open market; Plot 41-43 Kyambogo with the buildings, communication equipment and infrastructure thereon, all valued at UgShs900 million on the open market; and Plot 2 Siad Barre Avenue Nakasero (Opposite Rwenzori Courts and now being used as a parking yard), valued at Shs10.5 billion on the open market.

According to Mr Mafabi, the Chief Finance Officer James Wilde engaged in ‘conflict of interest’ financial activities when his company, the Sub sahara Group where he reportedly owns 99.9 shares, was contracted by UTL to audit 472 sites at UgShs100m on voucher No 020089. The company was also contracted for an unspecified amount of money to tow UTL vehicles to and from garages on voucher 724690.

Highlighting Mr Mulumba’s miscreants, Mr Mafabi said the Chief Internal Auditor received Shs 33 million ‘for no services rendered’ in respect to DISC Africa, with the first down payment of 25.944 million made in cash on August 22 on voucher number 724655.

Commenting on the salary disparities at UTL, Mr Mafabi said the top four officials: the MD, CFO, Chief Legal Officer and Chief Human Resource Officer collectively earn a total of Shs 420 million, with the highest getting UgShs150 million, while the lowest of the quartet earns UgShs60 million per month.

‘This is 1/3 of the salary bill for the about 500 UTL workers. These salaries are indeed the highest for such staff in any company in Uganda,’ wrote Mr Mafabi.

Meanwhile, the Mafabi report is before Parliament, which has ordered those implicated not to travel abroad until the matters raised are resolved.

But in response to the accusations, Mr Stephen Kaboyo, while addressing a press conference, denied any asset-stripping of UTL.

‘There has been no asset stripping at UTL. Only two assets have been sold but disposed in a right manner,’ he said, ostensibly in respect to the land in Industrial Area and in Nsambya.

He also said the travel ban will affect UTL business.

‘The travel ban affects us and the business so much and I appeal to the speaker and Parliament at large to lift it’, he said.

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