The Ugandan public yesterday went into a state of utter shock and uproar after it emerged that over 100 top corporation bosses, private and government lawyers, top civil servants had shared a staggering 7bn shillings as a reward (akasiimo) for winning the Heritage/Tullow oil Capital Gains Tax (CGT) case.
When Heritage sold its interest to Tullow for $1.5bn, the deal required the consent of the Ugandan Government – and it required Heritage to pay capital gains tax on the deal of $405m. Tullow Uganda Ltd and Heritage Oil and Gas Ltd each owned a 50 percent stake of a petroleum exploration licence in Uganda.
Cash bonanza
Last evening, ChimpReports website broke the story naming the beneficiaries of the 7bn payout. Top of the list was URA commissioner general Doris Akol who pocketed Shs 242 million on top of her monthly 40m salary.
Other beneficiaries in the cash bonanza that has sent shockwaves in the public include the late Chris Kassami- former permanent secretary Finance Ministry who had Shs 393m wired onto his bank account months after he had passed on. Others included former Attorney General Peter Nyombi who received 226m, Keith Muhakanizi who took home 108m, former Energy Ministry PS Kabagambe Kaliisa who bagged 133m among others like 37 year old lawyer Martin Mwambutsya who received 232m
Winners get rewarded
URA Spokesperson Sarah Banage told ChimpReports who broke the story that the payoffs were based on the directives of the Attoney General who wanted the winning team rewarded for saving government huge sums of money that will be used to finance projects in the country
Banage confirmed that indeed the tax body effected payments after the capital gains tax was won. “Yes, it is true, we paid some people basing on a directive from the Attorney General”. Asked what criterion was used to make the disbursements, Banage answered: “Everything was based on a directive from the Attorney General. You need to talk to his office. They have all the details”.
Public reacts
Ugandans on twitter described the pay offs as “ridiculous, uncouth and annoying”. George Wabwire said he was “disgusted and loathed” the idea.
Facebook was also awash of with messages of disappointment. A one Harriet Lubwama said “I cannot believe we still have mothers dying at health centres that don’t have basic drugs which cost less than the 7bn that is being doled to these thieving officials. Shame upon you Uganda for choosing to reward the rich over the underprivileged”