An Auditor General’s report to a parliamentary Public Accounts Committee on Commissions, State Authorities and State Enterprises (PAC – COSASE) investigating the closure of the defunct banks found that JN Kirkland, through a number of companies, many of which are suspected of being façades and fronts for Bank of Uganda officials, sold financial assets worth UGX135bn for a mere UGX8.9bn- a 93% discount! According to the Auditor General’s report, the assets included UGX34bn of loans that had valid, legal and equitable mortgage supported by proper legal documentation.
According to the AG, the UGX8.9bn sale price, represented 26% of the total secured loan portfolio and 7% of the total loan portfolio!
All this happened between 2005 and 2011 while Kirunda, was a Senior Legal Associate at JN Kirkland.
So when this reporter, asked Robert Kirunda on Twitter, to clarify on whether he had a role to play in this shadowy deal- Kirunda played dumb, now for 5 days, despite the fact that he has been active on twitter.
Kirunda who is known to have very strong views on government corruption also declined to respond to this reporters inquiries sent to his official email address, as well as his known Whatsapp and Twitter messaging inboxes. This reporter, asked Kirunda, who during the parliamentary probe, represented Justine Bagyenda, if, assuming he had any role to play in the deal, he had ever interacted with Bagyenda and Benedict Sekabira- the BoU Officials various named by a parliamentary probe on the matter for the mismanaging the particular assets sale.
He also declined to respond to this, regardless of a reminder.
Details: How JN Kirkland is believed to have conspired with BoU officials to profit from defunct banks’ asset sale.
According to investigations by this magazine and according to details available from the that in or around 2006, Bank of Uganda officials- mainly Justine Bagyenda and Benedict Sekabira hired JN Kirkland to advise them on how to dispose of assets of the defunct International Credit Bank (ICB), Greenland Bank and Cooperative Bank. It is not clear how BoU arrived at JN Kirkland, a firm founded in 2005, but accordingly, it is JN Kirkland, acting as an exit strategy external consultant for the central bank that identified a US company, Octavian Advisors, a US hedge fund, said to be specializing in distressed investments; itself founded in 2005, who agreed to buy the bad loan book.
Octavian Advisors would incorporate a company known as M/S Nile River Acquisition Company (NRAC)- in Mauritius on the 26th September 2007- just two months before they acquired the assets, on 24th November 2007 from Bank of Uganda.
The assets amounting to UGX135 billion at $5.25m- UGX8.9bn at the time (USD1= UGX1,710 in November 2007).
According to the Auditor General’s report, this transaction, occasioned the shareholders of the defunct banks, up to UGX126 billion in losses. Although Bagyenda tried to justify the sale price saying that many of the assets were bad, the Auditor General said that the UGX135bn, included UGX34 bn of loans that had valid, legal and equitable mortgage supported by proper legal documentation and concluded that the UGX8.9bn sale price, represented 26% of the total secured loan portfolio and 7% of the total loan portfolio.
But perhaps, the sale price is not the biggest problem- the problem lies in the details of how the transaction was layered- ultimately ending back at the doorsteps of JN Kirkland as a beneficiary from the very same transaction they were hired to advise on, for the owners of the law firm and companies linked to them would later be found in possession of land titles, previously used as collateral on some of the bad loans.
First of all, the details of how BoU reached at NRAC as a final buyer are shadowy and so was the valuation of the assets before sale. Bagyenda the sacked former Executive Director of Bank Supervision under whose regime most of the dirty selling happened, would later tell parliament that the price was reached at after what she called “desk estimation”!
In what appears to be a carefully constructed scheme, immediately after acquiring the assets at a give-away price, on 31st of December 2007, NRAC executed a power of attorney to M/S SIL Investments – a company only registered in Uganda just a month before, on 16th November 2007, to collect debts on its behalf!
More suspiciously, the registered physical address for SIL Investments was Greenland Towers, the then registered offices for JN Kirkland & Associates.
During an earlier investigation into the matter, by this reporter, one of the lawyers who represented SIL Investments on several of the loan recovery cases, intimated to this reporter that all legal instructions from SIL originated from JN Kirkland & Associates’ founding partner, a one Kakembo Katende.
At the time, Kakembo, the Robert Kirunda’s boss, did not pick up our calls and declined to respond to Whatsapp inquiries on the matter, despite having read them.
Interestingly, Octavian Advisors closed in 2012, over what it said was a difficult operating environment. Nonetheless SIL investments continued recovering the bad loans.
Octavian deal murky, SIL-NRAC deal fraudulent
The parliamentary probe into o the closure of defunct banks concluded that “the transaction between Bank of Uganda and Miss Octavian Advisors Plc. and her agents lacked transparency and officers involved should be held responsible for commissions and/or omissions which resulted in not marshalling the greatest amount of the assets of the distressed financial institutions.”
The committee further recommended that “the officers involved should be held responsible for conflict of interest,” and more importantly, the “fraudulent business activities being conducted by M/s SIL Investment on behalf of a non-existent Nile River Acquisition Company (NRAC) should immediately cease.”
“The Inspector General of Police is required immediately, on adoption of this report, to seize all the land titles in possession of Mr. Kakembo Katende of JN Kirkland and Associates and M/s SIL Investment arising from their management of the loan portfolio sold to Nile River Acquisition Company by Bank of Uganda,” ordered the committee.
“M/s SIL Investments and Mr Kakembo Katende should render an account to the public trustee of all monies received from the time Nile River Acquisition Company ceased” and that “the agency of M/s SIL Investments Limited cannot legally exist upon dissolution of the principal – that is Nile River Acquisition Company,” further concluded the committee.
Was Kirunda an innocent employee or is he playing Omerta-code silence?
Robert Kirunda has since left JN Kirkland and is a co-founding Partner at Kirunda & Wasige Advocates of the firm through whom he represents Bagyenda.
Robert Kirunda has since left JN Kirkland and is a co-founding Partner at Kirunda & Wasige Advocates of the firm through whom he represents Bagyenda. It is also likely that, he possibly did not know much about this deal and his representation of Bagyenda was merely coincidental, but he won’t say nothing, preferring to keep an Omerta-code silence.
Even when we asked him whether he found a moral dilemma and or conflict of interest in representing Bagyenda over a matter in which he, was likely party to by virtue of his former employment, he did not respond.
Neither did he respond to our question in regard to the fact that following the parliamentary probe and the Auditor General’s report that revealed that the assets of the three banks had been grossly undervalued to the detriment of the shareholders, if he had any regret, he did not respond as well.
Nearly a year has gone by since parliament promised to take action on parliament’s report and nothing has happened, in which case we are likely to never know the full truth and major questions will still linger.
For example, did JN Kirkland actually buy the bad assets for themselves through Sil Investments, but used Octavian Advisors and NRAC Company as mere smokescreens? If so, was JN Kirkland working on its own or was it representing some powers that be in Bank of Uganda. If yes, who are these people? Did the officials at BoU, then deliberately under-price the bad assets of the failed banks so as to privately benefit once the recovery had been done?
Robert Kirunda, as a former Senior Legal Associate at JN Kirkland surely has some of these answers to these questions. And he, just like his former boss, will possibly not respond ever to our inquiries, or will like most lawyers prefer to do, respond with threats to sue this publication and could actually go ahead and sue and life will move on for the former shareholders of the defunct banks.
The sun will rise and set and it will be another day of justice delayed.
Year of the Overcomer-Prophet Elvis Mbonye
The eagerly awaited first fellowship of controversial Prophet Elvis Mbonye left viewers shocked as he declined to issue his now famous prophecies citing a refusal to settle for the new normal. In an on online service watched by thousands, the Prophet said him prophesying would “ be a concession to gathering online, rather than physically” further stating that it is not the will of God that church should meet online!
The Covid-19 SOPs given by the government and Ministry of Health have heavily impacted gatherings and as a result, ministries with large congregations have resorted to online services. The prophet however insists that this is a ploy to diminish the influence of the Kingdom of God.
He however proceeded to give the Prophetic Word of the year , saying “This is the year of the Overcomers” amidst cheers from those present. He also stated that this would not be a “gloomy” year, probably meaning that this would be a good year. Given that many of his prophecies have actually come to pass, should we pay more attention to him? We eagerly await the prophecies this year.
Kabuleta blasts Media over “COFIT” reporting in new rant.
Presidential hopeful Joseph Kiiza Kabuleta has expressed dissatisfaction with the media over what he says was”alarmist reporting” over the Covid-19 pandemic which he calls “COFIT” a term we believe is a wordplay between covid and profit, a view held by many that claims that the disease was exaggerated to maximize funding and corruption. Kabuleta has come to be known for his straight shooting style and admirable command of facts and policy, even being touted as the “smartest candidate” in the race.here is the full statement:
MEDIA AND THE COFIT ENTERPRISE
By Joseph Kabuleta
“Don’t look at where you fell, but where you slipped”
We know where the media fell. They fell when they were caught in the crossfire between opposition politicians and trigger-happy security hitmen; when they were unfairly targeted as they went about their noble duty of covering this explosive elective season. Sadly, some journalists are nursing wounds; others weren’t so lucky.
But it’s important for us to understand where they slipped.
If someone is sitting by the roadside sipping on his brew and he sees a gang of people sprinting past him, as if for their lives, it’s understandable if he impulsively joins without asking questions. But if after nine months he is still sprinting, and has still not asked any questions, then there’s something terribly wrong with him.
When we first went into lockdown in March, it was probably the best course of action because we didn’t know the full extent of the Cofit threat. But in the first 90 days, it was clear to all and sundry that it was never going to rank among Uganda’s top health challenges. And that’s not my opinion.
The Daily Monitor on July 15th quoted Dr Baterana Byarugaba, the Mulago Hospital Executive Director, describing the Cofit strain in the country as a mild form of flu which does not require hospital admission since it can be treated at home or in lower health facilities.
“l told Ugandans right from the beginning that the type of coronavirus we expect in Uganda is the mild one. It can be treated at health centre II, III, IV or the district hospital,” the top Medic said.
I read the story with glorious delight supposing that finally common sense, (or should I say science sense) would inform our decisions as a nation. But it’s difficult to know where science stops and politics starts. It’s become clear over the months that Cofit is not just a virus that causes respiratory problems, it’s a lot more than that; it’s a weapon in the hands of politicians that gives them power beyond their wildest dreams. In America, for instance, Democrat Congressman Jim Clyburn said Cofit is a “tremendous opportunity to restructure things to fit our (leftist) vision” while actress and activist Jane Fonda said that Cofit was “God’s gift to the left.”
Our media could have taken the side of poor Ugandans by showing the immense suffering and death from preventable sicknesses that resulted from the harsh Cofit measures; they could have highlighted the plight of businesses permanently closed and workers rendered redundant and sent back to villages. They could have wondered why truck drivers were testing negative in Kenya and positive in Uganda, or wondered why Cofit deaths only started after Prophet Museveni showed us a macabre lineup of coffins in his address, or why every celebrity who dies since then is ruled as Cofit (no autopsy required)
They could have told us that according to Worldometer, Cofit has a 0.28% mortality rate (or a 99.72 survival rate) and that it doesn’t rank anywhere in the Top 10 of Uganda’s health challenges; they could have told us that a child dies of malaria every two minutes (and Uganda accounts for 3% of the world’s malaria fatalities), which means that more Ugandans die from mosquitoes in ten days than Cofit has (allegedly) killed in the nine months it’s been on our lips.
Ugandans (especially of my age) have lived through real pandemics. As a young man growing up in the early 90s, nobody had to remind me that AIDS was real. Goodness me, I knew it was! And I didn’t need police to force me to wear protection, I knew the consequences. The fact that we are constantly being reminded that ‘Cofit is real’ tells a story of its own.
The media could have asked why Uganda, with one of the lowest Cofit cases or deaths, still holds on to a 9:00pm curfew when Kenya moved to 11:00pm in September, as did South Africa and several countries. The media could have told us that Malawi, Burundi, Tanzania and, recently, Ghana all held successful elections with full blown campaigns in 2020, and we aren’t hearing people dropping dead from Cofit in any of those countries. May be they should have tried to find out if people are dropping dead in Tanzania which altogether ignored all Cofit measures and went on to acquire middle-income status while Ugandans were still in lockdown.
They could have told us about the asymptomatic Cofit patients who were filmed dancing the night away in hospital wards, or of people suffering from other diseases who dare not go to hospital because they fear to be given a fake Cofit label and held for two weeks against their will.
The media could have told us that Cofit deaths across the world have been grossly inflated. Minnesota lawmakers say Cofit deaths could have been inflated by 40% after examining death certificates (according to The Washington Examiner) while Fox News reported that in Colorado 45% of Cofit corpses “were also found to have bullet wounds”.
They could have told us that 22 European countries, all of which had tens of thousands of Cofit deaths, opened their schools in the fall, and there has not been any reported spikes in cases as a result. They could have told us that more people have been killed by security men enforcing Cofit measures than by the virus itself.
Well, they could have…but they didn’t. And that’s where they slipped.
Instead they chose to go down the path of alarmist reporting and in so doing became, inadvertently or otherwise, enablers of Uganda’s trillion-shilling Cofit enterprise. Like Squealer in George Orwell’s Animal Farm, the media used flowery language to drum up fear by keeping people’s eyes transfixed on swelling numbers while the thieves carried their loot and stashed it away, and loan money was distributed among family members or used in regime prolongation.
The recent joint television news bulletin, and the adverts that followed, were the peak of hysterical reporting. “Zuukuka Tusaanawo” (wake up, we are perishing) screamed an advert featuring top media personalities. What a load of……(fill in appropriate word).
Remember, all the tyranny we have witnessed in this season has been done in the name of Cofit, and such sensationalist reporting justifies it; it gives dictators like Museveni the perfect pseudo-moralistic cover to unleash their most despotic fantasies while actually pretending that it’s for the good of the people. Unfortunately, the terror has now spread to the very media people whose hyperbole enabled it in the first place. There is such a thing as the law of cause and consequence, after all.
Instead of the media walking out of pressers and threatening to boycott government functions, let them threaten to stop all Cofit reporting. Museveni himself would come running with chocolate in hand.
If the president extended curfew by just two hours, for instance, he will have put as many as 200,000 Ugandans back to work especially in the hotel, restaurant and entertainment industries; but he doesn’t care, and sadly neither do many middleclass Ugandans who suppose that it’s their moral obligation as responsible citizens of the Global Village to fret over Cofit just because their ‘fellow citizens’ in Europe and America are doing so. Of course they can afford to do that because their corporate jobs have, for the most part, insulated them from the devastation of the government-instituted Cofit measures. They can enjoy working at home, beer in hand, as they listen to CNN and BBC and still expect the full complement of their salaries at the month end, and that makes them feel every bit like ‘their brothers’ overseas.
Such aspirational conformists are more likely to be offended by my stance on Cofit because they haven’t traversed crook and creek of this country and seen the damage reigned on this fragile society; not by the virus, but by the measures supposedly instituted to mitigate it.
You see, perhaps the most enduring damage this regime has done to our society is creating a three-part hierarchy of class and needs. At the zenith are a handful of connected ‘1986 generation’ and their families who feel entitled to all power and wealth. Beneath is a small (and shrinking) middleclass, and at the bottom of the pyramid is a mass of peasants. Every society, to various degrees, is ordered in the same fashion, but what makes Uganda unique is that the megalomaniacs at the top don’t give a nickel about the plight of the middleclass and the middleclass in turn don’t care a bit about the quandary of the peasant. The charlatans at the top will impose punitive taxes on the middleclass, then dip into NSSF coffers at a whim to share out their savings, and no one can stop them.
And the middleclass Ugandan, armed with his medical insurance, and safe in the knowledge that his wife is unlikely to die in child birth (20 Ugandans do EVERY DAY), and his children are very unlikely to die of malaria (20 do EVERY DAY), or from malnutrition (thousands do every year), will go around trumpeting Cofit because it’s more relevant to his status than malnutrition or malaria.
I could just as easily go down that path. I could also close my eyes to mothers failing to get breast milk because they can only afford half a meal a day (black tea with a piece of cassava), and the malnourished babies that emerge as a result; I could close my eyes to the teenage girls that were given out in marriage because schools closed, or those given out to meet family needs; I could ignore the fact that our president is opening 5-star markets in cities which have 1-star referral hospitals; I could also choose to look the other way and enjoy my middleclass lifestyle, but as an aspiring leader, I cannot.
As a leader, my aspiration is to remove the privileged/entitled class, to expand the middleclass (and their income), and to shrink the peasantry; but mostly to blur the lines that separate each category.
It doesn’t bode well for our country if the average Corporate Ugandan knows more about racism in America than about extreme poverty in Teso or Busoga because that disqualifies him/her from the solution to those local problems.
And finally, I have come to the realization that the biggest pandemic afflicting our country is poverty and the virus that causes it is called M7-1986. Vaccination against it is January 14
Muntu Blocked in Kamwenge
Alliance for National Transformation presidential candidate Gen. Mugisha Muntu has been blocked from campaigning in Kamwenge according to a statement he released earlier today.Below is the full statement:
Today in Kamwenge, as we have done since the start of the campaign season, we headed out to speak with the people. We had earlier in the week agreed on the venue with security agencies. No one had anticipated that it would rain as much as it did, making it impossible for us or the people to access.
After identifying an alternative place only 100m away from the original venue, negotiating with the owner and communicating the same to the public, we headed to the second venue only to be stopped by police.
Our policy has always been to do all we can to be reasonable, even in the face of unreasonable action on the part of the state. We engaged the police leadership in a civilized, respectable manner well knowing that they intended to not only frustrate us, but cause us to act in ways that would give them an excuse to cause chaos. This was on top of their intimidating the radio we had booked and duly paid to appear on.
While we are confident that we are on the right side of both the law and reason, we have chosen not to endanger the lives of our supporters or the general public by escalating the situation. We will do everything humanly possible to avoid a single life being lost or blood being shed on account of our campaign.
And yet this truth remains: the regime’s days are numbered.
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