UGANDA: GAVI SCANDAL TRIAL RESUMES

C O N F I D E N T I A L SECTION 01 OF 03 KAMPALA 001708

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/01/2017
TAGS: PGOV PHUM KDEM UG
SUBJECT: UGANDA: GAVI SCANDAL TRIAL RESUMES

REF: A. KAMPALA 909


B. KAMPALA 1199

Classified By: P/E Chief Kathleen FitzGibbon for reasons 1.4 (b) and (d
).


1. (C) Summary: The trial of former Health Ministry
officials and a State House mobilizer for the diversion of
Global Alliance for Vaccines and Immunizations (GAVI) funds
resumed on October 29. The Chief Magistrate overruled two
defense team motions, causing the lawyers to walk out of
court. The defense questioned the appointment of a
prosecutor from the Directorate of Public Prosecutions and
requested an opinion from the High Court regarding the
jurisdiction of the Inspectorate of Government (IGG) to
prosecute the case based on the charges made. The trial
proceeded with the first government witness testifying that
State House approved the use of the GAVI funds for
mobilization campaigns on the requisitions presented. The
next court date is November 6. Behind-the-scenes, the IGG
continues to pursue former Health Minister Jim Muhwezi and
was attempting to have him thrown out of Parliament based on
alleged leadership code violations. End Summary.

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BACKGROUND
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2. (U) The IGG's case against former Health Ministry
officials Jim Muhwezi, Mike Mukula, and Alex Kamugisha and
State House mobilizer Alice Kaboyo resumed on October 29.
The defendants were accused of misdirecting USD 900,000 of a
USD 4.3 million GAVI grant awarded for Uganda's surpassing
immunization targets. The case had been in recess since July
19 when the Government said that it was not ready to proceed
despite having arrested and charged the suspects in May (Ref
A). At the time, State House officials told us that the IGG
had not shared the results of her investigation with the
Director of Public Prosecutions Richard Buteero, or the
Criminal Investigation Division (CID) (Ref B). If the case
had proceeded based on the IGG's investigation, the
Government could have been embarrassed after making such
highly-publicized arrests, according to lawyers unrelated to
the case. In an attempt to salvage the case, Buteero
provided a member of his staff, Michael Wamasebu, to
prosecute the case for the IGG.

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BACK IN COURT
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3. (U) The defense team immediately challenged Wamasebu's
presence as the lead prosecutor because they claimed, only
the IGG and her deputies, according to the IGG Act, could
prosecute the case. Magistrate Margaret Tibulya (who
allegedly is the IGG's cousin) overruled the defense, arguing
that the IGG could delegate its powers and work together with
the DPP. The defense team then requested an opinion from the
Constitutional Court on the official definition of corruption
because of competing interpretations in the Prevention of
Corruption Act (1995) and the Inspectorate of Government Act
(2002). The defense lawyers argued that the IGG could only
try cases of corruption and abuse of authority or public
office, not theft, causing financial loss, embezzlement,
obtaining money under false pretenses, and uttering false
documents. Tibulya ruled that "there was nothing to refer to
the Constitutional Court and for me to put off my hands, I
would be abdicating my duty as a Chief Magistrate." She
ordered the trial to proceed.


4. (U) The first witness, Gastavio Bwoch, Ministry of
Finance's Accountant General testified that State House
approved requisitions for GAVI funds. Muhwezi, Mukula, and
Kamugisha then sent the requests to the Ministry's accounting
officers. The defendants told the judge that they could not
cross-examine the witness without their lawyers and refused
to examine physical evidence. The case was adjourned to
November 6.

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BACKDROP
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5. (C) Behind-the-scenes, State House continued to pressure
Muhwezi's co-defendants to refund the GAVI funds and to
testify against former Health Minister Jim Muhwezi. On
September 24, Alice Kaboyo, the State House party mobilizer,
told P/E Chief that she was under considerable pressure from
President Museveni to testify against Muhwezi. She said that
Museveni called her to State House for a two-hour meeting on
September 22 and again offered to pay back the funds she
"owed" if she would testify against Muhwezi. Kaboyo refused

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to recant her sworn testimony to the IGG that the State House
had authorized her to use the funds to mobilize voters for
the political campaigns in 2005 and 2006. Kaboyo remains
upset at the President's personal betrayal, particularly
ordering her arrest based on allegations from rival, Amelia
Kyambadde, the President's Private Principal Secretary.
Kaboyo said that she was in a precarious financial position
and isolated from family members, such as First Lady Janet
Museveni.


6. (C) Muhwezi told P/E Chief on October 14 that he was
helping Alice withstand the pressure from State House. He
claimed that Museveni could not understand Kaboyo's refusal
to lie to implicate Muhwezi for financial gain. Mukula also
said that State House had reached out to him, but he had
already paid back funds (before his arrest) and claimed that
he did not authorize expenditures, just moved the paperwork
from State House to the accounting officers. Mukula believed
that the President wrapped him up with Muhwezi hoping that he
would turn against his former boss. Mukula has repeatedly
told us that he wanted a speedy trial, which he believed
would exonerate him. However, Mukula alleged on September 26
that Museveni intended on drawing out the case to keep
Muhwezi in check while he (Museveni) worked out the details
of a fourth term. (Note: Mukula is a member of the National
Resistance Movement (NRM) executive, serving as the Chairman
for the Eastern Region and is privy to the President's
re-election plans. End Note.)

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IGG THREATENS ACTION OUTSIDE COURT CASE
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7. (U) The back-and-forth between the IGG and Muhwezi
continued outside the courtroom. On August 18, the IGG
ordered the current Permanent Secretary of the Ministry of
Health, Mary Nannono, to demand repayment from Muhwezi of two
sums of GAVI funds. Nannono sent the IGG's letter to Speaker
of Parliament Edward Ssekandi, which requested him to suspend
Jim Muhwezi from Parliament and demand repayment of the
alleged sums. Ssekandi, a lawyer, wrote back to the
Permanent Secretary and the IGG advising on August 20 that
"It is common knowledge that the above sums are a subject of
a criminal case before a court of law. Don't you think that
because of that state of affairs you cannot demand the
payment from the accused person until the case is disposed of
one or the other? Won't this payment now amount to an
admission of the charges by the accused?" Nannono then
sought legal advice from the Solicitor General, Lucian
Tibaruha. He advised Nannono that because the case was in
court, it would be prejudicial for the IGG to direct the
Ministry of Health to demand repayment.


8. (U) Undeterred, Mwondha directed Ssekandi to inform
Muhwezi on October 10 of the following: "that while you were
the Minister of Health you failed to declare the GAVI reward
of USD 4,361,000 to the Inspector General of Government as
required by the Leadership Code Act (2002). (Note: The funds
were deposited in the Ministry of Health accounts, not
Muhwezi's personal accounts, and therefore not subject to
declaration under the Leadership Code Act. End Note.)


9. (U) The IGG charged that Muhwezi failed to
formally/officially notify President Museveni about the award
from GAVI, in contravention of Article 117 of the
Constitution. (Note: Muhwezi claims to have had two
separate discussions with President Museveni and a letter
confirming the award that was copied to the President. End
Note.)


10. (U) The IGG said that Muhwezi failed to disclose
receipts of the above money to the Minister responsible for
Finance in breach of the Public Finance and Accountability
Act (2003) and attendant regulations. (Note: Mwondha's
accusation is inaccurate, according to an independent lawyer
who has seen the documents, who asserted that it is the
responsibility of the Permanent Secretary of the Ministry of
Health to notify the Permanent Secretary of the Ministry of
Finance. End Note.)


11. (U) The IGG said that Muhwezi arrogated the duties and
powers of the Accounting Officer of the Ministry of Health by
endorsing/approving the processing of requisitions for GAVI
funds. Muhwezi, Mukula, and Kamugisha claim that they only
passed on requests for funds that had been approved by State
House for mobilization campaigns.


12. (U) Finally, the IGG informed Muhwezi through Speaker
Ssekandi that he was "liable to refund 445,643,000 and
33,000,000 Ugandan shillings" or else he would be in breach
of the Leadership Code Act. (Note: Kaboyo allegedly owed
the 445,643,000 Uganda shillings and a former member of

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Parliament Tiperu Nusura Omar paid back the 33,000,000 Uganda
shillings that Mwondha was demanding of Muhwezi. End Note.)


13. (U) The Speaker concluded his letter to Muhwezi with a
disclaimer: "I have been guided that the IGG's directives
must be implemented without question or further consultation
outside of that office."

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COMMENT
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14. (C) The political stuggle between President Museveni
and former Health Minister Jim Muhwezi will continue to play
out through the corruption scandal. Legal professionals and
key government players are becoming increasingly concerned
about the actions of the IGG, whose ham-handed tactics appear
to disregard rule of law and due process guarantees.
CHRITTON