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How NSSF Money Separated Byarugaba, Mwenda and Sudhir

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Secrets have emerged concerning the reason why veteran journalist Andrew Mwenda is quiet and not speaking much on the troubles facing his erstwhile ally Richard Patrick Byarugaba, the NSSF MD. The truth be told, the relationship between these two fell apart long time ago and they are no longer close like they used to be.
By this time, Mwenda would be out defending renewal of Byarugaba’s contract but he is very quiet now on this issue and will continue to be as quiet as a grave yard on things concerning Byarugaba. Mwenda became annoyed because Byarugaba didn’t like many of his investment ideas yet it was him who defeated then minister of finance Maria Kiwanuka and convinced Kaguta M7 the president to bring back Byarugaba after the board had tried to bring in Edgar Agaba. Byarugaba kept telling Mwenda he has no powers to single- handedly endorse the multi-billion investment ideas he was bringing on the table. While Mwenda was still nursing his swollen wounds concerning his rejected investment ideas, his financial godfather the big man Sudhir Ruparellia also got into problems.
And once again, Byarugaba didn’t help. NSSF, which was keeping over 700bn in Crane Bank on its fixed deposit accounts, all of a sudden shifted its savings to Standard Chartered bank where MD Richard Patrick Byarugaba worked before at the start of his finance career. The removal of the billions was done in phases. When the first batch was relocated to Standard Chartered, Sudhir sent his hatchetman Andrew Mwenda to go and plead to Byarugaba. Mwenda returned empty handed having been told by Byarugaba the issue was now beyond him as NSSF MD. Sudhir tried many other people e.g. crane bank board chairman Joseph Biribonwa of EC who spoke to his fellow Munyoro Kaberenge the Board chairman but he also failed to soften Byarugaba’s heart towards Sudhir, a fellow rich man with whom he used to play golf and drink expensive wine/whisky at his home at Kololo.
The two good friends also used to exchange Christmas gifts and tried bonding at the level of family. In the end of it all, all the NSSF fixed deposits were removed to zero which increased Sudhir’s exposure to non-compliance as a bank owner. For those who don’t know, in the banking world fixed deposits is the blood line of any financial institution like a bank because without them you default on the BoU liquidity requirements yet this is savers/depositors’ money and not yours personally as the bank owner. That is how Sudhir bank’s liquidity problems started and Mwenda believes the story would have been different had Byarugaba not turned his back on Sudhir at the time he needed him most.

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INVESTIGATION

OPINION: Kitatta – The Fly That Followed The Corpse Into The Grave – Political Blogger Stings Boda Boda 2010 Boss After Kayihura Release

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Political commentator and blogger Afuwa Kasule has blasted Boda Boda 2010 boss Abdallah Kitatta for being too blind to see that anytime he may fall with his boss.

In his article title “Abudallah Kitata – The Fly That Followed The Corpse Into The Grave”, Kasule says that Kitatta, who is currently under detention at the military barracks in Makindye, while his former boss is now Germany receiving treatment, should have played his cards wisely and known that he was dispensable.

MUSEVENI AND BUGANDA BACKGROUND
In his post, Kasule starts with giving the background of how Museveni has been dealing with stubborn Baganda. Kasule writes:

When Museveni first appeared on the political scene with the Tanzanian army that ousted Iddi Amin in 1979, he strategically followed the Western axis. That way, he was able to bolster his briefcase FRONASA with Westerners and in particular Banyankole.
When he took to the bush in 1981 to fight the UPC government, he chose Buganda region as the base for his Bush War. He wanted to exploit the old Baganda hatred for Obote and his UPC for the events of 1966. He also wanted to undermine the predominantly Baganda rebel fighting groups of UFM and UFF of Andrew Kayiira and Prof. Lule which had already established bases in the strategic Buganda.
First he tricked Prof. Lule into merging his UFF with Museveni’s NRA to give rise to the NRM/A. He went ahead to make Prof. Lule the Chairman of NRM while Museveni became his Vice Chairman but also headed the strategic armed wing, the NRA. That is why Museveni was predominantly referred to as the Chairman of the NRA High Command and not the Vice Chairman of NRM. The High Command became the Supreme Organ of the Bush War and in that, way Prof. Lule was tactfully overshadowed. Many Baganda peasants and fighters rallied behind the NRA in an honest belief that their own, Prof. Lule was to become the leader of Uganda.
It is prominent Baganda like Male and Habib Kagimu who introduced Museveni to Libya’s Gadaffi for military aid. He also used the likes of Dr. Samson Kiseka, Sam Njuba, Bakulu Mpagi, and others on his NRA’s External Wing just to win moral support of Baganda in the diaspora. In particular he targeted the Buganda monarchy community that was in exile abroad.
His next huddle in neutralizing the Baganda was how to deal with a predominantly Buganda fighting group under Dr. Kayiira, the UFM. A series of meetings between Kayiira and Museveni did not yield anything. Within the UFM circles it was strongly believed that the NRA was directly spying on the UFM and indirectly supplying such intelligence to the government. The betrayal was plainly exhibited during one of the incidents when the NRA agreed to join the UFM in a joint attack on the government army positions in the city but at the last minute the NRA never showed up. Instead, it ambushed the retreating UFM and seized a big cache of arms that had been captured from the attack on Lubiri barracks. The UFM was weakened by the sustained attacks by government troops , capture of its top commanders and it eventually disintegrated.
Next Museveni moved against the Kakooza Mutale group, Vumbula which had set up bases in areas of Zirobwe and it was compelled to surrender to the NRA. Since then Kakooza Mutale has undergone a series of ‘use and discard’ coupled by humiliation. Deep in Galilaya, Kayunga, the armed group under David Matovu refused to join hands with Museveni’s NRA. When Museveni took over power and David Matovu eventually joined him, he became a jail bird over repeated treasonous allegations.
Museveni’s scheming against Baganda influence suffered a temporary setback when the prediminantly Baganda DP backed the coup against Obote in 1985 and joined hands with the Okello junta. The former UFM fighters and its splinter group, FEDEMO had also reorganized and joined hands with the Okello Junta. Within the NRA, Baganda fighters grumbled that they were being used to do the donkey work for Museveni’s Banyankole. Museveni moved very first to neutralize the ugly situation by inviting Prince Mutebi to visit the Liberated Zone in western Uganda. The Prince was smuggled through Rwanda from UK and he was manipulated into calming the situation.
A few months before capturing power, Prof. Lule died in the UK and Museveni took over as Chairman with a toothless Muganda, Moses Kigongo as his Vice Chairman. When Museveni took over power in 1986 he formed a government that was dominated by the predominantly Baganda DPs. Dr. Samson Kiseka became his Vice President. He moved to neutralize the UFM and FEDEMO fighters who had now joined the NRA. UFM’s Kayiira and a couple of prominent Baganda politicians and army officers were arrested over treasonous allegations while some other UFM officers fled the country. Just a day after the High Court exonerated and released them, Dr. Kayiira was shot dead leading to further purge of Baganda in both government and the army.
Museveni reinstated Buganda Kingdom just in name in order to hoodwink the Baganda. In the mid 1990s when he felt that he had consolidated his hold on power and to some extent he had neutralized the influence of Baganda, he got rid of the DP and the Baganda in government. Already he had successfully dealt them a heavy blow within the security forces. Fearing that some Ugandans would resort to armed rebellion following the 2001 rigged elections, Museveni initiated a campaign of violence dubbed Operation Wembley under Brig. Elly Kayanja. The operation committed heinous crimes against humanity especially in Buganda. Since then Brig. Kayanja has been held hostage or else he would lose protection against criminal proceedings for those crimes.
Around the same time the army underwent privatisation by sending Gen. Katumba Wamala to police in order to give way to the rogue Gen. Kaziini and junior Gen. Aronda to rise to the office of Army Chief. It was after the army was privatized that Gen. Katumba Wamala was appointed to head the toothless residue of the army after creation of SFC as an autonomous entity. Gen. Kalekyezi headed for the police to carry out the same privatisation.

ON KITATTA, KASULE NOTES:
Following the Arab Spring in North Africa, Museveni feared that the opposition in Uganda would replicate the same, more especially in the strategic central region and Kampala city in particular. That is when he used Gen. Kalekyezi to create rogue youth groups in Kampala under Abudallah Kitata. With full backing of and blessing by the regime, Kitata’s ruthless gangs carried out a campaign of violence against the general population and the opposition in general. Imagine at one time Museveni invited Kitata to deliver a lecture to a cabinet retreat. The alleged arms and other military equipment were given to him by the regime.
It was not until the Hima/Tutsi power struggle involving Gen. Kalekyezi and the Rwanda connection, that Museveni moved against Kitata. His crocodile tears before the military court can’t help him. He ought to have heeded to advice by not following the corpse into the grave. Despite his low education level, Kitata ought to have known what befell prominent Baganda Bush War politicians and fighters like Kiseka, Njuba, Bakulu Mpagi, Omulangira Mawuuba, Gyagenda Kibirango, Mukwaya, Zizinga, Kagwa, Mutebi, Ssebatta, Musisi Karampenge, Mawanda, Kawuma, Sseguya, Kawuma, Dragon, Kigundu, Sserwanga Lwanga, Sula Ssemakula, and several others. What about Col. Fred Bogere and Brig. Waswa Balikalege!
They were often generalized as; “Abaganda nabashuma (Baganda are thieves) but history has now exonerated them and Ugandans now know who the real Bashuma are. It is only a few Bipepewo (Butterflies) insignificant Baganda officers like Katumba Wamala, Kasirye Gwanga, Nalweyiso, Kakooza Mutale and a dozen other sellouts that pick crumbs from under Museveni’s table that are being exhibited.

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UNTOLD STORY: Shocking Details Of Meeting Between Museveni And Kayihura, Flamboyant General Reports State Enemies, To Be Given Two Cars And Have His Medical Bills Paid

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President Museveni (L) and Kale Kayihura (R)

On Thursday, news broke that the military court prosecution is finalizing all steps to drop charges of neglecting war affairs and abetting the illegal repatriation of Rwandan nationals against General Kale Kayihura the former Inspector General of Police (IGP).

According to prosecution, the state is still struggling to convince the panel of military court martial judges chaired by Lt. Gen Andrew Guti that the flamboyant General Kayihura committed the crimes he was charged with recently.

It should be remembered that the mighty Grapevine reported that the Commander in Chief of the armed Forces, who is also the president, Yoweri Museveni was not convinced with the evidence lined up by Kayihura’s prosecutors. Much of the evidence against Kayihura was collected and verified by Internal Security Organization (ISO) and Chieftaincy of Military Intelligence (CMI).

According to our security source, some of the evidence collected was connecting Kayihura to the death of the former spokesperson of Uganda Police Force (UPF) AIGP Andrew Kaweesi, the murder of other top citizens like Joan Kagezi, Muhammad Kiggundu and other Muslim clerics like Sheikh Hassan Kirya, Mustafah Bahiga.

Up to now, the masterminds behind the murder of these top citizens have not yet been netted. However, ISO and CMI pin these murders on former top police commanders who Kayihura bossed.

According to some of the evidence from ISO and CMI, they allege that some of these killings were executed by Kayihura’s blue eyed boys like Nixon Agasirwe and Hebert Muhangi. The two security organs claim that Kayihura’s men  arrested innocent suspects and their revelations were proved by the judgment made by three justices.

Among the evidences which ISO and CMI took to Museveni to prove their case against Kale and to allow the state to prosecute him included a recorded phone conversation allegedly between Kayihura and Hebert Muhangi, the former flying squad boss.

In this recording, a voice allegedly of Kayihura is heard thanking Muhangi for successfully executing the murder of Kaweesi, however our sources told us that Museveni, who has a strong interest in Kayihura’s case verified the evidence and concluded that this was not sufficient to pin the former police chief.

KAYIHURA TELLS MUSEVENI ABOUT HIS KAGAME LINKS

After several attempts by Kayihura to meet his boss president Museveni, this website has been told Museveni finally accepted to meet the pencil thin general at Entebbe state house. Kayihura was accompanied by his lawyers Jeff Tumwebaze, Elly Karuhanga and Peter Kabatse from prominent Kampala Associated Advocates (KAA), his sureties Major General Sam Kavuma and Major General James Mugira and other relatives.

In the meeting, Kayihura first thanked president Museveni for granting him his freedom when he ordered Gen. Guti to release him on bail. One of the closest friends to Kayihura disclosed to the Grapevine that the reason why Kayihura thanked Mr. Museveni is because as a serving UPDF officer and a lawyer, he knows very well that all the members in the court martial are still serving officers who are obliged to follow the commander in chief’s orders, so if he had ordered them not give him bail, he would be in jail up to today.

Kayihura told Museveni that the information given to him by top government officials and from military circles that he was planning a deadly mission to overthrow the NRM government was false.

Kayihura openly told Museveni that he has never sat with Rwanda president Paul Kagame or worked with his agents here and abroad to overthrow the government. He told him that it seems some of his officers were working behind his back with some individuals in the Rwanda intelligence to disorganize Uganda government but he was not involved.

In the meeting, Kayihura was grilled on his meeting with Rwanda operatives in Algeria and Turkey. Kayihura vehemently denied meeting any security operatives from Rwanda in those countries, he revealed that he only met security experts in those countries who gave him security ideas to fight terrorism and civil riots.

He admitted that he learnt later before he was fired that some of his boys were working for foreign countries and that they were given money to act as mercenaries.

He apologised for ‘sleeping on the job’ and asked Museveni for forgiveness. Kayihura finally asked Museveni to allow him to go abroad and seek medical attention because he no longer trusted Ugandan doctors.

M7 FORGIVES KAYIHURA AND AWARDS HIM

Our source revealed that Kayihura left state house that day without an answer from his boss who told him that he will call him and talk more about his issues.

A few days after the meeting, Museveni personally called Kayihura on phone and told him that he is free to get his passport and go abroad for medical attention. He however advised him to follow the procedures of the law.

Kayihura immediately instructed his lawyer Jeff Tumwebaze to ask the court martial to give him his passport because he was allowed by the president to travel to Nairobi.

The court without objection allowed Kayihura to take his passport and he didn’t take it back when he came back from Nairobi. Museveni also ordered the Ministry of Defense through the Permanent Secretary to purchase for General Kale two posh vehicles, one for him and another for his wife.  According to one of Kayihura’s henchman, each car is to cost shs600m, so the two cars will cost Shs1.2 billion.

Museveni also ordered UPDF top leadership to beef up Kale’s security especially at his home.

“For all the years I have served in this government from the bush, now I feel like a full General,” Kayihura told his friends who visited him two weeks back, according to his close friend.

The sources added that Museveni also ordered the ministry of Defense to sort out Kale’s medical bills both in Nairobi and in Germany where he is right now.  Kayihura was also provided with well-trained officers to move with him in German after expressing his fear that he may be attacked by operatives from a foreign country who think that he betrayed them and revealed their secrets to Museveni.

MY SOUL IS BLEEDING, WHY DID THAT BOY BRAND ME A MURDERER – KALE SWEAR TO PUNISH KABUSHENGE

Our source, who is very close to Kale further revealed that Kale is very furious about the way New Vision reported his case especially in their leading dailies of Bukedde newspaper and New Vision. Kayihura told his friends that new vision top leadership was used by his enemies in government and in the military to spoil his name by branding him a murderer.

New vision reported recently insinuated that Kayihura was the mastermind behind the killing of Kaweesi. “That boy (Kabushenga) has been used by government mafias to spoil our names and take our jobs, now let me see how he will handle Kale and his lawyers. This is his time to pay for his sins,” a friend to Kale told this website.

He added that what Museveni did to Kale is a sign of solidarity to junior officers in security who are fighting seriously to save his government from the mafia.

EXPERT PREDICTED EARLY

Before Museveni forgave Kale, senior counsel Dr. David Mushabe, who commonly represented Generals in the court martial predicted that Kale was only supposed to apologise to his Commander In Chief to be saved from being harassed and humiliated in the military court martial. Mushabe noted that all the other Generals like David Sejusa, James Kazini, Henry Tumukunde and others were saved after apologising to Museveni.

 

By Jamil Lutakome

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SELFISH: How Sudhir Badly Frustrated Bank Of Uganda Talks, Kenyan Crane Bank Shareholder Feared Being Arrested On Ugandan Soil

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Tycoon Sudhir Ruparelia

Shocking secrets have come out showing how Crane Bank proprietor Sudhir Ruparellia frustrated BoU on the talks the President had directed in order to protect him against being prosecuted for criminally mismanaging his own Crane bank.

Sources have told this website that when BoU moved in to control the mess and Crane Bank and protect the clients who had their money there, they discovered that the bank had only Ugx1,500,000,000 in its possession. This was against depositor obligations of more than Ugx1trn.

That’s how Price Waterhouse Coopers auditors discovered things which had gone wrong. BoU had to stabilize the economy by using its own capital (and that’s how BoU became insolvent) to make sure depositors didn’t get to know that their money had been diverted to other things creating liquidity problems for Crane Bank Ltd which forced BoU to come in and solve it. This was dangerous because Crane Bank was the 3rd largest bank in Uganda at that time. Sudhir and other shareholders were supposed to be arrested and prosecuted which never happened because Museveni pleaded for them.

Instead, BoU agreed that Sudhir and other shareholders must repay the tax payers’ money BoU had used, which was in a tune of more than Ugx400bn to cater for the depositors. BoU hired city law firms like MMAKS to recover the money from Sudhir and other shareholders. Meetings would he held at MMAKS headquarters at Diamond Trust. When lawyers wrote to the Kenyan shareholder Rasik Kantaria, he panicked and first feared coming to Ugandan for BoU meetings because he feared he would be arrested because the Crane bank mess was a very big case which in a normal country was clearly going to lead shareholders to Luzira.

The Kenyan-based Indian shareholder later on agreed to come but he was full of fear. A total of USD80m was at stake and BoU hired the MMAKS lawyers to recover it from Crane bank shareholders. The Kenyan shareholder was assured by BoU that he wouldn’t be arrested and that’s why he agreed to come for the meetings.

In the first meeting, the Kenyan shareholder Kantaria cried like a little boy and repented his sins saying he was misled by his business partner Sudhir to embrace the Crane Bank saga. The lawyers told him all was well and all he had to do to escape jail was to pay up to his liability as a shareholder. The Kenyan/Indian shareholder who was escorted by lawyers from a law firm called ABMAK in Kololo thanked the lawyers and immediately agreed to pay USD7.5m not to be prosecuted. Sudhir whose extravagancy is understood to have caused Crane bank liquidity problems also paid USD8m and promised to pay the balance later. The balance was USD65m. When Sudhir failed to get the money, he came back to BoU lawyers and said he had his properties which he was staking to cover the USD65m.

BANK OF UGANDA AGREES

BoU management and board agreed that if he can surrender his properties, then it’s okay. Meetings were held at Diamond Trust building inside MMAKS offices but Sudhir made a U turn and started acting funny. He complained to Museveni that the BoU lawyers were very complicated. The Indian tycoon is understood to have caused Crane bank problems because he was lending to politically exposed entities and these are borrowers who took cash without being able to pay back and yet they are too powerful for the bank to foreclose by way of attaching their security properties. Others were unable to pay because the loans weren’t properly assessed against the amounts sought right from day one. When he was ready with the properties, Sudhir gave a phone call to BoU officials and meetings were held at MMAKS lawyers’ offices. While there, Sudhir’s lawyers shocked everybody when they delivered titles for properties that were legally not good for any value. These included 50 acres of land covering the whole of Kinawataka wetland. The BoU lawyers wondered how anyone can have a private title in a wetland which is supposed to be gazetted public land.

They even doubted there can be 50 acres in Kinawataka.

They refused that title and Sudhir’s lawyer quarreled and stormed out of the meeting. Sudhir also delivered a title for land in the Kitante valley which BoU lawyers rejected because it was similarly a wetland. Sudhir also tendered a title for the land situated in Kololo near Summit view. There was also land for the Nakasero primary school playground and the Kololo School which Bamugemereire is now investigating. The big tycoon was exposed on the Kololo land near Summit View. He gave in the title saying it was his land which BoU can sell to recover Ugandan taxpayers’ money. However, when BoU surveyors reached there they got arrested immediately by SFC soldiers.

They accused them of criminal trespass and made them crawl on their berries. The soldiers kept saying this land belongs to the army. The surveyors were detained for many days for illegally accessing the army land under Summit View barracks in Kololo. BoU top management had to contact the President for the surveyors to be released. The surveyors were so terrified some of them even resigned their jobs and refused to go to any other Sudhir land for similar surveying. Apart from the SFC chasing them away saying this is army land, the surveyors also found that the Kololo land was bad property because it had no regular access road meaning that even if BoU had accepted it, there would be little value because of the access problems. On being told of his weaknesses, Sudhir became even more annoyed and started accusing the MMAKS lawyers of being complicated.

He also reported to the President that the BoU team had refused his land titles because MMAKS MD Timothy Masembe Kanyerezi hates and wants him to die in prison. The lawyers wrote to BoU showing that the properties combined wouldn’t exceed USD13m in value as opposed to the USD45M that was still pending. The lawyers also advised BoU not to accept the properties because the Auditor General and MPs would in future raise a red flag for causing financial loss because BoU would be asked why they accepted wetlands which is clearly public land.

Sudhir made the talks even more complicated when he started demanding that BoU gives him back the titles for properties like Bauman House which used to be an extension of Parliament. Bauman was taken by BoU/DFCU because it’s among the properties or companies of Sudhir which were borrowing from Crane Bank and the rich Indian wanted BoU to return it to him to strengthen his tenancy arrangements with Parliament and later on the Ministry of Justice which now rents Bauman. BoU bosses refused which led to problems and made the tycoon even more annoyed.

The Grapevine strives for accuracy by providing in-depth, objective and non-partisan information if you have a hot story or scandal you would like to share with us, please reach us through 0752 227640, or grapevineug@gmail.com, info@thegrapevine.co.ug.

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