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    Scandalous; Dfcu Cited In Eadb Scam As Donors Threaten To Quit



    By Otim Nape
    A very huge scandal is sinking East African Development Bank (EADB), which the media has been reported about before, has expanded or escalated to engulf other city banks such as DFCU and Ecobank.

    In the recent whistle blower document to the EADB BOD, the EAC finance Ministers and the IGG, the concerned stakeholders privy to the inner workings of EADB make reference to an 8m Euro (close to 30bn) grant that was deposited in EADB by KfW, a German development agency. The money was offered by KfW in order to support capacity building in Ugandan rural enterprises.

    EADB Director General Viviene Yeda Apopo then set out to identify partners amongst the local banks through which the funds would be disbursed to intended beneficiaries in rural areas. The criterion was that for a commercial bank to participate it must have a strong presence or branch network in rural areas. There was a panel of experts in EADB which decided the eligibility of the different banks that applied. Among them were DFCU, Ecobank and Finance Trust bank. As the financial institution managing the 8m Euros credit line, EADB was empowered to determine the commercial banks that would qualify for this partnership. The whistle blower states that in their reports, some of the EADB managers objected to DFCU on grounds that it didn’t have sufficient presence in rural areas, making it ineligible to participate in the programme. The same was said of Ecobank which at that time had only four branches outside Kampala and these are still within the Metropolitan area. So it had no presence in rural areas. For that reason the internal EADB assessment report recommended that DFCU and Ecobank should be excluded. Instead it was Finance Trust, whose presence in rural areas is undisputed, that was rated favorably as qualified for the programme.

    DFCU’s Juma Kissame

    However, using her unlimited powers as Director General, Yeda the powerful Kenyan Chief Executive ordered that DFCU and Ecobank must participate and indeed the two ineligible banks took the lion’s share leaving better qualified Finance Trust to take the smaller fraction of the money.
    This is how the grant was dished out between the three financial institutions: unqualified DFCU got 5m Euros, unqualified Ecobank Uganda got 1.5m Euros and best evaluated Finance Trust Bank got 1.5m Euros. The whistle blower shows that on the DG Yeda’s strong recommendation, DFCU headed by her great friend Juma Kissame nevertheless took the lion’s share as shown above. In the end, KfW the donor became very frustrated because its objective (to support rural enterprises) wasn’t being realized. The two banks DFCU and Ecobank then got stuck with the money with no rural branch network through which to lend it out to intended beneficiaries in rural areas. The whistle blower claims that strangely some EADB bosses could be benefiting from this money being stuck in the two commercial banks at the expense of the poor rural enterprises. Whereas DFCU and Ecobank got the money in July 2015 they didn’t managed to significantly lend it out as was intended by KfW. This has left KfW more frustrated with the indifference of the current management at EADB. For the case of Ecobank for long it didn’t manage to give out even a coin and the DG Yeda wasn’t complaining! In its case DFCU tried disbursing the money but the performance for long remained miserable.

    James Tumusiime (BOD member)

    As recently as a few months ago, Juma Kissame’s DFCU had only given out 10% of the 5m Euros EADB’s Yeda gave them. It has emerged that the concerned EADB staff and managers had preferred channeling out the 8m Euros through smaller banks like Finance Trust because they emphasize rural enterprises but the Kenyan DG Yeda objected without giving any plausible justification. Indeed there are indicators Finance Trust was the best suited for such funds: as of January 2017, the Katwe-based financial institution had done so well giving out over 90% of the 1.5m Euros it was given. Yet to frustrate smaller banks from the 8m Euros deal, DG Yeda imposed hard conditions aimed at frustrating them not to qualify for big monies if they were to qualify at all. The DFCU management tasked Marketing Manager Jude Kansiime to manage the PR problemsrelating to this Kfw scandal after the German embassy expressed concern about the mess at EADB.

    A source within DFCU who is friendly to Yeda said; “We have a number of funding arrangements and confidential agreements with our funding partners and these can’t be discussed in public. Indeed what you are talking about is one of the many partnerships we have and cherish and as far as we are concerned we haven’t breached any agreement terms with EADB or even KfW. We aren’t aware of any breaches; at least they haven’t communicated it to us.” Sources in the German embassy say that the angry KfW bosses want to quit and recently brought in IPC consultants to audit the performance of their 8m Euros project and advise on the way forward.
    There is also another KfW Fund for agri-businesses which line EADB managers want halted until Yeda leaves EADB. They have petitioned Finance Minister PS Keith Muhakanizi to that effect and are waiting
    for his action. However, action is unlikely because Muhakanizi is among those EADB BOD members who believe in Yeda’s indispensability. Muhakanizi, who represents Uganda’s interests in EADB BOD, says Yeda
    has done so well under the circumstances and he doubts anybody would have done better.

    GOV’T REP: Keith Muhakanizi

    In a related development, details have emerged as to why African Development Bank (AfDB; EADB’s major funder and shareholder) isn’t happy with the way DG Yeda is running the show. In a recent
    communication to EADB, AfDB points out areas where reforms must urgently be undertaken if AfDB is to continue funding EADB. Signed by Samuel Mivedor, one of the top AfDB Directors, the three page report
    accuses DG Yeda of a number of things. The report warns of impending calamity should the BOD bosses like Muhakanizi continue overlooking audit, management, procurement and HR-related scandals crippling EADB. These are briefly listed to include failure to stick to the July 2013 “Letter of Agreement” and its provisions. The letter required EADB to urgently recruit a project coordinator, financial specialist and a procurement expert of qualifications acceptable to standards set by AfDB. AfDB is also demanding recruitment of FAPA Coordinator besides utilizing the training budget meant to build capacity for the Bank’s personnel. AfDB doubts EADB’s continuity without undertaking the badly needed staff development programs. On staffing, AfDB wonders why, despite having the money, EADB still has only two portfolio officers managing over 70 multi-billion projects. It also wonders why Yeda for long refused to recruit a Corporation Secretary on top of the Finance Manager, FAPA Coordinator and the Environmental Specialist portfolios which have been vacant for such a long time. The report wonders how anyone can talk about institutional governance in absence of the CS. AfDB is also bitter that EADB’s portfolio department is deliberately understaffed forcing staff who are there to originate projects and monitor them at the same time. This compromises internal controls on these projects. Yeda is also criticized for over relying on consultants for such a long time instead of building EADB’s internal staff capacity. AfDB also protests the manner in which the procurement of the Credit Risk Consultancy firm was handled some time back whereby the deal was awarded to a firm or bidder that was thrice more expensive than the others.

    EADB Director General Vivienne Yeda

    AfDB is also concerned why the EADB top management has for long comprised of only the DG Yeda to the exclusion of other top managers and departmental heads. “This doesn’t reflect best management practices and corporate governance” says the AfDB dossier that was originally meant to be considered at EADB BOD meeting. AfDB was also furious as to why DG Yeda sometimes overturns management committee decisions without any justification. Stakeholders are also frustrated at the fact that EADB is almost the only financial institution in Kampala operating without any regulatory supervision.
    Its charter is such that not even Mutebile’s Bank of Uganda can intervene. Not even the IGG who has previously been petitioned by concerned stakeholders. Those calling for serious reforms are intrigued that EADB appears to be an institution shielded against any manner of scrutiny since the BOD long time ago collapsed under the weight of DG Yeda as has been showed in past petitions to the EAC Council of Ministers. For long EADB staff members have lived under fear after DG Yeda reacted to past petitions by calling in cyber forensic experts from KPMG to help in tracing who of the staff could have authored the whistle blower dossiers against her. The KPMG guys would spend much time collecting hard disks of EADB office computers, intimidating and quizzing staff regarding what they know about the whistle blower’s identity. Ironically, the Ugandan Laws including the Leadership Code-and even EADB’s internal policy-protect the whistle blower against any persecution or witch-hunt. Besides the KPMG witch-hunt, the EADB management also wrote to Fred Yiga’s Interpol seeking their cooperation and authorization to order Ugandan, Rwandan and Kenyan telecom companies to surrender all EADB staff phone records in order to identify the whistle blower. Scared staff reported to the IGG fearing the worst from DG Yeda “This place has for a long time looked like a prison. It’s always been tense and the endless whistle blower reports have been making things even worse” said a source at EADB. Because most of the BOD members come from outside Uganda(Rwanda, Kenya & Tanzania) Yeda believes she can do mischief and go scot free. BOD members have many times met EADB staff behind Yeda’s back to try to verify the contents of the whistle blower dossiers.
    Uganda has two BOD representatives who are Keith Muhakanizi and Fountain Publishers proprietor James Tumusiime the representative of the private sector.


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    Leaders Of Traders Panicking After M7 Directs Investigation Over Allegations Of An Invisible Foreign Hand Fueling Their Strikes To Sabotage Economy…



    L-R: Some of the leaders of traders: Godfrey Katongole, David Kabanda and Thadeus Musoke

    Kampala Metropolitan Senior Minister Hajjat Minsa Kabanda has exclusively confirmed to theGrapevine that president Yoweri Kaguta Museveni has directed the country’s intelligence organs and Kampala Capital City Authority (KCCA) to investigate the alleged invisible hand behind traders’ leadership.

    She explained that preliminary investigations have established that some leaders of traders who are advocating for endless strikes are biased in their decisions because there is an invisible hand pushing them with an agenda of sabotaging the country’s economy and creating an ungovernable situation.

    “We know whatever they are planning. Our people are on ground, so they should stand warned,” Kabanda said.

    She revealed that President Museveni was shocked to establish that in Kampala city alone, traders have more than 30 associations and each one of them has command.

    This has created suspicion and the need for an investigation to establish their true motives.

    The development comes at a time when traders are threatening to go into a two months strike without opening their shops in the city center if president Museveni doesn’t address their demands including the banning of the Electronic Receipting and Invoicing System (EFRIS).

    On 7th May 2024, Museveni directed Uganda Revenue Authority (URA) to sit down with leaders of traders and sort out their differences.

    The President guided that once these leaders and URA agree, they should make a joint report which they should read to him and other traders on 20th of June 2024 at Kololo independence grounds.

    However, before that meeting, Minister Kabanda has disclosed that Museveni is set to meet leaders of traders in the State House to have some issues sorted out noting that government is doing everything in its power to make sure that what happened on 7th May 2024 never happens again.

    She explained that it was bad for traders to shout at the President and embarrass senior government officials to the extent of accusing some of corruption insisting that traders’ behavior sent a warning signal to government that there must be an invisible hand influencing and facilitating them.

    theGrapevine has established that the leadership of Kampala City Traders Association(KACITA) led by Thadeus Musoke Nagenda, Federation of Uganda Traders Association(FUTA), Katukazane Shoe Dealers, Kampala Arcaders Advocacy Forum, United Arcarders Traders Enterprenuers Association,  Uganda Needy and Squatters Association have resolved to join hands and strategise on how to come up with a common voice before the President.

    Highly placed sources in intelligence have revealed to theGrapevine that all eyes are on David Kabanda who is being investigated for working for some opposition bigwigs who promised him support in the coming elections.

    Sources said that Kabanda wants to become the city councilor on Lord Mayor Ssalongo Erias Lukwago’s council.

    However, veteran journalist and the Senior presidential advisor on media Joseph Tamale Mirundi advised Museveni not to take lightly statements made in the United Kingdom’s House of Lords that King Charles’s leadership should influence regime change in Uganda.

    He explained that the western powers are going to use all the available means to sabotage Museveni’s leadership insisting that there is invisible hand in traders’ frequent strikes.

    But a section of KACITA leadership told theGrapevine that there are people in President Museveni’s government who are facilitating the creation of endless traders associations with the aim of benefiting from them and fighting the unity among traders.


    By Sengooba Alirabaki


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    UNTOLD STORY: How SFC Commandos Defused Trader’s Plan To Publicly Embarrass M7 And Some Ministers At Kololo As War On EFRIS Deepens…



    Some of the traders during their meeting with President Musevei. Iset are their leaders Kabanda (R) and Musoke (L)

    President Yoweri Kaguta Museveni was overwhelmed and openly told angry traders to stop intimidating him but instead listen to him just like he also listened to them for more than two hours.

    Museveni made the statement after some traders started shouting on top of their voices.

    Some of them even started to move out of Kololo while he was still speaking.

    However, they were stopped by Special Forces Command (SFC) Commandos from getting out of the Kololo Independence ground gates until the President finished speaking.

    SFC Commandos told some of these angry traders that they had come to listen to the President and since he gave them time, they should also wait until he finishes. One by one they were forced to go back to their seats in the tent.

    President Museveni’s 1981 war comrade and political competitor Dr. Kizza Besigye revealed that it is the first time in many years that he has seen Museveni being publicly embarrassed by civilians.

    However, the mighty Grapevine has exclusively learnt that what happened at Kololo was not accidental but a planned move which was defused by SFC Commandos.

    Highly placed sources within traders leadership revealed that on the fateful day of 7th May 2024, a section of traders leadership held a private meeting in the morning at the offices of the Kampala Acarders Traders Association (KATA) chaired by Godfrey Katongole.

    Others in the attendance included; Moses Lwegaba on behalf of Katukazane shoe traders, John Kabanda who represented the Kampala New Generation Traders Association and also the Federation of Uganda Traders Association.

    Sources divulged that the gist of the meeting was to strategise on how to counter the submissions of Dr. Thaddeus Musoke Nagenda the chairperson of Kampala City Traders Association (KACITA) and his Secretary Isa Ssekito.

    They suspected that KACITA had plans of diverting the President from addressing the real issues by resorting to praising him.

    They alleged that they established that on several occasions, KACITA has held private meetings with the president without the knowledge of the traders.

    Before the meeting openly started, Kabanda was grilled and placed on the spot to declare his secret relationship with Kampala Capital City Authority (KCCA) senior minister Hajjat Minsa Kabanda after his colleagues openly told him that he also might be working with their enemies.

    Kabanda denied the allegations.

    The traders leadership became suspicious of Kabanda when he supported Minister Minsa in one of the precursor heated meeting at Hotel African where she was trying to convince all traders not to bring the issue of landlords who are mistreating them before the president because it was not discussed in the previous meeting held in State House in April 2024.

    They told Kabanda that what he did to support the Minister was an act of betrayal because he also knows very well that landlords harass them just like the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

    They started accusing him of being bribed by landlords.

    Traders disclosed that it seems the landlords who Kabanda wanted to save are the ones who supported his lavish wedding last week. The meeting ended in fighting and Minister Minsa was saved by his security.

    In the Tuesday meeting, Kabanda assured fellow traders leadership that he is with them and a decision was taken to inform their respective members on their different WhatsApp groups to storm out of the meeting immediately once they discover that Museveni is not going to ban the use of EFRIS.,

    This is what they tried to do but the move was fused by SFC Commandos.

    However, before Museveni addressed the traders, some of their leaders had successfully executed their mission of exposing Prime Minister Robinah Nabbanja Musafire and Junior Minster for investment Evelyn Anite who they declared a mafia who takes fake investors to President Museveni who give her incentives.

    They accused the said investors of facilitating smuggling of goods into the country.

    Minister Minsa, who feared that traders were going to embarrass her before her boss was forced off the microphone because they were shouting at her for not helping them.

    Sources said that the ministers were embarrassed before their boss because some leaders of the traders have information that they are sealing deals with KACITA leadership which are costing the common trader.

    Traders further sent a warning message to President Museveni, his ministers and Members of Parliament (MP) that if their issues are not solved they are ready to stand against them or support by financially facilitating their opponents in the coming elections.

    Democratic Party’s Richard Ssebamala the Bukoto Central MP warned President Museveni to be very careful with traders issues because for a long time, they have not been involving themselves in political issues especially during elections but only concentrated on their businesses.

    But now that they have issues, if these concerns are not properly resolved, it may be a spark for his downfall.

    Some Ministers were shocked when angry traders praised fired trade minister Harriet Ntambazi telling Museveni that mafias in the Ministry of Finance and those in the Trade Ministry fought her and misled the President even though she always acted swiftly in resolving their problems.

    theGrapevine established that Ntambazi always supported Kabanda’s leadership and she was a ground minister who attended traders meetings in Kikuubo and other places and one time she nearly survived being tear gassed by police in Kikuubo who accussed he of attending an illegal meeting.

    However, former trade minister Amelia Kyambadde claims that people who make such statements before the president are always paid by the side which is fighting a certain government official who is embarrassed before the president.

    Nabbanja denied the allegations that she is not responding to Kabanda’s letters and explained to the President that she has never seen any letter from Kabanda.

    She wondered why Kabanda didn’t come to her country home in Kakumiro district since he is a son from the neighbouring Mubende district.

    Sources disclosed that Kampala city junior minister Christopher Kabuye Kyofatogabye predicted that he was going to be embarrassed before the president because the traders accussed him of being very arrogant and using the divide and rule method to frustrate their fight against high taxation.

    He decided not to attend the meeting but his car was cited at the premises of Kololo Independent ground.

    Even though the traders were served drinks and food, with some claiming that over 20 cows were slaughtered for them, some have decided that they will not attend the next meeting  with the President come 20th of June 2026.

    Sources added that a section of traders’ leadership are buying the proposal that the 20th June meeting should only be attended by their leaders. But Kabanda insists that all traders should attend.

    Other traders want to get an expert in tax laws to lead them during their negotiations with URA insisting that URA officials are exploiting their ignorance on tax issues to double tax them.

    Sources among the traders disclosed that they have started engaging Kabanda not to politicize their fight against high taxation by threatening that if EFRIS is not banned, they will carry out a three months strike by closing their shops.

    However, Dr. Besigye predicted that Museveni is going to use guerrilla war tactics to divide traders and very soon they are going to start fighting each other.

    Joseph Tamale Mirundi the senior presidential advisor on media told theGrapevine that Museveni will not ban EFRIS because banning it will attract other people including policemen and women, teachers, doctors to strike because they will have established that he fears strike.

    He added that traders lack serious knowledgeable leaders who can compromise Museveni to side with them.

    He insisted that Museveni clearly know that people like Ssekito are dealers who are always used by his opponents and government mafias to pressurize him on traders’ issues, which is why he does not respect them.

    He questioned the expertise of URA and Ministry of Finance when it comes to traders and tax issues because instead of widening the tax base they are harassing the poor traders.

    He however challenged Museveni on the issue of stopping traders from importing goods from abroad revealing that much of the products which they would have exported with additional value are monopolised by members of his family so the traders don’t want to enter open competition.


    By Sengooba Alirabaki


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    KCCA Minister Kabuye Narrates How He Survived Being Humiliated In State House By Angry Traders Before M7…



    Minister Kabuye Kyofatogabye (L) with KACITA boss Thaddeus Musoke (R)

    Maverick Kampala Capital City Authority (KCCA) Junior Minister Joseph Christopher Kabuye Kyofatogabye has narrated how he survived being humiliated by angry traders at State House before his boss President Yoweri Kaguta Museveni last week.

    Minister Kabuye was part of the team that organised the meeting between President Museveni and traders to solve their tax grievances with Uganda Revenue Authority  (URA) after they closed their shops for a week.

    The angry traders were protesting against the high tax levies slapped on them and the use of the Electronic Fiscal Receipting and Invoicing System (EFRIS) as a mechanism to collect taxes.

    Minister Kabuye revealed that he chickened out of the meeting at the last moment because his intelligence briefed him at the last hour before the meeting that there was a group of traders who had strategised to humiliate him before the President like they tried to do to URA Commissioner General John Musinguzi Rujoki.

    theGrapevine recently reported how a female trader, a one Doreen Nakirya shocked the meeting when she told the President that Rujoki’s men sexually harass female traders when collecting taxes and the president directed his Special Forces Command (SFC) detectives to record statements from both from Nakirya and the male taxman who she accused of sexual harassment. They were later released.

    Kabuye said that a section of traders were not happy when he told them not to first consult National Unity Platform (NUP) boss Robert Kyagulanyi Ssentamu (Bobi Wine) on what to tell Museveni yet others were planning to ‘Kulabisa’ Museveni as Bobi Wine encouraged them to do by exposing and humiliating leaders.

    “Those people who were stopped at the State House gate were not traders but they were taken to State House to humiliate me. Never joke with the government, it has intelligence,” Kabuye boasted.

    Sources within the traders associations confirmed the allegation adding that they wanted to tell the president that Kabuye was using government’s money to bribe a section of traders to withdraw from the strike so that he is praised as an influential minister in the city.

    The sources added that when Kabuye invited the traders at Africana Hotel to discuss their issues before meeting the president, he came with people who they didn’t know in the trader’s circle and his plan was to declare before the media that they are ready to open the shops.

    “We identified them before the meeting and we started grilling them to tell us where they operate business from and their shop numbers. When they failed, we forced them out of the meeting and we frustrated Kabuye’s meeting,” one of the leaders in the trader association said.

    He divulged that they wanted to tell the President that Kabuye is very arrogant and doesn’t listen to them and like former KCCA Executive Director Jenniffer Musisi, he runs the city on orders.

    He added that they know that political leaders are mobilizing non traders to be taken to President Museveni’s meeting on 7th May 2024 at Kololo Independent grounds to tell lies to the big man.

    On that date, Museveni is expected to make a final announcement on the issue of EFRIS.


    By Hadijjah Namagembe


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