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    Soliton Telmec Top Bosses’ Shocking Salary Lists Leak – Kenyan Company Milking Ugandans

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    By Otim Nape

     

    As promised we are back to update our scandal involving NITA-Uganda and Soliton Telmec the Kenyan company that was recently added another 10 years to continue providing very expensive internet bandwidth to the government of Uganda, its ministries departments and agencies.

    As earlier reported, the contract has a number of problems including exceeding the best practice principle period averaging between 2 to 5 years. It was also not based on any assessment of Soliton’s past performance as there were no Key Performance Indicators (KPIs) that the NITA top management relied on. Reliable sources say NITA hasn’t been very keen to enforce the government of Uganda’s rights and entitlements under the contract including ensuring knowledge transfer whereby 80% of the employees must be Ugandans.

    It’s further revealed that on getting the NITA deal, Soliton Telmec bosses even got better pay and salary increment because of the windfall that resulted from the Ugandan internet deal.

    Based in Soliton Park North Road Nairobi, Soliton has previously worked for Kenya Data Networks Ltd on Metropolitan Fiber Developments and the total project was worth USD24.6m. That was in 2010 and the senior implementation staff were Abdirahman Sheikh Hassan Bashir, Amin Mohamed Hamdi and Lawrence Ochieng. In 2011, Soliton did work for Safaricom in Kenya regarding Metro Developments countrywide for USD3.4M and another USD7.7m. All this information is contained in confidential leaked NITA documents. In 2010, Soliton also did work for Frontier Optical Networks at USD4.5m.

    The Shocking Salaries- Forget about the people like Jennifer Musisi, Allen Kagina, Richard Byarugaba and others that we thought earn a lot of money. At Soliton, the top managers are in their own category after all their cash cow NITA is still alive and kicking. The guys earn in dollars and the top earning official is the CEO Abdirahman Omar Sheikh whose take home per month is USD14,586 (which is more than 58m in Ugandan money)In the year the CEO bags USD175,033 which is just net salary before you factor in allowances and other benefits. The lowest paid Soliton employee, according to the salary lists contained in the leaked NITA documents, is the sales and marketing executive category where each worker earns USD2,431 (more than 9.7m Uganda shillings) and is annually entitled to USD29,172 and that is just the retainer for these sales executives because their earning is mostly from the commission which is a percentage of the deals they bring in. Soliton insiders say the company doesn’t worry about sustainability as long as the plentiful NITA taps remain open.

    About Soliton top executives- the following is the short profile, qualifications, experience of the company’s top bosses and how they are remunerated;

    Soliton Group CEO, Eng. Abdirahman Omar Sheikh

    Abdirahman Omar Sheikh-As the Chief Executive Officer (CEO), Omar is the overall Soliton team leader in Uganda and was heavily involved in securing the NITA deal having realized the Uganda IT authority giants were sleeping and it was easy to impose very harsh contract provisions on them. In August 2012, it was Omar who sat down with NITA ED James Saka and signed the contract on behalf of Soliton Telmec which is clearly a Kenyan company operating in total disregard of BuBu that requires a lot of local content absorption in such big contracts. The two witnesses to the contract signing were Stella Alibateese the NITA Director in charge of Regulations and Legal Services and Mahat M Somane, the lawyer for Soliton operating on P.O. Box 40111-00100 Nairobi Kenya. It’s very clear the Kenyan negotiated a very good deal having clearly seen the NITA team representing Uganda weren’t acting in a very patriotic way. Omar’s negotiation skills ensured Soliton would share 50% of all the revenues collected (this is over USD27m per year) plus many other benefits like charging each Cisco switch at USD2600 (it’s at 1.4m on open market) and each manhole installed at USD13000 (MTN buys the same at 400,000). NITA is also charged USD1300 per each Building Entry (BE) and yet MTN is charged zero for doing the same work by the same company. It appears losses they made with MTN if any, are recouped through cheating GoU through NITA. Soliton also charges NITA/GoU USD650 per optical network unit (ONU) yet the same costs just USD50 on the open market! You can imagine all that cheating to GoU!! There are also big questions regarding which entities use our NBI to transport internet bandwidth. From this aspect alone, millions of dollars is annually collected and the exact details are restricted to Soliton and the three top most powerful bosses at NITA (Peter Kahigi, Vivian Dambya and ED James Saka). Stakeholders want a forensic audit in that area to establish the exact amount government annually loses to Soliton. Soliton is also paid colossal sums of money in dubious cable relocation and extensions whereby USD26 is paid per meter and yet MTN pays only USD11 to the same Soliton Company doing the same amount of work. Most often, NITA top bosses who are supposed to keenly scrutinize these things are ever on the plane enjoying expensive trips, costly air tickets and travel allowances. We have much documentation on these travels to which destinations and the allowances earned and it will be shared here in the coming days. The contract also allows Soliton to charge the transport fee USD200 per mbps carried on the NBI which Uganda government owns and maintains. Every month, Soliton makes more than USD800,000 from this transport fees alone since the government MDAs use not less than 3800 mbps per month. The Kenyan CEO outsmarted Ugandans in NITA further by ensuring Soliton was given free fiber cable equipment to lay the connection between Masaka and Katuna yet the government of Uganda (NITA) was made to pay for the cable equipment it already owned. This clearly shows that Abdirahman Omar Sheikh (if he exists at all) must be a very shrewd negotiator and his company is ever generously rewarding him. Leaked NITA documents show that Abdirahman Omar Sheikh’s annual salary is USD175,033 and monthly its USD14,586 (which is more than 58m per month in Ugandan money). He has worked with Soliton for more than 20 years. He is the overall person and the authorized Soliton representative according to the leaked NITA documents. He was born on 8th Sept 1965 and is Kenyan national and electrical engineer by training. He is a member of the Kenyan Engineers Registration Board and this makes NITA bosses think he is highly qualified and no Ugandan can match his qualifications. He has worked in the telecom industry for over 25 years both as an engineer and manager. He has a Bsc in Mathematics which Kaguta M7 the President would call a flat course. Gratefully the Soliton CEO has much more when it comes to qualifications; he has a Bsc in Electrical and Electronics and he has served Soliton as CEO since 2004 todate. He has also previously worked with Global Telecomm Ltd as Business Development Manager (1995-1996); then Telkom Kenya Ltd as CEO (1994-1995) and Kenya Postal & Telecommunications Ltd as a pupil engineer (1992-1994). He is a founder of Soliton Systems House and was their CEO from 2004 to 2007. He speaks fluent English and Kiswahili but these are qualifications many better Ugandan managers have and much more, implying the Soliton CEO can’t claim to be exceptionally qualified.

    2-Amin Abdi Ali-She is the Soliton Chief Finance Officer (CFO) and earns from the NITA-Soliton deal USD102,103 annually which comes to the monthly salary of USD8,508 which comes to more than 34m in Ugandan currently. This is just the net salary when the other juicy allowances aren’t counted.  The CFO is a Bcom graduate and has ACCA qualifications and 7 years experience of working with Datacom and telecom sectors. He was born on 20th November 1978 and he is Kenyan and has worked with Soliton for 8 years now and is a Bcom graduate but also has a BMA. He has more than 12 years of doing accounting work in the Datacom and telecom setting. He is responsible for the overall financial performance of the company to make sure the multi-billion NITA deal is exhaustively exploited since telecom industry sources say there is no other country in East Africa where Soliton Telmec could ever get a deal so lucrative like NITA’s. Abdi Ali has previously worked with Zawan Insurance Broker as their financial accountant (February 2004-November 2005); Sahannet Ltd as F&A Manager (Dec 2005-June 2007) and Old Cambrian Ltd as a consultant (July 2007-March 2008) and after that he joined Soliton as CFO in April 2008 and this was at a time the company’s sales teams had started smelling the NITA deal in Uganda.  He fluently does English and Kiswahili.

    3-Ali Maawly-The Chief Technical Officer is a graduate of Bsc Computer Science and has 8 years experience in datacom and telecom sectors. He was born on 4th April 1980 and is a telecom engineer by training. He is a Kenyan citizen too and in the Soliton-NITA deal, he is responsible for ensuring all technical aspects are complied with. He has telecom and datacom experience of 13 years of working on projects for wireless, fiber transmission and network support applications. He has an MBA and a Bsc in Computer Science. He has previously worked with Kenya Data Networks as NOC Controller (2004-2010) and quit in 2011 to join Soliton Telmec when the NITA deal seemed imminent and was instantly elevated to Chief Technical Officer. He fluently speaks English and Kiswahili. His full names, on some of his documents, are Ali Mohammed Ali-Maawly.   He earns as follows; USD102,103 annually and he monthly pockets USD8,508 which come to more than 34m in Ugandan currently. This is just the net salary when the other juicy allowances aren’t counted.

    4-Fatuma Omar-she is the Chief Operating Officer for Soliton and a graduate of BBA. She has 7 years experience in telecom environment in administration and HR areas. Her profession is administration and was, according to leaked NITA documents, born on 18th June 1980. She is a Kenyan by nationality just like Abdirahman the CEO. She has worked with Soliton for 13 years and speaks fluent English and Kiswahili. She has a BBA (HRM) and an MBA; joined Soliton in June 2005 as office administrator and later became GM in 2009 up to 2012 when the NITA deal came in and she was elevated to COO. She earns as follows from the NITA-Soliton deal; USD102,103 annually and she monthly pockets USD8,508 which come to more than 34m in Ugandan currently. This is just the net salary when the other juicy allowances aren’t counted.

    5-Hellen Longwe-She is the Chief Marketing Officer who oversees overall sales and marketing of Soliton products. She is a graduate of Bsc in Business Administration and has 9 years of experience in Datacom and Telecom sectors. She is Kenyan and was born on 22nd October 1970 and has worked with Soliton for 9 years. She has an Executive Diploma in Sales & Marketing and is a certified project manager. Leaked NITA documents show her employment record as follows; Soliton Telmec as project manager (May 2008-May 2009), Soliton Telmec as General Manager Operations (June 2008-December 2010) and Soliton Telmec as GM Marketing and Sales (January 2011-todate).  From the NITA-Soliton deal, she annually earns USD102,103 and she monthly pockets USD8,508 which come to more than 34m in Ugandan currency. This is just the net salary when the other juicy allowances aren’t counted.

    Other top Soliton Telmec company bosses who are swimming in Uganda taxpayers’ money are as follows;

    6 James Mburu-who is the head of planning and is a graduate of Bsc Telecoms and IT and boasts of 8 years experience in datacom industry.

    7 Iman Dahir- who is the head of implementation of programmes and is a graduate of computer science with 5 years experience in telecom sector.

    8-Zahir Miyanji-who is the head of operations is a graduate of Bsc Technology electronics and communication engineering with 8 years experience in datacom sector as of 2016.

    9-Nixon Lemlem-who is the head of quality assurance at Soliton and is a graduate of Bsc Geospatial Engineering with 5 years of experience in planning work. The contract requires that Soliton Telmec hires local staff (more than 80%) and ensure knowledge transfer which they haven’t done because when you visit their office, you see foreigners only and rarely any Ugandan is visible in top management positions.

    SEE DETAILS IN THE TABLE REGARDING THE FULL SALARY SCALES AND STRUCTURE FOR THE REST OF SOLITON TELMEC EMPLOYEES WHO ARE SELDOM UGANDANS. 

    Salary list of top Soliton managers_ lowest paid is a sales rep earning over 9.7m ($2,431 monthly_ $29,172 annually)

     

    To talk to the Grapevine, call or sms: 0755973863, Email: info@thegrapevine.co.ug

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    MY MONEY

    Kampala City Traders Boss Kabanda In Deep Trouble For Mismanaging Money Members Contributed To Fight EFRIS…

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    FUTA chairperson John Kabanda (L) and Godfrey Katongole (R)

    Kampala city traders associations members under their umbrella body the Federation of Uganda Traders Association (FUTA) have tasked their controversial chairperson John Kabanda to give them accountability for the funds they contributed to run federation activities.

    Isaac Kauma, a member of Kampala Traders Association, exclusively revealed to theGrapevine that Kabanda turned furious and started spreading malicious propaganda against a section of traders who are demanding for accountability of their money which they have been contributing since last year.

    Kauma narrated that when President Museveni confirmed that he was going meet them again on 18th July, 2024 at Kololo Airstrip ground to further discuss their grievances over the controversial Electronic Fiscal Receipting and Invoicing Solution (EFRIS), Kabanda and other FUTA leaders approached traders and asked them to contribute money which they were going to use to transport traders from all corners of the country to fill the entire venue to show the president that they have the numbers and the capacity.

    He added that Kabanda confirmed to them that they need numbers to out compete members of the Kampala City Traders Association (KACITA) who wanted to show the president that they are the ones controlling traders after accusing KACITA leadership of betraying them and by being in bed with Uganda Revenue Authority (URA) which was imposing EFRIS on them.

    Kauma asserted that more than 1000 traders around Kampala city contributed between Shs10,000-Shs20,000 but the meeting didn’t take place because the venue was under renovation and the president promised to meet them on another date.

    He said that State House made the said announcement after Kabanda and other traders’ leaders met Museveni at State House Entebbe and they were told that Kabanda and his deputy chairperson Godfrey Katongole asked the president for a private meeting with him which the president accepted.

    Kauma added that they later learnt that Kabanda and Katongole asked the President to give them Shs3bn to mobilize traders to accept EFRIS a proposal the president declined to accept.

    The President told them that he doesn’t the money they were asking for but promised to put Shs300m in their SACCO.

    “From that day, Kabanda’s behavior is questionable, he always doesn’t want to be asked questions on why the president is not meeting us and turns furious when asked to give us accountability for the money we contributed for the function which didn’t take place,” Kauma said.

    He revealed that the accountability issue has weakened the federation thus causing a sharp fight between Kabanda and Katongole.

    Other traders allege that Kabanda has fired Katongole from being his vice chairperson and removed him from their WhatsApp group and replaced him with Moses Lwegaba the chairperson of Katukazane Shoe Dealers Association.

    Sources claim that Katongole supporters are now threatening to take action against Kabanda for firing the man who has done everything in the struggle to fight for traders and replaced him with a newcomer.

    Insiders are now alleging that the two leaders are fighting over a bribe they received during the EFRIS strike when traders closed their shops.

    There is another allegation that Katongole was given money to go to the Eastern part of the country and mobilize traders to join the strike but he refused to go and decided to hide in Kampala.

    When he was put under pressure to provide evidence that he traveled upcountry and had none, he was shown the exit.

    When contacted, Kabanda confirmed the infighting, explaining that it is aimed at weakening his FUTA leadership and the trust that the traders have placed in them.

    He revealed that even though he is receiving threatening messages, his resolve is still strong and he is ready to fight for all traders.

    He denied allegations of mismanaging traders’ money.

     

    By Timothy Nyanzi

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    CRIME

    ABSA Bank Dragged To Court For Stealing Dead Customer’s Money…

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    Eunice Nabadda Kayondo the Administrator of the Estate of the late Dan Kayondo has dragged ABSA bank to the High Court Civil Division Kampala over allegations of stealing money for the dead.

    Nabadda through her lawyers led by Ronald Ruhinda claims that she is a daughter to Kayondo who was also given powers by court to administer his Estate including the bank account number 0288045860 which is in ABSA Bank Luwum Street Branch in Kampala city.

    In her affidavit, she told court that after securing the powers of administering her father’s bank account, she went to the bank and the bank’s managers verified and approved her documents declaring her as the single signatory of the said bank account.

    She narrated that the bank took all the necessary requirements including her telephone number which was going to be used for subsequent notifications and alerts.

    She added that she found Shs40m on her father’s bank account.

    She divulged that since the day she took over the account, she has never withdrawn any money, but she was surprised to learn that the account had only Shs3m as outstanding balance recently.

    She insists that the bank breached the confidence she entrusted them with and slept on the job thus she wants court to compel them to pay her for the damage they caused.

    “The plaintiff shall aver and contend that the acts and omissions of the defendants (bank) affected the Estate adversely and shall seek general damages of Ug Shs100, 000, 000,” the lawyers stated in their plaint.

    Nabadda added that because of the bank’s actions, she suffered great loss and mental anguish for which she wants court to award her special damages.

    She further wants court to order the bank to return Shs40m that was removed from her bank account without her knowledge.

    However, the bank through their lawyers led by David Mpanga denied all the allegations insisting that they were not aware of the said fraud.

     

    By Sengooba Alirabaki

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    MY MONEY

    Inside Equity Bank, Dei Pharmaceuticals Tycoon Magoola Fresh Legal Fight Over Shs578bn Bailout From M7 Government …

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    Dr. Mathias Magoola (bottom R) is battling Anthony Kituuka's Equity Bank over a loan facility they offered him

    Dr. Mathias Magoola together with his companies Dei Industries International Limited and Dei Biopharma limited formally Dei Natural Products International industries limited has institute a commercial suit in the High Court Commercial Division accuses Equity bank Uganda and Kenya of fraudulently scheming to target the money given to him by President Yoweri Kaguta Museveni’s government to settle his financial troubles and save his companies.

    A few months back, parliament approved Shs578bn to be given to Magoola as bailout to his companies which were facing financial hardships with banks threatening to auction his properties which he used as security.

    However, through his lawyers led by commercial law giant Fred Muwema, Magoola alleges that when the bank got information that government had bailed him out, it started inflating his loan balance of with the mission of taking all the money given to him by government.

    He wants court to declare that the bank’s demand dated 27th June, 2024 both in US dollars and shillings for the payment of the outstanding loan was illegal.

    He explain to court that in 2016, he entered into a banker-customer relationship with equity bank and he applied for and obtained a credit facility of Shs400m to finance the completion of the construction of his factory at Kyadondo Block 82, plot 3228 Kiryamuli.

    He continued obtaining several loans in subsequent years from the same financial institution.

    He notes that all the credit facilities he obtained from equity bank contained a clause which encouraged him to seek independent legal advice in order to understand all the terms and conditions of the loan he was receiving.

    He explains that despite the said clause, the bank officers were overbearing in their advice to him to take the loans as offered owing to the cordial relationship between the parties and thus he took their advice and signed the credit offer letters without consulting external legal lawyers.

    He pins Samuel Kirubi, a manager at equity bank Uganda, Jimmy Mwangagi the Head of Credit, Munywa the Head of Risk, Abel Musiime the Head of Trade and Finance and Edward Ocen the legal officer of the bank for having guided and advised him when signing the loan transaction papers.

    He adds that he was compelled to take the said loans, variation of terms, consolidations and restructures as offered because he was in urgent need of money to finance his capital-intensive projects.

    Magoola accuses the bank officers of placing him in a tight spot with real threats of default foreclosure of his businesses which left him with no option but to accede to the bank’s demands.

    He claims that counsel John Kabandize whose signature was seen on the signed documents as his lawyer was merely a witness to the agreement.

    He explained to court that his companies faced hardship in servicing the loans due to unforeseen circumstances like Covid-19 outbreak and the Russian-Ukraine war which affected wheat imports for one of his companies dealing in import of wheat.

    These hardships forced him to close it three years back.

    He added that the delays in the completion of his medical plant also affected his plans of servicing his loans which resulted into high interest repayments to more than Shs150bn.

    “That the defendants who are in a dominant bargaining position took advantage of the plaintiff’s desperation to engage in predatory lending practice done in violation of his non-delegable fiduciary and statutory duties,” he stated.

    Magoola informed court that he reach out to the bank’s managers pleading with them to be reasonable in their demands.

    He first requested for a waiver of exorbitant loan interests, then he asked to settle the outstanding loan that was at the tune of Shs155,188,727,733.

    When all his prayers were rejected by the bank, which insisted on receiving full payment of the outstanding loan as demanded, he hired a certified public accounting firm to review the credit facilities and loan statements so as to determine the correct outstanding loan.

    The firm issued an initial preliminary report which after full examination of the few loan statements availed, revealed that the banks had inflated the loan outstanding claim by a sum of Shs39,241,743,163.

    He decided to inform the bank in writing.

    Based on the explanation to court, Magoola and his companies prayed to court to issue an order for an account audit and reconciliation of the loan and the current accounts his companies held with the said banks to determine his actual debt, variation of terms, loan consolidations and also restructure it.

    He also wants the court to issue a court order directing the banks to credit the plaintiff’s loan or current accounts with any amount of money found to be unlawfully debited upon the taking of an account, audit and reconciliation.

    He wants court to also direct the bank to refund Shs47,652,951,120 which was unlawfully debited from his loan accounts and also declare that that the interest deducted during moratorium period for credit facilities on account No. 2220578883978 and 2220580311116 amounting to US$4,331,424 was illegal explaining that it denied him cash flow and caused loss and damages to his projects.

    Magoola wants a declaration that the receipt, withholding and transfer of his US$9m loan repayment by equity bank Uganda to equity bank Kenya was an arbitrary act which exposes him to unnecessary penalty interest for which the defendants are liable to refund.

    He insists that during the transfer of his money, they charged him Shs1,045,000,000 as interest which he says was an unlawful. He wants the funds to be returned.

    He notes that the conversion of his US$2.430m credit facility to Shs11.5bn denied him liquidity and resulted in exchange loss to the tune of US$42,750 which the defendants are liable to refund.

    The debiting of Shs80,000,000 as a loan processing fee for variation of terms and loan restructures in the credit facility of Shs16bn was extortionate and unconscionable.

    He further wants the court to declare that the bank’s predatory lending practices resulted in a breach of the bank’s fiduciary and statutory duties owed to him.

    The banks have not yet filed their defense so that the matter can kickoff.

     

    By Sengooba Alirabaki

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