The interim board at the Ministry of Works and Transport on Friday last week terminated Uganda Airlines senior team contracts that had been earlier on sent on forced leave on April 21st, 2021 by Gen. Edward Katumba Wamala as requested by President Museveni, while investigations into concerns of financial mismanagement, nepotism in staff recruitment and conclusion were ongoing as this has finally seen the Chief Executive Officer Cornwell Muleya and 12 others shown exit out of affairs on the national carrier.
According to MoWT – Permanent Secretary Waiswa Bageya, the decision was taken on Friday last week to see the team exit management and any business-related issues of Uganda Airlines.
Cornwell Muleya’s contract together with finance director Paul Turacayisenga, Rogers Wamara the director commercial and procurement manager Moses Wangalwa, sales and marketing officer Deo Nyanzi, Andrew Tumusiime (senior administration manager), Harvey Kalama (ground operational manager), Bruno Oringi (safety manager), Michael Kaliisa (quality manager), crew training manager Juliet Otage Odur and first officers Kenneth Kiyemba and Alex Kakooza were terminated after thorough investigations had been concluded on regards to financial mismanagement, nepotism in staff recruitment and conclusion as these majorly affected operations of the national carrier leading to losses since the Uganda Airlines resumed operations in August 2019.
President Museveni also requested for the discharge of Pereza Ahabwe, the chairperson board of directors as the interim board of directors chaired by Bageya has been obliged with the duty of overseeing operations of the precious Uganda Airlines after nine months since suspension of the now disbanded top management team.
However, Bageya reveals that, the other managers and officers have either been terminated or restored, as two of them still serving their suspension pending vetting from security agencies and confirmation on whether or not they passed technical training. Bageya says the Inspectorate of Government had also picked interest in the allegations against the suspended staff.
“We have concluded the case against most of the suspended officials administratively. But we are also waiting for the decision of Inspector General of Government on the matter.”
“I cannot disclose the reasons for the CEO’s termination right now because the IGG is still conducting investigations. But the interim board of directors decided to terminate his contract because the allegations against him were substantial and he was found culpable.”
The ministry hired Muleya in September 2019 and renewed his contract three times before he was suspended. His latest contract was renewed in 2021 with the expiry being in September 2022.
Muleya, a Zambian, ventured into aviation in 1995 as general manager and CEO of Air Botswana Corporation for eight years, moved on to Air Mauritius, and worked as CEO for Zambezi Airlines Ltd and ALS Limited in Kenya. Then, he was contracted as CEO of Air Uganda in 2013. He has thereby worked in aviation for over 23 years.
The interim board’s decision comes weeks after the Auditor General John Muwanga, noted in his latest report that Uganda Airlines is losing billions due to the delayed conclusions of the suspension cases. Muwanga noted that the suspended staff remained on the same terms of the contract and those acting in their positions “receive extra pay implying double payment for the same position.
As a consequence, the company has lost Shs 2.3 billion from May to November 2021. Sources at the airline indicated that Muleya earns over Shs 50 million every month while top managers earn more than Shs 40 million monthly.
Bageya confirmed that Muleya has been earning Shs 120 million as his monthly gross salary. Gen Katumba appointed Jenifer Bamuturaki Musiime as acting CEO and other staff to carry out roles of the suspended managers in May 2021. Musiime had earlier worked at Uganda Airlines as the commercial director but was dismissed over corruption allegations.
Bamuturaki in an acting position has been earning close to Shs 60 million monthly gross salary while Muleya continued to earn his monthly salary resulting in double payment, according to the auditor general. Bageya says the shareholders will present a list of board of directors for approval in the cabinet next week.
The government revived the national carrier 2019 to lower transport costs, boost tourism and business opportunities for Ugandans. Registered as Uganda National Airlines Company Ltd (UNACL), the airline is under the joint supervision of the ministries of Works and Finance, which own 50 per cent shares each. It currently has over 300 staff including top managers who are mostly in acting positions.
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