Formidable Fred Kabagambe-Kaliisa was Permanent Secretary Ministry of Energy for over 20 years – his successor Dr Stephen Isabalija has not even lasted ten months.
President Yoweri Museveni fired Isabalija made his name when he worked as the Vice Chancellor of troubled Kampala businessman Victoria University until last year. This comes just after ten months on the job.
The 41- year old has a degree in commerce from Makerere University, a Masters of Business Administration from the same University and a PhD in management in Public Policy from Southern University in New Orleans, United States.
His troubles are reportedly stemming from his involvement in the Mubende oil refinery building mess. Isabalija was accused of conniving with a prober Getrude Njuba to choose Albertine Graben Refinery Consortium to build Uganda’s $4 billion oil refinery project in Kabaale, Hoima district, without consulting the powers that be.
Isabalija was attacked by a five-Chinese company consortium for taking kickbacks from Albertine Graben – a joint venture made up of General Electric [GE], Yaatra Ventures/ Intracontinent Assets Holdings and Saipem of USA and Italy and sidelining Guangzhou DongSong Energy Group Ltd, Guangdong Silk Road Fund, China Africa Fund for Industrial Cooperation, China Petroleum Engineering and Construction Corporation and the East Design Institute. An official linked to the DongSong-CPECC consortium said the only reason they were denied the deal was because they are close to President Museveni.
“Previously, when ministry of Finance officials tried to ask for money from DongSong, they were arrested. So, we were edged out because they know we can’t give them money,” the official said.
The freshly-fired Energy ministry PS allegedly hastened the government’s decision basing on a claim that the DongSong-led consortium collapsed after government’s preferred bidder, China Petroleum Engineering & Construction Corporation [CPECC] withdrew from the race.
Isabalija’s corrupt dealings were reported to President Museveni and the Energy minister Irene Muloni through a letter dated August 8, 2017 written by Lv Weidong on behalf of DongSong-led consortium.
“We are also surprised and disturbed by reports claiming that the DongSong -CPECC consortium withdrew from the selection process due to disagreements in the consortium. These claims are not true. None of our letters indicated the withdrawal of CPECC or the consortium from the selection process,” the letter informed the President.
“The purpose of this letter is to inform you that the DongSong-CPECC consortium has never disintegrated; [it] remains strong and committed to invest in the development of Uganda Refinery project provided the concerns raised in the consortium’s earlier letters are addressed,” the letter added.
Museveni was as well approached and warned by the Chinese government through the Kampala envoy and warned that Isabalija’s mistake will have far-reaching consequences that could further delay the project, especially if the DongSong group decides to go to court.
Isabalija has also reportedly been accused of firing top Ministry of Energy officials still loyal to former PS Kabagambe-Kalisa with whom he had a raging war on the supervision of the two ongoing energy projects; the 600MW Karuma and 180Mw Isimba hydropower dams. These two are Museveni’s pet projects he had run at tandem with Kalisa his obedient pal for 38 years.
Museveni was also not impressed by how his voters in Kabaale Parish in Buseruka Sub-county in Hoima District were chased to pave way for the oil refinery under Isabalija’s supervision yet they are uncertain of their next destination.
His previous job as the board chair of the Uganda Electricity Generation Company (UEGCL) as well set a bad precedent for the academician.
Our impeccable sources have revealed that Isabalija was still involved in a fierce battle stems from a 15-page dossier by a whistle blower to Mr. Keith Muhakanizi, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance and Economic Development faulting Isabalija of gross mismanagement of funds worth billions while at the government-run company. The dossier accuse Isabalija of diverting billions of the projects’ money into non relevant activities including personal pleasures.
Muhakanizi tried to fire Isabalija, who vehemently blocked Muhakanizi’s attempts through the Auditor General to carry out a forensic audit at the UEGCL until recently when the CEO Eng. Dr. Harrison Mutikanga officially welcomed the probe.
Now, Mr Robert Kasande, the interim director of the Petroleum Directorate, is the new acting Energy and Mineral Development Permanent Secretary. He had been influential energy, oil & gas, and mineral sector policies, legislation and investment programs; and negotiations of agreements and contracts. He played a leading role in the discovery of oil and was the lead negotiator of Production Sharing Agreements for Petroleum Exploration, Development and Production.
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