Uganda backbone project latest victim of corruption charges

11.11.2009

Issues facing the Uganda infrastructure efforts are similar to problems arising in other ICT projects in Africa. In Nigeria this year, for example, government officials were arrested on corruption charges related to a telecom project, while Siemens was banned from bidding for World Bank-funded projects in the country. In South Africa, a 7 billion South African Rand (US$987 million) electronic payment system was canceled in the wake of allegations of corruption among government officials.

The sale of Nigeria's incumbent operator, Nitel, has also been marred by corruption charges and lack of transparency by senior government officials and board members. The privatization of Ghana Telecom was also marred with similar allegations, which ended up in court.

In Zambia, government officials have been accused by telecom experts and political leaders of corruption in the manner in which they awarded RP Capitals of the U.K. a $2 million contract to evaluate the assets of the government-run Zambia Telecommunications Company (Zamtel) to pave the way for its sale. The allegation led to the resignation of Minister of Communications and Transport Dora Siliya early this year.

In addition to the evaluation of Zamtel's assets, however, RP Capital has also been allowed to source a company to buy the company.

"The president and senior government officials are not willing to stop the sale of the company because of the kickback they have been given by the company that wants to buy Zamtel," said an opposition leader, Hakainde Hichilema, a member of the country's United Party for National Development.