Shs 1 Trillion corruption scandal rocks NITA-U

A project worth USD200million (about Shs1.1 trillion) by the World Bank hangs in balance following allegations of corruption and infighting at National Information Technology Authority-Uganda (NITA-U), this publication can exclusively report.

In 2022, the Government of Uganda (GoU) represented by NITA-U applied for financing to a tune of USD 200 million from the World Bank/IDA towards the cost of the Uganda Digital Acceleration Project – Government Network (UDAP-GovNet).

This was after the project approval by the Ministry of Finance, Planning and Economic Development and was identified as one of the critical projects to be implemented under the Digital Transformation Program of the NDP III.

The UDAP-GovNet project is expected to expand connectivity across the country to address the existing gaps.

This will ensure that e-Government services are delivered closer to the Government administrative units like sub-counties, parishes, schools, hospitals, health centres among others.

The application was successful and the World Bank set aside USD 200 million of which USD 60m is a grant while USD 140m is credit.

This project became effective in February 2023.

A number of interventions in the project like purchase of extra internet bandwidth ($10.8M), expansion of the National Backbone Infrastructure (NBI) to reach underserved districts ($26M), expansion of the Data Centre Capacity to accommodate more services and systems from Government Institutions ($10M), expansion of the main Centre to accommodate increase in traffic (transmission capacity of the NBI) ($7M) were earmarked as urgent and were expected to commence immediately.

Unfortunately, all the above amongst other urgent initiatives haven’t started due to alleged corruption tendencies amongst some officials at NITA-U.

The officials include a board member at NITA-U who is also a relative to one of the top politicians in the country hailing from Greater Bushenyi district in western Uganda and as well another one in finance who is also close to another top NRM politician from Alebtong district in northern Uganda.

It is alleged that their interest in kick-backs from particular service providers has led them to influence the downgrading of the already approved terms of reference which has caused a standoff with the technical personnel leading to a delay in project implementation.

The official on the NITA-U board reportedly wants Huawei Technologies to implement the $26M expansion of the National Backbone Infrastructure (NBI) to reach underserved districts and the $10M expansion of the Data Centre Capacity to accommodate more services and systems from government Institutions.

The finance official also, allegedly working with a business man from Tanzania (names withheld for now) have lined up a Tanzanian company to implement the $10.8M purchase of extra internet bandwidth.

They are also reportedly working to have Technology Associates implement the $7M expansion of the Metropolitan Area Network (MAN) Centre to accommodate an increase in traffic (transmission capacity of the NBI).

The plan includes: (i) Extension of the National Backbone Infrastructure (NBI) to 20 major towns, updates to metro network (1,500km) and refugee hosting communities (1,000 km), (ii) Upgrade of existing Data Centre and Disaster Recovery (DR) Site Resources, (iii) Pre-purchase of International Bandwidth-27 Gbps), (iv) Upgrade of Data exchange and Integration Platform to on-board more agencies, (v) Upgrade of the Metropolitan Area Network Centre, (vi) Mobile Broadband Deployment 50 Masts in Rural Areas and 80 masts for voice and data in 12 Refugee settlements, (vii) Last-mile connectivity- 1700 Km of Fiber/alternative technologies and Last mile Connections), (viii) Last-mile connectivity – Deployment of 828 Wi-Fi hotspots and 172 Wi-Fi hotspots, (ix) Establishment of 24 Telecentres in refugee hosting communities, (x) Establishment 3^rd (Third) Data Centre, (xi) Scale up of 6 e-services in 4 priority sectors with a focus of digital inclusion and accessibility for PWDs ( Agriculture, Education, Justice and Health), (xii) Data Protection Office IT Systems for Registration, Data Protection Register, Complaints, Compliance and related functions, (xiii) Development of a National ICT Spatial Data Infrastructure Store, (xiv) Supply, Installation and Commissioning of Cyber threat intelligence platform, and (xv) Enhancement of the National CERT Forensic Laboratory with mobile forensic kits.

NBI PHASE 5 TWIST

This publication has also established that in April 2021, President Museveni directed that Huawei Technologies, the company that implemented the four Phases of the NBI, should implement Phase 5 using financing from the Chinese EXIM Bank to the tune of CNY 1,050,000,000 (about Shs 552,242,238,345).

Huawei Technologies signed a memorandum of understanding with China International Telecommunication Construction Corporation (CITCC) in which CITCC was to act as the contractor for the project.

However, the two NITA-U officials working with some other officials in the Ministry of ICT and Attorney General’s office have reportedly caused a standoff in negotiating contract terms which has delayed the start of the project.

The contract has reportedly never been signed despite the procurement process being concluded in 2022.

Allegations are that they are using this time to make CITCC desperate so that they can succumb to their alleged demands for 10% of the project cost for their own benefit.

There are also whispers that Huawei has sponsored them for a number of foreign trips in a bid to try and solicit for their support on this matter.

NITA-U MERGER

We have also learnt that the same USD 200M World Bank project has escalated the government rationalization program.

NITA-U is among those to be merged.

However, the two officials at NITA-U are fighting the merger with the help of their friendly top politicians who have influence in parliament such that they can influence in charge of the World Bank’s project contracts awards as we shall be reporting in our subsequent publication.

The same contract has also reportedly pitted NITA-U against the Ministry of ICT top technocrats led by PS Amina Zawedde.

It is alleged the PS and her team want the merger as soon as yesterday with eyes also reportedly set on the same World Bank project.

NITA-U officials also are risking the wrath of President Museveni for allegedly frustrating the new UTL investors.

This is also a story for another day