Uganda’s N$3-billion military contract scandal linked to Namibian company Satcom

Namibian military company Satcom has denied reports that it bribed an army official in Uganda with N$5.5 million (US$300 000) to win a N$3 billion (US$200 million) contract in the east African country.

The controversial deal reportedly led to the arrest of Uganda People’s Defence Forces (UPDF) communications and information technology chief colonel Peter Ssemakula in June 2024 over his alleged involvement in a contract to supply the Ugandan army with military radios.

Satcom, a Namibian company owned by the Ministry of Defence and Veterans Affairs’ August 26 Group of Companies, is the entity linked to the contract.

“Currently Satcom is struggling financially. Should we have been part of such a deal, then obviously that wouldn’t have been the case,” Satcom acting managing director Glenn Brown told The Namibian this week.

He added: “We deny that we have anything to do with this corruption. Neither am I aware of such things. We are extremely shocked by this news and because we are a reputable company this will be bad for our reputation and it’s not true.”
Brown said they have not paid bribes.

“Some entity is trying to sabotage our efforts in trying to get the deal. The deal was never signed. I repeat: We have nothing to do with the bribery. We are a reputable company, as I mentioned, we are more than willing to be transparent.”

According to Ugandan media reports, Satcom secured the deal in 2023 to supply specialised military radios to the Ugandan military.

Media reports said Satcom paid a N$5.5 million bribe to Ssemakula through a Ugandan intermediary, Ambrose Mutafungwa, for the deal to go through.

Ugandan military spokesman Felix Kulayigye yesterday said Ssemakula’s arrest is related to a military supply deal.

“Yes, colonel (Ssemakula) is in detention over the deal,” he said.

Kulayigye was further quoted in Ugandan media, saying: “Yes, it is true, according to my boss (general Muhoozi Kainerugaba), colonel Ssemakula was arrested for receiving a bribe for the supply of communication equipment. He is facing trial before the court martial.”

Kainerugaba is Ugandan president Yoweri Museveni’s son.

Ugandan investigators claim Ssemakula hid the money through a witch doctor, who spent N$1.4 million before the authorities intervened, according to media reports.

Ssemakula allegedly received a bribe of N$5.5 million, while agent Mutafungwa allegedly received N$18.5 million (US$1 million) from a radio deal that is linked to Satcom.

MORE DETAILS

Satcom, a Namibian-based communications firm, allegedly pitched its Leopard One Radios to Ugandan authorities, with representatives demonstrating the equipment’s capabilities in Namibia.

The then chief of defence forces Wilson Mbadi and Ssemakula allegedly travelled to Namibia, where Satcom demonstrated the capacity of the radios.

Satcom was allegedly represented by Mutafungwa.

The devices were advertised as compact, rugged, and lightweight wideband military radios, which offer uncompromised communication for tactical missions across multiple frequency bands.

However, Ugandan soldiers had reportedly experienced overheating issues with similar radios in previous procurements.

Despite this, Mbadi backed the deal, which was later endorsed by president Museveni, according to news outlet ChimpReports.

Shortly before Satcom allegedly began supplying radios to the UPDF, Museveni appointed Kainerugaba as chief of the defence
forces, replacing Mbadi.

Kainerugaba cancelled the deal after learning of the alleged bribes, triggering an investigation that exposed corruption within the Ugandan military ranks.