Tuesday November 26, 2024

Patria not to do business in Uganda: CEO

Published : 21 Feb 2018, 22:43

  DF-Xinhua Report
Photo Patria.

Olli Isotalo, CEO of Finnish arms technology company Patria, assured on Wednesday that any business plan regarding Uganda would not be accepted by the top management of the company.

Isotalo briefed media about the corrective measures to be taken following the death of a Finnish businessman with an improperly created mandate to represent Patria.

The man was found dead in his hotel room in Uganda's capital Kampala on February 6. The reasons for the death of the salesman remained unclear, and the death was being investigated as a murder.

A letter of very general nature had been issued by a low level sales staff to the salesman, but no contract was done. Patria did not pay anything, nor was it committed to pay anything afterwards, Isotalo said.

Isotalo claimed that Finland has "the strictest arms sales control in the world". He said business with Uganda would have been rejected at the start had it come to the attention of the senior management.

As a corrective measure, sales people alone cannot in the future initiate any country plans in Patria, and a wider basis must be involved, including the risk assessment. Compliance training, focusing on value issues, will be arranged throughout the company.

The crisis has led to three dismissals. Two directors last week left the company, and a lower level sales chief has also resigned. Isotalo did not expect further resignations.

Isotalo denied that the company had been pressured by the Finnish government to force the resignations, but they were a result of internal decision that matches the damage that the image of Patria has suffered.

Even though Uganda is unfeasible as a sales target of Finnish arms technology, Finnish exports to sub-Saharan Africa have been significant.

Finnish Ministry of Defense confirmed to media that sales to South Africa in 2016 amounted to 6.6 million euros, to Botswana half a million and to Kenya and Senegal one third million to both. Patria armoured vehicles are produced in South Africa.

Patria is a state majority owned company, with minority ownership from Norway.