Odoi accuses losers in NRM primaries of trying to use influence to overturn results (Youtube-Clip)

“NRM electoral Commission chairperson Dr Tanga Odoi has accused ministers who recently lost in NRM primaries of trying to appeal to senior party leaders to have the results overturned. Odoi said it is only his office which has the capacity to review and order a re-election if the results are found to be flawed. He also declared that on Monday next week the commission will release findings into the anomalies during primaries” (NTV Uganda).

Aftermath of the NRM Primaries: Police use teargas to disperse political procession in Mubende (Youtube-Clip)

“The Police fired live ammunition and Tear gas in Mubende to disperse the supporters of a former contender for the NRM Parliamentary flag bearer for the Mubende Municipality, Bashir Ssempa Lubega. Police say his procession through the town was illegal” (NTV-Uganda).

Lukwago picks forms to run for Kampala Lord Mayor again (Youtube-Clip)

“Incumbent Kampala Lord Mayor Erias Lukwago has picked nomination papers from the Electoral commission to contest for the same position. Lukwago says despite all the attempts to block his candidature to vie for the position, he is confident that the will of the people will prevail, even after a tumultuous spell at the helm. He is also into an alliance with his long time political ally Dr Kizza Besigye” (NTV Uganda)

Picture of the Day – The Dictators lingers at the inauguration in Tanzania

Linger at Inaguaration in Tanzania

Uganda – Statement by the Chairperson, Electoral Commission at the Closure of the Presidential Nomination Exercise – 2016 General Elections (04.11.2015)

Uganda-Electoral-Commission

Ref: ADM72/01 – The Republic of Uganda – The Electoral Commission:

The Electoral Commission appointed 3rd and 4th November 2015 as dates for the nomination of candidates for the 2016 Presidential Elections. There were forty eight (48) persons who picked Nomination Forms for Presidential Elections. Twelve (12) persons/parties returned the Forms to the Commission for verification. The nomination exercise which commenced yesterday Tuesday 3rd November 2015, has been concluded today, Wednesday, 4th November 2015, and the following have been successfully nominated as candidates

No Nominated candidate Political party/Organisation Symbol
1. Yoweri Museveni Kaguta National Resistance Movement Party Symbol
2 Amama Mbabazi Independent Chair
3 Baryamureeba Venansius Independent Clock
4 Besigye Kizza Kifefe Forum for Democratic Change Party Symbol
5 Abed Bwanika Peoples’ Development Party Party Symbol
6 Mabirizi Joseph Independent Ball
7 Maureen Faith Kyalya Waluube Independent Pot
8 Biraaro Buta Benon Farmers Party of Uganda Party Symbol

 

One of the presidential aspirants, Mr. Bbaale Charles Lwanga (Ecological Party of Uganda) presented himself to the Electoral Commission but did not satisfy the requirements for nomination as a candidate for the Presidential Elections, 2016.

Another Presidential aspirant, Hajji Nasser Ntege Sebagala, who had picked nomination papers, complied with the provisions of Section 10(1)(b) and (3), of the Presidential Elections Act 2005 (as amended) on supporters for the nomination, and booked nomination date and time did not turn up for nomination as required by the law.

The Commission congratulates all those candidates who have been successfully nominated and wishes them the best as they go out to campaign and solicit for votes from the electorate.

The Electoral Commission wishes to emphasise the following: 

The Electoral Commission has appointed the period 4th – 9th November 2015 as the period for inspection of nomination papers for candidates contesting for Presidential Elections 2016.

The inspection of nomination papers will be held at the Office of the Chairperson, Electoral Commission, who is the Returning Officer for the Presidential Elections, during office hours.

During this period, any person will be free to raise objection, to the qualification of a nominated candidate, to the Chairperson, Electoral Commission/Returning Officer, at the Electoral Commission Headquarters in Kampala.

No complaints shall be accepted after the expiry of the appointed dates.

Meeting for Harmonisation of Campaign Programme 

The Electoral Commission will hold a meeting with all the nominated candidates and/or their agents on Thursday 5th – Sunday 8th November 2015, at the Electoral Commission Boardroom, at 10:00am, to harmonise the campaign programme.

After harmonisation of the campaign programme, candidates will be expected to sign a Memorandum of Understanding (MoU), calling for compliance with the campaign guidelines and programme, to achieve peaceful campaigns and elections.

The Commission wishes to appreciate the following who have made the nomination exercise a success:

  1. The National Organisation Committee (NOC);
  2. The aspirants, their families and delegations;
  3. Protocol team, Ministry of Foreign Affairs and Associates;
  4. Security, particularly the Uganda Police Force;
  5. The Management of Mandela National Stadium, Namboole;
  6. Uganda Red Cross Society, and St. John Ambulance;
  7. Kampala Capital City Authority (KCCA);
  8. Development Partners (IFES, DGF, British High Commission, and others);
  9. Always Be Tolerant (ABETO)
  10. Service providers;
  11. National and International media;
  12. National and international observers;
  13. And in a special way, the entire Electoral Commission family.

Finally, the Commission announces the Polling day for Presidential/Parliamentary elections being Thursday, 18th February, 2016.

Eng. Dr. Badru M. Kiggundu

Chairperson, Electoral Commission/Returning Officer, Presidential Elections

2nd Nomination day in Uganda – the People’s President Makes Kampala go BLUE!

Kampala 041115 P5

Today Kampala turned BLUE. The FDC colors flying high and blue shirts everywhere. After the Yellow fever yesterday and the buses from around the country and people left behind. There was people stranded in Kampala after the Kololo Independence Nomination Rally of the NRM and there was none buses going back to Lira, Gulu and other places where the buses came from. Though I will not discuss that further! Wait, maybe a hot minute, but it is not important considering the action that really happen in Kampala. What I will discuss it what has happen today and how it has gone.

Besigye and Besigye at Namboole 041115

Though this day of the FDC couldn’t be itself without the honor of the Police showing the People’s President some extra service, both in worth and in namesake, being courted to the Commission by Police Office Besigye and also getting a warning by Uganda Police Force! Because the Forum for Democratic Change has to get that – and is never excused for what they do!

UPF FDC 041115

A tiny report on some of these people travelling to Kololo yesterday:

“People in my mother home Kabale you have to inform me on this! Crime preventers who were transported to Kololo on Monday to entertain President M7’s nomination have been stranded in Nyamukana-Ntungamo this evening, that they have spent 2days without eating. That they driver of Kigezi college Butobere who was driving them stopped and parked the vehicle on road-side claiming that the tyre got a puncture. He told them to wait 4 the bus of Kigezi high school which was still behind but they waited in vain and decided to walk on foot.They were crying like babies coz mbu they weren’t given any single coin”.

Adam Bwainka of the People’s Development Party arrived at Namboole for the nominations today on a boda-boda. He has said this today: “If we are going to turn around our Economy. We must be firm on our Education” (…)”I have researched that 100 MPs in the 9th Parliament has never gone to school” (…)”When Idi Amin left Power we had 12 planes, now we have none”. After the nomination the Electoral Commission has given Mr. Adam Bwaina a security detail and a car so he doesn’t have to leave the venue on a Boda-Boda; where he was headed to Nsambya Sharing Hall for starting his campaign!

Further deflections has happen Lord Mayor of Kampala Erias Lukwago has gone to the FDC and taken part of the Nomination rally. Other DP high standing members are Moses Kasibante and Allan Sewanyana. Also Denis Onekalit the MP aspirant for Kitgum and also Naru Nakalema was also a part of nomination of Dr. Kizza Besigye.

“The Blue siege of the city, the energy of our young people! We have a sacred duty to engage our youths to build a stronger prosperous Uganda” – Asuman Kiyingi (Independent Candidate).

KB to Namboole 041115

At Namboole today the Presidential Candidates got their nominations about the same time as the President had a Press Conference at the Statehouse in Entebbe after having his own nomination yesterday. Where he said: “How can you create jobs without an foundation? That is why the NRM says les priorities peace” (…)”Birigimana exposed the theft in the Office of the Prime Minister” (…)”Bambi, we have been moving forward since 1986, sorry” . While he was saying this Dr. Kizza Besigye was crossing town, I am sure there was more people walking amongst the FDC leader then the brothers watching and listening to the President on the different media’s at the same time. That I say with the Photo evidence of how the capitol looked blue today!

NRM-701x350

Dr. Kizza Besigye said this after being nominated by the Electoral Commission today:

“I have been nominated by an Electoral Commission that I protest, a Commission that is not independent. We are going to engage in a three phase struggle;

-the first phase is a liberation struggle, to take power from those who wield it using the weapons of coercion and put it back in the hands of the people.

-The second phase is the Reconfiguration of the Institutions of the People (The Electoral Commission, The Police, The Military, The Judiciary etc.) and make them bonafide institutions of the people.

-The third phase is the Transformation of our country to enable the citizens to live in a country that they are proud of, that they share all the resources of the Country equally”.

March from Makerere to Nakivubo Stadium 041115

Dr. Kizza Besigye, the FDC Flag Bearer duly nominated at exactly 12:00 noon by EC Chair Engineer Badru Kigundi. And he is now addressing the press:

“I have nothing against the fine ladies and gentlemen that constitute the electoral commission. I have problems with the institution. We need a truly independent electoral commission”.

March from Makerere to Nakivubo Stadium 041115 P2

The one who got turned away yesterday Presidential Aspirant Charles Lwanga Bbaale came back to be nominated today.

Another candidate who wanted to be nominated was Joseph Mabirizi of The Independent Coalition. At the nominations was his team who was Omar Kalinge, Vicks Kingo and Kyuma Kyayesu.

The only female Presidential Aspirant Maureen Faith Kyala was turned away by not having her credentials or papers ready; not having the papers correct for the A-Levels and National ID papers. Therefore if she wants her nominations she has to had this sorted out before 4PM today. After being turned away she arrived at the same time as Joseph Mabirizi. Then on the second coming today she got her verification and also possible Presidential aspirant.

In the midst of this blue power sessions and other candidates; where was Malcom “Dan” Matsiko? Wasn’t you supposed to be a candidate for the NFT or New Form for Thinking. Wasn’t you a Presidential Aspirant as well?

Ben Biiaro has not been seen at Namboole today… the reports was coming quickly when he only had 45 minutes left of his deadline to show up if he still wanted to be Presidential Aspirant. They we’re also waiting for the nomination candidate for Charles Bbale Lwanga. Charles Bbale Lwanga has been turned away for the second time because he had a cheque of the 20 million instead of a bank draft.

Maj. Gen. Ben Biiaro of the Farmers Party came 5 minutes before the deadline to get his nomination verified. The Electoral Commission started and scrutinized the nomination papers of his. After a while Dr. Kiggundu stamped and appends the papers. This means that he became the 8th candidate in the Presidential race for February 2016.

http://www.youtube.com/watch?v=nHrnIb0USMo

While on the road to Namboole and to Nakivubo Stadium there has been one man in the shadow of the Dr. Kizza Besigye has been Gen. Mugisha Muntu. Who has been sitting comfortable and swallowed being in the political shadow of the People’s President!

“A guy (possibly a carpenter to or from a workshop) with a backpack on is back was among a multitude of Besigye supporters lining up the road. He pulled out a hammer from his bag, ran and handed it over to Kizza-Besigye Wrn and he disappeared. I hope that picture will get published. Another man, in front of EC offices pulled out $300 and handed it over to Besigye. He also disappeared into the crowd. To both men, Besigye held his right hand to his chest and bowed to them. That is humility. Those are small gestures that live in my memory. Besigye has made people believe” Source: Ronald Muhinda a Kampala based radio journalist.

At 3PM the traffic was already in a standstill on Jinja Road when the Dr. Kizza Besigye was having his convoy towards the Nomination Rally at the Nakivubo Stadium.

There was a calm and energetic movement through town! IT took five whole hours to cross that; we’re massive crowds meeting the FDC Flag-Bearer.  The stadium was filled hours before he came; reasons why it took him such long time to cross town.

Kampala 041115 P2

The Town went totally Blue and FDC. There was nothing like yesterday. Yesterday was like meek celebration. Where the buses was sent from Up-Country to come to Kampala and while there where people hiking on the trucks to get to  Nakivubo Stadium.

Kampala 041115 P3

At the Nakivubo War Memorial Stadium first speaker today was Gen. David Sejusa aka Tinyefuza. He said this: “We do not make our own shoes, we are wearing dead people’s clothes, that is how you measure what Museveni has done” (…)”Government offers $ 1 per child a day in UPE. Ours (learnt) earn UGX 20, 000 – UGX 50, 000 a day, A $ 1 child can not compete with ours”. FDC Ibrahim Semujju Nganda called out John-Ken Lukyamuzi of the Conservative Party to greet the Supporters. Where Lukyamuzi said: “Those who were here yesterday on Amama Mbabazi rally cannot speak for CP better then myself”.  After that Mayor Erias Lukwago congratulated Dr. Kizza Besigye with the nomination and said: “But we have Generals on our side, Gen Sejusa, Col Besigye, Gen Muntu and Lt Gen Lukwago” and ends: “ONE UGANDA” the crowds answers “ONE PEOPLE!”.  Gen. Mugisha Muntu came on and said this: “We know our main challenge is to remove the regime in February” (…)”You cannot have a roof without a strong foundation”.

Besigye 041115

After him came Dr. Kizza Besigye:

“In Uganda, are tired and tired completely” (…)”Our journey begins today, allow me to thank God first” (…)”I want to thank Muntu because the party he leads is a democratic party” (…)”I thank you Kampala dwellers for showing the world today that we have a reason for this struggle” (…)”the reason for all of this is because our county  is in captivity.  Only a few people decide for all of us” (…)”whatever has brought this current situation is because our country is not our own hands” (…)”You voted Lukwago overwhelmingly in Kampala but he is  the office of the Lord Mayor?” (…)”I promise you that I will liberate the country” (…)”I’ve been nominated to stand with you and work with the people”.

Also today in Court:

“Meanwhile, the High Court in Kampala has dismissed with costs the case in which a concerned citizen had sued four top official of the Independent Electoral Commission in their personal capacity for having illegally blocked rallies that were being held by Presidential candidate Amama Mbabazi in the Eastern part of the Country. The four top officials who had been sued are; the chairperson Eng Badru Kiggundu, Mr Jotham Taremwa (spokesperson), Sam Rwakoojo (secretary) and Paul Bukenya (deputy spokesperson)”.

Official from the Electoral Commission:

“BREAKING: Uganda Electoral Commission sets February, 18, 2016 as polling day for president and MPs”.

A Sidenote:

Professor Barya who is one of the candidates also has issued fresh warnings to Amama Mbabazi on using the orange color. Barya maybe you should challange the Orange or the Dutch for it also? 

NRM sidenote:

MP Sejobba ask the FDC Musumba if solar exists to power laptops for such children in Busoga.

Another Sidenote:

Tamale Mirundi has confessed that Dr. Kizza Besigye made his day today, and coming from A Pro-Museveni guy as him, and a so-called loyalist it means much. Even though he can be crying hyena and buffoon, but now he proved some clarity, maybe?

Kampala 041115

This here was a peaceful and magnificent day that proves the power of the People’s President and how he overpowered everything else. The Presidents press conference was a weak portfolio to try to distract the other candidates because he supposed to be the main one. Though it proven with the five hour travel and full house. Kampala totally BLUE! Bwanika why did you have yellow tie, by the way? #Wesige Besigye!

While this was passing by the KCCA was busy taking down illegal elections posters that even Uganda Police Force as said they wanted to eliminate.

Besigye 041115 P6

“THANKS FOR THE NOMINATION DEMONSTRATION TODAY!”

The people of Kampala have always given me tremendous support at all the three presidential elections I’ve participated in. At all the Kampala elections, there has been enormous rigging. During every Kampala election, several people are arrested with pre-ticked ballot papers; in polling stations covering military barracks, there’s always a rigging bonanza; many people are always disenfranchised by striking their names off the final register etc. However, in spite of all this rigging, Mr Museveni has never defeated me in Kampala! That’s why on top of calling me the “people’s president”, the people of Kampala call me the “president of Kampala!” (…)“Therefore, I expected a good turn out for my nomination today, in spite of the negative propaganda that has been orchestrated for sometime now. Even then, I was completely overwhelmed by the show of support that we received today. I think that it wasn’t simply a matter of supporting my candidature; it was also our people’s way of demonstration their disgust with the NRM/ Museveni regime” (…)”Apart from the unprecedented crowds, there was show of immense energy and excitement. I was given money contributions all along the way- a total of UShs. 2,779,000= (Two million, seven hundred and seventy nine thousand only), US $ 320= and Nine hundred Oman biasa. I am sure that if we had time at the Nakivubo rally, we would have got much more. I also received a sofa seat, flowerpots, potted plants, spray pump, pair of slippers, many sets of handkerchiefs, bread and many various other small items. Thus, the campaign of defiance has begun. There’s no turning back. Continue to watch the space”.

Written Dr. Kizza Besigye

Peace.  

The surge of deflections between the political parties in Uganda and how to live with it

Daily Monitor Museveni 031115

This is the round-up to the General Elections in 2016 in Uganda. Where we will see deflections like never before. There will be run from people going from wherever to Go-Forward and people leaving the parties after missing their spots to become Independent candidates in the polls.

Deflections are norm and allowed, but there are something about timing and explaining it. Like if you’re been somewhere for long and is tarnished by the way the party leads, then it feels natural to leave. Which many of the big-men has done in Uganda for that reason we have FDC. They are an reaction to the ruling party NRM. UPC has had people leaving to NRM in the Past, like Hon. Amama Mbabazi was at certain time a piece of that puzzle. Dr. Kizza Besigye was a piece of NRM until the fallout. Hon. Amama Mbabazi went finally away; when he got kicked out and Dr. Ruhakana Rugunda his childhood friend took his place as the PM in Uganda.

There many NRM losers all over the country who is deflecting to the Go-Forward Group and Amama Mbabazi. This proves that there is slot open for sore people and a reach for surge that hasn’t happen. Because for many NRM people Dr. Kizza Besigye and Gen. Mugisha Muntu haven’t had the power and spirit of the NRM party, that means that Amama Mbabazi has that or else he is promising to feed them. There is not easy to know what is what. Even FDC members and kind of high ranking members like Mathias Mpuunga the Walk to Work head honcho gone over to Go-Forward.

The validation from JEEMA, DP, CP, UFA and PPP gives an edge to Go-Forward. But their powerbases is small and has been small. Even if all arguments are that Dr. Kizza Besigye has lost the last times against the ghost of all elections Yoweri Kaguta Museveni and National Resistance Movement. The President has won everything since gripping power with the civil war to tore down UPC and Okello’s and all the other former short term presidents. Museveni has secured first a few elections as sole party and as a sole candidate. Sole Candidacy is his wish. I am sure that if he could run as he please then this election in 2016 it wouldn’t be any FDC, TDA and him!

Go-Forward and the allegiance that is with him, gives him an edge. That is even though FDC has the long standing force of the opposition in the country. So here we are, people are crying foul. I have cried foul over Gilbert Bukenya, but that is because was a hot-minute on the outside of the Movement throwing shades at the President and calling him a problem. And seconds later when he offers a position in the NRM CEC he crawls back.  The president might not offer him a place in the NRM CEC, but I am sure NRM has promised a nice position to Alhaji Nasser Ntege Ssebagala for his allegiance.

But there aren’t just the big men who switch allegiance; it’s also on the grassroots-level where members are burning their membership card and switching alliance to another party. That should be worrying for NRM to see that on the Social Media and how their cards are blatantly being discarded like worthless mud.

Though I am sure the result of the election is already picked by the Electoral Commission and the lack of electoral reform to gain population support and not support by the NRM-Regime, it will surely be set for yet another term for Yoweri Kaguta Museveni.

Even if this is surely the end-game we can still see that the movement of people is changing. The sadness is to see that the movement between opposition parties making sour feelings between them; especially with the Second Round K.O. and stop of the consultation between the FDC and Go-Forward. I expected it to fall to pieces by how it ran into sand after the smaller parties of the TDA endorsing Amama Mbabazi over Dr. Kizza Besigye.

The Movement and Museveni will do whatever to destabilize the other parties, rule and conquer. Therefore he had to say at the NRM CEC at Kololo Independence Ground that nobody in the party shouldn’t say that somebody is “Pro-Mbabazi” or “Pro-FDC” because the party is the ones that matters.

That the NRM-Youtb Brigade/League leaders of   Omodo-Omodo and Adam Ruzindana has officially not endorsed should be sad view for the NRM since they even had been rounded up in August to change their stance from this to support Mzee. Seems like it didn’t work even after being under siege by the NRM-Regime! 

There are different ways and easy jumping ships so often between parties proves that it can buy and it isn’t ideological reasons between it. That is what Go-Forward camp should ask them since they get deflectors from all over the map in short space of time. Will it be a sand-castle that the wave from the sea will brush away or can it be sustained?

FDC has a situation and is used to be in the war-zone through the elections and being in trouble with police for trying to be a political party. The Go-Forward is doing everything for the first time, though Hon. Amama Mbabazi has been in election, but then in friendly territory in those times under the wings of the Mzee.

The deflections is a natural thing, especially the ones who has lost their Flag-Bearer positions in the NRM is surely natural to try to get other ways into the Parliament and Constituencies again, though their stripes should be wacked because their couldn’t handle to lose for somebody else, even if the primaries we’re filled with malfunctions, pre-ticket ballots and general rigging.

The FDC can that has decided to move on; can have done that for ideological reasons. If so then it’s should be seen as okay. Secondly if it is a tactical move instead of ideological move; then we have more to question the person that goes from a set off fixed situations with a party actually functioning, though there was some Electoral malfunctions some of their internal election.

Some facts from the CCEDU

“In advancing this objective, CCEDU sought accreditation and deployed a technical team of eight to observe the Forum for Democratic Change (FDC) Elections held at a Special Delegates’ Conference on 12th June 2015 at the UMA main exhibition Hall, Lugogo, Kampala” (…)”Claims of vote buying were received by the observers. Allegedly, some camps were sending delegates mobile money in a bid to secure their votes. These claims were not verified. A pledge by one of the candidates vying for the position of Secretary General to supply smart phones to districts secretaries general and another candidate for the post of Treasury General to contribute Shs10m to a party Savings and Credit Society were interpreted by some as an effort to induce support” (…)”It was noted that delegates did not heed the call by the Electoral Commission that no campaigns should take place during polling time. Unfortunately, there were no measures to curb this vice” (CCEDU, 2015).

So the surety that the ones leaving from the other parties like FDC/DP/UPC/PPP/UFA or Independents to the NRM has to promised something because they know what they have done and how they have done it to get it.

Independents can do as they please and show allegiance or alliances as they please. Nothing can be taken for granted by any parties they can be bought or ordered, even if they want to be by-partisan. That is justified, though it is a favour to them all if they know where they have them. Independents can either fill their pockets or actually stand for something. So if their flag their place and who honours who. Because they can became pawns on the chess set and easy capped if they don’t take a stand.

Though we will see more movement and deflections we can see the difference between ideology and tactical movement from the politicians. There will be some sour feelings and hurt. There will be some sees it as betrayal. The betrayal is when it so not justified by their recent actions and sudden move to do it for self-serving instead loyalty to party. Independents can move as they please, but the ones moving from any other parties can be questioned, even if it reasonable. Prof. Gilbert Bukenya kissed the ring of President Museveni. That is the truth!

Deflections from the parties will happen. From the FDC and NRM, from all the other parties as well for different reasons and if UPC will be split in two it wouldn’t  surprise anybody with the different of opinion between Jimmy Akena and Olara Otunnu. That could easily be two separate organizations. And leave to more deflections. Especially if they continue as today to address themselves as presidents of the UPC! There will be deflections from there as well.

Deflections from the parties occur neither you like it or not, because that is part of the political game and life. There will be more leaving any party into the General Election and move for possible gain. The men and woman who does that has to address themselves and argue for their move. As the men and woman who is left behind has to respect it, depending on the motive of it all. Even if the motive is only a place in their party-organizational structure or get a free place in higher organ; instead of doing the work as politician to gain the constituencies trust.

What do you think? Peace.  

Reference:

CCEDU – ‘FDC Party Elections – Observation Reports’ (17.07.2015)

Ingrid Turinawe loses FDC municipal MP primaries (Youtube-Clip)

http://www.youtube.com/watch?v=pnICtJqRVNk

“The main race in the Forum for Democratic Change primaries was between the Rukungiri Municipality MP Roland Kaginda and party’s Secretary for Mobilization Ingrid Turinawe. The voting exercise was presided over by the Party’s Electoral Commission vice Chairperson Michael Kabaziguruka saw 208 delegates cast their ballots. At the final tally, incumbent Roland Kaginda polled 135 votes to Ingrid’s 55. In her speech, Ingrid Turinawe cautioned her victor’s supporters against jubilating arguing it would create divisions in the party ahead of the major poll. Ingrid Turinawe served as Rukungiri district speaker between 2006 – 2011

Bank of Uganda move to control inflation ahead of elections (Youtube-Clip)

http://www.youtube.com/watch?v=QH6JV1xTSg4

Press Release: Kenya must review Double Tax Agreement with Mauritius (02.11.2015)

kenya-money-1

(Nairobi, November 2, 2015) – Kenya is teetering on the brink of financial meltdown with the implosion of at least two private commercial banks in the last few months and signing of loophole-ridden double taxation agreements with tax havens Mauritius, United Arab Emirates and Qatar.

Tax havens are countries or states that position themselves as low tax jurisdictions allowing companies and rich individuals to hide their wealth without paying appropriate taxes where they actually make their profits or wealth. Tax Justice Network-Africa (TJN-A) in October 2014 sued the Government of Kenya (specifically the Cabinet Secretary to the Treasury, Kenya Revenue Authority and the Attorney-General) challenging the constitutionality of the Kenya/Mauritius Double Taxation Avoidance Agreement signed in Port Louis, Mauritius on May 11, 2012 and as contained in Legal Notice 59 published in the Kenya Gazette of May 23, 2014.

The Agreement significantly undermines Kenya’s ability to raise domestic revenue to underpin the country’s development by opening up loopholes for multinational companies operating in the country and super- rich individuals to shift profits abroad through Mauritius to avoid paying appropriate taxes. For example, provisions under Article 11 of the Agreement relating to interest limit Kenya’s withholding tax to 10 per cent whereas the Kenyan domestic rate currently stands at 15 per cent. This will significantly affect the tax base of the Kenya Revenue Authority (KRA). The Agreement also sharply contravenes Articles 10 and 201 of the Constitution and is inconsistent with the principles of good governance, sustainability and accountability. The Agreement is open to abuse and this could endanger the growth and development of Kenya.

Three main reliefs sought by TJN-A are: that the High Court declares the government’s failure or neglect to subject the Kenya-Mauritius Double Taxation Avoidance Agreement to ratification in line with the Treaty Making and Ratification Act 2012 as a contravention of Articles 10 (a), (c) and (d) and 201 of the Constitution of Kenya.

That the Court directs the Cabinet Secretary for Treasury to immediately withdraw Legal Notice 59 of 2014 and commence the process of ratification in conformity with the provisions of the Treaty Making and Ratification Act 2012.  And award cost of the petition with interest against the Government of Kenya. The case came up for mention at the Nairobi High Court today, November 2, 2015. The court will fix a date for hearing the case on November 9, 2015. Speaking at a press briefing earlier today, the Executive Director of TJN-A, Alvin Mosioma said “there is need for public participation in the process of ratification of double tax agreements…double tax agreements kill the competitive edge of local firms”. 2 Senator Hassan Omar of Mombasa County who also addressed the press said Kenya’s “Parliament needs to appreciate its responsibility in safeguarding the public’s interests,” adding that “the reason people steal is because there is complicity and people are aware of it”. Provisions under Article 12 of the Agreement which relates to royalties also restrict at- source withholding tax to half (10 per cent) of Kenya domestic rate of 20 per cent. This will significantly weaken Kenya’s ability to raise revenue to finance its development. Additionally provisions under Article 20 of the Agreement reserves all taxation of “other income” not dealt with in specific Articles to the residence state.

This effectively reduces withholding tax to zero per cent on services, management fees, insurance commissions among others, whereas Kenyan domestic withholding tax rate currently stands at 20 per cent. This is a major gap that will lead to massive revenue leakages. The Agreement is neither United Nations nor OECD compliant and it also fails to address the issue of disposal of shares in companies. The Agreement effectively reserves under Article 13.4 all taxation of capital gains from selling shares in companies to Mauritius where the effective Capital Gains Tax is zero per cent. Under the Agreement foreign investors in Kenya can acquire Kenyan companies through Mauritius holding companies and Kenya cannot tax any of the gains when they sell these businesses again. This is open to abuse. Similarly, domestic Kenyan investors can dodge Kenyan taxes by round-tripping their investments illicitly through Mauritian shell companies. Kenyan companies can also easily avoid Kenyan taxes in dividends paid to foreign investors through devices like share buy-backs therefore deny the government of development funds.

The provision is very similar to the Capital Gains Tax Article in the India-Mauritius treaty which has proved very controversial costing India an estimated US$600 million a year in revenues as a result of tax avoidance and illicit round-tripping by Indian business executives driving the Government of India to initiate steps to renegotiate its agreement with Mauritius. Under the definition of ‘bilateral treaty’ in Section 2 of the Treaty Making and Ratification Act an ‘agreement’ such as the one between Kenya and Mauritius and which is the subject matter of this legal case, is a treaty subject to the Act and therefore requires that the Cabinet Secretary to the Treasury in consultation with the Attorney General, submit to the Cabinet the treaty, together with a memorandum outlining, inter alia – 1. Policy and legislative considerations, 2. Financial implications 3. Implications on matters relating to counties, 4. The views of the public on the ratification of the treaty.

Mauritius presently has tax treaties with 13 African countries namely Botswana, Lesotho, Madagascar, Mozambique, Namibia, Rwanda, Senegal, Seychelles, Swaziland, South Africa, Tunisia, Uganda and Zimbabwe. Apart from Kenya, Mauritius also has signed Double Taxation Agreements with Congo, Zambia and Nigeria. Currently Mauritius is negotiating DTAs with Algeria, Burkina Faso, Egypt, Gabon, Ghana, Malawi and Tanzania. Unlike Mauritius’ DTA with Uganda and Nigeria, for example, which have specific provisions for withholding tax for management/technical services fees, Kenya failed to negotiate any such provisions. 

In a related development, the Government of Kenya has signed an equally harmful Double Tax Agreement with United Arab Emirates and Qatar – both of which are tax havens – in which Kenya further deems its right to tax as unnecessary in a bid to attract investment from these two countries. These agreements will deepen Kenya’s current cash crunch by allowing the further erosion of the country’s tax base. – END.

ABOUT TJN-A: Tax Justice Network-Africa (TJN-A) is a Pan-African initiative and a member of the Global Alliance for Tax Justice. It is a network of 29 members in 16 African countries. TJN-A collaborates closely with these member organisations in tax justice 3 advocacy at the national and regional levels. TJN-A seeks to promote socially just and progressive taxation systems in Africa, advocating for pro-poor tax policies and the strengthening of tax systems to promote domestic resource mobilisation. TJN-A aims to challenge harmful tax policies and practices that favour the wealthy and aggravate and perpetuate inequality. For further enquiries, please email Kwesi Obeng at kobeng@taxjusticeafrica.net (+254 726 804 400) and/or Michelle Mbuthia at mmbuthia@taxjusticeafrica.net (+254 724 994 796).