MinBane

I write what I like.

Archive for the category “Business”

Zimbabwe: Finance Act No 2. is a half-baked measure to configure the value of the Zim Dollar!

The act of Finance Act No 2. was gazetted today on the 21st August 2019. What is weird to be is the two following codes or sections, this being the 22 and 23, which is countering each other. I am finding this as financial voodoo with the currencies. As this act is initially making the RTGS Dollar and Zimbabwe Dollars equal. Combined with the enacted value of the RTGS Dollar, the same as the US Dollar. Which by all accounts are impossible, as the exchange rate isn’t that static, neither followed by law. Unless, the state plans to infuse cash-flow and beat the rates between the RTGS Dollar and the US Dollar.

Alas, the madness, continues with the legislation gazetted today. I will show the two parts of the legislation, before addressing it a bit more. Under the sections itself.

22 Issuance and legal tender of RTGS dollars, savings, transitional matters and validation (1)Subject to section 5, for the purposes of section 44C of the principal Act, the Minister shall be deemed to have prescribed the following with effect from the first effective date—

(a) that the Reserve Bank has, with effect from the first effective date, issued an electronic currency called the RTGS dollar; and

(b) that Real Time Gross Settlement system balances expressed in the United States dollar (other than those referred to in section 44C(2) of the principal Act), immediately before the first effective date, shall from the first effective date be deemed to be opening balances in RTGS dollars at par with the United States dollar; and

(c) that such currency shall be legal tender within Zimbabwe from the first effective date; and

(d) that, for accounting and other purposes (including the discharge of financial or contractual obligations), all assets and liabilities that were, immediately before the first effective date, valued and expressed in United States dollars (other than assets and liabilities referred to in section 44C(2) of the principal Act) shall on the first effective date be deemed to be values in RTGS dollars at a rate of one-to-one to the United States dollar” (Finance (No. 2) ACT, 2019).

23 Zimbabwe dollar to be the sole currency for legal tender purposes from second effective date

(1) For the avoidance of doubt, but subject to subsection (4), it is declared that with effect from the second effective date, the British pound, United States dollar, South African rand, Botswana pula and any other foreign currency whatsoever are no longer legal tender alongside the Zimbabwe dollar in any transactions in Zimbabwe.

(2) Accordingly, the Zimbabwe dollar shall, with effect from the second effective date, but subject to subsection (4), be the sole legal tender in Zimbabwe in all transactions.

(3) For the avoidance of doubt it is declared that, from the second effective date—

(a) references to the Zimbabwe dollar are coterminous with references to the following and to no other forms of legal tender or currency— (i) the bond notes and coins referred to in section 44B of the principal Act; and (ii) the electronic currency prescribed for the purposes of section 44C of the principal Act, that is to say to the RTGS dollar;

(b) the above mentioned bond notes and RTGS dollars are at par with the Zimbabwe dollar on and after the second effective date, that is to say each bond note unit and each RTGS dollar is equivalent to a Zimbabwe dollar, and each hundredth part of a bond note unit and each hundredth part of a RTGS dollar is equivalent to a Zimbabwean cent” (Finance (No. 2) ACT, 2019).

Because, this is the continuation of the hectic balances and switching of currencies. That they are declaring foreign currencies as illegal tenders in Zimbabwe. Is to be expected, as they are getting a new currency or revamping a dead one. Still, the ZANU-PF should have ensured it better.

As they have had temporary measures like Bond-Notes and RTGS Dollars, which they are still infusing into the Zimbabwe Dollars, as a measure, where the ones who paid more than one-to-one with USD. Will lose funds and within that system, the state will initially shave-off funds from the public as they are transferring to RTGS Dollars or even Zim Dollars.

Combined with that shortfall in the public, as the inflation is still on the rise. The add-ons of financial distress will continue, as the state is still using half-measures to contain the economy, with the values and laws around the RTGS, instead of going all in with the Zimbabwe Dollars. They are in this and makes the mash-up between the RTGS/Bond-Notes and Zimbabwe Dollars. All of these three currencies are supposed to be equal and in tandem.

That will confuse and make it messy, as the electronic, the half-measured bond-notes and the revamped Zim Dollar are supposed to change the economy. This financial instrument is supposed to be the key to the troubles the economy is in.

I just don’t see it, I see it as a hectic abstract transaction system used to be able to fix and configure funds, by jumping between the three and taking more funds out of it while the public is losing on the various currencies. This is all made by the state and they are initially doing this to their own. Instead of thinking out one path to beat the hurdle, they are instead making it three. While, they still proclaiming Zim Dollar as the only one, but opening up to continue the two others.

Which is a sophisticated way of ensuring the state to get the Forex or exchange between them. As you have to exchange or pay in one form, the one set as the standard or the Zim Dollar, meaning, if you planning to move the RTGS Dollar to pay for something, that has to be transferred into Zim Dollar.

Financial voodoo and the public will suffer, because the state isn’t cleaning the slate, but trying to patch up wounds with yet another half-baked measure. Peace.

Advertisements

Opinion: The fall of Evelyn Anite

She had it all, she was a golden child of the President, the former radio presenter from Koboko, who became the Youth Representative MP for the Northern Uganda in 2011 and became the incumbent winner in 2016. Evelyn Anite in her second term became also a State Minister for Investment & Privatization. Where she has now shown force, but maybe she’s aiming to high, a bit to fast.

That is why the recent months, she has both expressed pressure on the clean-up for ownership, audit of and transparency surrounding Uganda Telecom Limited (UTL). A company the government had sold to Libyan owners, but had to re-corporate and restructure after the fall of Gadaffi. Now, this has turned a bitter pill for the loyal subject and minister. She has lashed out and said the mafia is out after her.

Certainly, she has ruffed some feathers, she has questioned some big-men, which will not accept to be hassled with. Anite has with her quest to clear the slate of the UTL, she has surely gone into the hidden secrets within the National Resistance Movement (NRM) and the government itself. Where she should have stayed away. As the ones who does that, is the likes of Muhammad Kirumira, Andrew Felix Kaweesi and so on.

They did all say similar things like Anite. They were on the rise and was also saying there would be a moment of silence, if you pushed the forces of power in the Republic. That is what Anite now is stating too. She calls it a mafia running the government, that means she is directly a part of racket herself. Meaning, it was cool, when she was a “made man” within it, until she crossed within the boundaries and codes within the mafia. This is what it seems, because, why else would she blast and rant like this in the public?

Anite is now going far, but sounding more like the opposition, than someone who is government. She could be mixed with Besigye or Bobi Wine in this matter. There is similarities in the usage of words. Because, the tale of going after the walking dead within the UTL is to costly. That the NRM doesn’t want to show the dark-side of the business and how its done. This is why, she suddenly shouldn’t continue to pursuit it.

Anite is therefore, receiving the hardship, which is usually intended on the dissidents and not the ones whose loyal to the projects of the President and his cronies. Evelyn though she was made and part of the inner-circle. Instead, she has crossed a path, which the NRM doesn’t accept. That is why Ante is in trouble and shouts out so loud.

Instead of winning, she’s continue to loose. Anite isn’t succeeding …. she is failing and not finding her way out of the trouble that she has put herself in. She could have let it all go, because this is more a ego-boost and to prove her place within the hierarchy.

She was a soldier, a loyal subject and a “made-man” but not one of them. An outsider, who got a big position. Now she is afraid of the enforcers, as the confidants and the consigliere advice behind closed chambers, maybe has aimed at her. Because, she broken a secret code and added pressure on something she shouldn’t have.

That is why she has fallen, why she’s trailing. She hasn’t resigned or even backed away from the mafia. She’s still there and trying to get through. But will she? Will she end up like others whose been taken out or is she another Abiriga in the waiting?

We don’t know, but she surely has fallen from the pedestal and is now a commoner with a fancy title. Peace.

Brexit: Prime Minister Boris Johnson letter to President Donald Tusk – ‘United Kingdom’s Exit from the European Union’ (19.08.2019)

Opinion: The Repealing of the ECA of 1972 is a sign of a ‘No-Deal’

The British doesn’t like their government to care of their interest. The British are preoccupied with a government not shield the public, but saving their own careers. The Tories and Prime Minister Boris Johnson is busy-bodies, trying to sell a “No-Deal” as the offer and the gateway out of the European Union Membership. Without considering the implications or the costs of doing so.

PM Johnson is going for a train-crash and saying “jolly ho”. There is like a oblivious approach to the end-game of Brexit. It is like they think they can damage the partnership, the border-trade, the lack of protocol and the significance of becoming a third-country state towards the EU. There is no well planned aftermath, just damage-control. The damage-control in a sense of trying to spin the news and not tell the true hurt of the possible No-Deal.

The Operation Yellowhammer wasn’t a pipe-dream. It is the real affect of the No-Deal. The lack of procedure, preparedness or even delivery for the imports and exports of goods. Will ensure that the transfer of funds, the costs of living and the lack of checks, will in the make things harder. Because, the state and businesses are not ready for the 31st October 2019. Even if the state has had all the years plus the bonus given previous PM May. The Tories have squandered the time without offering any solace.

Look:

Speaking after signing the legislation that will crystallise in law the upcoming repeal of the ECA, the Secretary of State for Exiting the EU Steve Barclay said: “This is a clear signal to the people of this country that there is no turning back – we are leaving the EU as promised on October 31, whatever the circumstances – delivering on the instructions given to us in 2016“ (…) “That is what we are doing by setting in motion that repeal. This is a landmark moment in taking back control of our laws from Brussels” (Department for Exiting the European Union – ‘Brexit Secretary signs order to scrap 1972 Brussels Act – ending all EU law in the UK’ 18.08.2019).

With that in mind, lets show one vital provision from the repealed law in question.

European Communities Act of 1972 Section 2:

(2) Subject to Schedule 2 to this Act, at any time after its passing Her Majesty may by Order in Council, and any designated Minister or department may [F2by order, rules, regulations or scheme] , make provision—

(a) for the purpose of implementing any [F3EU obligation] of the United Kingdom, or enabling any such obligation to be implemented, or of enabling any rights enjoyed or to be enjoyed by the United Kingdom under or by virtue of the Treaties to be exercised; or

(b) for the purpose of dealing with matters arising out of or related to any such obligation or rights or the coming into force, or the operation from time to time, of subsection (1) above”.

It is okay and within all common sense, that the Tories, the HM Government or the United Kingdom doesn’t want to directly comply or follow the legislation of Brussels past the membership of the EU. However, what they are doing is more significant in the ways. That instead of following the EU and their standards. The UK are planning to make it all on their own. Meaning, the EU standards and UK standards will differ; An in the end, the parties will have to find a way to find a middle-ground. Nevertheless, that will not be overnight, neither will the UK be able to overpower or get the 26 Member-states to follow a single outside unit. That is what will happen.

Instead of being another state who follows and who does as the legislators does in Brussels, which is made in tandem with all member-states. The UK will be an outside sovereign, who has to by no means to follow the EU. However, if they want to trade with the EU, like everyone else. They have to comply to their standards and the ideals of the free-trading paradigm it has set forth.

The repeal of this law is a clear sign, not a hogwash statement. But a proof of the intent and the sudden sign of a “no-deal” as the only remedy out. That means the lack of legislation and follow-up on the codes from Brussels. Will later make it harder for the trading partners, the exporters and also the ones doing financial transactions to comply with current legislation in the EU.

This means, they will be outsiders, who will not part-take in the statutes, legislation and codes made in the EU. Which is all natural, but by doing so, they will not get the perks as in the past. Even if the Tories sometimes sounds like they can both have cake and eat it. Peace.

Brexit: Opposition MPs letter to Prime Minister Boris Johnson (17.08.2019)

Statement by the Embassy of the People’s Republic of China in the Republic of Uganda (15.08.2019)

Brexit: Last month’s Chancellor of the Exchequer + 20 MPs letter to Prime Minister Johnson (12.08.2019)

Zimbabwe: POTRAZ – Regulatory Circular Number 3 of 2019 – Regulatory Circular on Tariff Adjustments for Mobile and Fixed Public Switched Network Operators (08.08.2019)

Uganda Telecom Limited: Hon. Evelyn Anite letter Permanent Secretary of Ministry of Finance Planning and Economic Development – “Re: Audit of Uganda Telecom Limited” (02.08.2019)

The crazy and mandatory exercise called the Huduma Bill of 2019!

Here we are, at this moment and time, where the Jubilee government, where the Kenyatta administration has no issues to launch a bill so draconian. That the state are forgetting their role for the citizens in their drive to pursuit the registration of all with Huduma Numba.

As the bill states: “AN ACT of Parliament to establish the National Integrated Identity Management System; to promote efficient delivery of public services; to consolidate and harmonise the law on registration of persons;to facilitate assigning of Huduma Namba and issuance of identity documents;to facilitate registration of births and deaths;and for connected purposes” (The Huduma Bill, 2019).

This sounds legit, but at the same time, the registration for these reasons should already be in other parts of the legislation. Not for a NIMS or Huduma Namba but for a commercial ideal, which is an agreement between Mastercard and the Government of Kenya.

As explained here: “Nairobi, Kenya – February 7, 2017 – Mastercard commits to supporting the roll-out of the Huduma Card in Kenya as the technology partner of choice for the local government organisation. The secure payment solution supports Kenya’s Vision 2030 that calls for reforms in public services to enhance accountability, transparency and efficient service delivery, with focus on developing a cashless economy. The Huduma Card is a prepaid card with chip and PIN technology that will connect all Kenyans to the formal financial sector by providing a secure, reliable and flexible payment option. The Huduma Card, powered by Mastercard, is currently being issued by Commercial Bank of Africa (CBA), Diamond Trust Bank (DTB), Equity Bank and Kenya Commercial Bank (KCB), with no bank charges being allocated to citizens when registering for the smart card” (Mastercard, 2017).

Clearly, this should be a voluntary exercise, as the commercial aspect of this shouldn’t make this mandatory. However, with this law, they are really showing no regard for the public. As they are not asking people to accept a commercial agreement with Mastercard, but doing it mandatory.

As stated in the law here:

8.(1) Every resident individual shall have a mandatory obligation to present theHudumaNambain order to—

(a)be issued with a passport;

(b)apply for a driving licence;

(c)register a mobile phone number;

(d)register as a voter;

(e)pay taxes;

(f)transaction the financial markets;

(g)open a bank account;

(h)register a company or a public benefit organisation;

(i)transfer or make any dealings in land;

(j)register for electricity connection;

(k)access universal health care services;

(l)benefit from the government housing scheme;

(m)register a marriage;

(n)enrol into a public educational facility;

(o)access social protection services;

(p)register or transfer a motor vehicle; or

(q)any other specified public service” (The Huduma Bill, 2019).

As you see from this, most of the state services are bound by having the Huduma Numba and the Mastercard connected to it. If you don’t have it, you are not getting access to government services. They have even more of them too, even passports:

(2)The requirements for applying or replacing a Passport are—

(a) Huduma Namba;and

(b)prescribed fee” (The Huduma Bill, 2019)

So, by this state, even passing by a road-block, the Police Officers needs to see your Huduma Numba to let you pass by. To prove that your not a felon, but an innocent citizen.

To top this off, the legislators plans to sanctions the ones who doesn’t want to comply to this: “48.A person who carries out or permits the carrying out of any transaction specified in section 8 without a Huduma Namba commits an offence” (The Huduma Bill, 2019).

It is actually an felony to not comply with previous part of law. They are not only stopping people from getting government services if they don’t have the Huduma Numba and Card made by the Mastercard, but also making it a felony not to register it properly.

The giant lie of this bill, is this sentence in the ending of it:

The Bill does not limit any fundamental right or freedoms” (The Huduma Bill, 2019).

Well, if you cannot access any of the government functions or get the needed services because of not having the Huduma Namba and Huduma Card, than your kind of limiting the fundamental rights or freedoms. The liberty of the person is taken away, as they got to do this. This is taking away people’s freedom, to put them into a government scheme, as they have signed off together with Mastercard. They could have done this with VISA and it would have been the same issue, even for Gods sake, American Express.

So, when CS Fred Matiang’i wrote that this bill doesn’t limit any fundamental righ or freedoms of its citizens. I believe he was high or drunk, because he couldn’t write that with a clear mind. Unless, his heartless and doesn’t understand the basic components of the bill. You don’t need to be a legal scholar to get the gist here. Peace.

Post Navigation

%d bloggers like this: