The State propose a 0,5% Cash Withdrawal Tax (!)

The Ministry of Finance, Planning Economic Development (MoFPED) is preparing a tax on every cash withdrawal from ATMS or Commercial Banks. This means every time someone takes out cash from their accounts. The customers i.e. the citizens have to pay the state a fee to access their money. Just like they do with the mobile money transactions. That’s why the state is proposing this.

This is an easy way to access more funds without adding any value to the monetary market. The state will not do anything, but adding a fee. A percentage on every single transaction. In the meanwhile, they will also deplete funds from the citizens. As the citizens have to calculate every transaction to ensure they are paying less taxes. That is what people does when they want to ensure they get most value out of the money. Which will be standard.

The manner of doing this. Is in a state where there is already lots of cash and money in circulation. The Republic is built with cash based economy and need for cash itself. That is why in some ways this will even be a double tax. Especially for the ones having first mobile money transfer to family members and loved ones. They are first paying a fee to send it too them, which is the Mobile Money Tax. Then the person receiving the Mobile Money will have to pay either at a bank or at ATM the Cash Withdrawal Tax. In this way the state is getting paid twice before the money is even getting in circulation.

I wonder, if the MoFPED have thought of the consequences of this? Has the state considered the implications for the citizens? Or are they only trying to figure out new ways to cash in on every citizens. So that their behaviour and need for money will cost them.

Because, it is normal that foreigners or aliens are paying to take out money at a ATM abroad. They usually pay a transfer fee between their currency and the Ugandan Shilling. That is making sense and the bank also takes a fee for doing so. A tourist knows this and accepts it, as it is a way of easily access and securing local currency. However, what the state is proposing is paying a tax to access your own money.

The state is billing people for withdrawal of cash. In essence the state will take money for service rendered for printing money. They are billing the public for having circulated coins and bank notes. Since, they are taxing every transaction and that’s really ill. This sort of enterprise isn’t growing the tax-base, but taking away more funds from circulating. The more you tax, the more funds you are depleting from the system. In the end you have a evil circle where all taxes are overburdening the citizen. In such a manner, that they start to do all business and transactions on the black-market to save money. That is when the state loses out and cannot access these transactions at all. This because they have found other means of moving money and doesn’t want to pay added taxes on their needed funds.

The more these taxes are put forward. The more funds are taken away from the ones who needs them. This is all taken away from the citizens before they get to access the money. Either it is mobile money or taken from their account through a withdrawal. That should worry the Representatives and the ones making laws. The amount of 0,5% doesn’t sound like a lot, but imagine that on every single transaction or withdrawal. That will be huge sum and be a costly endeavour. Peace.

Brexit: The Tories knew shellfish exports would be troublesome

Deepdock director James Wilson said that the consequences of this are that when the UK leaves the EU, we become a third country, and so are no longer considered to be immediately compliant with single-market requirements. The single-market issue – part of the suite of so-called non-tariff barriers to future trade – is likely to be the largest disruptive influence on the flow of trade from the UK into the EU” (…) “He said they had been concerned since the referendum result, and had engaged with the UK and Welsh governments throughout this period. They had expressed concern to the Welsh government, DEFRA and the Food Standards Agency (FSA) many times, but had been told, “It will be fine.” The administrations finally acknowledged that there was a problem more than a week after the original 29 March Brexit deadline. “We were floored by the news,” said James Wilson” (Tim Oliver – ‘EU mussel exports threat’ 20.05.2019, Fishing News).

The Conservative Party and Her Majesties Government in London seems baffled. They seems rattled and shocked that the Brexit has consequences. It seems like they thought it would be easier and less hurdles. However, with the Withdrawal Agreement and Trade Agreement in place. They are out of the Single Market with the European Union (EU) and that affects trading between the UK and the EU.

Now, that the fish is rotting from the head. We are now just over a month into the new game-changer. The lovely days of being a Third Country. The effects and touches of being outside is happening. The businesses are being touched and the exporters are feeling a whiff of new paperwork to issue before sending cargo across borders. The UK exporting businesses has been hit and non other then the fisheries.

The Fisheries which was so important. One part of the fisheries are the fish-farms and the ones selling shellfish or mussels. These are being transported fresh or frozen from rural areas across the UK to the European Union (EU). That was being done for years, but things changed when the UK turned into a “third country” as there are new obstacles for this industry as a whole. When you go into “Online Trade Tariff” on GOV.UK you can check the various of mussels, but there is no export measure between the markets in place of 8th February 2021.

That is why its really outrageous that Tories think they could be selfish and not follow their trading partners standards, which is pre-fixed with their agreement. That seems lost on the likes of George Eustice and the Tories who blames the EU for having regulations for “Third Country” nations. Alas, a worry that they was warned about from the producers, which they told “it will be fine”. Which by today is proven it is not.

Paul Armstrong reports: “A leaked email to the website Politics Home showed that The European Commission last month wrote to the UK shellfish industry informing it that un-purified oysters, mussels, clams, cockles and scallops caught in those waters were banned from the EU indefinitely since the UK left the Brexit transition period on New Year’s Eve” (…) “Martin Laity director of Sailor’s Creek Shellfish in Flushing says the news sounds the death knell for his business and the 52 fishermen and women he had to lay off over at the beginning of the year because of Brexit” (Paul Armstrong – ‘Oyster fisherman Fal Estuary EU shellfish ban’ 07.02.2021, Failmouth Packet).

The businesses is already hurting and its proven to be so. The EU isn’t selfish… but the UK wasn’t ready for the boundaries of the shellfish. The UK should have been prepared for the obstacles and the issues with becoming a “third country”. They are not apart of the single market anymore and has to comply to other rules. That is the reality of it all.

The UK is now a fish out of water. It is really struggling to comprehend the new reality and thinking they are special. However, the UK have to follow the regulations and standards, which is now operative from 1st January 2021. It seems like they thought things would be like before. Nevertheless, they had the warnings… but they didn’t listen to the industry itself.

The Tories knew and they was getting words from the industry. Still they didn’t comply or consider the implications of the Brexit. Now its a reality … and the shellfish is rotting in the port. Because of the arrogance of Whitehall and the Tories itself. Who knew that this could happen, but now want to through a hissy fit at the European Commission for not preparing properly for the shellfish industry. That is why they in a sea of trouble…. Peace.

Zimbabwe: ZANU-PF – Press Statement (03.02.2021)

Uganda: Deficit financing is creating an evil circle financially [72% of revenue spent on debt repayment!]

By implication, if sh15.7 trillion for debt service-related expenditures is subtracted from the sh21.9 trillion the Government will have generated in revenue collection, it means that 72% of the country’s revenue collection would be spent on debt repayment. The committee raised concern that the high rate at which government is borrowing is not commensurate with the low level of increasing government revenue collection and, therefore, violates the country’s charter of fiscal responsibility. The report indicates that as of June 2020, Uganda’s public debt had reached $15.27b, which is equivalent to sh56.9 trillion. Out of this sh38.9 trillion is external debt and sh17.9 trillion domestic debt” (Moses Mulondo – ‘Govt earmarks sh15.7 trillion for debt repayment ‘ 03.02.2021, New Vision)

The news on how the state got to repay old loans is coming out. As the Ministry of Finance, Planning and Economic Development (MoFPED) have put forward the budget for the Financial Year of 2021/22. This is initially telling stories on the revenue or tax base, which will be preoccupied or used for paying debt repayment.

Just to put things in perspective. This is the definition of ‘Deficit Financing’:

Deficit financing, however, may also result from government inefficiency, reflecting widespread tax evasion or wasteful spending rather than the operation of a planned countercyclical policy. Where capital markets are undeveloped, deficit financing may place the government in debt to foreign creditors. In addition, in many less-developed countries, budget surpluses may be desirable in themselves as a way of encouraging private saving” (Encyclopaedia Britannica – ‘Deficit financing’ (25.08.2015).

This here is telling the story, which the state media and others isn’t telling. Because, they are borrowing funds to cover up for the deficit. The deficit is created as a result of the rising cronyism and misuse of funds. These funds have to cover the bloated government and its staff. That is why deficit is created to fix the shortfall between the needed revenue and the expenditures of the state. They are using loans to cover and fix the lacking revenue of the state. If the state had enough funds through its tax-base, the state wouldn’t need these loans in the fist place.

However, the state have prolonged with this game over years. The state has used loans to cover its baseline and usage of funds. They have went out for foreign creditors to get enough funding. That shows that the state haven’t been fiscal responsible. They have misused the authority of the state and taken up loans, which now accumulate to over 70% of yearly revenue. While this is happening. The state and the Parliament is still issuing new loans and creating a bigger debt burden. That is what they are doing… and that cycle must stop.

Soon, all revenue will go directly to debt repayment. We know the state wants to have debt relief, but this is self-created by the regime, as they are borrowing for basic commodities and necessities. They are always loaning funds to build development projects and infrastructure, which will be costly. As funds are lost and misused in the building of these. That is why the price of road is so expensive and also projects in general. Therefore, the state is crewed over more than it can swallow.

That is why the state is deficit financing and its become a burden, which it cannot carry. The debt is not sustainable. When 72% revenue is spent on debt repayments. That shouldn’t be a thing, but that is fiscal policy of this regime and apologist cannot hide the fact. They have run down the state and taken up loans they cannot carry. Peace.

Opinion: Museveni suspending the DGF is biting the hand that feeds him

Now that the letter from President Yoweri Kaguta Museveni to Minister of Finance Matia Kasaija is out. The infamous letter where he suspends the accounts of the Democratic Governance Facility (DGF). This is important, because the DGF supports programs and organizations across the Republic. The DGF is sole funder of several of civil society organizations and non-governmental organizations. There are atleast 70 of them that is hit by this and would cease operations, as the funding and lack of funds to pay staff. That is all happening, because Museveni wrote a letter in early January 2021.

President Museveni have targeted CSOs and NGOs around election time. That is common. That he claims they are up to “no good” and supporting “terrorism” or any other objectively bad enterprise they can. That has been common for decades. However, ceasing their funding totally and blocking a multi-national funding scheme like the DGF. Only undercuts the ideals of the givers, the donors and the ones who monetary support the government and people in the Republic in general. This isn’t government funded money from the tax-base. No, these funds are given from outsiders to support governance and other organizations to strengthen democratic institutions and educate the masses.

The DGF is a collective fund donated by the European Union, Austria, Denmark, Ireland, Netherlands, Norway and Sweden to support programs and CSOs/NGOs in Uganda. They are partnered with at least 72 organizations across the republic to different capacities. All working in various of fields and for causes to better the Republic. They are all civil society voices for good governance and creating a freer society. However, that is clearly not the beacon that the President believes in anymore.

The donors that see this action by Museveni should shun him and cease all direct donor-funds and also block all loans through multi-national organizations, which the donors are funding as well. That would make it harder for the President to operate and he would seek funds elsewhere. If he wants to be free of stipulations and not have any oversight. This cutting funds to International Monetary Funds (IMF) and World Bank (WB). Also others where the Government of Uganda is seeking loans for development projects and government programs.

The National Resistance Movement was able in the late 1980s and 1990s to have progress and financial backing to pursuit the government programs, which is it so proud of. The state also saw debt relief and cuts from donors. Now, the NRM is gaining more debt, but also putting in obstacles with the donors in regards to the DGF. The ones funding DGF should suspend all other funds and funding that goes towards Museveni. As a retaliation to this, as these projects, programs and NGOs/CSOs are working for ideals that Museveni once stood for, but with lingering in office despises.

We are clearly seeing the punitive action made by Museveni. He wants to prove supremacy, but does it in a mockery of a way. This is only showing the donors what sort of little man he is. That he has to go to this step. Take away the securities of the CSOs and NGOs. Instead of actually serving the general public. If the President really did that. He would haven’t have the need for all these CSOs/NGOs to cover where the government is lacking. The state is fluid and lacking institutions. That’s why the state needs them to cover the basics and civic education. This is still needed after over 30 years in power. That shows the weakness of the Presidency and his reign.

President Museveni isn’t showing strength here. His showing weakness and lack of control. That he got to act like this. This is acting a villain and hurting own citizens, because he can. So, the donors should act upon this and not just take it on the chin. They should show force too. Just to prove him what he has done. It is about time and not just “condemn” and move-on. That is not making any changes or challenging the old man. You need to meet him head-on. He plays games and these are with the lives of all these organizations. It is not the money of Museveni and neither funding from the state either. That is why his sour, as he got to loan to pay his cronies salaries. This is why he attacks and confronts, instead of talking and negotiating with the donors.

What he does with this is putting himself in corner and making less friends. If he wanted more support and legitimacy. He should have acted differently. However, he rather picks the trick of the pariah, instead of the friendly grand-pa, which is what he tries to act in the media. That is clearly not working and that is why this letter is undressing his motives. Peace.

Opinion: UK – Why be apart of Europe (EU) when the water is bluer in the Pacific (CPTPP)?

The United Kingdom is really a special breed and the Tories leadership is something else. After all the years of tussling and muffling the transition and the negotiations with the European Union (EU). Which be recent reports will be a steady affair for 50 years. The government of United Kingdom (UK) have now opted for a new “union” or Free-Trade Agreement.

The UK had the most beneficial and biggest trade deal with the common market in the European Union with all of its member states and EEA. However, that has been dismissed, as they have the new Withdrawal Agreement and non-membership, which was so important for the Tories to set in action. They wanted to get out so they could have their own agreements, deals and not be bound by Brussels. However, the ending of common market with the EU have caused its trouble. There are problems with logistics, forms and declarations of produce/products across from Europe to the United Kingdom. Still, in the midst of that.

The Tories have a new idea. The Tories are joining the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). Where the negotiations are starting this year to be a part of the Free Trade Agreement between 11 nations. These are: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

Clearly, the UK ditched the simple trading across the bay. Instead of getting things to the Low Countries, France and Italy. Heck even Germany, Polen and the Czech Republic. Why not try to send Yorkshire tea easier to the Kingdom of Brunei?

By all means, any trade deal is a good deal for a nation. However, every nation and every kingdom tends to trade most with their neighbours. That is a historical fact for most nations. They tend to have most common with the nations right beside it. Surely, it is should be easier to sell something from London to Dublin. Instead in this case it will be easier sell something from Bristol to Auckland and that is insane. But, that is the Tories in a nutshell.

It is nuts and bonkers that the ones screaming to leave one thing is signing up this quickly. That they are moving over to another project that easily. Yes, there might be less stings attached, but on the other hand. The UK had a good hand, but they spoilt it by leaving. The Tories and the UK could have had more influence and used their buying power in the Union, but instead they couldn’t care less.

Now, they rather go on the deep dive in the pacific. Instead of just across the British channel. That is just weird. That say it all about the leadership in Downing Street and at Whitehall. That they have these ideas and think it can ease the pain. Yes, they will get sales and get trading going on in the pacific. However, how will that be substantial in comparison to what you used to have with the European Union?

It is not like these sort of arrangements and logistically is easily accessible. The CPTPP will be a Free Trade Agreement (FTA) but at what cost?

The EU have by comparison 43% of the World Trade. While the CPTPP have 14% of it. Yes, it is a substantial part of the world trade in the CPTPP. Nevertheless, the UK haven’t shot the silver bullet here. It is like they just trying to patch the hurt and make it sound splendid. Even though deep down… they know they lost out of chance of a lifetime and they are afraid of turning back.

That is why the deep blue sea of the Pacific seems so refreshing compared to crossing over the familiar channel from Folkestone to Calais. Peace.

Transparency International Kenya: 2020 Corruption Perceptions Index reveals Widespread Corruption is Weakening COVID-19 Response (28.01.2021)

Le Congo n’est pas à vendre – Communique – Non a l’assouplissement des sanctions contre Dan Getler (26.01.2021)

Opinion: Biden have a pitiless job ahead

Yesterday on the 20th January 2021 the inauguration of Joe Biden happened. President Biden has a mountain to climb ahead. That’s not his fault, but his predecessor who was inept and incompetent at his job. Biden has more issues to fix, than what he had as the Vice-President during the first Obama Term.

Now, there is not only the humongous need for swift intervention and planning to stagnate a crisis with the COVID-19 or the Coronavirus. Which the previous administration downplayed and didn’t really stomach. They only let people die and didn’t properly intervene. Trump Administration and their COVID-19 Taskforce was a useless entity. Only to booster business and enterprises in favour of the government. It wasn’t made to stop the spread of the virus or actually make a difference. That is why the spread is so massive, the amounts of death is spiralling out and by the time Biden became President. The numbers of deceased in the Republic because of it was the amount of 400,000 citizens. That all happened because of the inept Trump administration.

Yes, the commentators will now blame all of these on Biden. Biden will be thrown into hot fire and be burned. The test is if the White House can defend what they do and how they are fixing it. They need to address it properly and let science do its work. As the previous bastard-in-chief didn’t care and thought pseudo-science and conspiracy theories could heal the wounds. Alas, it is never like that.

Other, than that… Biden has to fix the economy. Work on the growing deficits and the negative rates hitting the financial institutions. As yet another Democrat have to clear the air after a Republican botches a working economy. Where the safeguards and financial integrity have been traded on quick-get-rich schemes and less oversight. That has been key things done in the Trump years. Also, the tax-cuts and enriching the elites, while the state has cut on the basics and support system for the poorest. Social security and Medicaid for all have been hit hard, but big-men in business have priority citizens.

Biden has to also work in a very split society. Created with amplified visions of the Republicans. Who rather see the Republic burning than listening to any sort of facts. The President have to look into, investigate and prioritize criminal proceedings not only into the insurrection of the Capitol. The President has to also investigate fellow Congress members and Senators who was in on it. Not to forget the need to look into Right Wing Extremists and militias who has thrived during the Trump Presidency. These has been shielded and the authorities have given them a silent “pass”. Now, it is time to do something about it.

Biden has a lot of work ahead. Not only write Executive Orders. Even though he got revoke certain aspects. He got to go head-on. Show that he is different than Trump, but also show integrity and accountability. Just as the most corrupt and incompetent administration has left the White House. The rampant nepotism and lack of protocol have to be investigated. All the breaches of codes by the former administration. There was so many who broke the Hatch Act and other codes while in office. The Trump Administration needs to be investigated in the Foreign Emoluments Clause and if their associates did violate this in their tenure. That only makes sense now. It will hurt the Republican party, but they need to be accountable and take responsible for their actions.

Joe Biden has so many hurdles. Not only does his Secretary of State have to prove that the United States cares, but also have some plans for their policies. As in the past one, these could be bought and fixed by simple gestures to the Man on the Throne. That has to change now. Especially, if the US is back to normalcy. We know that will take time, as the Trump administration ensured the Biden administration starts with no ready vetted cabinet members or appointments. Just to show their vicious, loser mentality and how they don’t care about stability.

The Biden administration have only hard work ahead and a lot of dirt to clean out. Biden better handle with not only caution, but with finesse. As there will be no easy way out and the only way is face the harsh realities. This is an unforgiving role and a place very few wants to go. He has to fix and clean a mess. A shambles of a government and make people trust it again.

Trump proved he could break a system. Trump proved the ills of society. Now, Biden needs to heal and fix the system. That will hurt, be painful and be a process. It will not happen over night, but is a needed task. Especially, if the world is supposed to trust the US and its values. Because, those are in the bin and someone has to rehash it.

That is Biden right now. That isn’t a fun journey. Neither is it reality TV or a fun segment on SNL. No, its dedication and honouring principals. What Biden should know and see is that those principals and codes are worthless to the Republicans. That is why he has to shook them and get them into submission. Just like they do to Democrats when they are in power. Since, the Bi-Partisanship only matters to Democrats, but not to Republicans in power. That is why Biden has to seal the deals and be fierce at some point. Not only humble and show humility. He needs to be strong and be resilient.

As all the ills of the previous administration will be put on him. Even if it isn’t true. However, that is how unforgiving his task is. To takeover after a train-wreck of an administration must be restless. The Biden administration needs to revitalize and rejuvenate departments, which has been weaponized by the previous ones. That will not be easy, but a needed task. Unless, the President will have civil servants and other appointments working against him. Peace.