The NRM lacks Fiscal Responsibility!

There been so many times the National Resistance Movement (NRM) apologists and defenders have claimed the opposition lacks Monetary Polices. However, contrary to public belief or perception it seems like the NRM is failing on this themselves. It is very simple reason for all of this.

The NRM and the Government of Uganda, which is the legal entity and de facto legitimate state at the moment. Have the power to borrow, loan and get funding for their operations. They can budget and make monetary policies. The government can make it possible to inject and add stimuli to the economy as a whole. That is what is happening all the time, but it is also very important. That if they fail to do it properly. It can have dire consequences.

One key aspect the NRM and its government have failed over time is to show fiscal responsibility or balance its budgets. The NRM regime have been borrowing and been deficit financing. They are in a cycle of loans financing old loans. They are adding debt burdens to build roads, pay salaries and do basics of the state. While nothing having funds to cover the shortfall and the interests. This is why fiscal responsibility is so important.

On EconomicsHelp.org it states that Fiscal responsibility is defined as this:

Fiscal responsibility implies a government pursues the appropriate level of government spending and tax to:

– Maintain sustainable public finances.

– Ensure fiscal policy aids the optimal rate of economic growth.

– Maintain appropriate levels of public investment” (Tejvan Pettinger – ‘Definition of fiscal responsibility’ 13.10.2020).

It is very simple concept. To be fiscal responsible isn’t an revolutionary act. It is initially only spending the money you have and not spend other people’s money. Know what sort of revenue you do have and not expect a sudden miracle of funds appearing out of nowhere to cover a possible shortfall or lack of funds. This is how the NRM has practically operated.

They have needed loans for any sort of project. The NRM have tried to add their tax-base, but at the same time drained the economy. While spoiling itself and adding more and expenses. When they are not generating more natural income. The plus and minuses isn’t adding up. The state is also anticipating more loans, paying more interests and not paying civil servants.

Civil servants, the local government officials, the teachers, nurses and such needs their salaries to sustain a living. That salary pays the overhead, the food on the plate and other expenses. Some of this money will be returned back in taxes and VAT. Therefore, the state will return some of the funds.

This is why the state has really outplayed itself. When its living on borrowed money and donor grants. The state isn’t sufficiently run, when the funds dries up like this. When the state have to issue suspension of paying out salaries and expenses. Except for a handful of cronies, the army and law enforcement. That isn’t a sign of strength, but of weakness. This is basic governing.

The government who governs should be able to plan, secure and add enough revenue to able to pay salaries to its civil servants. If they are not paid? Why should they go to the office? They should be farming instead or work for a public company instead with their experience and skills. It is a waste to be a civil servant, if it doesn’t pays. The mortagage, the plate for supper and the UMEME doesn’t stop asking for money. The bills will continue to come. The landlord can knock on your door and give you an eviction notice.

That is why this is failing the basics. To not balance the budget and be fiscal responsible. It isn’t a magic masterpiece or an unbearable task. To explain what the NRM has done for years. Instead of spending within their means. They have instead been spending like an alcoholic, being buzzed drinking at the bar with no coins in your pocket, but hoping someone else is paying your tab. Peace.

Uganda: A halting economy ahead of the polls

The National Resistance Movement (NRM) and President Yoweri Kaguta Museveni, which is clearly struggling ahead of the polls in January 2021. The NRM cannot run away from the problems, as they have no overhead and isn’t fiscal responsible.

The NRM have already issued a budget of 39 trillion shillings for the Financial Year of 2020/21. They have also issued Supplementary Budgets, which has added more funds. Still, they have not covered the needed funds to expenditure. This is even as the NRM issued a Supplementary Budget three days ahead of this Budget Year and a First Supplementary Budget recently with big confidential expenditures. Therefore, the state has given itself funds and added expenditure apparently without having room to actually spend those. Because if it did.

This wouldn’t be the case:

The crisis has been unleashed by the permanent secretary to the Ministry of Finance, Keith Muhakanizi who says where things are heading, government is likely to pay salaries of only civil servants in the State House, Electoral Commission, Public Service and the Ministry for Defense. The other departments will be ruled out as non essential and according to Muhakanizi, most of the servants will be laid off till government recovers from the economic pandemic” (Emmanuel Busingye – ‘Exclusive: Only UPDF, police to receive salary as bankruptcy looms, 12.11.2020, Ekyooto Uganda).

This is being fiscally irresponsible. That the Ministry of Finance has to cut of expenditures and spending on state employees in the middle of a pandemic and an election. No matter when really… it is just wrong. It shows that they are not balancing the budgets. They are not showing responsible action towards revenue versus expenses. The state and the NRM is spending money they don’t have and which is squandered. Because, if they we’re using funds properly and had some sense. They wouldn’t be in this in the first place.

The state would not bank on funds coming from a weakening tax-base, expecting donors to bail them out and in addition expect multi-national organizations (monetary organizations) to give grants or loans. This is what the state has expected, also thought and used wrong projections of revenue. That is why they are here. If they had planned within their means and spending within reason.

It wouldn’t be cracking like this. However, the state usually have cracks and is broke after elections. Not in the middle of it. As the state needs funds to campaign and pay off political affiliates. They will give away cars, t-shirts and other things to the general public. Also, ensuring pastors, chiefs and leaders across the Republic campaigns for the President. That all costs and usually makes the campaigns expensive and breaks the bank.

This is irresponsible behaviour of the state. They are misusing their powers and their mandate. As they are anticipating people to work, but for no salary. As the state is not paying it out on time. When people have bills and need their salaries to survive. It is a dire need and the cash grabs of the cronies is eating the funds, which is needed for public servants like teachers etc. These are the ones left behind.

The NRM cannot act like its “Securing Your Future” or delivering “Steady Progress” when it cannot even carry its own expenses at times like these. Peace.

Opinion: The NRM expect partisan civil servants…

The National Resistance Movement ahead of the elections are saying to the civil servant, the ones working in local government and state organizations to support the government by default. Because, the officials of the NRM and the government are saying they are paying them. However, that is not true. They are not hired by the NRM, but by the Government of Uganda.

If Uganda is a democracy and there is free and fair elections. Than the state should be reflected all through the Public Civil Service. All walks of life should be there, both with faith and political association. Yes, there are laws that is barring the civil service from entering politics. As they are supposed to be non-partisan and work for the general public.

However, the statements made by Capt (Rtd) Tumusiime Bamuturaki, and the Resident District Commissioner (RDC), Lt. Col. James Mwesigye on Wednesday this week. Says a lot of their mismatched ideas of governing and governance. They are blending the ruling regime with who the government are.

The government and state shouldn’t be associated with one party. Even though it has been ruling it politically forever. Since, the civil servants should have the ability as any citizen to vote for whoever they feel and whatever they vouch for. They could vote for the opposition, though they are barred by law to be political active.

Still, the constitution allows them to vote in a free and fair election. The Constitution doesn’t state that they have to be loyal to the ruling regime. Because, the people is sovereign and they have the rights to associate themselves with any political party too. Therefore, the Public Service Code of Conduct article 50 is breaching with the ideals of the 1995 Constitution Article 29(e). However, is for some legal scholars to explain.

Still, any citizen should by default be allowed to associate with whoever they deem fit. If it is a clown, brothel owner, journalist, singer or farmer. Whoever they deem fit to lead and run the nation. They decide who they seem fit to do so. No matter what job they have or work it shouldn’t matter.

That shows how the intolerance of the NRM. That officials like Capt. Tumusiime and Lt. Col. Mwesigye is saying this. Not that it’s shocking. It is more of the same. However, it proves that the 1995 Constitution to them is only mere papers, but not law. Even if it one of their prides and joys. Which they don’t care to follow.

I’m sure these fellows couldn’t even find the article and explain themselves out of it. Nevertheless, they got to send warnings and intimidate civil servants. Who works for the state and isn’t something that is automatically for the NRM. The civil servant can decide on their own… they have a mind on their own and isn’t in debt to the NRM. These folks can decide and do what they feel.

The civil servants aren’t working for the NRM, but they are working for the state. That is a distinguishing difference, which the likes of Capt. Tumusiime and Lt. Col. Mwesigye isn’t able to see. Maybe their minds are jaded or the hunger for power doesn’t cease to boggle their train of thought.

However, these workers are free and can pick whoever they feel and rightfully so. If not, then they are slaving to master, instead of being human being with a free will. Which is something even the 1995 Constitution has given them. Peace.

Zimbabwe: Joint Petition to the President of the Republic of Zimbabwe, His Excellency, Cde Emmerson Dambudzo Mnangagwa (23.10.2020)

Kenya Medical Practitioners Pharamacists and Dentists’ Union: KMPDU Statement on Building Bridges Initiative Report (22.10.2020)

Opinion: Is Trump loosing all his leverage, if he doesn’t get a second term?

I know, the world is a crazy place in 2020. Where the soon up-coming elections is happening in November 2020. This is vital and important. Not only for the American public, but for the stakeholders of the Trump Organization and President Donald J. Trump.

The expose of the amounts of debt circulating in the Trump Organization is the overshadow of his campaign. Trump will have mature loans, which needs to be paid, because they are due on several of properties and other personal loans too. This is maybe why he has coined himself the King of Debt.

Not, only has he not to profitable business, estates and golf courses. However, the President has earned the most on licensing deals and not on real estate. That has been the reality of the business deals of late. This being both abroad and elsewhere. That the Trump Organization has earned millions of dollars on these transactions and deals.

The Trump Organization have had big payments from foreign dignitaries and companies happening because of the Presidents office. Since, he has the political office and has been the Head of State. This has made people live in his Hotel in Washington D.C. and used his other properties. Become tenants on his properties and possibly pay an overprice to be in the good graces.

This is a sort of sale of the White House and the Presidency. Because, the President and his business needs spenders to run. To be able to get through and have enough funds to operate.

It is bad enough that a supposed billionaire and a wealthy person on Manhattan, New York have paid nickel and dimes in taxes over the years. That he has possibly given one audit to the IRS and another to investors. This is to trick the numbers to ensure the best outcome at any given day. Instead of giving the real numbers and true value of the business at any given time.

If the loans and the debts are so bad as the media states. Then his “empire” and his businesses needs leverage to get through. He needs something to bargain the creditors and get other investors to bail him out. He cannot live on a prayer and hope his other family members hit a strike of gold. Since, they are leeching on to the business and continuing the enterprise. Just like he did. They are all moochers of this system and enlarging their names by being connected to it.

Therefore, the only way he can save this by date and by the maturity of the loans. To seal the debt and have a positive outcome. Is to actually get foreigners to bail him out and give them favourable policies. Trade foreign policies for deals, which enrich the President and saves his fledging company.

That makes sense and seems like a enterprise he would join. He will act like Republican and sing songs of “conservativism” or fake that. Just so he can trade policies for business deals. To save his own ass and by the skin of the teeth. That is his leverage. Because, his businesses and the ways operating needs this sort of play to get traction.

Since, the incumbent need the gravy train coming. Especially ahead of the mature loans, which is coming his way. If not he has restructure the loans and find ways to get liabilities moving. Even sell other estates to cover the payments needed.

Yes, this is bribing a public official and open bazaar corruption. However, that has been his game since he went into office. He has used the office to enrich himself and gain profits for his businesses.

Now that we know how dire things is… we can imagine that the old man doesn’t want to lose his leverage. The one bargain chip that makes sense and make dollars. Not that he can trade on his name or character after four years in office. Unless, he wants to sell merchandise to White Supremacist, Alt-Right, Qanon and the KKK. Peace.

The UTL Saga: The state salvages the debt to resurrect the Walking Dead

This Mango has gone through a lot. A former state company sold to Libyan investors and after the Libyan credit started to fail. The Ugandan Telecom Company (UTL) or Mango started to suffer too. The Telecom have been so hard hit that three years ago the state had to take it over.

There been so many twists and turns, where the company have been rumoured and speculations. Even the Minister and owners was speculated to moved to a shell company in Mauritius. Therefore, today’s sudden windfall and paying off debts. Is only bailing out a sinking ship and hoping it still doesn’t sink.

The UGX 45.6 Billions to the TDB (Eastern & Southern Trade & Development Bank). With this payment of this debt. The state is initially taking over UTL. This as they plans to make the UTL attractive to investors again. Mango haven’t been viable for years…

The Libyan Post ditched in March 2017 and since then it has struggled. The Libyans said the Government of Uganda needed to figure out a transformation plan for the UTL. It has clearly taken three years to figure this out. That nobody wanted to takeover the loans of a company, which haven’t invested in Telecommunications in years. Where the changes of mobile data, 3G and 4G networks for smartphones. The UTL haven’t had the funds or the ability to change with the times.

UTL is struggling because the state haven’t been able to save it before now. The regime needed over three years to figure this out. This with the steady leadership of Evelyn Anite, Frank Tumwebaze and Gen. Kahinda Otafiire interfering all at different times. While they have all done their part … it still took the Committee until now to secure payment for the debts. This should have been resolved earlier, if they intended to make it viable business.

In 2017, Anite even wanted all Ugandans for Patriotic reasons should have one UTL line. Maybe, she thinks everyone has a Airtel, MTN and could have UTL sim-cards in their phones. As the usual person should have at least double or dual sim-cards.

This all been a long lasting saga, which shouldn’t take this long. It is a fledging company. A former state corporation privatized and sold for scraps to Libya investors. Who earned on it in the good times, but ditched it when it got hot. Because, it been years since the UTL been viable and been a commodity.

This Mango is rotten. The Mango tree isn’t yielding any fruits anymore. This is a Walking Dead Enterprise. A Telecom who has no traction and is only throwing good money for bad investments. The money could have been burned in a street or thrown down a storm-drain, and it would still have more sense then investing it here.

UTL is being saved, but was it worth saving? Does it have any assets or financial liabilities worth mentioning? The competitors are miles ahead and the UTL needs huge investments to be in the same arena. Do they think another investor will spend money like a drunk uncle in a market, which is already filled with big companies. Who has small margins and higher taxes.

Therefore, the ones doing it … has to be regime “friendly” and willing to throw away good money for a bad investment. Peace.

Opinion: Zuma needs to man-up and face the truth

Former President Jacob Zuma are still facing the investigation and the criminal proceedings of the State of Capture case, which is investigated through the Zondo Commission. A Commission, he and his lawyers are working hard to discredit and also deflect blame.

The former President is clearly fishing for sympathy, when he invokes the narrative of living his whole life through Apartheid. Yes, he lived through like most of his generation. However, he also rose into the stratosphere and got amass power, which he had for a decade or so. It is not like the former President didn’t have all the luxurious benefits and the connections at his finger-tips for a period. Even all parts of the state was following him and obey his commands.

Therefore, the statement released recently is only a defensive and unnecessary document. It is not serving his case nor the investigation any good. Yes, his playing the victim, but that’s not new. The State of Capture case has been going on for years. While in power he could deflect, muffle and stop the process. However, now its not possible and he got to play the sainthood like his the pope or a cardinal. While he rather drink, enjoy the company of a nun and use the offerings to build himself a monastery on the top of hill.

This is why Zuma can defend the looking into his kids. We know the kids also enjoyed perks with the Gupta Connections and the State Owned Enterprises. They also got tenders and other deals, which was not accessible by others. Therefore, when an investigation follows the money, you never know where it ends. If they follow the drugs, you find drug-lords and cartels. However, if you follow the profit of that illicit trade. You don’t know where the money is going and could end up in the pockets of other powerful men as well. The same is happening to Zuma.

Zuma can plead his innocence and plead not guilty. However, he did pocket money and built a village in Nkandla. While he was in office. He suddenly could afford a second home in Dubai. Clearly, having more money than his salary would make possible. The man who came from hardships suddenly was Richie Rich. That doesn’t come out of nowhere. There is someone offering a deal and you accepted it. If it was using your power to fix Eskom and other SOEs in your time.

Therefore, those statements and letters your writing is only showing that you have no remorse to misuse and directly taking money out of the public coffers. Which you had no trouble doing in the years you we’re in power. Zuma had all the opportunities to do the right thing. However, as time went by and options came your way. You took them, you ate it and you enjoyed the perks. The same happen to your family members, which you want to shield now. But you let them eat of the sudden wealth and fortunes that came your way.

Zuma, if you wanted to shield your kids. You should have shielded them away from the Gupta’s and the other associates giving you sweet-deals. As the President you could have pushed them away and blocked them. Instead, you guided them and made it possible them. This was a rise to power and you felt untouchable. That is why the risk of paying a price seemed unlikely. That is why you made it possible for them to get connected.

That is why it’s late to cry foul now. You knew what you did and how you acted in office. As President, you knew what you we’re doing and what access you made possible. It is a sorry ass excuse to ask investigators to distance themselves. Maybe, as President he shouldn’t have received money from Oakbay and other companies. Maybe, his family members shouldn’t have gotten associated with the Gupta’s. Because, if he was interested in not having them involved in his business, they shouldn’t been entangled in anyway.

Alas, greed is a powerful force and it can swallow anything in its way. In this regard, it took the family and foundation of Zuma’s power. He ate it all with his greed and misuse of power. To an extent, that is still invested to this day and still not over. Peace.

Brexit: Prime Minister Boris Johnson letter to the MPs (16.10.2020)

Brexit: Boris thinks bullying Brussels gives him the result he wants…

Prime Minister Boris Johnson who has signed a revised Withdrawal Agreement (WA) and has a deadline of 31st December 2020 to end the transition period between the European Union and United Kingdom. That is all making sense.

EU negotiator Michel Barnier and the European Council have put out a statement on the 15th October 2020. Where they put forward the guidelines, yet again. While the Tories, David Frost and PM Johnson thinks they can move the goal-post in the final stages of the negotiations.

The UK are now asking for the trade agreements in line with Canada and Australia. This will not put forward the statutes, articles in the WA and the troubles of Internal Market Bill. The Tories are still playing the game of “what we want, we will get and forget old agreements”.

The funny thing about this. That the agreement made between UK and EU isn’t an old age agreement from a far forgotten past. No, it was made by the same government in negotiations with the EU. The European Council and EU 27 Member States has agreed upon this. Therefore, it is a significant deal, which settles the foundation of the relations between the two parties.

Alas, Boris wants to alter that now. Just mere 10 weeks ahead. While there are two more scheduled meetings and talks. The Prime Minister is putting forward talks of trenches and going to the barricades. As he knows his just playing for his base. The PM is doing this charade and mockery of a public display. He should know, that when you agreed upon certain things. It is a bit late to back-track just mere months ahead of deadline.

The Prime Minister Johnson is now trying to pull the pix-and-mix Brexit and the Red-White-Blue Brexit of Theresa May. This is 2020 and the Tories are still not sure what sort of Brexit it wants. It wants the best of both worlds. It wants to be a non-member, but also doesn’t want to honour the agreement it has already signed. That is showing what sort of disgusting leadership is in London.

London wants to bully Brussels. Brussels, the EU Commission and EU27 have been clear. There is no vindication for the Tories. It is just like a entitled brat wanting more candy, when the store is already closed a few hours ago. The parent have to give the kid a lesson and explain why its not possible.

The PM have to accept this and understand this. The only ones losing on this sort of public play. Is the British public and all citizens of UK. They are pawns by the leadership in Whitehall and Downing Street 10. Who are playing with their futures just to look good. While not making sure the best interests are made with the EU.

Instead, over Christmas an uncertain future is ahead, the UK is sailing alone and with possible “no-deal”. Which is affect all parts of society, most likely a higher inflation and hitting businesses in the midst of recession and a global pandemic. That is what the Tories are willing to do.

Just to look good on Prime Time TV and feed the Brexiteers in their homes. Who doesn’t see the damage it does, until it hits home. Peace.