MinBane

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Archive for the category “Economic Measures”

Opinion: VP Chiwenga “financial terrorist” is his own cronies!

“I want to give a stern warning to those practicing financial terrorism in the country. We will react accordingly as Government and nobody should claim that they were not warned. We’ll take very strict measures” – Vice President Constantino Chiwenga

Sometimes, you wonder what kind of voodoo that has hit our times, that some people are in power and you wonder, what are they doing there?

Today, I am thinking to myself, if it wasn’t for the Mid-November 2017 Coup d’etat in Zimbabwe. The former General Chiwenga wouldn’t be a force to reckon with. He would just be another military crony that hanged out and followed direct orders of the Mugabe administration. However, those days are long gone, but his power remains and stronger than before.

The VP has an imaginary mind, maybe a near picturesque of the screenwriters of Hollywood. Because, his last venomous speech against “Financial Terrorist” is one for the books. Surely, Stephen King could need some of his visions and his tales. It would make a nice trilogy and surely make Universal Studios even more wealthier.

As this maybe, the VP should look into himself and his own kind before blasting others. It isn’t the citizens fault, that the albatross, the economy is failing. It isn’t the businesses trying to salvage something fault either. It is the state and their actions, which is failing. Not the black-market trading of US Dollars or South African Rands. Neither, the lack of value of the RTGS Dollars or whatever else voodoo economic policies coming from the Ministry of Finance and Reserve Bank of Zimbabwe.

That is the people, who the VP should look into, the ones issuing taxes on mobile money transfers, the ones whose making Forex nearly impossible. It is not the fault of the public or the citizens. This is the state and the lack of trust in the “currency” and the “financial markets”. Which is solely created by the ZANU-PF and the institutions it is running.

So, the real terrorists, the real criminals, whose enterprise is to loot and make money vanish. Is the state officials, the state owned enterprises and whatnot, whose gaining funds and eating, before the cash-flow even get circulated. That is why the economy is drained and raising inflations.

Its hectic because of how the state is run and awaiting just another disaster to strike. So, that the needle-point can hurt the old wounds, ensure that the state bleeds a bit more. That is why it insulting to common sense. That the citizens trying to scrap by is in the wrong, when the state doesn’t delivered the needed policies nor the remedy to the situation. However, just prolonging it and hoping that it will not die. Keeping it in the E.R. and hoping the bitch is still breathing when passing by.

Let’s so how this goes, but the Financial Terrorist of Harare will continue to live in luxury, while the citizens suffers. That is how the game is rigged and this play doesn’t seem to be ending soon. Just keep breathing and hope you overcome. Peace.

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Kenya: Ministry of Information, Communication and Technology – Media Clarification (25.04.2019)

Zimbabwe: Community Water Alliance letter to Dr. John Mangudya – “Re: Citizens Request for a Consistent Supply of Foreign Currency for Water Treatment Chemicals” (23.04.2019)

Tanzania: Blocked IMF Report, because of negative projections!

President Joseph Pombe Magufuli isn’t the sort of guy, that handles critics or opposition well. He is the sort of guy that needs all praise and benefits of a doubt. Therefore, the latest move is in a long line of questionable behaviour from his party, his apparatus and his administration to stifle voices of another opinion.

The Tanzanian government under Magufuli is a paranoid and wavy state. Where everything hangs by a thread, if your in the good graces of the President or not. If your not or if you questions him. He will take your license, suspend your newspaper or even detain you for a various reasons. That is the state of affairs. So, that the President and his people have blocked an unfavourable report from the International Monetary Fund isn’t surprising, it is more of the same.

This is from the same man, that has arrested MPs for speaking ill of him. This is from the same man, that didn’t like articles written the The Citizen to later suspend that too. Therefore, when someone dares to question his ways and orders, he will strike with fury. That is the man, the governs and leads the Republic.

Here is some pieces of information, that might be the reason why the Article IV Report of the IMF was blocked from publishing. With the Press Release of the block from IMF, before a Stratfor explanation and projections of the World Bank.

IMF Press Release:

On March 18, 2019, the Executive Board of the International Monetary Fund concluded the consideration of the 2019 Article IV Consultation with the United Republic of Tanzania” (…) “The authorities have not consented to publication of the staff report or the related press release” (IMF – ‘Statement on the 2019 Article IV Consultation with the United Republic of Tanzania Staff Report’ 17.04.2019).

Stratfor explanation:

What Happened: An apparently leaked report by the International Monetary Fund contains criticism of the Tanzanian government’s interventionist economic policies and noted that they are hurting the country’s investment climate, Bloomberg reported April 18. The Tanzanian government subsequently decided to block the report’s release. Why It Matters: The report will likely serve as an alarming sign for international investors who already have been concerned that the Tanzanian government is targeting foreign multinational companies” (Stratfor – ‘Tanzania: IMF Report Criticizes Government Measures’ 19.04.2019).

World Bank Context:

Economic performance in 2018 was mixed, while inflation remains low and stable. The National Bureau of Statistics did not release any quarterly gross domestic product (GDP) data for 2018, pending completion of a rebasing exercise. However, available data suggest signs of softening of the growth momentum” (World Bank in Tanzania – Context, 01.04.2019).

We can clearly see why the President didn’t want this to get released, also that his administration would further hit their goals, when concerning their economic forecast. This is damaging the image and also the confidence in the financial system. The IMF would have told a story that the administration didn’t want to hear or listen too.

That is why it hasn’t been released, because the President who wants all positive and praise. Cannot manage an independent entity from the outside coming with a message or projection, which isn’t fitting the narrative of the CCM. At this point, that is the message I get out of it.

Magufuli and the Tanzanian Administration could have turned the projections and the forecast. They have the ability to create stability and trust in the financial system. However, they are instead stonewalling and continuing on this path. They are not creating confidence of the acts of the government from the outside. It is backfiring instead, but this is from the administration that has to verify and give a stamp of approval to release statistics.

Therefore, we know how far this administration goes. Now, they are even stopping Article IV Report from being released. That is a sign of weakness in the economy. Peace.

Opinion: Theresa May’s Statement undermines her own leadership…

The vision we had of Brexit is fading away – and we are running out of time to save it” – Theresa May on the 7th April 2019

On the 14th July 2016, Theresa May became Prime Minister after the Brexit Referendum. However, her Government triggered the Article 50 in March 2017 and had final date of leaving in the European Union on the 29th March 2019. On this date, the European Commission accepted that the Brexit final leaving date got to 12th April 2019. However, if that is the final is yet not sure. Even if it just mere days ahead.

What Prime Minister Theresa May have proven with her statement to the public. As she held her plea to the public and sat on the coach. She shown the world, what an utter mess she has created, what sort of weak government, which has had over 30 Ministers to resign in her time in office. In retrospect’s to have that many leaving you for various isn’t a sign of strength, but a sign of weakness. This government on average have “lost” an Minister or anyone appointed by the PM, every single month since its inception. That is a unique feature of someone promising to be strong and stable.

However, the Brexit dynamics is shown in this lax approach to governing. As the negotiations and diplomatic efforts, been more a begging and pledging to get confidence, than actually serving the Kingdom. This is shown in the Declarations and the Withdrawal Agreement, which by all means can be said to catastrophic documents of missing the mark as a sovereign and as a future trading partner. Where the Department for Exiting the European Union (DEXEU) have really fled the scene and most likely just enjoyed spoils of foreign trips away from London. Because, it doesn’t look like they were meaning serious business. All the beneficial for the EU.

So, with all that mind, as the Tories have been wondering in oblivion, as they have kept the public in the dark for so long. They didn’t release possible damage of the various outcomes and now that its getting close to a closure. The reactions, the response and the possible visible costs of the process will come. The narrow and depriving “No-Deal”, which will cost a lot, make the business jump hurdles and even hurt the Good Friday Agreement. However, in the mix and scheme of things, this seems forgotten.

As the Prime Minister has promised for long, that she will honour the will of the people. That businesses, the stakeholders and everyone involved will be taken care off. While, the Brexit will be determined and ended with an Agreement. However, she has made an agreement, that no one likes. Surely, not even Brussels like it, because they have planned for a “No-Deal” and the consequences of that for a while. While the Parliament, cannot manage to agree on anything, except for postponing it and sending the PM on begging mission across Dover.

What are seeing, a PM whose lost, begging for time. A time that she doesn’t have, a visions she never shown and a determination, that this Tories government never had. Because if it did, it would have made a grandeur effort and shown finesse since her takeover and also, since she sent the letter to European Commission notifying them of leaving. We have not seen any progression, anything significant, that been promising of a peaceful journey. Instead, it has been muffled, played the facade and been jeering the crowds at the PMQ at the House of Commons. This sort of show has to stop.

The PM should know this. That her statement and her ultimatum is a bit late. Londinium is already burning. There is no fireworks and no festival of this enterprise, only hope for redemption and salvage whatever that is left. Which is not much, because this Brexit has been played out all wrong.

The Tories are losing, the public is losing and the EU is loosing too. Everyone is paying the price because of the British confidence, but lack of hard work from career politicians. They are safeguarded anyway-

What we will see in the coming days are the self-inflicted pain, that many foresaw, but the Tories never wanted to spell out. The Tories and the PM never accepted the brutal reality of the price of leaving the Union at this point. They are more into their own pride and longing for being sovereign without thinking, what it would do to them. However, the British and the United Kingdom is a lost cause. Unless, the public are going again on the streets. Showing in the final moment, that they want to revoke article 50 and have a second referendum. Not that the PM wants that.

She is betting everything on a bankrupt enterprise and just want to ensure, that all the bridges are burned and there is no way to cross. Since, she wants to at least have delivered a Brexit. Even if it means self destruction and also hurting the economy. Peace.

BoU Scandal: AG Muwanga letter to Deputy Governor of BoU – “Special Audit on the UGX 479bn Injected into Crane Bank Limited by BoU” (04.04.2019)

UNRA: Public Notice – Restoration of the Pavement Layer (Asphalt) and Waterproofing on the Source of the Nile Bridge (03.04.2019)

Source of the River Nile Bridge: Apparently, a Bumpy Road!

There are sometimes some stories, that are sounding more like fiction, than actual reality. In this manner, I have the same feeling. What is happening to the Source of the River Nile Bridge shouldn’t be happening. Since President Yoweri Kaguta Museveni commissioned the opening of the bridge on the 17th October 2018. Already in late January, about 28th January 2019, just mere months into use of the Bridge. There was crack in the asphalt and with the surface of the bridge. It was starting to look bad. Therefore, the Uganda National Road Authority (UNRA) and the engineers went in to change the surface and the tarmac. However, that has not helped, as the problem has resurfaced.

As of 2nd April and such. There is new bumps(which been reported the last 48 hours by the Observer), already of the second time asphalt and tarmac on the surface of the bridge. Certainly, the costs of the bridge, the amounts of companies involved in this bridge. They should know what to do as contractors. Still, these companies together with UNRA is failing to do their mission. To make a surface viable for the weather condition and usage of the motorists. That is why it gets bumps and cracks this quick.

Government of Uganda in the Financial year 2010/2011 acquired a loan accounting to US Dollar 102 Million (about Ug. shs. 232 Billion) to fund the construction of the Source of the Nile Bridge Project. Uganda National Road’s Authority (UNRA) on behalf of Government of Uganda contracted Joint Venture of Zerilaka Corporation and Hyundai Engineering and Construction Co. Ltd, a Japanese company to undertake the construction of the Bridge. The Construction of the Bridge started on 14th April 20l4 and by May 2018, the works on the main bridge structure were completed” (P: 5, 2019).

The Committee was informed that the main bridge structure would last 120 years, water proofing materials for 20 years and the Bridge Deck Asphalt for 1O- 15 years. The Committee was further informed that the main bridge structure is structurally sound with no single defect. However to ensure the longevity of bridge deck a 4mm synthetic waterproof membrane was used in between the concrete bridge deck to surface and 70mm thick asphalt wearing course but due to lack of proper bond, the asphalt surface course was unable to withstand the shearing force applied to it by the passage of traffic”(P: 7, 2019).

Information received by the Committee revealed that a total of approximately 1.3 million Us Dollars was incurred by the contractor doing the repairs to remedy the defects. Members may wish to note that the said bridge deck asphalt was meant to last for a lifespan of 10-15 years therefore replacement” (P: 9, 2019).

The Committee is constrained to believe that there was laxity on the side of UNRA to closely supervise and monitor the work of the contractor on the new Bridge. Three months after the commissioning of the bridge, defects were detected due to traffic on the bridge” (P: 12, 2019).

The Parliament Committee surely doesn’t give way on this matter, as it shouldn’t. Because UNRA and its contractors should have tested, gotten knowledge and known what type of asphalt or tarmac is needed to be steady on the bridge. As the humidity and the planned amount of pressure because of traffic. Should have been studied and configured to the bridge and its final layer. However, that hasn’t happen. Even if the project has been loaned millions upon millions of United State Dollars.

What is really striking, the deck asphalt was supposed to last between 10-15 years, but only lasted mere months. The second layer lasted from the end of January 2019 until now in the March 2019/early April 2019. The second layer was as bad for the bridge as the second one. Certainly, the UNRA and the contractors should be horrified of their shoddy work on the public’s dime. This is impressive in all the wrong ways. This isn’t a typo, this is a blend of asphalt and the lack of due diligence.

$1.3m USD has been spent on the second layer alone. This is a hefty payment over a lack of proper work by all parties involved. Certainly, the UNRA, the Ministry of Works and Transport and anyone else involved in this matter. Should be questioned and a further investigation. Since, the government authority, the ministries involved and all of the stakeholders should answer, why there wasn’t done proper preparation for a project cost of $102m USD loan, which the state will pay back in full.

We can certainly state that all parties didn’t do their job or even find out what was needed. Nevertheless, this shows an ignorance and lack of professionalism, which is again reflects on the surface of newly built bridge. Peace.

Reference:

REPORT OF THE COMMITTEE ON PHYSICAL INFRASTRUCTURE ON THE DEVELOPMENT OF BUMPS ALONG THAT NEW BRIDGE ON RIVER, NILE, JINJA (February 2019).

Bank of Uganda: Monetary Policy Statement for April 2019 (01.04.2019)

Uganda National Airlines: Let’s Get It Started!

“Everybody (yeah), everybody (yeah), just get into it (yeah), get stupid (come on)

Get it started, (come on) get it started (yeah), get it started”The Black Eyed Peas, ‘Let’s Get It Started’ 2003

Well, this week has been revealing in concerning the supposed newly minted airlines in Uganda. Where the state incorporated Uganda National Airlines Limited in January 2018. However, the supposed registration and certification happen this week. The documentation now shows, that the Ministers are owners of the Airline and it’s registered on the 26th March 2019 and certified on the 27th March 2019.

Alas, the state has already spent close to $30m USD on it, as they have procured several of planes for the operations and the first are supposed to arrive on the 31st March 2019. Therefore, the whole ownership and usage of state funds comes into question. As the Report to Parliament confessed that the state and the two ministries only owned 2 shares out of 2 million, until yesterday, when suddenly the Ministers of Works and Transport and Ministry of Finance, Economic Planning and Development suddenly had 1 million shares each, a 50 50 split.

This all seems suspicious and within reason. Because, it has been done in wrong order and ensured to not follow procedures or anything of that fashion. As the State for the second time are infringed to deliver new funds to State Owned Enterprise, even as the ghosts of owners and registration suddenly appears. You can wonder, if they would have done this, if it didn’t get public scrutiny. Because, the scribbling document of ownership only appeared, when the Observer and other media houses questioned it.

This shows that there was something lurking and weird about it all. Where the insiders and the ones operating it, maybe, had shell-companies and significant portfolios, where they could earn the profits of this state owned enterprise. That would not be shocking, even if all the investments, all the funding and procurement have happen directly from the Ministries and with the blessings from above high.

With all of this in the open. It seriously question the operation, the ownership and who really controls the company as whole, because its hard to believe the two ministries does it. As it was incorporated in January 2018, but was registered shareholders yesterday, a year and two months after. Which is suspicious at best, if not revealing of how the state operates in this matters.

We can play along and act a fool, but that doesn’t change the remaining questions, the lack of trust and also the lack of protocol. As the state have toyed around spent fortunes on establishing, procuring and investing in the company, while it has been a ghost and non existing entity, which could be someone’s secret bank-account.

Certainly, this is not over and will leave a giant paper-trail that somehow will be resolved in the State House and by whoever the benefactor whose project this is. Because, that is the rule of the day and how these things are under this Presidency. It is common knowledge, but never really said or revealed, unless, family members of the President owns it or runs it. Peace.

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