South Sudan Civil Society Forum surprised by Minister’s Comment on Economy boom (25.02.2018)

DRC: A Report published today says Getler’s Mineral Royalties daily is the double of Messi’s salary!

Again, the investor and mineral licensing powerhouse in the Democratic Republic Congo, Dan Gertler is even more under fire after the revelations of his illicit trade during the recent years. Now, the formula and the amount of cash he gets from the foreign mineral extraction companies are paying for their passage to him. This as the deals between Getler and Kinshasa authorities are left in the dark. Whatever deal they have, certainly Getler is earning fortunes without doing more, than being connected to the Joseph Kabila government.

This report shows important facts and also bring certainties of the assumed fortunes made by Gertler, even as he is sanctioned and his corporations. Clearly, the mineral extraction is profitable in the midst of insecurity and civilian despair in the republic. While the businesses and the affiliates are eating, the public are fleeing militias and the army itself. The state is not serving the public, but the companies and the persons who has secret deals with the government. It is vicious and the international community let them, even as it is sanctioned, the acts are still appearing and has the ability to earn on it.

Based on a number of assumptions, Resource Matters estimates the royalties to the Gertler-affiliated companies can be expected to amount to about $110 million for 2018 and nearly $100 million for 2019. This means that Gertler risks losing about $270,000 in revenue from Glencore’s operations per day. That is nearly twice as much as the world’s best paid soccer player, Lionel Messi, makes at Barcelona” (Resource Matters, P: 6, 2018).

Glencore therefore has to balance the risk of increased pressure in Congo versus the risk of ending up on the U.S. sanctions list. This means that the royalty payments constitute a significant risk, whether they stop or continue. Investors should be able to know how Glencore will deal with this going forward. U.K anti-corruption organization Global Witness has repeatedly lamented the opacity of Glencore’s royalty payments to Gertler’s companies and called for better disclosure” (Resource Matters, P: 8, 2018).

This conclusion was somewhat hasty. Gertler’s gold companies do not explicitly feature on the sanctions list, but that in itself does not matter. Under the U.S. Treasury’s so-called 50%-rule, any company owned at least 50% by a sanctioned entity is considered, per se, sanctioned because it is deemed to be “blocked property” of the sanctioned person. Both Moku Goldmines and Société Minière de Moku-Beverendi are at least 50% owned by Fleurette, a sanctioned entity, and should be considered sanctioned, too. In addition, the fact that no payments are made to Gertler does not shield Randgold from the risk of being sanctioned. The U.S. Treasury could qualify Randgold’s exploration activities at Moku-Beverendi as ‘material support’ to a sanctioned entity and impose sanctions on Randgold” (Resource Matters, P: 9, 2018).

Gertler might be in hot-water and the Kabila government might have decisions to make concerning their alliance. Still, the trades and contracts has been made, if the Kabila government suspend and revoke it, they might have to pay a settlement. While wait for a new company or middle-man to secure a grand deal for the licensing. We can question if the loyalty will be there, as long as the sanctions might hit the companies who works with Gertler. Because, they do not want to lose the profitable and secure delivery of the cobalt and other minerals in the Republic.

Surely, Getler don’t want to miss his winning ways and his double earnings of Messi. He want it and doesn’t care about how. Getler just continue to score and get contracts, which makes his giant fortune. It is by the blessing of his connections in Kinshasa. Peace.

Reference:

Resource Matters – ‘The Global Magnitsky – Effect How will U.S. sanctions against Israeli billionaire Dan Gertler affect the DR Congo’s extractive sector?” (February 2018).

Brexit: Hilary Benn MP letter to David Davis – “on the urgent need for clarity about the UK’s future relationship with the EU” (21.02.2018)

Kenya: Statement by the National Treasury on the Issuance of the Eurobond (22.02.2018)

Mzee complains today about waste, however he haven’t rehabilitated sugar industry or revamped pharmaceutical industry either!

“In this regard, we need to learn and apply lessons from emerging economies such as India, whose total healthcare industry revenue is expected to increase from US$ 110 billion in 2016 to US$ 372 billion in 2022 in response to deliberate investments in telemedicine, manufacturing of medicines and health technologies, medical tourism, health workforce training and risk pooling/health insurance, among others. In order to achieve this, we need to plan in a harmonized way. In Uganda, for instance, we, indeed, have a nascent pharmaceutical industry producing Aids/HIV, Malaria, Hepatitis-B, pharmaceuticals, etc. drugs. These are, however, still using imported pharmaceutical grade starch and imported pharmaceutical grade sugar. The pharmaceutical grade starch and sugar are crucial for making tablets and syrups for children’s medicines. Yet, the starch is from maize and cassava and the pharmaceutical grade sugar is from sugar. I am told the drugs would be 20% cheaper. Moreover, apart from helping in the pharmaceutical industry, more refined sugar is also needed in the soft drinks industry. Uganda is squandering US$34 million per year importing refined sugar for the soft drinks, about US$ 20 million for importing the pharmaceutical grade starches not including the other raw materials, US$ 77million for taking patients to India etc. Africa is incredibly rich but wasteful” (Yoweri Kaguta Museveni at THE OFFICIAL OPENING OF THE JOINT EAC HEADS OF STATE RETREAT ON INFRASTRUCTURE AND HEALTH FINANCING AND DEVELOPMENT, 22.02.2018).

Seems like the 1980s World Bank loans to restart Kakira Sugar Works hasn’t done enough, since the Ugandan state did right after the National Resistance Army takeover of the state. They went into an arrangement with the World Bank getting loans for the company, to restart. That deal was done 8th March 1988. As the documents said back in 198:

“Uganda currently imports US$15-20 million worth of sugar annually, which ranks second only to petroleum imports. Import substitution through restoration of domestic production capacity is therefore a high priority and eminently justified given the considerable comparative advantage Uganda enjoys as a result of its landlocked situation. Conditions for sugar production at Kakira are highly favorable. Cane growing benefits from excellent soils, good rainfall distribution (requiring only limited sunplementary irrigation) and relatively low levels of inputs of fertilizers and pesticides. The project brings back to the Kakira complex the original owners who have a demonstrated ability to manage sugar operations at Kakira and elsewhere” (SUGAR REHABILITATION PROJECT, 08.03.1988).

Therefore, what the President said today, the Sugar Rehabilitation Project, which was done to stop the heavy imports of sugar and for consumption, has clearly not worked as projected. Since his own state is squandering their resources and not even following the loans to make the project work. That is my take on it. The president of 32 years has clearly mismanaged this and not finished his job. Since he hasn’t been able to rehabilitate the industry.

When it comes to pharmaceutical industry there massive challenges, not just the sugar starch for medicine coverage of the pills. Nevertheless, the whole arrangement, since the technology to operate these machines are imported, as well is the parts. Not only the sugar starch, but also the ingredients are imported too, than you have few companies who has automated manufactures, which makes hard to make medicine on a larger scale. It is also high operation cost, because of use of back-up generators because of blackouts and shortfall of electricity. Because of this, it is expensive to have cold storage of the medicine and have a storage for the final products.

So the Idea from Museveni that it is simple, it is the whole system around it, that makes it more profitable to import ready made medicine, than actually produce it. Even if the added value of production would be there, but with the circumstances put by United Nations Industrial Development Organization, seemingly it is from 2009. However, the state of affairs hasn’t changed that much.

We can really estimate, that the adjustment and the needed organization to pull forward both industries during the years of NRM hasn’t been totally fruitful. If so, why would he complain about the imports of sugar and medicine, when he hasn’t been able to make it function with his 32 years of reign? Someone who has 3 decades, should have the ability and time to find the information, finalize plans and execute as seen fit. That is if he cared about the industries in question and their possible engines for growth and riches of Africa. Nevertheless, he hasn’t cared and haven’t used the time wisely. He has used the time bitching and not acting. That is just the way things is and it isn’t becoming better either.

He could have made sure that the pharmaceutical industry had energy, had the sufficient organization behind it to make the medicine, not only import and assemble certain medicine, he could have made sure the sugar industry was profitable and had the equipment to make the refined sugar used in the pharmaceutical industry. However, both is a lost cause, because it takes money and time. Both, is something he doesn’t have, since the narrative isn’t making him wealthy.

Alas, he we are at the status quo, with a President running for life and complaining about waste. When he has wasted 32 years and not made effort to change it. It is all talk and no fire. Peace.

FIFA SG Samoura sends out early warning to the Football Associations on the bidding process for the 2026 World Cup!

FIFA under the new Secretary General Fatma Samoura are trying a new approach considering the start of the process, when getting the host nation for the FIFA Football World Cup 2026 after the biggest frauds and kickbacks of late concerning South Africa, Qatar and Russia. Now, the organization after the case against itself in United States and the fall of Sepp Blatter. Surely the new FIFA President Gianni Infantino wants a change too! They are trying to swiftly change the organization, that is why Samoura has sent a letter to all Member Associations, to follow the 5th Principal in the Bid Rules of Conduct. Where it says:

“(i) conducting their own activities in relation to the Bidding Procedure in accordance with basic ethical principles such as integrity, responsibility, trustworthiness and fairness; (ii) rejecting any attempt to be influenced in relation to their function and obligations in relation to the Bidding Procedure; (iii) rejecting any gifts offered by any Candidate Host Associations, any of their bid consultants and/or nominees, unless such gift: a) only has symbolic or trivial value; b) excludes any influence for the execution or omission of an act that is related to their official activities or falls within their discretion; c) is not contrary to their duties; d) does not create any undue pecuniary or other advantage; and e) does not create a conflict of interest;” (2026 FWC Bidding Regulation).

In the letter from the Secretary General Samoura, it states very clearly to all:

“Notwithstanding the clarifications below, in order to ensure a fair and transparent bidding process, all football officials shall always conduct all of their own activities in relation to the bidding process in accordance with basic ethical principles such as integrity, responsibility, trustworthiness and fairness. Therefore, irrespective of the clarifications below, it must be understood that the Ethics Committee, as an independent judicial body, may, on its own initiative and at its full and independent discretion, decide to investigate whether any activities in connection with the bidding process are of an unethical nature by, for instance, creating an undue influence on the bidding process in violation of the FIFA Code of Ethics and further specific rules contained in the Bid Rules of Conduct pursuant to article 5 of the Bidding Regulations” (Fatma Samoura – ‘Further guidance on the Bid Rules of Conduct for the process to select the host(s) of the 2026 FIFA World Cup™’ 19.02.2018).

The FIFA Secretariat and Central Governing body is sending out a warning as the process is starting. Since they don’t want to have knowledge of or knowingly have people acting in bad faith or trying to corrupt fellow members. Even if that is the history of FIFA and the leadership of Joao Havelange and Sepp Blatter. They have done it with fineness and used time to fix the associations in their way, so they could find ways of using sport to get wealthy. That is well-known. Surely, Samoura want to change that paradigm and therefore write this letter to secure the process.

And you know that FIFA is afraid of getting corruption scandals, when Samoura has to type this:

“Accordingly, if a confederation, a regional association, a grouping of member associations or any individual member association is approached by a bidder offering a presentation of its bid, it is in principle fine to accept such an offer as long as the principles of fairness and transparency are respected. Therefore, in such an event, please notify FIFA in writing about any such offer from a bidder, but please also accept the offer of a presentation by the competitive bidder, offering both bidders the same format and attendance” ((Fatma Samoura – ‘Further guidance on the Bid Rules of Conduct for the process to select the host(s) of the 2026 FIFA World Cup™’ 19.02.2018).

So now if let’s say the United Kingdom wants to have the bid in Europe and the want to present it to France and Germany, than they have to notify FIFA and also allow the same delegation to travel to another bidder. Not make it exclusive, to make sure the process isn’t paid off as in the past. This will make the bidding process more hectic, but hopefully more transparent. Since it has been filled with PR Stunts and sudden pay-offs in the past, but not shown in public what is happening behind the scenes.

We can hope that FIFA is trying to change and not using words flamboyantly, to trigger the press and associations, that the process will be transparent and fair. However, their history is known of paying of minor or poor organizations to get the needed votes, also to make sure the confederates of several regions are getting a slice. To make sure the bidding nation get the swinging votes. We have to see if this can be altered, if the corrupt machinery can be stopped. That would be interesting, even if you take the head, the body is still the same. We just have to wait and see, if some skeletons comes out of the closet or not. Peace.

Maldives: LAM raises concern over the effect on Tourism due to political issues (21.02.2018)

United Nations High Commissioner for Refugees steps up support for Uganda’s refugee programme (20.02.2018)

The data verification exercise is scheduled to be completed by September 2018 – including introduction of biometric checks at food distribution sites.

GENEVA, Switzerland, February 20, 2018/APO Group/ —

UNHCR, the UN Refugee Agency, announced today new measures to support the government of Uganda’s refugee programme, including through a major biometric data verification exercise.
“We are taking extremely seriously recent developments in Uganda. The refugee programme in this country is of critical importance, given the scale of the emergency and the role model played by Uganda in welcoming and receiving so many people seeking international protection,” said UNHCR’s Assistant High Commissioner for Operations, George Okoth-Obbo.

“On 1 March, in support of the Ugandan government, we together with our partners are launching a massive biometric verification exercise of all refugees in Uganda. This nation-wide re-enrolment and verification process will be key to help the government in fixing discrepancies in refugee data,” added Okoth-Obbo.

UNHCR has already deployed staff, with partner emergency teams, to start the exercise. In total, more than 400 staff will register refugees.

The data verification exercise is scheduled to be completed by September 2018 – including introduction of biometric checks at food distribution sites. The tried and tested UNHCR biometric system has already been used in 48 countries across the world and helped register some 4.4 million refugees.

In parallel, UNHCR’s independent Inspector General’s Office is rigorously pursuing its own oversight and due diligence measures, including investigations of several serious allegations received in 2017 on fuel embezzlement, one allegation of sexual exploitation and abuse, irregular tendering of water trucking, and fraud in procurement and food distribution.

Uganda initiated a probe in January after reports received by UNHCR and the World Food Programme (WFP) alleged corruption and grave misconduct by government officials involved in refugee assistance.

“Let me be crystal clear: the allegations reported so far are not focused on UNHCR. Our investigations aim at supporting the recently launched probe by the Ugandan prime minister to fight corruption and grave misconduct by its officials,” said UNHCR’s Okoth-Obbo.

“At UNHCR, we have zero tolerance for misconduct, abuse and exploitation. Every possible report or allegation is thoroughly assessed,” stressed Okoth-Obbo.

Allegations concerning other UN agencies or implementing partners have been referred to the respective organizations for internal investigation, and those concerning government staff or entities have been referred to authorities in Uganda. UNHCR is closely monitoring the outcomes of these investigations and is closely cooperating with the Ugandan authorities and other partners.

UNHCR is also strengthening its monitoring and oversight to prevent a reoccurrence of the events, including the deployment of more senior staff to help put in place additional safeguards.

These new measures are being implemented as the current Representative is reaching the end of his term and a more senior replacement is about to arrive.

“Throughout his time in Uganda, Mr Bornwell Kantande has demonstrated deep commitment, steering the UNHCR operation in a particularly challenging environment characterized by multiple refugee influxes, with Uganda now hosting the largest number of refugees of any country in Africa. After almost three years as Representative, he will shortly move to a new assignment and in the meantime continues to enjoy my full support and trust,” said UN High Commissionner for Refugees Filippo Grandi.

Uganda provides protection to well over one million refugees, keeping an open-door policy for people fleeing conflict and persecution.

“We need a strong and collective response which aims at strengthening the refugee programmes in Uganda, while drawing lessons from the current situation,” concluded UNHCR’s Okoth-Obbo.

Brexit: ERG Officers Letter to PM Theresa May demanding “full Brexit” (16.02.2018)