Ethiopia hit by a new strike: the ‘Anti-Tax Strike’ in Amhara and Oromia Region!

Again, has the TPLF and Ethiopian People’s Revolutionary Democratic Front (EPRDF), the Central Government from Addis Abeba has made decisions to hit the Amhara and Oromia Regions. This time not only with arrests and detaining people who are protesting. At some levels they sent soldiers and Aghazi squad to assassinate protesters. So now they have levied extra taxes because of the cost of the military expenses in the region. Which is offensive as the Central Government are already oppressing them with guards and bullets, now they will target these civilians with higher taxes. This is shutting down the profits and businesses. Therefore, the Anti-Tax strikes are reasonable, as it is an open-air theft of the labor and enterprising people of the Oromia and Amhara. Just take a look!

The new government proposal to boost the tax base and raise much-needed government revenue is facing different forms of protests in the country, especially in Oromia region” (Dahir, 2017).

The Addis Standard newspaper says that last week residents in one city, Ambo, damaged two state-owned vehicles, and this week businneses in other cities have shut in protest. The new tax is being levied on small businesses with an annual turnover of up to 100,000 birr ($4,300; £3,300) in an effort to boost the tax base and raise much needed government revenue. But the Addis Standard reports that business owners say tax assessors have over-estimated their revenue and are demanding too much”

Strikes have been reported in Shebel Berenta, Woreta, Dessie, Woldia while flyers calling for strikes have been distributed in a number of localities in north Shewa. As the strikes in the Oromo region have continued, Jimma Arjo district, 50 kilometers outside Nekemte has come to a standstill, according to reports reaching ESAT. The tax assessments on small businesses and vendors has faced push-backs by business owners who say assessors have overestimated their daily sales” (ESAT, 2017).

So the state, who has put the whole state under ‘State of Emergency’ last October 2016 are now targeting the rebellious regions and hurting them not only with the parts of their freedoms, but also their pockets. Just because the Central Government cannot act fair towards Amhara and Oromia, they have to sanction more taxes and pay for the security outfits there. The ones types of Police and Army that oppress and hurts the area. That is one of the reasons why the rebellion are there in the first place. If the government acted legit and was representative, then they wouldn’t need to reinforce and use Aghazi force to suppress the public.

With all of the measures done by the TPLF/EPRDF in Addis, they are not feeling the hurt or seeing the vicious attempt of governing. When the civilians are tormented and taken hostage by the army and police. Now they have to pay extra taxes to salve the government spending on these hostile forces. It is insane and shows the illegitimacy of their insurgency. They are like a foreign force in their own state and therefore, they act like it is suppress the regions a bit more. This time by the pocket, as their stolen liberty and freedom has already been taken. Like all the provisions in the State of Emergency, which take away most of the ordinary freedoms. They have even suspended dozens of papers and televisions stations. For long time taken away the telephone and internet to silence the information from the regions. So it is not like the State has not done what it can to suppress, this is one more measure in a long line of offensive moves by the EPRDF. Peace.

Reference:

BBC – ‘Ethiopia hit by anti-tax protests’ (22.07.2017) link: https://www.addistar.com/2017/07/18/ethiopia-hit-anti-tax-protests/

Dahir, Abdi Latif – ‘Ethiopia’s Troubled Oromia Region Has Been Hit with Anti-tax Protests’ (19.07.2017) link: http://onlineethiopia.net/2017/07/ethiopia-oromia-hit-anti-tax-protests/

ESAT – ‘Ethiopia: Anti-tax strike spreads to the Amhara region’ (21.07.2017) link: https://ethsat.com/2017/07/ethiopia-anti-tax-strike-spreads-amhara-region/

House of Lords recommend flexible approach to migration because of Brexit!

The United Kingdom and their tales of glory, the former Empire and giant industrial hub of Europe, clearly have forgotten their place and trying to distance themselves from Europe. It will not be as easy as the Brexiteers and the Conservative Party. The Tories has to find their way while the negotiations are continuing with the European Union (EU). The leaving will cause grand-issues with migrations and also how the borders will close or be have different visa procedures. Therefore, the labour market and businesses will be hurt by this. Not only the direct trading between the UK and EU, but who get ability to be hired and who cannot come and work in low-educated jobs and low payed jobs. This is what the House of Lords looked into, and it is important to look into the matter. Because the matter isn’t straight forward. The answer is more flexible than what the UKIP and Brexit supporters inside the Conservative Party. Just take a look!

Labour and Immigration:

EU nationals make up 7 per cent of the total workforce. The Labour Force Survey provides estimates of the number of EU nationals working in particular sectors and the proportion they make up of the overall total. For example, the concentration of EU nationals is significantly higher in some sectors, reaching 14.2 per cent in accommodation and food services” (House of Lords, P: 19, 2017).

We strongly recommend that the Government develop a new immigration policy for implementation once the UK has left the European Union. It should consult on the needs of business and on a

time frame for implementing the new policy. Any new immigration system should not make an arbitrary distinction between higher skilled and lower-skilled work on the basis of whether a job requires an undergraduate degree. British businesses must have access to expertise and skills in areas such as agriculture and construction that would at present be categorised as lower-skilled occupations” (House of Lords, P: 24, 2017).

Lack of Migration workers – higher cost for consumers:

As some of our witnesses highlighted, pay is not the only consideration but there are now a large number of migrant workers in some sectors who will not easily be replaced by domestic workers. Competitive labour markets will see some price adjustment in response to labour shortages, with an associated increase in local labour supply. However, in some sectors, business models may have to change. As noted in the example of agriculture, this is likely to lead to higher prices for consumers” (House of Lords, P: 26, 2017).

We warned in our 2008 report on immigration that employment of migrant workers could lead to businesses neglecting skills and training for British workers. As the example of nursing highlights, these fears appear to have been realised. Training for the domestic workforce needs urgently to be given a higher priority” (House of Lords, P: 28, 2017).

The Government must also acknowledge that in order to achieve some of its other policy objectives, such as building 225,000–275,000 new homes each year, lower-skilled immigration may be required in the medium term to provide the necessary labour” (House of Lords, P: 31, 2017).

The objective of having migration at sustainable levels is unlikely to be best achieved by the strict use of an annual numerical target for net migration. Instead, such a target runs the risk of causing considerable disruption by failing to allow the UK to respond flexibly to labour market needs and economic conditions, as the Secretary of State for Exiting the European Union has suggested is necessary. The objective of reducing migration to sustainable levels should be implemented flexibly and be able to take account of labour market needs, in particular during the implementation period” (House of Lords, P: 37, 2017).

You can easily see and envision the lack of agricultural short-term workers for heavy and low-paying jobs. This has to be hired by others and if they are UK citizens and such, they will not work for slice, but wont the whole pizza. That is why the end-game will be more cost for the consumer for what they in the past paid less for. Since the salaries of the UK citizens over the migrant worker are vastly different. Also, the possible problems of getting enough nursers and other educated to take the low-paying civil servants positions needed in the National Health Service. The House of Lords report can really show the implications of the migration and labour market the Brexit will have. Unless, the UK are planning such a soft border and open for EU nationals, than the changes will not be like night and day, but more like a similar day and just a little bit later on the same day.

Then the whole anti-Europe parades and campaigning lost. Since the Brexit became a shell of what it was supposed to be. It will be good for Europe and a pain for the Right in the UK. Certainly, the Farage’s of the world will hate this sort of report. Since the needed flexibility flexes against the will of the UKIP and Brexiteers amongst the Tories. They will be attacking this sort of report. Even if the Lords are impartial and uses accurate data. This shows the estimated effects of Brexit and the words of the Lords wasn’t dim! It can bring hope to Europe, but if the government will follow the recommendations and advise from the Lords; is something that time only can tell. Since the Tories would be showing weaker will to implement the idea behind the Brexit election, if they follow the advice of the Lords. That is not a easy bargain, but who said it would be? Peace.

Reference:

House of Lords – HL 11 – ‘Brexit and the Labour Market’ (21.07.2017)

Pardon me Trump, but you are not above the law!

It is one of these rare moments, when the powerful and executives understand how hard their case are failing, how much dirt and how much sinister outrage that will come out an investigation, that they will do and use all kind means to get there. That is the state of affairs within the New York Gang aka White House aka Trump Organization aka Russian Mob. There are just too much collusion and shade of grey to cease to amaze. The connections and inner-works. If President Trump was innocent, he would threat and sack law officers like James Comey or trying to figure out how to do it to Special Investigator Robert Mueller. He would have continued to spend time at Trump Resorts and played golf. Instead, he does this:

“Trump has asked his advisers about his power to pardon aides, family members and even himself in connection with the probe, according to one of those people. A second person said Trump’s lawyers have been discussing the president’s pardoning powers among themselves Trump’s legal team declined to comment on the issue. But one adviser said the president has simply expressed a curiosity in understanding the reach of his pardoning authority, as well as the limits of Mueller’s investigation” (Washington Post, 20.07.2017).

It seems like the President knows his predicament and trying to figure a way out and not leave scores of hurt for his family and his empire. Since Mueller is extending his team and his efforts into investigations. That is why Trump are disgusted with Attorney General Jeff Sessions, who recused himself from the Russian Probe and answered out of loyalty to the Senate. Certainly, the tale of how the President will maneuver and act is not predicable, but he will only act in own interests and not for the sake of justice. If so, he would have given more funding to the works that former FBI director Comey was doing. Alas, he did not. The specialness out of it all, is that President Richard Nixon, asked the same questions about possible pardoning of himself and his team. Just days before his end of reign. Here is what the then Department of Justice representative wrote on the matter in 1974!

“Presidential or Legislative Pardon of the President:

Under the fundamental rule that no one may be a judge in his own case, the President cannot pardon himself. If under the Twenty-Fifth Amendment the President declared that he was temporarily unable to perform the duties of the office, the Vice President would become Acting President and as such could pardon the President. Thereafter the President could either resign or resume the duties of his office. Although as a general matter Congress cannot enact amnesty or pardoning legislation, because to do so would interfere with the pardoning power vested expressly in the President by the Constitution, it could be argued that a congressional pardon granted to the President would not interfere with the President’s pardoning power because that power does not extend to the President himself. August 5, 1974” (Mary C. Lawton, Presidential or Legislative Pardon of the President – 1974).

So now, the President is looking for a way out. The road ahead looks rocky for the President who has internal shake-ups and well as finding the best way out the scandal and mess. Who does not look better for by every day that passes by. The more people look into his business, his New York Gang and everything with his name. It turns sour.

Just as CBS News reports: “There’s been a shakeup in President Trump’s legal team. Marc Kasowitz is out as Mr. Trump’s personal attorney, CBS News chief White House correspondent Major Garrett reports. And Kasowitz’s spokesman, Mark Corallo, has resigned, Garrett says.The reasons for the moves were not immediately known” (CBS News, 2017).

The legal team that now have to defend the President is Ty Cobb, Jay Sekulow and John Dowd. Clearly, these men has enormous challenge ahead as the legal case are growing and the relationships, the financial transactions and the whole Trump Organization is scrutinized by the Mueller investigation. Nothing is left to fate and see, it is checked and verified by the ones who has the authority. Even as the threats and the rumors of firing Mueller have come as well. Just as he fired Comey, but how much tampering with his own investigation can the American people.

If he we’re to fire Mueller, he had to fire Attorney General Sessions, who would give way to Deputy AG Rosenstein, who could appeal the Special Counsel, but if he doesn’t, that means that the President has to fire him as well. Than if possible repeal the act that gives authority to the investigation. That seem far-fetched, but if all botched ideas comes into play and Trump see this as a way out.

My final question, if this Russian Probe was not anything and had no real life effect. Why would Mr. President try to figure out the Powers of the Presidential Pardons?

Since, that is not an authority sanctioned with ease and for fun, except to few turkeys now and then. The rest of the time to serious offenders or for people wrongfully detained and incarcerated. That sort of act has not been done in favor of people close to the President and his family. Clearly, the President thinks that he is beyond and above the law. Peace.

Reference:

Carol D. Leonnig, Ashley Parker, Rosalind S. Helderman and Tom Hamburger – ‘Trump team seeks to control, block Mueller’s Russia investigation’ (20.07.2017) link: https://www.washingtonpost.com/politics/trumps-lawyers-seek-to-undercut-muellers-russia-investigation/2017/07/20/232ebf2c-6d71-11e7-b9e2-2056e768a7e5_story.html?hpid=hp_hp-top-table-main_trumplegal-925pm%3Ahomepage%2Fstory&utm_term=.a25bf0c8e0ad

CBS News – ‘Marc Kasowitz and Mark Corallo depart Trump’s legal team’ (21.07.2017) link: http://www.cbsnews.com/news/corallo-kasowitz-depart-trump-legal-team/

U.S. Treasury fines ExxonMobile meager $2m for violation of the Russian-Ukraine Sanctions!

Some days you wonder if the connections of the New York isn’t to strong for the moment. When the joys of their loot and their power is not making them lose their senses. The common sense is clearly gone, as the company formerly run by Rex Tillerson, the now State Secretary of United States. Who couldn’t care less about the relationship between the United States of America and the Russian Federation. As the illegal and not internationally accepted annexation of the Crimea from the Republic of Ukraine happen. Still, even as that was happening the former Standard Oil baby ExxonMobile decided to be a trading partner and create opportunities in the vast resources in Russia and Russian territories. Now today they we’re fined, but that was a little slap on their wrist, as the real wealth inside the deal shows how much they really could have earned. Therefore, the crime and the penalty doesn’t fit. The Company gets away with a heist, but has to pay small interests for doing so. Now they are waiting for the possible time for their giant payoff and this will be simple write-off in their results in the next quarterly estimates. This sort of fine isn’t that serious, as it can easily chop it off and continue to eat.

First we will look into what the Wall Street Journal wrote about the deal between Russia and ExxonMobile, the second and third are about today’s fine and you see why it insulting fine to give.

A U.S. official said the new penalties would affect Exxon’s current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft, though the extent of the impact was unclear Thursday. No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas. Officials in Europe, which has extensive trade links to Russia, have insisted that Western nations share the fallout from sanctions against Moscow. Russia has said it would retaliate against additional sanctions with measures of its own, further heightening the risks to companies operating there, legal experts said. Exxon is “assessing the sanctions,” said Alan Jeffers, a company spokesman. “It’s our policy to comply with all laws.” (Gilbert, 2014)

ExxonMobil Corporation Assessed a Penalty for Violating the Ukraine-Related Sanctions Regulations: ExxonMobil Corp., oflrving, Texas, including its U.S. subsidiaries ExxonMobil Development Company and ExxonMobil Oil Corp. (collectively, “ExxonMobil”), has been assessed a civil monetary penalty of $2,000,000 for violations of the Ukraine-Related Sanctions Regulations, 31 C.F.R. part 589 (Ukraine-Related Sanctions Regulations). Between on or about May 14, 2014 and on or about May 23, 2014, ExxonMobil violated§ 589.201 of the Ukraine Related Sanctions Regulations when the presidents of its U.S. subsidiaries dealt in services of an individual whose property and interests in property were blocked, namely, by signing eight legal documents related to oil and gas projects in Russia with Igor Sechin, the President of Rosneft OAO, 1 and an individual identified on OF AC’s List of Specially Designated Nationals and Blocked Persons (the “SDN List”) (referred to hereinafter as an “SDN”)” (U.S. Treasury, 20.07.2017).

OF AC considered the following to be aggravating factors: (1) ExxonMobil demonstrated reckless disregard for U.S. sanctions requirements when it failed to consider warning signs associated with dealing in the blocked services of an SDN; (2) ExxonMobil’s senior-most executives knew of Sechin’ s status as an SDN when they dealt in the blocked services of Sechin; (3) ExxonMobil caused significant harm to the Ukraine-related sanctions program objectives by engaging the services of an SDN designated on the basis that he is an official of the Government of the Russian Federation contributing to the crisis in Ukraine; and (4) ExxonMobil is a sophisticated and experienced oil and gas company that has global operations and routinely deals in goods, services, and technology subject to U.S economic sanctions and U.S. export controls” (U.S. Treasury, 20.07.2017).

So it’s okay, the company ExxonMobile was fined for intervening in a Republic and inside a state where there was clear sanctions against trade. That was something Rex Tillerson knew and also the Russian counterparts, but ExxonMobile didn’t care. They just wanted the profits and earn on the fragile arctic and also into areas like the annexed Crimea. This shows the intent of profiting while being under sanctions and not respecting the laws of the United States and being a registered company residing in the United States.

This show the ethical backdrop of the New York Gang and the Administration of today, we cannot know how much the company earned before the stop between Rosneft and ExxonMobile. The suspension of activity between them. What we can imagine is that it was vastly more than the little they paid for breaking the law. Peace.

Reference:

Gilbert, Daniel – ‘Sanctions Over Ukraine Put Exxon at Risk’ (11.09.2014) – Wall Street Journal

The New York Gang operates with quid-pro-quo to Russia, while Russian Probe continues!

The more drip drops of intelligence and inner-works of the Trump Campaign. The more will know of the New York Gang operates, since the Russian ties does not stop. Secondly, the favorable approach came to standstill yesterday. When the U.S. State Secretary Rex Tillerson plans to shut down the Cyber Office of State Department, which is suspicious when hackers had tampered with the last election. Seems, like a helping hand from the U.S. Government there.

That was not it yesterday, CIA suddenly gave way to President Bashar Al-Assad and a Russian Ally of President Vladimir Putin in the Middle East, as they suspended their program to train and equip moderate opposition forces fighting the third generation tyrant. What a noble approach up-easing the relationship with the Russians, while giving way to the Syrian government to do as they please in the midst of the long continued civil war.

While earlier this week, the President Trump had two meetings with Putin at G-20, one disclosed, another one failed to mentioned, again the second one alone and only with Russian translator, none from the U.S. State to confirm the discussions. Just like the secret unknown talks in the Trump Tower at 9th June 2016, the talks between the Presidents was about adoption. Well, if it has to be a secret, surely they must eventually adopt the Trump Family. They seem so like connected families by now.

The New York Gang and all their ties are now getting into bonkers levels. The GOP does not say anything or intervene. They look idly by hoping the flames of destruction does not hurt them. However, it will, since the President are a part of them and their campaigning was a collective effort. Not like the GOP can be like a fish out of water.

That Donald Trump Junior in the past has been in Russia as speaker, beneficiary and he has even spoken highly of the profits made in Russia. The same has Eric Trump done, he has bragged about the money coming in from there. Even Ivanka Trump has been on vacation with the girlfriend of the Russian President. The ties between the Trump’s and Russians are insane. Therefore, the praises of the Russian President and the warm relationship between is not so strange considering it all.

That Kremlin and Moscow have nurtured it would not seem strange considering they have worked on the man since the 1980s and has steady efforts all along. Many times Trump has said the Russians been good to him in the press over the years. Therefore, the conspiracy is not so hard to grasp when considering it all. Secondly, the unwillingness to show the IRS Tax Returns, to open books for the public of the Trump Organization as they are called a Russian Laundromat, as part of white-washing operation from Moscow. Could clearly be obvious reasons for the lacking of transparency of the family corporation?

That now in the press today to NYT are mad at Attorney General Jeff Sessions for recusing himself from the Russian Probe and wished he hired someone else. In addition, not believing his answers at the Senate Hearing, which was charade of answering, not as if he tried to come forward with an honest testimony. This shows the inner workings of the President. As his loyalty and that, he thinks he can stand beyond the law. As the case against him will be strong and have all the factors in it. The firing of FBI Director James Comey and all the other trying to stop further investigations.

President Trump fury over Sessions comes from the recusal, since that leaves him powerless to fire Special Investigator Robert Mueller, who are digging at the pockets of Trump and looking into his family members in and around the White House. Which are obviously dangerous for Trump and all of it would possibly hurt him, therefore he is willingly firing Deputy Attorney General Rosenstein or repeal the Special Counsel Regulation, but by then he would have tampered with the investigation twice. Clearly, showing the wide world that this is not conspiracy of crime, but actually acts of crime.

There are massive lose ends, the bank loans to his businesses. The workings of Bayrock LLC, and the other parts of the Trump Organization that the New York Gang ran together. All of the men who is advisors and such in Campaign team who had ties to Russia, who had meetings and certainly did not disclose it all when entering in the White House. The amounts of lies and deception should frighten anyone. Seemingly, even with all of this and possible collective shutdown of sincerity does not affect the Republican Senators or Representatives, they just let the Trump family run wild in the White House.

So when the investigation get into the monies of the Trump Organization and get the paperwork for New York Gang operation, than the Trump Presidency going to ballistic. It has already proven it by sacking Comey and Bharara for getting to close to the honey pot and now it seems like the whole ordeal will happen again.

This is not just about a meeting with a group of Russians the 9th June 2016, this about collusion and also about the intricate relationship between the Trump Family and associates, that all have been included in the cabinet and gotten leadership roles in the New York Gang administration. That also the GOP and the RNC silence shows the hostile takeover, as even Paul Ryan knew about and certainly also Mitch McConnell. Since none of them are acting upon the subpoenas or hearing amongst the top officials around Trump. This scandal will not make United States better, but clearly, that Putin has made American governance into chaos and gotten a bargain.

That Jared Kushner, Donald Trump Junior and Paul Manafort has to testify to Senate hearing is all good, while they have time preparing their defenses. Clearly, Kushner who has lied on security clearance dozens of times already will have to work hard with attorney to fix the stories. Donald Trump Junior has only on the 9th June 2016 meeting had three different tales about that, what about all the questions coming up and what will Manafort do when they corner him on the economic ties to Kremlin and others, will he not recall as well like Sessions?

Time will tell, but the speculation combined with the erratic behavior of Trump do not make it easier, especially considering his tendency to fire and suspend operations when he can. Seems like it is impossible for him to build anything. Been a long while ago since he made something genuine. All the Russian connections, the Russian business associates, the secrets meetings, the lies and the drip drop just shows how they infiltrated it all. Since they knew if they come forward, they would seem like workers for the Russians and not representatives for Americans. Peace.

Remember the MPs that supported the abolishment of Article 102(b)!

There are now several strong voice for the abolishment of the Article 102(b) in the Ugandan constitution. These fellow Members of Parliament (MPs) are all from the National Resistance Movement (NRM). They are Fred Mwesigye of Nyabushozi, Evelyn Anite of Koboko, Juliet Kinyamatama of Rakai, Peter Ogwang of Eastern Youth MP, Kenneth Omona of Keberamaido, James Kakooza of Kabula (Lyantonde District) and Ibrahim Abiriga of Arua. These voices are really explaining the need for change of it and wants to succeed. Surely, also the ever-loyal cadre Kahinda Otafiire, who was not even elected to the 10th Parliament, will not accept scrutiny of the proposed amendment.

You also have others from the NRM praising their master and wanting to show support of the old man with the hat. These are David Mafabi, Stephen Othieno and Phoebe Namulindwa, who are saying it is positive to lift the age limit. Clearly, those all see themselves inside a money shower and hoping to cash in some strays.

What we can know by now, all of these people supporting life presidency of President Yoweri Kaguta Musveni, does so because they want to exchange the constitution for possible monetary gains. This is not done out of love for their country or patriotism. That ship has left port, those ideals they are sold and the dream is gain fortunes while in office.

Therefore, what the people can do is remember the ones who stood on the barricades and opened the barn door. Remember they do this because they are afraid of what happens when the Museveni era stops. Than they might have to try to get ordinary jobs and actually work for a living, not only doze off while begging for more state reserves and funds for their possible projects.

These MPs are hunting for goodwill from their master and hope he donate, they hope for Presidential Handshakes and personal meetings at the State House, where he can give needed support and balance their efforts. So that his or her star can rise and hope it means more than just be another crony!

These acts are just vile attempt for exhaustion and gain possible advantage, since they can show that to Museveni. We are loyal and we want you, nobody else can rule this glorious nation and no one has the skill like you. That is initially what they are all saying; just using other words and appeal differently. So he can repay for their efforts and their will to let him succeed.

Remember these MPs and the ones in their constituencies should not forget, so they should vote for whoever else standing against them in the next election. Since these people traded away governance and service delivery, they traded away the constitution and its principals for possible monetary gains. These people of the Parliament are the ones you cannot trust. Because they traded the principals of the constitution for a few coins of silver.

Let that be known and heard, let the radios speak ill of their names, let the TV-Debates criticize their legacy and their own status. They traded it all for personal gain, they was not there for their constituency, but for themselves.

They are hoping that a short con can earn itself in the long run. However, let it be known that it does not apply. The trade-off will be shortsighted and the earnings will be gone in wind. Peace.

Correction of factual Inaccuracies by The Observer News Paper concerning Ernst & Young (EY) as the auditors of Crane Bank (17.07.2017)

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

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