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Archive for the category “Economy”

Opinion: Kenyatta’s Week of Anger

It seems like its been a week of anger in concern of President Uhuru Kenyatta. It is hard to know why he suddenly gotten so mad. Maybe the fuzz of the beers or whatever he drinks doesn’t work anymore. Maybe some international organizations doesn’t want to borrow money without to many strings anymore. Who knows? But certainly, his not the happy, go lucky President of the past.

Kenyatta has gone after the ones claiming he was silent. He has targeted the ones who commented on the BBI Report before it was published. Uhuru has addressed the Tanga Tanga and Ruto allies. But not in friendliness, but straight forward attacks.

First with the silent quote, before the carrying own cross!

They see me silent and think ‘he is just there and knows nothing. There is nothing I do not know and when the time comes, I know those who speak and they are not those who are speaking now. When the time comes, we will come and we will speak to you about what we will do. Mwaka mpya, we are with you. Let’s just first listen to their lectures. We are with you” – Uhuru Kenyatta on the 4th December 2019

Please let us not politicize the war on corruption. When an individual is stealing public resources he doesn’t do so on behalf of his family or community. Therefore, anyone who is implicated should carry their own cross” Uhuru Kenyatta on the 8th December 2019

With this he shows that his made and furious. Not that Kenyatta haven’t shown that before. He has whined before in public about his war on corruption. Not that its believable, because his closest cronies and known grand corruption scandals, which are not touched or have had any consequences. They have just gotten appointed elsewhere or gotten away scotch-free.

That is why his anger and frustration only seems forced. That the President only says this things, because he knows this is the right thing to say. However, his actions and his state of affairs is saying otherwise. That is why its not believable.

It is a mirage, that the President think he can create on his own. He thinks he can build it and make the image of it into reality. When its only a creation of his own imagination. The President can continue with his harsh words, warn and talk of sanctions. The President can continue to assault one part of the political elite or professions, but that wouldn’t change anything.

Kenyatta can act mad, can act sad or even glad. Nevertheless, the real actions are shown with what he borrows, the debt-ratio he leaves behind, the state deficit and the lack of good results from his time in office. That Kenyatta have little to show compared to the Big Four promise or the other pledges. Is because the state has been busy doing other things and securing their time to eat. The President has accepted it too, because he has eaten too.

That is why, the current outcry and stable battle against corruption goes old. When it really isn’t targeting the ones on the top, but the small fringe players and the ones whose has their turns. That is why Kenyatta can play and think PR speeches will save his behind. However, it will not. It is a lot of noise, but no real action. Peace.

Opinion: Mr. President your late to the party…

I have a hard time believing that President Yoweri Kaguta Museveni and the National Resistance Movement (NRM) will stop creating districts, sub-counties and whatever local government administrations in the Republic. They will never really cease doing so, because they constantly carved the Republic into tiny pieces. So, that every single Sub-County today can become a district in the near future. It should be a joke, but looking at history, than it isn’t far-fetched at all.

By seeing this one piece from the New Vision:

In 1986 when NRM took power, Uganda had 33 districts which increased to 81 districts by 2008. The districts increased to 112 by 2011, but reduced to 111 after the Capital city ceased to be a district” (John Odyek, Mary Karugaba and Moses Walubiri – ‘25 more districts created’ 19.07.2012, New Vision).

Than my own calculation from November 2019:

The State has continued to create the districts and sub-counties. In 2016 there was 112 districts and by 2021, there will be 135 districts. As well as there was 1,403 sub-counties in 2016, while in 2021 there will be 2057 sub-counties.

With knowing this and the knowledge of the mushrooming state. There is bit a late to cry foul over more town councils and the affordability. When during your time the state has gone from having 33 districts to 135 districts in 2021.

Therefore, this warning seems a bit late:

They are going to be too many and not affordable. Let the little money we have be concentrated first in maintaining security, building infrastructure(roads, railway, electricity, schools, and health centres) and not expanding administrative costs,”Museveni warned in November 28 letter to Butime. The warning by the president comes at a time when government recently announced the creation of 162 new town council that started being operational this year, whereas others will be operational by July 1, 2020” (Kenneth Kazibwe – ‘Museveni warns against creation of new municipalities’ 08.12.2019).

Because of this, I don’t believe the man. I really don’t believe the President and his motives here. It is weird that he has issues, when his made so many districts and sub-counties already. That creating further town councils only follows the modus operandi of the state.

Not like its a revolutionary idea from the state to make more. It would be more shocking if he started to merge sub-counties and districts. So, that it would be less districts and sub-counties in the Republic. In this current stage and time, that would have been positive and plans for actual change. However, than the devolution and the years of curving the districts. It would show the public that it was only political motivated and not really making government better.

That he warns about this in 2019 after 33 years in power and been so hyper-active with creating smaller entities. His surely the wrong man to signal the red-flag. Yes, the state cannot afford more town-councils and such. But that is because the state has already to many districts and sub-counties to pay for.

The state is already deficit financing, the mushroomed state, which the President and his men has created over the years. That is why, writing a letter this year isn’t solving anything or making a difference on the negative and expensive spiral, the President has started. The President knows this, but thinks this make him look smart. When it doesn’t, since his in charge of all these small entities and that will part of his legacy. He can cry now, but his crocodile tears are coming late.

He should have stopped before he created a 100 districts more in his time. Who knows how many sub-counties his created, but surely a 1000 by now. Than count the Municipalities and Town Councils, than you get humongous number. That is what bloated numbers sound like. Therefore, sending out warnings now is late from the old man, he should have done it long time ago, but he didn’t care. Peace.

Kenya: National Police Service – Press Statement on the Arrest of Nairobi Governor Mike Sonko (07.12.2019)

RSA: Eskom – Stage 2 rotational loadshedding moves up to Stage 4 from 14:00 today (06.12.2019)

Opinion: It was Sonko’s turn, apparently…

Arresting Nairobi City County Governor Mike Mbuvi Sonko will not solve anything. Neither will it change the ways this are done. Governor Sonko has just followed the footsteps of the previous governors and County Officials. Not it’s righteous or make it right to steal from the public coffers, but that is ingrained in the system. There was no significant change from Evans Kidero or anyone else before him.

The Presser of DPP Noordin Haji and his arrest order of Sonko will not do a big whoop in Nairobi. Than, the whole political elite and all the stakeholders has to change overnight. As they are working as business as usual. Yes, Sonko is a thief, his comrades is involved and his misused power. Nevertheless, in Nairobi, who hasn’t and who of the political elite isn’t benefitting at this current moment?

It is not like the slum-dwellers nor the citizens outside the posh areas feels significant changes from who reside as the Governor. It is just another head and another big-man, who has his time to eat. That isn’t inspiring nor justification for what Sonko did, but he does what everyone before him has done too in this role. Land grabbing, putting associates on County Boards and appointing friends as county officials. That is just what they do.

Before he got elected, he had already been convicted and a run-away prisoner too. So, he knows the rule of law and know what it entails to break it. He has served a stint behind bars and that’s not new to him.

If his corrupt, than his just as blimy and outrageous as plenty of the government officials and the ones running the Jubilee government. Not like the Jubilee have gone long and far between corruption scandals, neither the mere scope and the amounts of grand corruption too.

Therefore, Sonko has to answer for his misdeeds, unless they are baseless and taken out proportions. Some even claim this is the sins of the previous administration and Sonko trying to clear the bill. But that is up for his legal aid to defend the man.

Sonko’s time was up and suddenly he had to appear. Somehow, it isn’t far from being a high ranking official to be answering in courts. Even Cabinet Secretaries has gone from High Ranking Officials to felons overnight. Therefore, that Sonko does it now isn’t that special.

His just one con down, more to go. Wouldn’t be shocked if he got caught slipping and had cases against him with viable evidence. However, that is up to the courts of if the DPP has his paper-trail in order. It wouldn’t be shocking if Sonko got caught doing some illegal bidding and some tenders out of whack. That just meant he was the perfect target at this very moment.

Since the DPP and other agencies has targeted less friendly faces and ensured they have a bad day. Like Hassan Joho of Mombasa has already been under fire for other reasons. Therefore, that Sonko is in trouble today isn’t a sudden new trick of the sleeve. More another play and to show that someone gets charged for corruption.

If this plays out well and not a PR stunt, than the DPP and EACC has done their best. If he just get free and the case is dismissed. Than it was just a play for the façade and hoping that no one notice the charade. However, that is to early to know.

Nevertheless, when you elect a crook and a thief, don’t expect him to not steal. He will not turn into a preacher man and a saint, when he has already been charged with it in the past. That should be public knowledge and common sense, but apparently is not. Peace.

Sigulu Island: Ouma MP fix your sub-county, before you carve parts of it into a district

Thank you, Madam Speaker. I rise on a matter of national importance on behalf of the people of Bukooli Island, Namayingo District. Over 400 people in my constituency have either been killed or maimed by crocodiles”George Abott Ouma MP (Hansard, 9th May 2018)

I don’t know why George Abott Ouma MP of NRM and Bukooli Island County wants to curve parts of his county into a separate district. The teacher should be worried about the state of the sub-county, which its already in. Not what sort of function the local government has there. Unless, he wants it to be a district to get more automatic NRM MPs, because he ran without any opposition candidates against him in 2016.

We know the district has been in the news for the crocodiles eating the kids. As well, as the state not able to find enough seaman and the operational funding to operate the MV Sigulu going between Sigulu and Lolwe. Last report was that after the first testing trip, the ferry has been idle on the landing site in Jinja on the 30th October 2019. The MP should worry about that.

Secondly, a report on the 1st May 2018 stated this: “According to the Ministry of Health Annual Health Sector Performance Report for the financial year 2016/17, Namayingo District, where the Sigulu Islands are situated, was among the districts which showed the most decline in healthcare, scoring below the national average of 66.2 per cent and was ranked 103 out of 116 districts” (Ronald Seebe – ‘Sigulu Island residents struggle to access better health services’ 01.05.2018, Daily Monitor).

Therefore, the supposed part of the Bukooli Island County and the Sigulu Islands has enough trouble as it is. It doesn’t need a new status. That will not configure the situation on the ground. Like there is no emergency ambulance service on the island, also far to the closest health facility, that lacks electricity and equipment, which also happens to be understaffed under the bear-minimum by law. The health care is so bad locally, that the locals are taking costly trips across the border in Kenya to get health care, which is very expensive.

With all this in mind, if the Representative and the Member of Parliament cares about his constituency. He should help the state to deliver better budgets and investments of the basic government services like the schools and the healthcare facilities. That hasn’t been done since he got into office.

He has been able to report about the need for a ferry, which is on the way. But who knows when its officially going. Secondly, he should care more about the substandard level of local government, than the title of the local government. It will not generate more funds, but more substandard living. As the state will not care more directly for Sigulu island, if they become a state. Unless, he just want more MPs from the area.

Also, if Sigulu Island becomes one, wouldn’t the same happen with Lolwa Island, which is the other part of Bukooli Island County. That would make sense, not only make Sigulu, but Lolwa as well. But that would really be something else. As there are only about 215,000 citizens in the district of Namayingo. That means the Sigulu district would be really small and surely, easily for the MP to be an incumbent in.

This here should stop here, but at the rate and the way the government makes new district. It wouldn’t be shocking if this became one. As long as the MP can prove the need and the Parliament the need. However, shouldn’t he be more preoccupied with fixing the issues at hand, instead of creating new ones?

Seemingly, that is what it looks like. Since there is no need for another district in the Republic. It is a waste of funds and this sub-county already need to spend wisely. Since it doesn’t have a good record and need more care from its representative. Not just change something superficial to make it look grand. Peace.

Deficit Financing: MoFPED propose to borrow 2 trillion shillings to cover the budget shortfall!

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

In the original budget for 2019/20, the estimated domestic revenue of the state was about Shs. 20 trillion shillings, while the rest would be covered by close to Shs 10 trillion shillings in this manner the budget would cover the 40 trillion shillings. Today in Parliament, the debt trap, which was forecasted by several of Civil Society Organizations and others was proven.

Not only with the recent stipulation of the first Supplementary Schedule to the Budget Year of 2019/20, but also the lack of domestic revenue. This again proves the trouble with generating even half of the budget. As the Parliament are this week, either accepting borrowing 2 trillions domestically to boost the lack of domestic revenue. That means the Uganda Revenue Authority (URA) and the state haven’t delivered on the promise. As the state was spending more and more, but not having the funds to do so.

Therefore, if the state does this. Than, Shs. 2 trillions are loaned to cover for the lack of delivery, the lack of preparations from the government and the added costs of the local government units created. The government knows this, but acts surprised that state have to invest in it. That’s why they have a supplementary budget for it and surely there will be more schedules before the end of the financial year.

Just look at this:

To address the projected revenue shortfall presented in paragraph 3 and the additional expenditure pressures presented under paragraph 9, Government requires a total amount of Euro 600 million equivalent to UGX 2,439 bn (Two Thousand Four hundred and Thirty-nine Billion) to finance part of the budget deficit” (Ministry of Finance, Planning and Economic Development (MoFPED) – ‘THE PROPOSAL TO BORROW UP TO EURO 300 MILLION (EURO THREE HUNDRED MILLION) FROM STANBIC BANK (U) LTD AND EURO 3OO MILLION (EURO THREE HUNDRED MILLION) FROM TRADE DEVELOPMENT BANK TO FINANCE THE BUDGET DEFICIT FOR FY 2019/20, December 2019).

Given the revenue performance in the first two quarters of the FY 2019/20, the projected revenue turnout for FY 2019/20 is Shs 181575.18 billion, against the target of Shs 20,448.73 billion. This

reflects a projected shortfall of Shs 1,873.55 billion” (MoFPED, 2019).

In line with the above Section of the PFMA 2015, Ushs 437.631 billion representing 1.08% of the Approved Budget for FY 2019/20 has been authorized by the Minister of Finance, Planning and Economic Development as Supplementary funding. The purpose of this letter therefore, is to submit Supplementary Schedule 1 FY 2019/20 for consideration by Parliament. Please make arrangements for the Minister of Finance, Planning and Economic Development to lay the schedule before Parliament” (Keith Muhakanizi – ‘SUPPLEMENTARY SCHEDULE 1 FY 20I9/20’, 21.09.2019).

Rt. Hon. Speaker, in line with Section 25 (1) of the Public Finance Management Act, 2015 (as amended), I authorized and have accordingly submitted to Parliament Supplementary Schedule 1 amounting to Ushs. 437.6 billion for this FY” (MoFPED, 2019).

In line with the above, the budget for FY 20Lgl20 is facing the following constraints:

– URA shortfall in revenue of Shs 1,873.55 billion;

– Additional expenditure pressures of Shs. L,432.2bn

– Non-receipt of World Bank budget support funds of Shs. 375 bn

and

– Non-receipt of capital gains tax of Shs. 225 billion (USD 60

million);

10. The total revenue resource shortfall in the FY 2019/20 therefore amounts to Shs. 2,473.55 billion” (MoFPED, 2019).

We know this is serious, when the budget of the FY 2019/20 was 40 trillion. When 2,4 trillion of these have to get borrowed domestically. Even if 437bn of these are supplementary budget and wasn’t in the original budget of the FY. Still, the 2 trillion are a big slice to borrow and gain more loans. This is a debt trap, trapped by even more trap. As the tax-base isn’t growing as forecasted or as possible. By this estimation of the original budget, the domestic borrowing in this financial year would go up from about shs. 10 trillion shillings to about shs. 12 trillion shillings.

Because, with to much taxation, the funds are taken out of the circulation and isn’t spread as much. Not having the ability to generate more earnings for the citizens. They cannot spend, because they are actually paying taxes. That’s why you need sustainable taxes, which makes sense.

That’s why these loans are coming, because the state defaults on taxes, lacks the tax-base and doesn’t have the opportunity to gain the needed revenue. This the reality of the state. They will ask for the loans and add more debt. However, the government will not take responsibility for the acts done. The state are deficit financing and not generating revenue. That is why they are loaning even more debt. At a rate, which should worry anyone following it. Peace.

South Africa: Memo from the President to the Cabinet – Developments at SAA (04.12.2019)

Opinion: Parasites and lies, a walk against himself…

“I have never stolen anything from anybody. And I am also not a poor man”Yoweri Kaguta Museveni at the Walk Against Corruption on the 4th December 2019

Today, was the official walk against Corruption in Kampala, as the President, the Anti-Corruption Unit at the State House and all other governing parties involved muster up a decent crowd of paid participants, staff and whatnot, security guards and whoever they could find. To walk a distance in the midst of Kampala.

At one point, the guards and security told pieces of the march to slow down, because it couldn’t walk faster than the President. Even as he went to Kololo, he still went at a rate, that was to slow too many. This walk will not change anything. It is a PR Stunt, which will not gain anything fruitful. It is more public wastage in order of looking sincere, which it is not and will never, be.

“It is a moral problem because you make yourself a parasite. Corrupt people are parasites because they get wealth which they did not earn, because they think that God does not see the bad things they do. In the last 60 years, I have been watching and I have not seen these corrupt people being successful sustainably”Yoweri Kaguta Museveni at the Walk Against Corruption on the 4th December 2019

With this in mind, the President is truthfully telling the world that his rich. His vastly rich, Ritchie Rich, rich actually. However, the President doesn’t tell how he got there. It was not like he had wealth and assets going into the role of the Presidency. Not like he had estates, businesses and ranches going in. No, he was an impoverished former Minister, who had gotten grants by mercy of Nyerere and who was hired by Obote II. That is who he was until 1986. Therefore, his wealth has come with power and with incentives given to him over time, also boosting his accounts and also his cronies.

Secondly, if it is a moral problem, then its engraved into this administration. If corrupt people are insects and parasites, there is surely a lot of them in his cabinet, in his offices and around his closest associates. Himself is a parasite then. Because, he haven’t gained wealth on innovation, marketing or basic business models, but by being in-office and getting bargain by kickbacks and inside deals.

Last, but not last. We can say you Mr. President has been successful, gaining more and more power, more and more money and depleting the state, little by little. To a point, where nothing isn’t up for grabs, where secret deals inside the State House decides, if they are staying or going. The Presidential Handshakes and whatnot is the ones crediting to you. That is why walking today is obnoxious and outrageous. Only naïve and dumbfounded people believes this PR Stunt.

The man cannot fight himself. He will not tarnish his own creation and destroy what he keeps him there. Therefore, this is charade, packed as a rally and a march against something. But in the end, it will only further show the rot, the plight and the suffering the actions made by this cause. Peace.

Follow the Code: A secret walk against corruption

On 4th December, 2019, H.E the President of the Republic of Uganda will lead the walk code named Anti- corruption walk. The walk is aimed at intensifying the fight against corruption. The walk will start from Constitutional Square to Kololo and a number of people are expected to participate in this walk” (Uganda Police Force – ‘TRAFFIC MANAGEMENT PLAN FOR ANTI-CORRUPTION WALK ON 4/12/2019’ 03.12.2019).

Merriam Webster states that a code name means: “a designation having a coded and usually secret meaning” (“Code name.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/code%20name). With this in mind, I never believed that His Excellency or the President is serious about this.

This is the President whose have had issues with demonstrations, protests and rebellion. Therefore, his not the man whose walking against anything. He was a rebel at one point, but that was for his own cause. That is why his stayed in power since 1986 and never left.

With that in mind, the man whose known for having someone close to his office or cabinet connected in some corruption every single year. It is seemingly happening, there are like those proverbs in the papers saying: “Missing Funds”, “Unaccounted Donor Grants”, “Fake Corporations/Products”, “Ghost Employees” and so-on. Even knowledge of kickbacks, secret agreements between the President and Foreign Investors. That is just happens on the regular.

That’s why the President has created dozens of agencies supposed to have the ability to monitor the state organizations, businesses and tenders. This being the Inspector General of Government (IGG), Office of the Auditor General (OAG), Public Procurement and Disposal of Public Assets Authority(PPDA), Anti-Corruption Unit – State House or even the Financial Intelligence Agency (FIA). All of these are supposed to combat the ill called corruption. Still, these are not able to do so, neither are the Judiciary nor the Law Enforcement they are working in tandem with.

That is why the walk is even more ridiculous, as if it’s not the man whose the V.I.P or the Fountain of Honour, whose often involved or accepts the corruption. That being some road-scandal, illegal tender nor the Presidential Handshake. Neither some procurement for some government agency played around with to ensure someone got greased.

So, this walk against corruption. The man whose behind the grand-corruption and his party is usually connected directly in these operations. That is why tomorrows walk is walking against itself. This is like the man who makes everyone sick, suddenly will drop the cure. The man who drops bombs over a nation, suddenly calls and walks for peace. It doesn’t work. That isn’t real!

Unless, the old man with the hat starts to shadow boxing himself, knock himself out and suddenly understand that his the problem. Not that it will happen. This is a PR stunt and nothing else. The NRM MPs, the ones who wants to show loyalty will show up. But everyone knows the state who does this on the regular. Will not stop doing it. That is why Total had secret talks in the State House with the President just this week.

We cannot expect anyone than the small-fry gets charged and taken into custody. The ones who are the big-fish will not touched, unless they have fallen out with Jajja. Peace.

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