Opinion: The GoU needs an additional 3 trillion shilling to cover for a shortfall only lasting for 38 days..
“The government has tabled loan requests of up to UGX 3 trillion to finance the remaining days of the Financial Year 2023- 2024. However, legislators are questioning why the government is choosing to use Kenyan street money lender Amarog Capital Limited over established financial institutions” (NBS Television, 24.05.2023).
I remember a little time ago when the National Resistance Movement and their apologists was asking for financial education or if Robert Kyagulanyi aka Bobi Wine knew how “fiscal responsibility” worked. That is a long forgotten time, because the reckless spending is a habit.
The Government of Uganda, the NRM is now adding more public debt and they are not doing it from the International Monetary Fund (IMF), World Bank (WB) or any other multi-national financial institution. No, they seeking lone from another sort of institution. Meaning the terms, the conditions and the possible interest rates might be worse. Secondly, there will be no relief or no sort of awaiting maturity of the loan either. Meaning it is possible that the burn-rate and the responsibility of repayment comes “sooner” than “later”.
It is surely showing how badly things are operating. Not that his is anything new. We know the State is misusing funds and lacks good oversight. There is a reason why so much funds are ending up missing or misappropriated. That for a reason and done on purpose.
Money doesn’t have owners, but it has spenders said a fictional character in the Wire called Omar Little. His so damn right about it too. The State doesn’t expenditure but a vast money-pit. It can invent money and it can also borrow money without any consideration of the future. The domestic revenue isn’t growing, but the government debt is. The deficit financing is filled with burdens and problems ahead. This is a self-inflicted wound and sooner or later it will cripple the whole economy. Because, the state is borrowing not to build fancy institutions or industries, no it borrows to function it’s day-to-day operations. That’s what it does and the additional fees will pile up. There is no promise that the creditors will be forgiving or concerned about the nation. No, when the Republic starts to default. The creditors will take assets and future liabilities, which will generate them some revenue. While the state loses vital infrastructure and resources, which is bound by agreements and by loan deals made long ago.
That’s why an additional 3 trillion shillings for merely a month is a travesty. It is a waste of funds. Not only that the state needs this before the next Financial Year of 2023/24. That they are doing it and so blatantly. They are just seeking “free” money to spend like drunk sailors…
Seriously, this is messed up. They are granting themselves a lot of money and it has no sort of transparency behind it. That’s why it’s easy money and they hope the lenders don’t mind the mismanagement and lack of accountability. It is just the game the NRM and the Ministry of Finance, Planning and Economic Development does. We have seen it countless of times before and the reasons for it is ridiculous. The manner of paying additional electricity at the State House or get more classified budgets for the State House and the Uganda People’s Defence Force (UPDF). That’s just what they do and it’s getting old.
Deficit financing is never a good idea. It is an evil cycle and sooner or later the credit will run out. The old loans will default and no one wants to carry the load for you. Then the whole house of cards fails and the markets crash. That is just a matter of time and the state continue like this… unless they have a secret kryptonite to destroy the ageing debts. Peace.
Opinion: Mzee isn’t a voice of reason…
“Many of the people who are being urged to be patient for two years are buckling under the weight of a very high cost of living. Most of them can hardly put a decent meal on the table or meet the costs of education, healthcare, utilities and rent. It must, therefore, hurt that provisions are being made for a makeover of the President’s wardrobe when so many people are really struggling. Parliament has not listened to the voices of the masses. This, therefore, calls for the intervention of the person for whom we are providing; he does not need the provisions. Only his voice can help end such wasteful expenditure” (Daily Monitor – Editorial – ‘Museveni’s voice required to end wasteful expenditure’ 21.05.2023).
I don’t know what the Editor of Daily Monitor thought when he or she wrote today’s piece. However, to say it is utter garbage is just a mere fact. The ideals and the thought that President Yoweri Kaguta Museveni would be the voice of reason in 2023 is absurd.
To believe that a man who has built a vast entourage, duplicated institutions and created a bloated government. Will ever… ever ever… be concerned about public expenditure. A man who needs confidential budget post and lack of oversight. A man who spends money like no tomorrow and hope that someone else will capture the fiscal shortfall. That he can either get a donor or a loan to cover the deficits.
Therefore, reading this text… how naive are you? Have you seen how many districts that has been created since 1986? Have you seen how many MPs that been added in the recent years?
Or have you missed that or isn’t obvious to the fact. It isn’t connected and part of the plot. That a man has created government units, institutions and commissions that are cross-checking each other. While his busy eating, investing and ensuring the future of his own grand-kids. Seriously, the proof is in the pudding.
That’s why the State House and the Office of the President got vast funds. This is why the UPDF and Ministry of Defence has massive budgets. That’s why the Police Force is well funded. Because, if the security detail isn’t paid and isn’t in order. Well, then the grand corruption and the heist of the state cannot continue on the “low”. It is low hanging fruits, but certainly edible.
“Only his voice can help end such wasteful expenditure” (Daily Monitor, 21.05.2023).
He will come with words of fire and fury, but it won’t amount to anything. That’s why we are seeing thieves getting away, but the pickpockets are lingering behind bars. The President knows and he knows of various of schemes. He knows who is “investing” and who is “benefiting”. It is his system after all. Therefore, believing this man will be a reasonable dude in 2023… Please… get your mind correct. Please and do it fast.
Enough nonsense. The 1986 brigade got enough “yes-men” and paid microphones to defend its cause. I didn’t think I would see that in the Daily Monitor. However, that is where we are. This piece belong in the New Vision. Not in the Daily Monitor… Peace.
Opinion: Mzee’s reckless spending spree
The Minority Report of the National Budget for 2023/24 is out. Not that it’s shocking or anything. It is just showing how the President and his inner-circle is spending money like there is no tomorrow. While the state is busy borrowing funds and lacking domestic revenue. You would think the President who often speaks of moderation and use within your means would live within those words.
Alas, that is not the case. The President has a massive portfolio. The Office of the President and the State House are two bloated out units. They are Ministries in themselves and has far out reach of the buildings, which they are supposed to reside.
Yes, the State House isn’t only functioning as a residence and as a ceremonial grounds. No, the Office of the President and the State House budgets is an inner-cabinet in itself. It is a wild beast that breeds on everyone else. That’s why the billions upon billions of shillings are spent there.
That’s why Museveni needs vast budgets for vehicles, furnitures and clothes. He doesn’t need to beg and his salary is maybe “scraps” but the budgets for his office or home is lavish. The President can live like a King on those terms. People can defend and say this is well spent resources.
I am sure the Senior Presidential Advisors and the Units of the State House appreciate the spending. They are benefiting for the wealth and usage of funds. Also with the “classified” and “donations” budgets… the President has two secret ways of fund himself and his closest associates. Because, these funds won’t be traced and can be used as he deems fit.
The Office of the President is getting 250 billion shillings in the budget year. While the State House is getting 454 billion shillings. With those two major budget post the President is spending around 700 billion shillings and that’s before the Supplementary Budgets, which we knows goes in his direction. There is always a shortfall and lack of funds, which just have to be covered in the calendar year.
Therefore, even if Museveni and his inner-circle is budgeted to get 700 billion shillings. We know they eventually would need more. Either to buy a helicopter, a plane or even pay for Muhoozi’s adventures. God knows where the money goes, but millions of shillings doesn’t go to upgrade the President’s wardrobe. His wearing the same jackets, fatigue and shirts we have seen for years. The old man isn’t a fashionista.
We know he can be on a spending spree, because he has 38 billion to the Office of the President as classified and another 120 billion to the State House. Meaning out of the 700 billions in total, there is around a 150 billions he has no oversight or no need to account for. It is all secret and he can spend where-ever he deems fit.
That should boggle your mind. The President has such a money pit and such a vast enterprise. Yes, we know he has 100s of Presidential Advisors and a huge team at the State House. His broaden the mandate and the workplace. However, spending 700 billions on it… in just one year. It is just ridiculous.
Especially coming from a man who speaks of moderation and speaks of living within the means. He is living large on the public’s dime and he clearly doesn’t care. This is his throne and the citizens got to pay for his party. Peace.
Jamaica: People’s National Party (PNP)) – PNP Disagrees with Massive Salary Increase or Parliamentarians, Urges Government to Prioritize Public Servants (16.05.2023)
South Sudan: Bank of South Sudan – Office of the Governor – Press Release (12.05.2023)
South Africa: Economic Freedom Fighters (EFF) – EFF Calls for Immediate Removal of Pravin Gordhan following Auditor General’s Damning Report (05.05.2023)
Opinion: How many agents does Mzee need to combat himself?
“Mr Museveni announced his latest anti-graft plans in a Labour Day speech delivered in the rural eastern Uganda district of Namutumba yesterday afternoon. “I am using this Labour Day to tell everybody that we are going to have a big fight. I am going to set up another small unit in my office where the investors can ring directly if anybody asks them for a bribe or delays decisions,” Mr Museveni said” (Philip Wafula – ‘Museveni to set up new anti-corruption unit’ 02.05.2023, Daily Monitor).
The battle against grand corruption, graft, bribes and other siphoning of funds is getting ridiculous, as the Government of Uganda is not lacking offices or units, which are focused on the matter. It isn’t like the State House – Anti-Corruption Unit is the sole organization working with it under the Office of the Presidency.
No, there are several others like the Inspectorate of Government (IGG), Financial Intelligence Authority (FIA), the Public Procurement and Disposal of Public Assets Authority (PPDA), Uganda Investment Authority (UIA) and the Office of the Attorney General (OAG). In addition to that you have the Judiciary and Law Enforcement itself that works or have jurisdiction to follow up on cases concerning this sort of crime. Therefore, the State has several of units or organizations combatting this already.
There are already 6 Offices that has various of roles in concern with the battle against corruption. That’s without adding the Uganda Police Force or any of their entities who also investigate corruption. The Judiciary is also handling these affairs and the ones that are judging the matters. Therefore, there is already plenty of hands involved and have the ability too combat this.
The President is only creating another busy-body and another separate Unit in his residence. It is just a nice headline and looking like his really working against it. When the other ones are enshrined in law and are based on legislation. That’s why the IGG, FIA, PPDA, OAG and others are there to work and have a mandate. Alas, the Units created out of the Office of the Presidency is just on the whim and whatever guidance the President felt at that very day. Instead of boosting the ones who exists. He creates another possible entity who will be controlled and close proximity of him.
However, this will not solve it or combat it. No, this is just another “cat and mouse” chase where they will only capture small-fish and leave the big-ones alone. There is no way the ones in association or have had a handshake with the President will be captured. No, this is just to cause some good vibes and call it a night. Peace.
Burundi: Banque de la Republique du Burundi – Communique au Public (28.04.2023)
Nigeria: Center for Fiscal Transparency and Integrity Watch – Center Expresses Concern Over Country’s Fiscal Condition, Calls for Suspension of Further Borrowing for Consumption (19.04.2023)