The act of Finance Act No 2. was gazetted today on the 21st August 2019. What is weird to be is the two following codes or sections, this being the 22 and 23, which is countering each other. I am finding this as financial voodoo with the currencies. As this act is initially making the RTGS Dollar and Zimbabwe Dollars equal. Combined with the enacted value of the RTGS Dollar, the same as the US Dollar. Which by all accounts are impossible, as the exchange rate isn’t that static, neither followed by law. Unless, the state plans to infuse cash-flow and beat the rates between the RTGS Dollar and the US Dollar.
Alas, the madness, continues with the legislation gazetted today. I will show the two parts of the legislation, before addressing it a bit more. Under the sections itself.
“22 Issuance and legal tender of RTGS dollars, savings, transitional matters and validation (1)Subject to section 5, for the purposes of section 44C of the principal Act, the Minister shall be deemed to have prescribed the following with effect from the first effective date—
(a) that the Reserve Bank has, with effect from the first effective date, issued an electronic currency called the RTGS dollar; and
(b) that Real Time Gross Settlement system balances expressed in the United States dollar (other than those referred to in section 44C(2) of the principal Act), immediately before the first effective date, shall from the first effective date be deemed to be opening balances in RTGS dollars at par with the United States dollar; and
(c) that such currency shall be legal tender within Zimbabwe from the first effective date; and
(d) that, for accounting and other purposes (including the discharge of financial or contractual obligations), all assets and liabilities that were, immediately before the first effective date, valued and expressed in United States dollars (other than assets and liabilities referred to in section 44C(2) of the principal Act) shall on the first effective date be deemed to be values in RTGS dollars at a rate of one-to-one to the United States dollar” (Finance (No. 2) ACT, 2019).
“23 Zimbabwe dollar to be the sole currency for legal tender purposes from second effective date
(1) For the avoidance of doubt, but subject to subsection (4), it is declared that with effect from the second effective date, the British pound, United States dollar, South African rand, Botswana pula and any other foreign currency whatsoever are no longer legal tender alongside the Zimbabwe dollar in any transactions in Zimbabwe.
(2) Accordingly, the Zimbabwe dollar shall, with effect from the second effective date, but subject to subsection (4), be the sole legal tender in Zimbabwe in all transactions.
(3) For the avoidance of doubt it is declared that, from the second effective date—
(a) references to the Zimbabwe dollar are coterminous with references to the following and to no other forms of legal tender or currency— (i) the bond notes and coins referred to in section 44B of the principal Act; and (ii) the electronic currency prescribed for the purposes of section 44C of the principal Act, that is to say to the RTGS dollar;
(b) the above mentioned bond notes and RTGS dollars are at par with the Zimbabwe dollar on and after the second effective date, that is to say each bond note unit and each RTGS dollar is equivalent to a Zimbabwe dollar, and each hundredth part of a bond note unit and each hundredth part of a RTGS dollar is equivalent to a Zimbabwean cent” (Finance (No. 2) ACT, 2019).
Because, this is the continuation of the hectic balances and switching of currencies. That they are declaring foreign currencies as illegal tenders in Zimbabwe. Is to be expected, as they are getting a new currency or revamping a dead one. Still, the ZANU-PF should have ensured it better.
As they have had temporary measures like Bond-Notes and RTGS Dollars, which they are still infusing into the Zimbabwe Dollars, as a measure, where the ones who paid more than one-to-one with USD. Will lose funds and within that system, the state will initially shave-off funds from the public as they are transferring to RTGS Dollars or even Zim Dollars.
Combined with that shortfall in the public, as the inflation is still on the rise. The add-ons of financial distress will continue, as the state is still using half-measures to contain the economy, with the values and laws around the RTGS, instead of going all in with the Zimbabwe Dollars. They are in this and makes the mash-up between the RTGS/Bond-Notes and Zimbabwe Dollars. All of these three currencies are supposed to be equal and in tandem.
That will confuse and make it messy, as the electronic, the half-measured bond-notes and the revamped Zim Dollar are supposed to change the economy. This financial instrument is supposed to be the key to the troubles the economy is in.
I just don’t see it, I see it as a hectic abstract transaction system used to be able to fix and configure funds, by jumping between the three and taking more funds out of it while the public is losing on the various currencies. This is all made by the state and they are initially doing this to their own. Instead of thinking out one path to beat the hurdle, they are instead making it three. While, they still proclaiming Zim Dollar as the only one, but opening up to continue the two others.
Which is a sophisticated way of ensuring the state to get the Forex or exchange between them. As you have to exchange or pay in one form, the one set as the standard or the Zim Dollar, meaning, if you planning to move the RTGS Dollar to pay for something, that has to be transferred into Zim Dollar.
Financial voodoo and the public will suffer, because the state isn’t cleaning the slate, but trying to patch up wounds with yet another half-baked measure. Peace.
She had it all, she was a golden child of the President, the former radio presenter from Koboko, who became the Youth Representative MP for the Northern Uganda in 2011 and became the incumbent winner in 2016. Evelyn Anite in her second term became also a State Minister for Investment & Privatization. Where she has now shown force, but maybe she’s aiming to high, a bit to fast.
That is why the recent months, she has both expressed pressure on the clean-up for ownership, audit of and transparency surrounding Uganda Telecom Limited (UTL). A company the government had sold to Libyan owners, but had to re-corporate and restructure after the fall of Gadaffi. Now, this has turned a bitter pill for the loyal subject and minister. She has lashed out and said the mafia is out after her.
Certainly, she has ruffed some feathers, she has questioned some big-men, which will not accept to be hassled with. Anite has with her quest to clear the slate of the UTL, she has surely gone into the hidden secrets within the National Resistance Movement (NRM) and the government itself. Where she should have stayed away. As the ones who does that, is the likes of Muhammad Kirumira, Andrew Felix Kaweesi and so on.
They did all say similar things like Anite. They were on the rise and was also saying there would be a moment of silence, if you pushed the forces of power in the Republic. That is what Anite now is stating too. She calls it a mafia running the government, that means she is directly a part of racket herself. Meaning, it was cool, when she was a “made man” within it, until she crossed within the boundaries and codes within the mafia. This is what it seems, because, why else would she blast and rant like this in the public?
Anite is now going far, but sounding more like the opposition, than someone who is government. She could be mixed with Besigye or Bobi Wine in this matter. There is similarities in the usage of words. Because, the tale of going after the walking dead within the UTL is to costly. That the NRM doesn’t want to show the dark-side of the business and how its done. This is why, she suddenly shouldn’t continue to pursuit it.
Anite is therefore, receiving the hardship, which is usually intended on the dissidents and not the ones whose loyal to the projects of the President and his cronies. Evelyn though she was made and part of the inner-circle. Instead, she has crossed a path, which the NRM doesn’t accept. That is why Ante is in trouble and shouts out so loud.
Instead of winning, she’s continue to loose. Anite isn’t succeeding …. she is failing and not finding her way out of the trouble that she has put herself in. She could have let it all go, because this is more a ego-boost and to prove her place within the hierarchy.
She was a soldier, a loyal subject and a “made-man” but not one of them. An outsider, who got a big position. Now she is afraid of the enforcers, as the confidants and the consigliere advice behind closed chambers, maybe has aimed at her. Because, she broken a secret code and added pressure on something she shouldn’t have.
That is why she has fallen, why she’s trailing. She hasn’t resigned or even backed away from the mafia. She’s still there and trying to get through. But will she? Will she end up like others whose been taken out or is she another Abiriga in the waiting?
We don’t know, but she surely has fallen from the pedestal and is now a commoner with a fancy title. Peace.
The British doesn’t like their government to care of their interest. The British are preoccupied with a government not shield the public, but saving their own careers. The Tories and Prime Minister Boris Johnson is busy-bodies, trying to sell a “No-Deal” as the offer and the gateway out of the European Union Membership. Without considering the implications or the costs of doing so.
PM Johnson is going for a train-crash and saying “jolly ho”. There is like a oblivious approach to the end-game of Brexit. It is like they think they can damage the partnership, the border-trade, the lack of protocol and the significance of becoming a third-country state towards the EU. There is no well planned aftermath, just damage-control. The damage-control in a sense of trying to spin the news and not tell the true hurt of the possible No-Deal.
The Operation Yellowhammer wasn’t a pipe-dream. It is the real affect of the No-Deal. The lack of procedure, preparedness or even delivery for the imports and exports of goods. Will ensure that the transfer of funds, the costs of living and the lack of checks, will in the make things harder. Because, the state and businesses are not ready for the 31st October 2019. Even if the state has had all the years plus the bonus given previous PM May. The Tories have squandered the time without offering any solace.
“Speaking after signing the legislation that will crystallise in law the upcoming repeal of the ECA, the Secretary of State for Exiting the EU Steve Barclay said: “This is a clear signal to the people of this country that there is no turning back – we are leaving the EU as promised on October 31, whatever the circumstances – delivering on the instructions given to us in 2016“ (…) “That is what we are doing by setting in motion that repeal. This is a landmark moment in taking back control of our laws from Brussels” (Department for Exiting the European Union – ‘Brexit Secretary signs order to scrap 1972 Brussels Act – ending all EU law in the UK’ 18.08.2019).
With that in mind, lets show one vital provision from the repealed law in question.
European Communities Act of 1972 Section 2:
“(2) Subject to Schedule 2 to this Act, at any time after its passing Her Majesty may by Order in Council, and any designated Minister or department may [F2by order, rules, regulations or scheme] , make provision—
(a) for the purpose of implementing any [F3EU obligation] of the United Kingdom, or enabling any such obligation to be implemented, or of enabling any rights enjoyed or to be enjoyed by the United Kingdom under or by virtue of the Treaties to be exercised; or
(b) for the purpose of dealing with matters arising out of or related to any such obligation or rights or the coming into force, or the operation from time to time, of subsection (1) above”.
It is okay and within all common sense, that the Tories, the HM Government or the United Kingdom doesn’t want to directly comply or follow the legislation of Brussels past the membership of the EU. However, what they are doing is more significant in the ways. That instead of following the EU and their standards. The UK are planning to make it all on their own. Meaning, the EU standards and UK standards will differ; An in the end, the parties will have to find a way to find a middle-ground. Nevertheless, that will not be overnight, neither will the UK be able to overpower or get the 26 Member-states to follow a single outside unit. That is what will happen.
Instead of being another state who follows and who does as the legislators does in Brussels, which is made in tandem with all member-states. The UK will be an outside sovereign, who has to by no means to follow the EU. However, if they want to trade with the EU, like everyone else. They have to comply to their standards and the ideals of the free-trading paradigm it has set forth.
The repeal of this law is a clear sign, not a hogwash statement. But a proof of the intent and the sudden sign of a “no-deal” as the only remedy out. That means the lack of legislation and follow-up on the codes from Brussels. Will later make it harder for the trading partners, the exporters and also the ones doing financial transactions to comply with current legislation in the EU.
This means, they will be outsiders, who will not part-take in the statutes, legislation and codes made in the EU. Which is all natural, but by doing so, they will not get the perks as in the past. Even if the Tories sometimes sounds like they can both have cake and eat it. Peace.
““In order to produce something you need four things; land which is a natural resource, labour which we have in plenty, capital money and entrepreneurship, the spectacles to see where the opportunity is and turn it into profit. You can’t have 68% of the homesteads (eating what they produce) and you think you’re an economist. You’re just a total failure. Infant mortality rate, how many children are dying when they are still young? Why are they dying? Because they have problems, mainly because of problems of having no money. What does it mean that 68% of the homesteads are outside the money economy? We have a few modern farmers who are part of the 32% and other entrepreneurs. Those will continue but let us wake up this 68%.” Museveni said” (URN – ‘68% of Ugandans are poor because of sleeping – Museveni’ 12.08.2019).
President Yoweri Kaguta Museveni have just ended his campaign and Wealth Creation Tour after a few months of steadily traveling across the Republic. In the final days of this he was a part of Investment Symposium 2019 in Arua.
What his saying isn’t new, he has used this message before, that the public is lazy, that they are not working hard enough. That they are not as hardworking and smart working like himself. Because, everyone should aim for being the photo-copy of the President. That is how you move ahead in the Republic.
That this is an insulting message from someone who had 33 years to make a difference. For someone who has had three decades to change the institutions, state owned enterprises and organisations run by state.
If the President really worked for this, strived to make the finances good and economy booming. He would have delivered that already. His party has reigned supreme, had the majority of Parliament, had a One-Party state for a decade as well. So, if someone should have the ability to get his vision through, it should have been him.
However, spoiler alert. His been working for himself and his wealth. Not the wealth of the public, his using the state as racket. That is why the state gets into debt, while himself and his family is running successful businesses. This is the mere reality, a reality he doesn’t touch. As well, as the open laisses faire approach, while only partial subsidizing whatever defunct enterprise that is in the wind.
President Museveni can put the blame on the public. If not he will blame the opposition, the lazy bureaucrats or anyone who doesn’t cut it. Because, that is something this man does. Right now he blames the majority of the public. However, he has had 33 years to wake them up and get into the economy. Still, its not like his succeeded or even tried, except with schemes that the Kitchen cabinet have earned funds from.
Therefore, maybe just maybe, Mr. President its your failure, its your lack of policy and will, which is the reason for the people sleepwalking to their inevitable death. You could have done something, but you didn’t, that’s the fact. Peace.