The National Resistance Movement (NRM) are ruining the economy. They have a deficit financing that is revealing to deplete all funds and all sources of revenue. That’s why in the Leader of Opposition statement published on the 13th September 2022. The Leader of Opposition Mathias Mpuuga MP in his statement is showing a staggering issue of fiscal nature.
The Government of Uganda (GoU) or the National Resistance Movement (NRM) are now owning 11 trillion shillings. Out of those 11 trillion shillings, there is 3,03 trillion shillings it got in outstanding advances in the Financial Year of 2021/2022. Because of this, the Government of Uganda lacks fiscal funds to repay their own National Bank, the Bank of Uganda. It has taken money from one post to cover other posts, in advance, but it has no plan of returning these advances.
The addition trouble with this is that the International Monetary Fund (IMF) has stopped releasing funds or loans to the Government of Uganda until these advances are paid. That is again hurting the funding of the Government and the operational funds of the state. Since the IMF will not cover the deficits or the lack of funds in the GoU. The GoU is running so low that it’s not able to repay their own advances, which it created from the BoU.
This just shows how dire things are… this is only talk of 3,03 trillion shillings. The GoU budgeted itself with a 25,78 trillion shillings in domestic revenue in the budget of FY 2022/23, but we can wonder if the GoU has any of funds to recover or to spend on the advances in question.
If you wonder what mismanagement and how destructive a debt-cycle is… it is becoming very eminent that the NRM and the GoU has stretched it out. They are not able to get or find sources for fresh funds. The state is not able to get enough domestic revenue to even cover the basics. That’s why they are even shortfall on 3 trillion shillings to the Bank of Uganda.
This should be depressing and be worrying, but it is just another day in the Republic. The Value of Money is gone. The money and funds are just missing. Loans for development projects, day-to-day activities are just gone in thin air and they have no plans to repay them. If the NRM and GoU does this to its own Bank. What is it doing to the Multi-National Banks and Monetary Instruments it loans from on the regular?
That should put shiver down your spine. This is a sign of a financial downturn, a sort of financial self-destruction and possibly re-structuring of old debt. Because, the state cannot even carry the advances it took out in FY 2021/22. Peace.
The Uganda National Road Authority (UNRA), which is a government entity under the Ministry of Works and Transport is clearly not fit for purpose. The whole government is showing how it’s failing it’s governance, by not being solid and considering the costs of it’s operations. The Republic and their financial muscles are clearly not aligned. That’s why the State Budget isn’t only filled with deficit financing, but other parts of the state is run by it too.
UNRA director Allen Kagina is to blame her, but we know she has been directed and told to follow up on agreements in letters from the President. Presidential Directives are intervening and stopping a fair judgment of the tenders and the contracts signed. That’s why the whole blame cannot be put on her. As we have seen that the President has directed and told who is getting the bid. Therefore, the Ministry and UNRA has less powers.
That’s why the report published on the 6th September 2022 called: “REPORT OF THE COMMITTEE ON PHYSICAL INFRASTRUCTURE ON THE DELAYED PAYMENT TO CONTRACTORS, BY GOVERNMENT OF UGANDA, LEADING TO UNBEARABLE INTERESTS” is very important. That signals what is missing and how the reoccurring debt is appearing. The UNRA and Ministry of Works and Transport cannot compete. No matter how Gen. Edward Wamala structures or do his job, or even tries to configure within his means. The Presidential Directives and the current leadership structure is eating his ministry up alive. That’s why this report is earth shattering and shows how badly this is run.
The UNRA is becoming a loss-loss operation and the contractors are now losing money. They are losing money in such a way that the state has to pay with interests and add more costs. As they are already run on deficits. This is practically eating the roads and the supposed “integration” to markets, which the President always promises during campaign rallies.
Just read the quotes here… it is really tragic…
“On 4th May 2022, Hon. Richard Sebamala, MP, Bukoto Central in Masaka District raised a Matter of National Importance regarding budget suppression particularly in the Road Sector with its attendant accumulation liquidated damages to a tune of UGX. 334,000,000 per day in the case of debts accumulated by Uganda National Roads Authority(UNRA). The Rt. Hon. Speaker directed the Committee on Physical Infrastructure to investigate the matter” (Report, P: 2, 2022).
“The Sky Rocketing Interest Rates arising from Government’s non-fulfillment of its obligations to Contractors amounts to foreseen trivial costs to Government. It is improper for the Country to incur foreseen trivial costs to a tune of UGX. 235.6 million per day in interest charges” (Report P: 9, 2022).
“Failure to pay the arrears will continue to cause Government to incur trivial expenditures including interest expenses, idle equipment and reduction in the works by Contractors” (Report, P: 9, 2022).
“The Committee considers that MDAs, specifically Ministry of Works and UNRA are the main contributors to the deficit of the UGX 573.5 billion with accruing interest rate of 15% per annum, and the resulting interest charges amounting UGX 235.6 billion per day. The non-payment of Certificates arose due to the shortfall in funding and the 40% budget cuts across the board” (Report, P: 11, 2022).
You can really see the key aspects of report by just reading these few quotes. That says it all. It shows what the state does and how the UNRA is run. The Government have failed the Ministry of Works and Transport, and in-connection to that the UNRA as well. This is from the top-down who haven’t acted righteous. It isn’t the direct fault of UNRA director or UNRA itself. The Ministry of Finance and the State House should answer for their faults too. They haven’t looked into the numbers and what things has cost. The President has directed and ordered certain projects and taken out loans to build them too. That’s why the UNRA only trying to cope with the work. While the MoWT only has to follow up and do it’s bidding too.
That’s why the new debt and added interests is only making every project more expensive. The state is only adding more debt. While it should have ensured and finance the projects it already has. This shows the the failure of the state and how badly it is run. The UNRA is bankrupting itself. The state cannot afford it and doesn’t have fiscal funds to cover debts. That’s why it’s gaining even more debt as the time goes. The daily interests and costs should worry the state… because this is just bad or going to worse even. Peace.
The newly minted eradication of poverty model in the Republic. That was launched ahead of the polls in 2021. Now in 2022 it is obvious that scheme is bound to fail. It was inevitable… because none of the previous ones had any change or luck either. They have been doing this since the 1990s and nothing has worked.
So, now that the Republic is using 1 Trillion Shillings on it. You would think they had the magical point and the right tools to make it legit. While that is far from the truth. All the things that has been uttered and stated about is an epic failure. From the onset, there was no true organization, framework or even policies at its disposal. Even when the PDM is using similar means as in the past.
The recent weeks of arrests in Mitooma, Kabale and Kitgum over it only shows how badly it is going. In addition to the news of lacking disbursement in Masindi. This is just very compelling of the problematic approach to government spending or even institutionalize these sorts of government programs. When local government officers and employees are part of the gig and get caught slipping.
Certainly, the PDM was supposed to be another “magical bullet” to solve the issue of poverty. Until proven otherwise… I doubt it and there is no sign of improvement. Especially, considering the reports in combination with the reports that is already out. The statements of the Minister of Finance isn’t making the situation anything better either.
When you are spending like a drunk sailor and telling people to sober up. While inviting the sailor to a pub. You know what will go down and what the sailor will do. The sailor will get drunk and be on his merry way. That’s the same thing here… and it’s so in the open.
This PDM is bound to be a big-man’s heist. As there are no protocols, possible oversight or even systematic approach to safeguard the spending. The open corruption, mismanagement and impunity isn’t helping either.
Surely like in so many other instances there been giveaways, kickbacks and planned efforts to circumvent the rules to gain funds from the state coffers. This is happening as the state claims this is the way out. Nevertheless, it begs the question, why will it work now?
When we are so easily seeing the cracks. Reading the reports and the statements from high ranking officials. Heck, the few assessment reports on the PDM that have been released are grim. It is daunting that this won’t be it. Just another heist of the high and mighty. This won’t solve anything else than empty coffers and excuses for the ones in power. No, this will not help the ones in need or the ones it is intended to help. No, they are pawns for the kings and queens. They are the first to go out and loose anyway. This game is rigged and the PDM is no different.
Not like that is anything new either. “Missing Funds” is a proverb in the republic. The elites and the ones in the inner circle are eating. That is clear and the systems are made for them. This is why this latest scheme will be beholden to them too. They will find ways to disburse and ensure them a hefty pay-off.
So, expect someone to run with the bag and the State House looking idly by, because they have already a deal. This PDM is just the latest one to trick the public that they will initially do something. However, don’t be fooled. They will not do anything sincere, but only find a way of earning profits on the poverty that does exist. That’s been their trick and it continues to be so. Peace.
The now released March 2022 Parliamentary Report: “REPORT OF THE COMMITTEE ON PUBLIC SERVICE AND LOCAL GOVERNMENT ON THE STATUS OF THE IMPLEMENTATION Of THE PARISH DEVELOPMENT MODEL IN THE FY 2021/22” is stating a lot of facts, which is damning to the 1 Trillion Shilling Budget Post this Financial Year 2022/23. As the launch and the start of the Parish Development Model (PDM) is lacking basic government structures and even policies. This means the state is risking the whole 1 trillion shillings on a hope and a prayer. That’s the gist of it and it’s tragic.
The warnings has been there on the horizon. It isn’t like people haven’t seen it coming. This follows a long list of poverty eradication programs, which are mentioned in this report. While the state or government has never changed their approach. They have just re-invented the same of micro-finance scheme and rebranded it since the early inception of the National Resistance Movement (NRM).
That’s why it’s tragic that they have spent fortunes since the 1990s and still haven’t cracked the code. Certainly, the administration of it has been lacking, secondly the lack of policies and oversight. In addition, the NRM haven’t gotten proper results either. So, this report just shows where the failure is this time and the NRM launched a program and scheme without the proper due diligence. They haven’t even taken care of the basics and spending like a drunk sailor on this. This will end up on hookers and booze in the next safe-haven for the veteran seaman. Therefore, this will not end well…
Here is quotes from the Report:
“Currently, there is no clear policy that sets the overall tone of the implementation of the PDM. Some of the closest policy frameworks on which the PDM is premised include; the Constitution of the Republic of Uganda (1995 as amended) under article 176, 2b, d and e) and the Local Government Act Section 95, 96 and 97. Unfortunately, these are not sufficient in setting the basis for developing the guidelines, development of a clear and realistic implementation roadmap for the PDM. The Decentralization policies presented by the Minister do not regulate certain pillars like financial inclusion, infrastructure and mindset change under the model. The Committee further observed that a clear policy framework for PDM will provide a vision, goals and principles to guide actions and implementation. The policy framework would clearly spell out the roles and responsibilities of each and every MDA, The governing framework on PDM, the oversight function, monitoring and evaluation and many others. Without the policy it will be very challenging to address some issues that may impede the PDM implementation and could lead to duplication of funding and services and further disoriented the public perceptions of the PDM” (Report, P: 9-10, 2022).
“The Committee observed that, though there were previous government interventions to improve citizens’ socio economic conditions, the issues of building the entrepreneurial capacity of the population adequately has been locking. This is been identified as one of the reasons for the poor performance of some of the previous interventions. The committee further observed that many enterprises identified by some of the beneficiaries under the previous interventions were not within their knowledge and ability, leading to poor performance and in most cases collapsing of the enterprises. This is one of the causes of poor recovery of previous funds” (Report, P: 15, 2022).
“Since 1987, Government hos implemented various interventions to reduce poverty in Uganda. These include; the rural farmer’s scheme (1987), Entandikwa scheme (1996), the Poverty Eradication Action Plan (PEAP) (1990), Kulembeka (To tap) (2001), Prosperity for All programme (Bonna Bagagawale) 2007, Operation Wealth Creation (201l), Emyooga 2020, Youth Livelihood Programme and Uganda Women Entrepreneurship Programme. The Committee observed that those interventions have not positively impacted on the long term poverty situation in the rural and urban communities. Poverty levels continue to be high at 39% despite the interventions. There is a need to appreciate the fact that poverty eradications a responsibility of the poor themselves and government programmes only supplement their cause” (Report, P: 17, 2022).
These quotes from the Parliamentary Report of March 2022 states certainties that can be detrimental for the whole scheme and the PDM itself. The NRM should know better and be professionals, but instead they have just started a fresh without the tools, which is needed. That is what the Report says and it’s damning.
The NRM and the Government of Uganda should have more structure before spending like crazy. However, here it is clear that the various parts of the PDM wasn’t prepared. Neither the main ethos, policies or the procedures wasn’t prepared. The state only had prepared budget-posts and planned spending. However, they haven’t built the structures or the mechanisms to make it work. That’s really foolish, but on code or modus operandi for the NRM.
So if this falls or fails miserably… well… everyone could see it coming. There was no reason for it to work. The only reason why it could work is the people it is actually reaching and making a difference. However, that’s just a fools luck and not based on prior work before the launch. It is like a brother going to bar and gets lucky. Not because he knew a lady was ready there or his charm would be enough. He just went anyway and got lucky. There was nothing saying he would get lucky, but he did… because he was at the right place and at the right time. That’s what the NRM is trying to do here and they are throwing one trillion shillings at it. Peace.