Opinion: The Russian economy is tanking when the pension fund is used to save Russian companies

Putin signed a law allowing the placement of NWF funds in shares of Russian companies and government securities” (RIA Novosti, 09.03.2022).

What is the National Wealth Fund:

The National Wealth Fund (NWF) is a part of federal budget assets. NWF is dedicated to support pension system of the Russian Federation to guarantee long-term sound functioning of the system. Fund’s primer assignments are to co-finance voluntary pension savings of Russian citizens and to balance budget of Pension Fund of the Russian Federation” (NWF – About).

Things are not looking good financially in Moscow or in the Russian Federation. As the Russian invasion of Ukraine is costing the Russian a fortune. They are losing contracts, businesses and ability to trade like never before. Foreign companies are stopping to trade or even do business in Russia. Everything from importing vehicles to having a latte at Starbucks. All sort of European and Multi-National Corporations are stopping. They cannot even listen to Spotify anymore. That’s how things have moved.

This is taken to such an extent that the financial inclusion with the rest of the world is gone within 14 days. It took only two weeks from the Western corporation to see the light and bail out. They are ensuring the Russians doesn’t have the liquidity or equity, heck even the ability to transfer funds to cover the basics. The rouble is devalued and the rating of government bonds is also failing.

So, things are grim when the Russian Federation is blocking the ability to take currency across the border. Neither is the SWIFT working in various of banks. The U.S. is planning to stop the imports of oil. While there is still in the works to stop gas from being exported to Europe. If that all succeed the Russian will have less or lack foreign exchange. The dollarization of the economy is just gone. The Petrodollars and whatnot just vanished.

Yes, the Russians are connecting to the MIR System instead of VISA/Mastercard/American Express, but that is only by default and not because the Russians wants to. Yes, the Eurasia enterprise between Russian and China is good for business there. However, it will not be accessible in the West. This will only be with the few partners of Russia, which is a few former USSR republics and China. Not a giant market or a way of patching the obvious hurt.

You know things are bad when the President has to order the spending of the pension funds to salvage the Russian corporations. That shows there is severe problems and crippling financial structure only after a two weeks. This is really costing the companies and the state. As the NWF hav to cover the sudden lack of cash flow and keep things a float.

I am sure not all people will cry over the loss of Coca-Cola or McDonalds. However, it is a sign of the times ahead. The Russian economy isn’t boosted or been prepared for the severity of sanctions this time around. If they were.. the NWF wouldn’t be accessible as a form of covering over the lack of funding and saving companies. It is not done in good will, but of necessity. You don’t spend the collected pensions of your citizens on failing corporations for fun, but because you have too.

This is showing what sort of consequences the war has on the markets. As they are failing and now the state has to bail it out. That is a financial crisis and you have resorted to these means, if you didn’t have too. Peace.

Opinion: Chakwera outplayed his whole potential

But we might just get away with it

Religion’s in your lips

Even if it’s a false god

We’d still worship

We might just get away with it

The altar is my hips

Even if it’s a false god” Taylor Swift – ‘False God’ (2019).

Who knew this could go so badly so fast? We knew things could become worse when we saw the first cabinet and the direct nepotism in the Tonse Alliance. President Lazarus Chakwera has only been the President since June 2020, but it feels like ages. A year in politics can feel like a decade and for Chakwera that is all but true.

The Tonse Alliance and Chakwera don’t have the public behind it. Neither is it showing any signs of keeping up with pledges and promises. It was easily for Chakwera to be blazing and blatant disregarding bad practices of the previous government in opposition. However, now as the Head of State and governing party life has turned out sour quickly.

Chakwera isn’t living up to his own hype. Neither is allies. They are all disappointing. That’s why the citizens and activists are on the streets. Petition the government and seeing the failure. The discontent is growing and brewing inequalities isn’t making things better. The only change was the governing party, but the acts are the same. The same corruption, inept governing and nepotism.

Chakwera isn’t practising what he preaches. He has spoken so clearly and evidently against these practices, but in office his letting all of it go. There only some posturing and some publicity stunts. However, the Anti-Corruption Bureau (ACB) isn’t financially supported and neither the pending cases of probes into grand corruption. It is put on the back-burner, because these scandals would hit the government. Just like the scandals under the previous administration did.

That’s what is shockingly obvious, that reverend and former preacher isn’t living up to his preaching. His been talking so gallantly and with hubris how he would be different. How his government would be honest and supreme. The Chakwera reign would differ from the predecessor. However, we are not seeing that and neither is anyone else. It is carbon copy with another brother at the top.

Chakwera is just acting like the previous ones did. His not challenging or reforming. The President is busy at conferences and at meetings with dignitaries. While his not governing in any sort of new way. No, he could have been swapped with the previous one and nothing would have seen differently.

No, in Lilongwe and Blantyre. The same problems is evident. The state isn’t fixing or adjusting to 2022. No, it is just finding ways of eating of the government plate and calling it a day. That’s how things are looking and it’s no good.

Chakwera wasn’t an honest candidate, but just another snake-oil salesman. Promising salvation and hope, but only delivering false gods. Peace.

Teso Affairs: The failure of Soroti Fruit Factory

Soroti Fruits Limited was incorporated to add value to fruits that were abundantly underutilised; to address the high post-harvest losses, provide market for the farmers produce, and create employment opportunities along the value chain, thus increased and diversified household incomes within the greater Teso Sub-region” (February, 2022).

This is not a shocker, as the Auditor General of December 2021 already have proven that the investment under Uganda Development Corruption (UDC) proved that the Government of Uganda huge investments into these State Owned Enterprises isn’t only unsuccessful, but blatant cash-grabs and “white-elephants”.

The “Report on the Alleged Mismanagement of Soroti Fruits Limited” only furthers this, as the produced report of February 2022 is no difference from the AG Report from December 2021. Therefore, it is only showing it more direct and one case, which happens to be the Soroti Fruit Factory.

Just read here:

The Committee made the following observations,’The only mango varieties not taken by the factory are the traditional mangoes which are said to have a lot of fiber which requires several systems to clean. Mangoes are mainly sourced from outside Teso sub-region because the available mango varieties in Teso contain fiber that cannot easily be processed by the current mango line. Whereas oranges are predominantly grown fruits in Teso sub-region, the factory found it economically viable to invest in a mango line as opposed to an orange line because the mango juice is a fast moving product that can sustain the market thus this could be one of the reasons orange growing farmers are frustrated” (February 2022).

The committee was concerned that Government has so far invested in Teso Fruits Limited a total of UGX 44.1 billion, in addition to the KOICA grant of USD.8million, however, this has not yet yielded any profits and this projects towards the fact that the factory may take a longer period to sustain itself” (February 2022).

What is really striking is that a Fruit Factory for the Teso region, has to “import” or get outside sourced Mangoes, which can work for the production line. As the type, which is mainly produced in the Teso region doesn’t work there. That shouldn’t be the case and shows that the Fruit Processing Plant isn’t scaled or made for the local fruit producers. This is just infuriating and insulting. Because, that is the purpose to value-add on the cash-crops, but in this case. It is instead for outside farmers who has a longer way to the factory, which isn’t the reason for the company to begin with.

On a second note, the Teso region is also producing more oranges, which isn’t even in the works. So, you can wonder what sort of planning that went into it and what sort of analysis of the region was to begin with. This is the Teso Region’s Fruit Factory, but it doesn’t serve the majority of the mango producers or the orange producers in the region. Meaning, they are outsourcing the fruit supply, because it isn’t produced in Teso. That is really impressive and foolish too. Who is this dumb?

Not only the spending, building and wastage of funds only, as it has been a money-pit and total loss from the on-set. This report isn’t painting a perfect picture. Yes, it was a report made because of an expensive road, but uncovers another bitter truth, which I find more interesting. As it is built a fruit factory, which isn’t made for the surrounding farmers of the region. That’s it. Peace.

Ukraine: Confereration Suisse – Switzerland adopts EU sanctions against Russia (28.02.2022)

Malaysia: Bank Negara Malaysia – Matter relating to 1MDB (23.02.2022)

Haïti: Association Des Industries d’Haiti (ADIH) – Note De Presse (23.02.2022)

Opinion: Sanctions will not stop Putin

The Russian Federation and President Vladimir Putin isn’t worried about economic or financial sanctions. That will not touch him the slightest. It will not hurt his political elite or the oligarchs who are partly invested and parts of the financial structure of the rest Europe. Putin knows this and his banking on it.

We should worry that the sanctions will be pointless or not hurt him. As arms embargo and other features will not be prevalent towards Russia. As it is a weapons producer and self-sufficient in some ways. It has also other forms of trade and means of getting revenue. The sanctions and financial implications will also hurt the rest of Europe, as the Gazprom and Gas is vital for the energy needs of Central Europe, which is exported from Russia. Therefore, stopping that will inflate prices and create an energy crisis there. This is why Putin has an ace up his sleeve.

Putin and his allies has planned this for some time. He wouldn’t have the signing ceremony with the separatist leaders of the Donbass regions. Neither would he have moved so much of the army towards the borders and into Belarus for no apparent reason. It was a slow waiting game for the right moment. As Putin knew it wouldn’t cost him much or very little to do so.

Yes, his condemned and the Western powers are writing statements with sort of plans to sanction Kremlin and LPR/DPR. However, this will be very futile, as the Russians has the army within Ukrainian territory and Putin doesn’t respect the nation of Ukraine as an entity. That was his speech today and it’s clear he wants to erase old “mistakes” in Eastern Europe.

Putin will not be faced with the sanctions, as he will brush it off, as he has other trading partners and agreements, which will keep the Russian federation alive and well. They has broader arrangement elsewhere and the West cannot hurt it that much. Yes, it looses some coins in the short-term, but it knows the West will return. As their gas is vital for the needs of central Europe. That’s how he has tricked the game.

That’s why the German Chancellor was such a mediocre figure in Moscow recently. He was such a softie and a lost duck. That must have given Putin hope that Europe wasn’t ready or able to find measures against him. Only Macron had some resolve, but he cannot carry the European Union and NATO on his shoulders. Therefore, Putin felt his safe and sound. He got the bargain chips and the ball is in his court.

That’s how things are looking and President Biden haven’t proven any strength or resolve. No, his been a distant outsider trying to forge a narrative. Nevertheless, he has neither acted in good faith or showed any sort of movement, which would strike fear into Putin. Putin is a seasoned leader and a well established head of state. He wasn’t in office yesterday and that’s why he has done what he could to read the room. This is preparing the war-room and the possible costs of a conflict.

Putin knew he could buy time and waste it for the adversaries. Ukrainian President Volodymyr Zelensky had no chances to win this. He is just being played by both sides. While he has the sovereign rights and territorial integrity of Ukraine to worry about. However, Putin knows he has little to gain or expect in the short term. As Ukraine was able to loose without much fanfare Crimea and now he hopes to repeat that. We just have to see how swiftly he will do this.

Putin hasn’t gambled and he will not fold over some coins lost. No, he will march on to his victory without any concern of the implication of the rest of the West or Eastern Europe. It is just the ideal of Putin and everyone else is just supposed to blindly follow him. Peace.

The Kenya Kwanza Alliance: Our Unflinching Committment and Resolve to Stand with Suffering Kenyans – Why we reject the Mischiefs in the Transitional Budget for the Financial Year 2022/2023 (21.02.2022)

Opinion: The Movement’s endless Money-Making Schemes

The National Resistance Movement (NRM) have endlessly created money-making schemes over the years. The Parish Development Model (PDM) is nothing new, but a configuration of previous efforts. This being the Emyooga, SACCOs, NAADs, Youth Livelihood Programme, Micro-Loan Programmes, Rural Micro Finance Project, Operation Wealth Creation (OWC) or anything else you can spell out. Heck, we should not forget the Entandikwa either.

There been so many of these and ways of which the citizen should become prosperous, but that never happens and the results are there after. It is like recycling of a bad trickle-down economics and weak mechanisms, which isn’t the benefiting the citizens or participants. They are buying into a dream, but doesn’t have the resources or market to get the execution. It is always in the reports lack of implementation and education on the matter. However, that is the system, which was never prepared or had the framework to actually work. It is like it was more important of the government to spend the funds, but not actually see any real progress or development. Since, the donors and the providers of funds just needed them to spent on any given Sunday.

The NRM has promised a middle-income country, but never seems to get there. These sorts of monetary deals is a reflection of that. Since they are going back to basics and using the same means to lift people out of poverty. There is no game-changer or progression. It is easy transactional bids to small-investors to either borrow or get short-term relief, which will not be substantial or subpar. Which in the end has to be repaid and restructured, either as a group or a profession to cash-generating income to start.

That’s why these things doesn’t sufficiently work. As there are no steady income or ability to get revenue. It is a short-term patching up the damage and the possible costs of early operation of any sort of business, but nothing to actually run these businesses and cover the expenses of actually operating. The same lack of investment is in the projects and the ones who is supposed to have oversight. It is patchwork with ministries, office of the Prime Minister or Gen. Salim Selah. Who knows really, but it isn’t with proper protocol or direction. Neither a long-term game-plan.

That’s why the Operation Wealth Creation went to Emooyga and now the PDM is the new kid on the block. While NAADs and SACCOs are still vital enterprises and means of money lending practices to the public at large. As they have to comply with the regulations of these, but vehicles in addition is the OWC, Emyooga and the PDM. However, these are all launched without any sort of proper check of accountability or even results, which could give insights to what worked and what failed. That is only in small sentences in the Auditor General reports and partly investigations into a few districts. The whole operation and spending spree has never been assessed. Therefore, God knows how things went or if it was a wasteland of government expenses on a shallow project.

This is why I don’t have faith in the PDM. There has been no real proof that OWC was working and none has really looked into Emyooga. The SACCOs and NAADs haven’t improved the Republic substantially either. It is like the state is going in-circles and hopes that nobody notices. While the high ranking officials has means to an end. Where they can trick the accounts and transfers for own gains or for campaigns of any sorts. Since there will be no oversight or accountability on the matter. It will only be partial and not a whole picture. As the realities would be to dire to describe.

It must be a reason why the state doesn’t look into or even tries to study the previous programmes. As it is busy launching new programmes to succeed the next. The only difference is the name and who is in-charge. The rest is repeating the sins of the past and hoping someone will forgive them. Peace.

Opinion: The Trump Organization is in big trouble

The Trump Organization and the Trump family is in the middle of a huge quagmire. As the accounting firm Mazars have dropped some knowledge on the financial practices of the business in question. If you think this is bad, well… this is in the lane of Bernie Madoff and Arthur Anderson’s own practice, which also became a court case and several of felonies on both parties.

Mazars will not be able to run away from this legal case. The Attorney General of New York is still building their case and looking into the financial records of the Trump Organization. The Trump Organization can now be questioned for a decade of financial statements and usage of these in various of operations.

Because these documents can be inflated in one way to sell and get more revenue from creditors who the Trump Organization got loans from or scaled back when paying taxes to the State of New York. Therefore, there is possible wire-fraud, tax-fraud and other similar criminal conspiracies to pin on the company. Which at this point of time wouldn’t be shocking.

What should also happen now as the investigations are going on. The creditors and the ones covering the liquidity of the Trump Organization should be worried about the assets and the real value of the company. Since Mazars are saying the financial statements are unreliable. That means the Trump Organization could have lied about the profitability or the value of any enterprise, LLC or even properties of which in the hands of the company.

That Mazars stops vouching for the company and the former first family. Really signals that things are dire and not in good place. That the accounting practices and the state of the business isn’t in a great place. The Trump Organization has to get a new accounting firm and prove their numbers there. While Mazars has to answer for the ten-years it says is unreliable and not trustworthy. That says something they we’re accepting for years, but now says is wrong.

They are all in dire distress here. The same way things went wrong for the pyramid-scheme of Bernie Madoff and accounting firm Arthur Anderson. Who had to answer for these practices and lack of proper accounting from them. While they where grifting from all of their clients.

Now in 2022 we can now see the Mazars and Trump Organization have to answer for this. The Attorney General have to continue the investigation and discovery of documents into the companies. As the truth has to come out and we will know. However, the Trump Organization is in trouble.

As they have to carry huge debts, which is of unknown amounts of million dollars and that has to restructured. While he has secure his assets and possible salvage of the company, which can destroy the reputation of the company further. Now, we just have to see if the banks or the creditors accepts the financial statements. That we will see in the close future and how things are going.

Because, money talks and bullshit runs a marathon. Peace.