Opinion: Financial distress and defaulting on loans causes the state to loose Entebbe International Airport

China is most likely to take over Uganda’s Entebbe International Airport for default on debt repayment. More of Uganda’s national assets are at stake of seizure because of the unrealistic and endless borrowing which has mountained public debt to UGX65 trillion” (Kingdom Media Uganda, 25.11.2021).

The Deficit Financing can only take you so far. The bloated and crony capitalism can only keep you going so far. There been years upon years with loans for all sort of development projects and infrastructure upgrades in general. The loans have gone to buildings, roads and the only international airport in the Republic.

The National Resistance Movement and President Yoweri Kaguta Museveni have over the years promised they have a threshold and control of the amount of debt. However, in 2021 after a downturn and lack of generating revenue. The state is defaulting on it’s loans. The state has taken out loans it cannot carry. Loans are not only the loan, but the services for it too. The loans are with interests and with additional fees, which was accepted on taking the loans. These loans are now maturing and the grace period of not paying interests etc.

The Ministry of Finance, Planning and Economic Development (MoFPED) have promised they can service it and has it under control. They have said it would be used properly and well-spent funds. Nevertheless, the loans are clearly piling up and the state doesn’t have the revenue to pay them. They have recycled to many bad-loans and now they comes to haunt the Republic.

The state is paying for ghosts, huge patronage and a local government structure that is dilapidated from the get-go. Since, the state has such excess of expenditure, but they have to keep that to breathe life into the regime. This is why the state has to spend and use funds like a drunk sailors in port. Just awaiting to be robbed by a bystander or waste a salary at a gentleman’s club. However, this is a serious government and not a drunk lonely man who has been at sea for months on end.

It is tragic, but there been warnings. The Sri Lankan debt to China and what happened there should have been a “red flag”. What happened in Zambia as well should be another story of which the Ugandan government should have reacted too. However, that is clearly asking to much, as kickbacks, graft and grand corruption is part of the diet at the Entebbe/Nakasero State House. They are just eating and doesn’t care about the ramifications of it. Since, the cattle in Rwakitura farm is better taken care off, than how the budgets are financed. This is the sad reality of the Republic in 2021.

The amount of loans and debt will cause more distress. Why? Well, there is no future or ability to clear the debt without any proper revenue. The state needs to find new measures to get fiscal responsible. However, the state cannot just tax things and start to tax people for their every transaction. Because, with doing that… they are taking away money, which will generate more revenue and even more possibility to create new businesses. Yes, the state gets more taxes, but they are also creating a wormhole where there is no option to generate any real income. Since, if you have any transactions, the percentages of money is siphoned by the state and instead of getting invested to make new markets.

Therefore, the state is forced to change the way it operates. However, by doing so… the NRM and Museveni will have to drop cronies. That is something it cannot afford, because they are to eat and not to make the Republic better. This state cannot sustain itself …. and it’s own fault that it defaults on loans. Nevertheless, the citizens and the taxpayers are the first to be hit by this. Not the ones who has issued or taken out the loans over the years. They are the ones that has to fix it or for generations pay the Chinese for ordinary services. Because, the current regime wants SUVs and envelopes to cover for funerals or pay for medical tourism. Peace.

Zimbabwe Congress of Trade Unions (ZCTU): Payment of Salaries and Bonus in United States Dollars (15.11.2021)

Angela Rayner MP letter to Parliamentary Commissioner for Standards Kathryn Stone – On lacking of declarations of PM Johnsons’s vacation to Spain (04.11.2021)

Opinion: 7 years down the line and the China Exim Bank loan to upgrade Entebbe Airport can become a liability

The State Minister of Finance, David Bahati assured the legislators that the implementation of the project will be monitored to ensure the funds are properly utilised” (The Observer – ‘Parliament endorses Shs 680bn Entebbe Airport expansion loan’ 30.10.2015).

It is now evident that the Government of Uganda and the National Resistance Movement (NRM) might struggle with a loan it took out in March 2015 from the China EximBank to fund upgrades of the Entebbe International Airport. We are now in October 2021. There was forewarnings about taking expensive and extensive loans to build and development infrastructure projects. The ones who was steadfast and worried about the rate of loans the state took out was silenced. The state had a plan and initiated with thresholds of loans the state could borrow.

Alas, the state is starting to struggle to cope with all of these loans. It is not shocking as the NRM and the state have been busy with deficit financing it’s budgets to balance it. They are operating with a higher expenses than it has domestic revenue. So to go from red to black the state borrows vast sums from various entities, both locally and internationally. These are taken out with interests and with that… the debt burden is ballooned and at one point… the creditor will either ask for the collateral or make an agreement to cover the funds to cover the defaulted debt. This is what that could happen to Entebbe International Airport…..

Here is how the story went…

How the loan was made:

On October 8, 2014, Uganda’s Civil Aviation Authority (CAA) and China Communications Construction Company (CCCC) entered into a contract for the up grading and expansion of Entebbe International Airport (Phase 1). To access funding for the project, the Government of Uganda (GoU), represented by the finance ministry, signed a concessional agreement with EXIM Bank of China dated March 31, 2015 for the principal amount not exceeding Renminbi 1.26 billion (about $200m) and interest to be charged at a rate of 2% per annum” (Africa Tembelea – ‘AG Muwanga raises queries on Entebbe Airport Expansion’ 12.01.2019).

How CAA looked at the agreement in 2019:

Current overall progress for the upgrade and expansion of Entebbe International Airport is at 52 per cent as opposed to the planned progress of 55 per cent. This is commendable progress. At one point in time, there was a delay in release of money from the Exim Bank of China to the contractor (CCCC), which led to a slight delay that has since been resolved. There was a difference of opinion between Exim Bank and the Government of Uganda on the loan agreement clauses. This necessitated the Government of Uganda and Exim bank of China to renegotiate the terms. This was done and the matter resolved amicably. The contractor has since increased resources committed to the project including manpower and equipment. The rainy season also affected works” ( Dorothy Nakaweesi – ‘Renegotiating loan terms slows Entebbe Airport expansion’ 03.06.2019, Daily Monitor).

Xinhua reports:

Under the Belt and Road Initiative, construction works started in May 2016 after Uganda acquired a 200-million-U.S. dollar loan from the Export-Import Bank of China (China EximBank). The project is scheduled to be implemented in two phases, said China Communications Construction Company (CCCC), which was contracted to design, construct and manage the project. The first phase, with three-quarters finished, involves construction of a new passenger terminal, a new cargo complex, and upgrade of two runways and their associated taxiways, rehabilitation and overlay of three aprons. “For the new cargo building, it is about 10,000 square-meters and when it is finished, it can handle 100,000 tons of cargo per year; for the new passenger terminal building, it is about 20,000 square-meters (and) can handle 3 million passengers per year,” Li Qinpu, CCCC project manager told Xinhua in a recent interview” (Ronald Ssekandi – ‘Feature: China revitalizes Uganda’s aging airport to carry more int’l traffic’ 15.10.2021, Xinhua).

Brian Luwanga tweeted today:

EXIM Bank of China can take over Entebbe Airport in case Uganda fails to pay back a loan of 740 billion shillings ,this has been unearthed by COSASE while meeting Finance Minister Matia Kasaija. The loan was advanced to Uganda for upgrade of Entebbe Airport(Brian Luwanga, 28.10.2021).

It is now a shot that the state promised was safe and would be able to liable for. The state said it would be able to repay the Chine EximBank and service the debt. However, it now seems likely the state is failing to pay back the loans. This means the state is defaulting in it and depending on the agreement. The creditor will have power to cover the debt from the debtor. In this instance, the state has to give collateral or any other sort of value, which will practically cover the lost debt and get returns on the loans issued.

This here is a sad story, but they could have done things differently. Even MPs and some said the state should use other sources to raise the funds for the upgrades of Entebbe International Airport. There was one MP who said the state should borrow this from the NSSF to cover it. Alas, that wasn’t the case and now we are here.

We shouldn’t be shocked at this current rate and with the trillions of shillings of debt. The debt isn’t only the amount you get directly from the lender, but you will also pay additional fees and interests. Meaning the loan isn’t just the fixed funds, which the debtor is receiving, but also the costs of servicing it too. That is what the state has do to when it takes these sort of loans and financial instruments.

The general public should worry about this. Because the state has taken out so many loans and these could it easily default on. The state needs domestic revenue, but is running on huge burden of running costs. While it doesn’t have a growing economy or financial structure to cover the deficits. That’s why the state has taken out loans to cover these expenses and this is why they are defaulting on it.

This was inevitable and the state has to restructure itself. Also, ensure it only has expenses that it can cover and just continue to add debt until the sky. Now the rainy days are coming and the loans taken out in recent years will come to haunt the state. This will hurt the state even more and the spiral of depreciative loans will eat up the budgets, which it is already doing. The rate of paying down on it will be destructive, unless there is a sudden miraculous change of financial fortunes. Alas, await more tragedies like these, as the Entebbe International Airport is the top of the ice-berg. Peace.

Pastor “Mama” Janet Returns: London calling …

Today, I wanted to talk to you about “excellence” in the work we do. I wanted to call our topic for discussion “Made in England”. What does that mean you may ask? That means: the products that were / are manufactured in England which were and are still labelled “Made in England.” People in the countries so far away from England would look for those products that would have been imported to those global markets” (Janet Museveni, 25.10.2021).

This is just happening as there is a will to only sell Nile Perch fished in Lake Victoria to Europe. As that is happening. The First Lady and Minister of Education returns with another sermon. Pastor Janet Museveni cannot contain herself and must be fisherman herself apparently. So, here we go…

So what am I saying here? I am saying that it is wise and it helps to learn from one’s early life that mediocrity is expensive and burdensome because sometimes people think that it’s smart to cut costs by using less materials than is necessary. Whatever you are doing or making, whether it is furniture, or building a house, or constructing a road, if you finish that product and sell it and in a very short time it breaks down or gets spoilt, that is the last one you will ever sell because people will say it is fake, a sham and they will regret having bought it” (Janet Museveni, 25.10.2021).

Here we see here wisdom, as it is and on full display. There is no deep meaning here. Just that everyone is supposed to deliver excellence and not mediocrity. Which is very ironic, as her ministry and her government is the proof of mediocrity. To many cooks and not enough chefs. There is to many in the kitchen and nobody performing. Since, everyone is awaiting to be delegated and getting letter of approval from the His Excellency. Therefore, she is the wrong messenger for this. Mrs. Museveni should also investigate Dott Services and all the Chinese companies building roads, since they are shoddy, and their work isn’t excellence. Still, the father of the home is accepting them.

Finally, I want to add that this principle of excellence does not only work in what you produce or what you do alone, it also works in life, generally speaking. It works in the values you espouse as a person. Values of truth, kindness, patience, trustworthiness, honesty, etc. which ensure that you are a person who only says what they mean and always means what they say. This means people can trust you because you stand by what you say. You are kind to other people, and you don’t bribe people to get what you want, you are patient with your workmates when they are not the best, and you help them on their way to change until they also overcome mediocrity. That way you are excellent as a person and your work also speaks for itself. So you are a good workmate and as a rule, you will prosper” (Janet Museveni, 25.10.2021).

It is like she never seen the National Resistance Movement (NRM) and their work ethic. She speaks of nice ideals, but her own cabinet, ministers and party members cannot all hold these norms dear. The NRM and the husband of Janet doesn’t follow these words. That’s why her aspirations doesn’t make sense. If she was working for a church and a congregation … that had made sense. Alas that is not the case.

Janet, have you seen and heard the stories of bribes involving your husband? Haven’t you heard corruption scandals in-connection with family members and high ranking officials within the NRM party? So, shouldn’t this lesson be heard and told at home before you go to the general public? The idea is a good one, but not a believable. Unless, you want to be a false prophet?

In conclusion, if we have a critical number of our people or skilled workers striving to be excellent workers, then whatever we produce will sell itself just like “Made in England”. Uganda will stand out in Africa because our cities will be beautiful, our roads will be excellent, our students will be excellent students of purpose and we will prosper. Our God will be glorified! How about that!” (Janet Museveni, 25.10.2021).

Yes, people should strive to deliver good products and excellence. That is all natural, but the state isn’t making the public prosper. Janet and the whole cabinet could make it possible. They could make proper policies and laws, in which the industries and the final products could be seen as excellence. However, the state is more into taxation and regulating the business than making things better. Which is ironic when the minister praises excellence.

If Janet wants things to become excellent. She needs to address the hubby and get him to direct all the national parastatals, commissions and state owned enterprises. Yoweri could easily direct some ministers and commissions his way. Just like he does with UNRA and hires some shabby Chinese Road firms and Dott Services. He could maybe get the someone else to actually hire someone good this time. Peace.

Zimbabwe: Citizens’ Cabinet – Fall in RTGS Value and the Decimation of Livelihoods (22.10.2021)

Opinion: Trump’s Hotel at the Old Post Office is a business made of White-Collar crime

Reportedly coined in 1939, the term white-collar crime is now synonymous with the full range of frauds committed by business and government professionals. These crimes are characterized by deceit, concealment, or violation of trust and are not dependent on the application or threat of physical force or violence. The motivation behind these crimes is financial—to obtain or avoid losing money, property, or services or to secure a personal or business advantage” (Federal Bureau of Investigation – White-collar Crime).

The House Committee on Oversight and Reform have looked into documents from the General Services Administration (GSA) detailing the lease of the Old Post Office Building in Washington D.C., which has been made into a Trump Hotel. The documents and financial transgressions is now blown a lid off.

That’s why the Former President Donald J. Trump came out with a statement that the Republican’s should vote in 2022 (midterms) and 2024, because the 2020 election wasn’t rectified or overturned as he wanted. This is what created buzz and headlines… while the financial crimes of the Trump Organization in concern to this hotel was becoming secondary.

Trump and his companies withheld information of a loan from Deutsche Bank, which in 2018 gave him a $170 million loan. While he was in office, the hotel earned $150 million and out of that he received $3.7 Million from Foreign Governments. He also concealed $70 Million in Net Losses. In addition, he concealed other debts with other properties as he was bidding for the Old Post Office Building. He hid this information of $1.1 billion of debt in 2009/10 in the financial documents when he applied to the GSA in 2011.

All of these things can be seen as corporate fraud, which is White-Collar Crime and he has also possibly violated the Foreign Emoluments Clause with the “donations” or millions of dollars from Foreign Government to the Trump Hotel. All of these things should be investigated directly and the Department of Justice should takeover from the House Committee on Oversight and Reform. So, that this can a discovery and subpoenaed further.

We are seeing the will to hide, deceive and lie to entities to get profits. The conceal the facts and get beneficial treatment. While also ensuring illegal means to get the ability to rent and run an hotel while being in office. The Trump Hotel at the Old Post Office needs a serious investigation and possibly more deals done by the Trump Organizations. Since this is just one of plenty and now that his not in office. The state, the committees and state attorney generals can push these cases. That is needed. Because, it has been proven in the past of transgression and illegal activity done by Trump.

That’s why Trump isn’t allowed to run a charity or a foundation. Neither, the former President was charged and had to pay fines for his fake Trump University too. Therefore, expect more to come and more cases to possibly happen. This just shows what his willing to do and using the Presidential term to earn more money. Peace.

India: Centre of Indian Trade Unions (CITU) – Stop the drama of artificial coal and power crisis to favour the Corporates (13.10.2021)

Kenya: Civil Society Reference Group (CSRG) – Civil Society Organizations’ Demands on the Pandora Papers Expose’ (08.10.2021)

Opinion: The Françafrique countries should question it’s need for France

The last two weeks or recent days the French President Emmanuel Macron have proven how the elites of Paris is disregarding the former colonies, if it is Mali or Algeria. I am sure behind closed doors and within trusted associates the words could be even striking. Because, these words has been said in public and with no proper excuse.

In that regard, when the Head of State of France is saying that. The previous colonies should question the need to be bound by mechanisms and by agreements tied to Paris. Since Paris clearly don’t respect you or honour you.

Françafrique consist of Algeria, Benin, Burkina Faso, Chad (Tchad), Cameroon, Republic of Congo, Comoros, Central African Republic, Djibouti, Gabon, Guinea, Mali, Madagascar, Mauritania, Morocco, Niger, Ivory Coast, Senegal, Togo, and Tunisia. That is lot of counties and huge part of continent. The French are involved also in republics and nations, which they were the colonial power over. However, this here piece about them. Since they have still a significant place and plays a role for the power-balance in these countries.

About the “Colonies Francaises d’Afrique”:

The countries still bound by a monetary union and a common currency, which is Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo, These are all part of West African Economic and Monetary Union (WAEMU). The second monetary union of the CFA Franc are based on these countries: Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon. These countries are a part of the Central African Economic and Monetary Union (CAEMC).

The French and some of their allies tried to relaunch it as “Eco” in 2019 and that has gone nowhere. That should say a lot. I doubt that is only happening, because of regime changes. Nevertheless, I don’t expect any serious movement on this matter anytime soon.

We know Benin said it wanted to leave CFA Franc … that hasn’t happened either. Paris and the elites there has a way of keeping everyone under their control.

What would be healthy would be for all heads of state and parliaments, ministries and such evaluate the relations, agreements and ties with it’s former colonial master. Since, as an independent nation it is nothing saying that you should be there forever or have to be mocked on a irregular basis by Heads of State of France. Neither, should the French has trade advantage or mineral extraction agreement, which other nations companies couldn’t have. That could possibly make it more profitable and earn more tax-dollars to the state reserves in any given republic.

It is time for all of them to consider this. Everyone has some sort of ties and this is why they are still indirectly having influence. That is why everytime something happens or in regards to French interests. Things gets tense and you never know when things will pop-off. This is why the Republic’s need to oversee and have a proper oversight of it. It is like this has have never been done.

All mechanism and statutory bodies, which is connected needs also to be looked into. This here will take time and needs to be inquires. There is a need to directly investigate and also see what sort of affects it has had over the years. If there is a beneficial relations or one-sided. Since, there might be some good parts, but a lot of it is a way of the French to never let go.

After everything Macron has done. The Francophone Africa needs to react and not accept this sort of acts. Right now he does this to Algeria and Mali. Who knows when the “wrong” head of state get elected somewhere and he will use his power to stifle them. Even if that was the will of the people and not the will of Paris. That is what is striking here and that is why these republic’s needs to see over everything. We know the French will feel insulted and infuriated. Since they are entitled to it all. However, this wasn’t their to begin with. This isn’t Marseilles or Bordeaux, but it’s Yaounde and Lome. Peace.