Zambia: Where the government claims the Opposition created the maize-inflation, I beg to differ!

This week in Zambia, you have arrest of opposition leader and also claim that another ppposition leader is in-charge of the rising prices, the inflation and the overall added expenses on the staple food: Maize.

However, we all know that is rubbish. Because, UPND Hichilema isn’t in-charge of any ministry or government portfolio. It is the Patriotic Front (PF) and President Edgar Lungu whose in charge of the mess created. It is his people whose not on guard and fixing the issues within the Republic. That is why the issues are there, because there is a need for basis and control from the state.

In addition, that the PF is attacking others and claiming their faults for their mismanagement. It is easier to point the finger at HH and UPND. Instead of acting reasonable and finding out why there is a growing inflation on staple-food and the need for price cap on Maize.

Look!

On Sunday, the 25th of August 2019, the Agriculture Minister of Zambia, one of the most highly urbanized countries in Sub-Saharan Africa, Michael Katambo said following a meet with millers, chain stores, stockfeed manufacturers and grain traders that they all had agreed to put a cap on maize price in order to keep the nation’s staple food affordable. On top of that, the Agricultural Ministry had also added in a statement that a ton of maize could be sold at a maximum price of $198.93 or 2,600 Kwacha ($1= 13.07 Kwacha)” (Sourav D. – ‘Zambia introduces price cap on maize (corn) amid farmers’ protest’ 27.08.2019, Financial-World.Org).

Zambia’s headline inflation accelerates for sixth consecutive month in August, jumping to new multi-year high as food price pressures weigh. Despite the reintroduction of maize price caps, surging food prices may steer inflation to breach double-digit territory by end-Q3” (NKC African Economics, 30.08.2019).

Lusaka Province secretary Kennedy Kamba told journalists yesterday the two directors recently invited United Party for National Development (UPND) president Hakainde Hichilema to coerce him into petitioning the Commission over alleged corruption in the government. Mr Kamba said those were some of the clandestine tactics the opposition and some public servants were using to discredit President Edgar Lungu and his government because they had nothing else to talk about as the government had delivered in all sectors. At the same briefing, Lusaka Province PF chairman Paul Moonga warned millers against conniving with the opposition to create artificial mealie meal prices and commodity shortages” (Charles Musonda – ‘ACC BOSSES EXPOSED’ 30.08.2019, Daily Nation)

The PF should consider their actions, because it is their lack of actions in time. That is the reason for the inflation on the staple food. If not their inside dealings, which has told stories to HH. It is not that he gets the truth from directors of millers.

Therefore, the state and the PF needs to look into itself and its shortcomings. If they want it for the better. PF needs to act upon that, not that HH or anyone else is questioning their actions. Since, his just doing his duty as an opposition. HH is not governing, that is what the PF does, if not they are not doing it well enough. That is why HH and the opposition is the scapegoats for the lack of due diligence from the government itself.

Seriously, something is up. I don’t know what it is or the reason for it. But there is something not sorted out. Because, an inflation and a price-cap on maize doesn’t come over night. Peace.

Uganda-Rwanda Tension Part VIII: A look into the Parliament Report on the closure of Uganda-Rwanda Border

On the 23rd August 2019, the Minister of State for East African Community Julius Wandera Maganda sent the report on the Closure of Uganda-Rwanda Border. This report has been made to update the EAC Committee. Still, the public deserves to get the numbers and the gist of the closure. What it really means in the hard numbers and with the cross-border trade.

Clearly, the closure has had an affect on both republics. As the Report states are that:

Following the closure of Cyanika, Katuna and Mirama Hills Border Posts on the 27th Feb 2019 by the Republic of Rwanda, as part of their mandate, the Ministry of East African Community (MEACA) has undertaken a number of steps as indicated below”.

There has been certainly new rules for entry between Uganda-Rwanda:

i. There is still free movement of persons (Ugandan Nationals and other Nationalities) to and from Rwanda save for the Rwandan citizens who are only allowed entry and no ex;.t from Rwanda.

ii. The only Rwandan nationals allowed exit from Rwanda from the borders above are the drivers on transit to Kenya and not to Uganda.

iii. It was also noted that the Ugandans who cross to Rwanda only go there mostly to attend Parties or Funerals, and not business as the environment for Ugandan goods and products is hostile.

iv. Whereas Ugandan nationals are allowed to enter Rwanda, it is unfortunate that Ugandan goods/products arc not allowed entry. These are rejected with no reasons given, no rejection notes/documents are provided. Many drivers have suffered the disappointment of being told to turn back to Uganda”

All of this has consequences. Just as the financial implications by this alone. The Ministry can show that in FY 2017/18 value the imports from Rwanda at 160,293,270,436 UGX and in FY 2018/19 it has gone down to 123,338,816,439 UGX. This is downfall of imports of 23.05 % from the last year.

The consequences for the export to Rwanda is also hit. In FY 2017/18 was 585,436,037,282 UGX and in FY 2018/19 is 426,884,832,406 UGX. This is a downfall of export in the amount of 27,08 %. from the last year.

The results of the closure of the border at Katuna has ensured that there was no trucks passing this pass, between March 2019 to the June 2019. When the trucks started to crossover again. Still in a fraction of what was done in the past. Before February 2019, the average inflow and outflow of trucks was above 3000. However, in the months of March to June 2019, there was less than 500 every month. Even ZERO in the months of April and May 2019. Before, the numbers has started to rise, but not more than 300 in June 2019. Surely, One-Tenth is a major change and has affect.

This has resulted in more traffic, within the inflow and outflow at the Mirama Hill. Until February 2019, there was usually about 300 passing in both directions. However after this it was around 2000 trucks passing through every month between March to June 2019. Which is showing that there are blocking of trucks and also the total numbers of trucks passing on both passes is less than 3000 in both directions. That is really hurting the cross-border trade between the Republic’s. It is easy to see.

The closure has had an affect and the new measures on both sides. Has hit the trading, but also general movement. That is visible and surely, would be nice to see what the Rwandan Parliament would write as a counter to the Ugandan side. To see if their have another explanation for this. Peace.

Uganda: Statement on the Status of Tullow Farm Down (29.08.2019)

Brexit: 4 Cardiff MPs letter in response to Prime Minister Boris Johnson (29.08.2019)

Tullow Oil terminate agreement with Total and CNOOC over a tax dispute in Uganda

Today, the agreement published between Tullow, Total and CNOOC made a Sale and Purchase Agreement (SPA) on Area 1 and Area 2 in the Lake Albert Basin in the Republic of Uganda. That deal was issued on the 30th August 2016.

Now, nearly three years later. Tullow Oil has now back-tracked and said the deal didn’t go through. Surely the SPA and the Joint Venture Agreement wasn’t settled properly. If not, then the press release of Tullow wouldn’t say this:

Tullow Oil plc (“Tullow”) announces it has been informed that its farm-down to Total and CNOOC will terminate at the end of today, 29 August 2019, following the expiry of the Sale and Purchase Agreements (SPAs)” (…) “The termination of this transaction is a result of being unable to agree all aspects of the tax treatment of the transaction with the Government of Uganda which was a condition to completing the SPAs. While Tullow’s capital gains tax position had been agreed as per the Group’s disclosure in its 2018 Full Year Results, the Ugandan Revenue Authority and the Joint Venture Partners could not agree on the availability of tax relief for the consideration to be paid by Total and CNOOC as buyers” (…) “Tullow will now initiate a new sales process to reduce its 33.33% Operated stake in the Lake Albert project which has over 1.5 billion barrels of discovered recoverable resources and is expected to produce over 230,000 bopd at peak production” (Tullow Oil plc – ‘Termination of farm-down agreement with Total and CNOOC in Uganda’ 29.08.2019).

This deal fell through because the companies didn’t want to compensate each other for back-taxes or the taxation of the possible profits to the Government of Uganda. Something that was approved upon the Joint Venture Agreement in August 2016 with Total and CNOOC.

This shows how hard it is start-up and the issues by operating in Uganda. Even Tullow Oil plc is trying to figure this one out. It was only in January 2017, when the Total was supposed to buy the biggest part of operated stake of 21,5% from Tullow. Surely, with the announcement in 2018 and now in 2019. This has all backfired and stopped, because URA and the companies couldn’t agree on their fees.

That dispute is the one that was interconnected with the “Presidential Handshake” of 2017. As the 6 billions shillings was doled around to civil servants and high ranking officials, who secure the capital tax gain from Heritage/Tullow Oil, which was awarded in February 2015.

Therefore, Tullow has to now find new buyers for their USD $167m stake in the Lake Albert Basin. This would be the payment of the Capital Gain Taxes (Awarded $157 Million) to the Uganda Revenue Authority. Apparently, Total and CNOOC didn’t want to do that apparently.

So from August 2016 to August 2019, the three companies and URA couldn’t come to an agreement on Capital Tax Gain, which Tullow owe URA after losing their case in February 2015. This shows, that the big victory of the state in this matter. Is actually making it harder to find someone who can afford or see it feasible to drill for oil in Area 1 and Area 2.

This is how it seems and the two other companies didn’t want to pay for what Tullow did before them. Peace.

Brexit: Ruth Davidson MSP resignation letter as the leader of the Scottish Conservative and Unionist Party (29.08.2019)

Brexit: Lord Young of Cookham CH resignation letter (29.08.2019)

Opinion: Ramaphosa using his third trick to block the CR17 Report

Well, first trick by President Cyril Ramaphosa and his lawyers was that they went in with a petition of blocking the CR17 Campaign Report made by the Public Protector Busisiwe Mkhwebane. His second trick was to review the Public Protector through the ANC Study Group and see if they could remove her directly. Now, today, they have start using the third trick to silence the report in question. 

The third trick:

President Cyril Ramaphosa has accused the financial intelligence unit of unlawfully leaking bank account statements linked to his 2017 ANC election campaign that are at the centre of his legal dispute with public protector Busisiwe Mkhwebane” (Karyn Maughan – ‘Cyril Ramaphosa takes aim at ‘unlawful’ financial intelligence unit leak’ 29.08.2019, Business Day).

Clearly, if there isn’t evidence of something shady. The actions made by the President and legal team in this manner over the last month. Really shows there are some skeletons in the CR17 Report. Whatever that might be, he wants it hidden. Surely, the President has some friends and some captives there. That he only wants to know and his closest associates.

If the President thinks all of these actions are wise. It is not. This only adds to more speculations, as the Republic is not yet done with the State of Capture Report nor the handling of scandals surrounding his predecessor Jacob Zuma.

Ramaphosa isn’t looking smart this third move, neither was it block the report in the first place. Then questioning the one writing the report and collecting it. Because, it is circling in the details there. Which isn’t leaked nor the evidence that could hurt the Presidency. But we can assess by the matters already released, that it will be bad. Very, very bad …

Very, very bad for the President. Since, him and his associates does this. The ANC and the President isn’t looking like they started a fresh with his presidency, but instead continues the same sort of closed chambers transactions and tenders, which created the state capture in the first place. But that’s not shocking, as so many of people in and around the President worked with Zuma. There haven’t been many who has lost their titles nor been demoted. Only the head and his VP got upgraded.

Ramaphosa should think about that, but instead want to bury a public record, a public report, made by the state for the public and for the authorities to further investigate. Clearly, that isn’t important to him. If it was, he wouldn’t use tricks up his sleeve to silence it. Peace.

Brexit: Caroline Lucas MP letter to Prime Minister Boris Johnson (28.08.2019)

Brexit: Jess Phillips MP letter to Prime Minister Boris Johnson (28.08.2019)