Recent Corruption cases: “It was part of being an insider but it was a very corrupting business”

Hapers

“He did not care for the lying at first. He hated it. Then later he had come to like it. It was part of being an insider but it was a very corrupting business.” – Ernest Hemingway, For Whom the Bell Tolls

You who follow my blog know I does this once in a while to prove that corruption isn’t a one area thing, it’s international and got no borders. Always somebody who want to pocket some easy and quick money, that is because it’s easier then actually work for the money in the end. This time around there is a few Island cases two cases on the Dominican Island and one that origins from Mauritius. The World Bank president is addressing taxation and how bad practices can destroy economic situation in low-developed countries. In South Africa there been a shady deal between Statehouse and the Hitachi, the ANC are continuing to do this and the old cases that has hurt the regime like he army deal in not to distance past. And a UN environmental negotiator who has a few counts of tax fraud so that the United Nation has even some people who got questionable actions. No place in the world you can walk anymore without insider, but it was a very corrupting business. Seems like a worry from Dominican Republic to the New York UN office. Take a quick look!

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In the Dominican Republic:

“The alleged bagman in the State Works Supervisory Engineers Office (OISOE) on Monday said the money provided to contractors to conclude construction of schools came from the beleaguered agency´s technical director, Jose Florencio” (…)”Alejo Perez said the money was sometimes handed out at the schools or at OISOE headquarters, in presence of de los Santos´ and the engineer in charge of the work. “These payments were sometimes made in cash or checks.” (…)”When asked what de los Santos did with the money he gave to Florencio, Alejo said: “They gave it to the engineers on loan to finish the work, which was withdrawn from a line of credit” (Dominican Today, 2015).

There is even another recent case on the island:

“The embezzlement case against ruling PLD party and senator Felix Bautista has unleashed a crisis of confidence among Supreme Court justices Frank Soto and Miriam German, who in a letter dated September 21called her colleague unfair, disrespectful and abusive” (…)”The Supreme Court on September 22 set a hearing for Oct. 21 to hand down the ruling on the prosecution´s appeal against Bautista´s acquittal by a lower court” (Dominican Today, 2015).

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More trouble in another Island Paradise:

“Senior figures from the island’s new government visited Britain in the summer to lobby for a National Crime Agency (NCA) investigation into the 68-year-old British passport holder for alleged corruption in Mauritius” (…)”The NCA is believed to have contacted the island authorities for details of credit cards found in Mr Ramgoolam’s safe that included two Centurion American Express cards given only to high-spenders. Mr Rangoolam, who owns a Rolls-Royce with a personalised number plate in London, has vowed to open his accounts to independent scrutiny in an attempt to persuade the NCA that he owns no property in Britain and only legitimately amassed savings. Banks in the UK shut down his accounts after the arrest in February” (…)”Any British investigation into Mr Ramgoolam would fit the profile of the more than 20 high-profile politicians being targeted by the National Crime Agency’s International Corruption Unit (ICU)” (Fellstrom & Peachey, 2015).

Statement from the World Bank president Jim Yong Kim:

“Some companies use elaborate strategies to not pay taxes in countries in which they work, a form of corruption that hurts the poor” (…)”We reject “trickle-down” notions that assume that any undifferentiated growth permeates and fortifies the soil and everything starts to bloom, even for the poor” (…)”Developing countries must also construct more equitable, efficient and transparent tax collection systems.  IMF Managing Director Christine Lagarde and I pledged a few months ago that our organizations will do all we can to help countries collect more taxes more fairly” (Tax Justice Network, 2015).

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In South Africa:

A deal between Hitachi Ltd and the Government of South Africa:

“SUMMARY OF ALLEGATIONS

Hitachi allegedly sold a 25-percent stake in a newly created South African subsidiary to Chancellor, a local South African company serving as a front for the ANC, South Africa’s ruling political party. This arrangement allegedly gave Chancellor and the ANC the ability to share in the profits from any power station contracts that Hitachi secured. During the bidding process, Hitachi was allegedly aware that Chancellor was a funding vehicle for the ANC but nevertheless continued to partner with Chancellor and allegedly encouraged Chancellor’s use of its political influence to help obtain the government contracts” (…)”Hitachi was ultimately awarded two contracts to build Medupi and Kusile power stations in South Africa and Hitachi’s lax internal control environment allegedly enabled its subsidiary to pay Chancellor approximately USD 5 million in “dividends” based on profits derived from the contracts. Through a separate, undisclosed arrangement, Hitachi allegedly paid Chancellor an additional USD 1 million in “success fees” that were inaccurately booked as consulting fees and other legitimate payments without appropriate documentation” (Trace International, 2015).

RATIO OF IMPROPER PAYMENTS TO BUSINESS ADVANTAGE

 Approximate Alleged Payments to Foreign Officials  Business Advantage Allegedly Obtained
 USD 5 million in “dividends” based on profits derived from the contracts & USD 1 million in “success fees” inaccurately recorded as consulting fees  Awarded of two contracts, worth approximately USD 5.6 billion, to build power stations in South Africa

(Trace International, 2015).

“HOW CONDUCT WAS DISCOVERED

On 10 November 2006, the Mail & Guardian published an article, entitled “the ANC’s New Funding Front,” exposing Chancellor as a business front set up by the ANC to seek profit on its behalf, generally by acquiring “empowerment” stakes in a wide range of businesses seeking state procurement” (…)”On 19 January 2007, Financial Mail published an article, entitled “Finacing the ANC, Untold millions,” quoting the admission by Kgalema Motlanthe, ANC Secretary General, that Chancellor was an “ANC vehicle” that existed for the sole purpose of funding the ANC” (Trace International, 2015).

A little more of the case:

“The story of how Hitachi bought political influence, in order to win a $5.6 billion power station contract, calls into question not only the integrity of a massive company with a global reputation, but also the integrity of the South African government” (…)”A $19m fine for a company of Hitachi’s size, when they have won a $5.6 billion tender, is laughable and certainly does not help with law enforcement efforts to stamp out corruption” (Kenney, 2015).

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In the U.S.:

Chicago the place of Al Capone and other villains of old there are new corrupt faces:

“Charges that Byrd-Bennett steered more than $23 million in work to Supes and Synesi Associates “in expectation of hundreds of thousands of dollars in bribes and kickbacks,” according to Fardon’s office” (…)”Byrd-Bennett, 66, faces 15 counts of mail fraud and five of wire fraud. Solomon, 47, faces those charges, plus alleged bribery and conspiracy, as does Vranas, 34” (…)”Her attorney confirmed that plan in a brief statement:”Barbara Byrd-Bennett will plead guilty to charges in the indictment,” Michael Scudder, a partner in the Chicago office of law firm Skadden Arps Slate Meagher & Flom,” said. “As part of accepting full responsibility for her conduct, she will continue to cooperate with the government, including testifying truthfully if called upon to do so” (Hinz, 2015).

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Even in the UN:

Who knew that a negotiator in the UN for clean-energy and environmental issues has been getting accused on 5 counts on Tax fraud, here are brief information on the case.”A former president of the U.N. General Assembly “sold himself and the global institution he led” by allegedly pocketing more than $1 million in bribes to finance a luxury spending spree, according to a federal prosecutor” (…)”Ashe is accused of underreporting his income by more than $1.2 million, prosecutors said” (…)”ASHE also then began soliciting additional payments from LORENZO to pay for the installation of a private basketball court at ASHE’s house in Westchester County. In addition to agreeing to pay for ASHE’s family vacation and basketball court, LORENZO began paying ASHE’s wife, as a “climate change consultant” for NGO-1, in the amount of $2,500 per month” (Greenfield, 2015).

Afterthought:

If this wasn’t interesting then something must be missing. The corruptness is worrying that now even cracks in the UN system, that the World Bank President talks like he does is natural, that their been shady deals in South Africa isn’t new anymore; More like how much the deals are between the Government of South Africa between a Certain Company and then which MP or Minister who earns extra for it. The Mauritius clear-out is happening with a former PM having issues while the former President is behind bars, something is fishy on that island. Another island has two brief and new cases of corruption and that is on the Dominican Island. But the whole total of money discussed in these matters is big and terrifying for the state of the places and people involved in the matter. Like the quote from Hemmingway, I am sure that the persons are over time more easily doing the corrupt business and actions. Because over time it got easy and made the persons feels like insider. Though it still not right! Thieving and stealing is the same, and corruption is a malpractice and a form of stealing money. Peace.

Reference:

Dominican Today – ‘Suicide uncovers widespread graft at notorious agency’ (06.10.2015) link: http://www.dominicantoday.com/dr/local/2015/10/6/56703/Suicide-uncovers-widespread-graft-at-notorious-agency

Dominican Today – ‘Supreme Court justices bicker over embezzlement case’ (05.10.2015) link: http://www.dominicantoday.com/dr/local/2015/10/5/56695/Supreme-Court-justices-bicker-over-embezzlement-case

Kenney, Martin – ‘Hitachi’s South Africa $19m bribery fine’ (02.10.2015) link: http://www.martinkenney.com/articles/hitachi-south-africa-19m-bribery-fine/

Fellstrom, Carl & Peachey Paul – ‘Ex-Prime Minister of Mauritius under investigation by UK anti-corruption unit’ (04.10.2015) link: http://www.independent.co.uk/news/uk/crime/ex-prime-minister-of-mauritius-under-investigation-by-uk-anti-corruption-unit-a6679111.html

Greenfield, Daniel – ‘MAJOR UN CLIMATE ACCORD, AGENDA 21 NEGOTIATOR ARRESTED FOR CORRUPTION’ (07.10.2015) link: https://www.frontpagemag.com/point/260376/major-un-climate-accord-agenda-21-negotiator-daniel-greenfield

Hinz, Greg – ‘Ex-CPS chief Byrd-Bennett indicted on federal corruption charges’ (08.10.2015) link: http://www.chicagobusiness.com/article/20151008/BLOGS02/151009840/ex-cps-chief-byrd-bennett-indicted-on-federal-corruption-charges

Trace International – ‘Trace Compendium – Hitachi Ltd’ (28.09.2015) link: https://www.traceinternational2.org/compendium/view.asp?id=686&utm_source=TRACE+Compendium+Alert%3A+Hitachi+Ltd.+9.28.15&utm_campaign=COMPENDIUM+ALERT%3A+Hitachi+Ltd.+9.28.15&utm_medium=email

Tax Justice Network – ‘World Bank president: corporate tax dodging ‘a form of corruption’’ (02.10.2015) link: http://www.taxjustice.net/2015/10/02/world-bank-president-corporate-tax-dodging-a-form-of-corruption/

Statement by Center for Constitutional Governance on the 20th Anniversary of the 1995 Constitution of Uganda (08.10.2015)

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Today marks the 20th Anniversary of the 1995 Constitution as Amended. Many, if not all African countries have Constitutions. It is one thing to have a Constitution; it is another to practice Constitutionalism.
Constitutionalism presupposes three things:
i) A belief in the Constitution by many political parties and political leaders. If the main political actors do not believe in Constitutionalism, you may have a constitution as a mere document with no constitutionalism;
ii) Recognition of its importance by the main actors in the citizenry or population. If the Constitution is of relevance to a few people in the capital, in the political parties or academia; then you cannot have constitutionalism where there is no minimum consciousness by major actors amongst the population.

iii) Presence of organized political forces that are not only interested in constitutionalism but are ready to defend it.
Once you don’t have the above three elements, you cannot have constitutionalism – a belief needed by the major political actors, recognition of its importance by the citizens or its major actors and the presence of organized political forces that are prepared to defend it. If these tenets are not present, constitutionalism becomes an academic or religious ritual; the way like many people say “our father who art in heaven, or hail Mary full of grace”.
A constitution may also become a ritual if the above elements are not present among the political leaders, among the citizen and if there are no organized political forces prepared to defend it
The passing of the Constitutional Amendment Bill, 2015 yesterday, 11th August 2015 by majority MPs, after totally dis regarding the peoples’ views amounted to an overthrow of the 1995 Constitution of the Republic of Uganda, as amended.

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The spirit of the Constitution is enshrined in its preamble and paragraph 5 of that preamble states that: EXERCISING our sovereign and inalienable right to determine the form of governance for our country, and having fully participated in the Constitution-making process. The sovereign and inalienable right of Uganda was usurped by the MPs through the failure of the Legal and Parliamentary Affairs Committee of Parliament to integrate peoples’ views in their report and the subsequent total disregard of the peoples’ views by the whole House.
What we have in place after the 4th Amendment is a New Constitution that has no consensus of the people, which does not represent the peoples’ views and aspirations of the people on how they would like to be governed. This was in fact the birth of the 2nd “Pigeon Hole Constitution” of the Republic of Uganda.
Faced with a rubber stamp Parliament which ignores peoples views and goes ahead to amend the National Constitution ,the people of Uganda should therefore, strive to restore constitutional order premised on peoples’ views and aspirations on how they wish to be governed. We call upon the people to elect MPs that will respect their allegiance to the Constitution and commit to restore the sovereign and inalienable right of Ugandans by setting up a qualified Constitutional Review Commission to restore the supremacy of the people
FOR GOD AND MY COUNTRY.

Up for Grab: The true soul of Christmas version 2.1

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It’s time to write about Christmas again, I know it’s early, but hey the Christmas products are dropping and Black Friday is arriving quicker than the wind. We all know what that means, we can see the chocolates with Marzipan and specialized packed foods for this part of the year. The sodas, beers, meat, horseradish, crab-legs and all the ho ho ho. Not to forget the Oranges and ginger-mixed cakes with spiced up sugar-glazing.

I’m just waiting for Itunes and the radios to play the Christmas tunes and mosh the sad songs of Mariah Carey and Bing Crosby. The strange faces on the billboards on the trams and also on the Clear Channel posters all around town like the Grinch stole the whole town!

I just wonder if our societies have forgot why we celebrate it. Because for some reasons it’s more important to have an Iphone under the tree, then crossing your lips for a prayer and celebrate a birth of Christ! Something is missing in that picture. Something is really missing in that picture. The gingerbread cakes wasn’t it in the Middle Earth, wait! Sorry, the Middle East, where Jesus Christ was born. Either wasn’t a birth made so we had to run to some Supermarket and buy the new mops or laptops made from a sweatshop of factory in the middle of China, which is more like Mordor, then jolly Christmas celebration place of work, who has seen BBC One’s ‘Apple’s broken promise’?

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It’s like Scrooge is saving Christmas. Then do yourself a favor eat some more of the gingerbread and hope you’re not to bubbly after it. Still the earliness of Christmas products is coming right before Halloween or All Saints day. So before we celebrate the ones who has built our lands and men of faith of the past – we have to run down the shopping center’s and buy a few limited editions kitchen products that has to be made with either Danish design or Made in Taiwan. Nothing is Christmas as a kitchen machine making popcorn or spatula from Jamie Oliver.

We can all be a little goodie-good and grand hearted even long while before the Christmas preparation starts we have even said our prayers for the saints before we supposed to be sugarcoated and ginger-breaded up to our ears and eyes. Sure that a few of those Christmas tunes want make the day sweeter. Only make you wonder, how quick can ordinary days come back into effect?

The Companies sure want to earn on our nostalgia and good-heartedness towards our loved ones and friends. Because this is the crunch time of the year (Fourth Quarter!) If this sometimes doesn’t kick-off well then the business or shop are not settled to survive into 2016. But that isn’t an excuse to sell me Christmas cookies before November kissed the Calendar.

Home-Alone-1990

I am sure the CEO is not Home Alone or busy bodies trying to keeping up with Scrooge. Still their finding their ways of making ordinary products Christmassy, like I am waiting for the Christmas designed toilet paper for sale in my grocery store from Lambi and it will be limited edition.

I wonder why we have to release their special products before All Saints day and make Christmas time or Advent, where we supposed to celebrate the birth of Christ. Not waiting for yet another edition of chocolate in wrappings reminding of Santa’s Red Noosed Deer. Would you buy your summer barbeque special edition products in the middle of January? Still we accept to eat the special wrapped goods from before either versions of Christmas Carrol is on TV.

We can’t soon turn our beamy eyes on social media before every company between Hawaii and Kazakstan who has a Black Friday will jump upon you and wish you to be a part of their event, especially on Facebook! And your friends will invite you on it to hope that they will win a coupon or price for yet another piece of merchandize that either them or me need. But that’s what Christmas time is all about right?

We all have to feed these multi-national companies with our hard-earn monies to secure their parachute payments of their leaders when they resign. So we can be assured that they might only that their Santa Claus will be jolly all the way to bank for kidding ourselves with the wrapped mockery they have sold us since October. That most of doesn’t really want to have before the actual days of Advent. Unless we are the Gingerbread figure in the Shrek movies to be inspired to become Stallone’s Rambo and has his own franchise. Now that I said it, can I pitch a idea? It will be action packed while smashing down people in Ginger-city and kill the ones who try to steal the M&Ms that was supposed to be glazed on him with the working title “The Gingerman runs the mob”.

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Instead we’re in the Christmas bonanza and will until new-years like the recent years. I am sure that very few are waiting for new Christmas-products. That as usual got nothing to do with the actual holiday that everybody supposed to wait for. Not anything about waiting or symbolic of the supposed Christmas. It’s like Christ himself is a side-character instead of the main act and coming with one-liners, when the actual plot maker does something stupid. So here we are in the middle of and also start-ups, the yearly prequel of the Advent that has set the real life Scrooges and Grinches into life. They push any kind of products instead of what we are really celebrating. Though the Scrooges do what they are born to do as well, earn money and sell us sweatshop products on Black Friday, instead of giving hope and joy that the day is supposed to celebrate. The Advent is the waiting for the long awaited day that we celebrate, though so many just celebrate the ability to open a present and gifts from friends and family. There is nothing wrong in that, though the day has more value than that. That is like a forgotten story and it wasn’t Scrooge, Coca-Cola-Santa or the Grinch alone that stole Christmas it was our culture, that now lives on the special-limited-edition products that is a part of that time or the year. Instead of actually celebrate what really is Christmas.

It is not that I myself enjoy a special kind of Christmas soda, because though who knows me, knows how much I enjoy it. The thing that I am trying to say: is that we should not be enticed and forget it in the run for products that is symbolic edition and gifts. So we may not forget the main issue of the Advent and Christmas. Because if we forget that then we need help and ask ourselves why we running between stores at the mall and being in rush. Instead of being we actually there for our loved ones and spend our time with them. We are instead using so much time going to these shops and standing in ques. We should use less time on that and spend it with the ones we care about. That is something that has more value than newly fresh pressed money or imported Grincy-Scroogy-Gumball-Dumbo-Dumbledore-Delux Drier that none in the family needed. Peace.

#DearNextPresident: Cenk Uygur: You have to get money out of politics!

http://www.youtube.com/watch?v=34Gpf4L3YWo

Press Release: United States Contributes US$9 Million To WFP To Support Refugees In Uganda (06.10.2015)

Nyakabande TC

KAMPALA – The United Nations World Food Programme (WFP) today welcomed a contribution of US$9 million from the United States Agency for International Development (USAID) to provide food assistance for more than 320,000 refugees living in Uganda.

“This generous contribution has arrived just in time, as a funding shortfall was threatening to force WFP to reduce rations for refugees, including the new South Sudanese arrivals,” said acting Country Director Michael Dunford. “Those cuts will not be necessary now, and we are extremely grateful to USAID for its lifesaving support for people fleeing conflict in neighbouring countries and seeking refuge in Uganda.”

Dunford said WFP will use the funding, received through USAID’s Office of Food for Peace, to purchase more than 13,000 metric tons of cereals and beans within Uganda for more than 300,000 refugees.

The support will also allow WFP to provide cash to 20,000 refugees in areas where markets are able to meet the demand. As well as meeting the immediate food needs of refugees, cash assistance has the added benefit of allowing some flexibility for the refugees to buy nutritious foods that may not be part of WFP’s food basket and to manage their household food resources themselves.

This contribution brings USAID’s 2015 WFP support to refugees in Uganda and extremely vulnerable populations in Karamoja to an estimated US$26 million.

Uganda currently hosts more than 490,000 refugees, mostly from the Democratic Republic of Congo (DRC), South Sudan and Burundi. Roughly two-thirds of the refugees in Uganda depend on WFP to meet their basic food needs.

WFP’s assistance for refugees is closely coordinated with the Government of Uganda through the Office of the Prime Minister, the United Nations High Commissioner for Refugees (UNHCR) and NGOs.

Press Release: The Fourth Meeting of the Joint Boundary Commission between Sudan and South Sudan opens in Addis Ababa (06.10.2015)

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Letters of Certification from The Electoral Commission (EMT 19/01) on the Presidential Candidatures of flag-bearers of the NRM, the TDA and the FDC (Uganda, 02.10.2015)

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Press Release: New party elections dates set for the NRM-Party (06.10.2015)

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The Electoral Commission of the National Resistance Movement has set new dates for key party elections

At a press conference addressed by NRM deputy Secretary General Richard Todwong, Deputy Treasurer Kenneth Omona and Part EC chairman Tanga Odoi, elections for LCIII chairpersons, LCIII councilors, LCIII women councilors, LCV councilors, municipal councilors, division councilors and city division councilors for Buganda and Kampala will take place on October 12.

“On 26/11/2016, primaries for Constituency MPs, Woman MPs, LCV chairpersons, Lord mayor and Municipal Mayors,” A press release signed by Mr Todwong and Dr. Odoi reads in part.

Elections for LCIII chairpersons/councilors and district councilors for Bushenyi and Kanungu Districts will take place at date to be agreed on after meeting elders and stakeholders of the two districts on the 15th and 16th for Bushenyi and Kanungu respectively. Elections for Kyeizoba NRM 111 will take place on Saturday October 17.

At the same media briefing, it was announced that the first meeting of the third national conference will take place between October 30-Nov 2nd at Namboole.

“Nomination of the NRM presidential candidate H.E. Yoweri Kaguta Museveni will take place on November 3.” Thereafter the President will address a post-nomination public rally at Kololo.

Press Release: UWONET, ACFODE, FOWODE and CEWIGO Joint Press Statement on the recently passed obnoxious Amendments (05.10.2015)

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Ring fencing political posistions not healthy for Uganda’s Democracy and Gender equality: 

On October 2, 2015 the Electoral Commission announced the amendments passed by Parliament of Uganda to Presidential and Parliamentary Acts in preparation for the 2016 elections. Among the announcements was the increment in nomination fees for aspirants in the 2016 elections. Barely two months to the nomination of members of Parliament and Local Councilors MPs passed nomination fees which in the opinion of women of Uganda is intended to bar many upcoming women and youth from accessing political positions of leadership. According to the amendments, MPs are expected to pay nomination fees of 3,000,000/- up from 200,000/- in 2011.

It is a fact that most women and youth are challenged by limited resources and face an uphill task to raise money to contest in an election. The majority of civil servants are teachers some of whom are preparing to contest in the forthcoming elections. On average, a secondary school teacher in Uganda takes home about 450,000/= per month while their counterparts in primary school earn about 250,000/=. The newly passed nomination fee for MPs and local councilors is simply out of reach for the majority of Ugandans who would want to serve the country. It is common knowledge that aspirants must prepare for their election and fundraise.

However, this can be done more easily if candidates are not caught un- aware about critical items they must raise money for like nomination fees especially within an unrealistic time frame. In addition, political parties which at times assist candidates with nomination fees do not have resources since majority hardly receive any funds from their members.

The President of Uganda H.E. Y.K Museveni has on a number of occasions professed the importance of quality men and women in leadership. In 1995, affirmative action was passed by Parliament to give women, youth and people with disabilities an opportunity to participate in leadership by redressing imbalances created by history and tradition. This law therefore goes against these principles and is a back track on the importance of providing equal opportunities for men and women in leadership bearing in mind the limited economic opportunities in Uganda.
We are therefore calling on all political parties to reject this amendment in its totality.

We call for a revision of the amendments in order to enhance participation of citizens especially women and youth in the forth-coming elections.

UNITED WOMEN CAN!

Press Release No. 15/460: IMF Staff Completes Review Mission to Uganda (5.10.2015)

Bank notes Uganda

A team from the International Monetary Fund (IMF) led by Ana Lucía Coronel, IMF Mission Chief and Senior Resident Representative in Uganda, visited Kampala from September 24 to October 5, 2015, to conduct the fifth review of Uganda’s economic program supported by the Policy Support Instrument (PSI).1

At the end of the mission, Ms. Coronel, issued the following statement:

“Despite the global and regional economic challenges and election-related uncertainties, Uganda’s recent economic performance has been mostly favorable. Real economic growth —led by increased public investment—reached 5 percent in FY2014/15, slightly below staff projections, but well above the FY2013/14 level (4.5 percent). Core inflation accelerated to 6.7 percent year on year in September but remains within the Bank of Uganda’s target band. International reserves remain at comfortable levels”. 

“Uganda is not immune to the difficult external environment affecting other countries. Together with domestic nervousness relating to the upcoming elections, external shocks and uncertainty have resulted in a sharp decline in the shilling (27 percent over the past year), creating challenges for policy makers. The exchange rate depreciation raised domestic prices given the high import content of the consumption basket, created uncertainty for consumers and investors, and generated market uneasiness. The mission welcomed the authorities’ proactive and effective response to the challenging situation, notable the timely monetary tightening, which has helped curb further inflationary pressures”,

“Performance under the PSI was satisfactory. The end-June 2015 fiscal, external, and inflation targets were mostly met. There was significant progress on increasing tax revenue, with the strong package introduced in the FY2014/15 budget yielding about 1¼ percent of GDP compared to an original target of ½ percent. However, the high stock of domestic arrears—notably the proliferation of court awards—remains a concern, despite the authorities’ efforts to reduce them”.

“Discussions focused on policies to be conducted over the rest of the fiscal year. The mission welcomed the authorities’ determination to adapt the policy mix to the ongoing challenges, including those related to the political cycle, by closely coordinating fiscal and monetary actions. Supported by an adequate stock of international reserves, monetary policy will remain vigilant of price developments and help moderate inflation expectations now that the shilling has largely stabilized. On the fiscal front, the authorities are encouraged to continue to build on the strong revenue performance of last year by improving tax collections even during the election period. On the expenditure side, the government has appropriately identified a series of spending cuts that should reduce the need for domestic borrowing, creating space for private sector credit and growth recovery”.

“On the structural front, important steps have been taken. The mission welcomes the approval of the Public Financial Management Act and the actions taken to clean the payroll and improve the payments system. Regulating the new law and finalizing the Charter of Fiscal Responsibility are important steps to further help improve the budget process and efficiency of expenditure. In addition to these improvements, the mission has encouraged the authorities to intensify ongoing efforts to fight corruption, which continues to affect the business climate. Improving transparency and accountability remains critical”.

Over the medium term, core inflation is set to decline toward the 5 percent target and growth is expected to gradually return to its potential of about 6–6½ percent. While the authorities will continue their plans to scale up public investment, they intend to re-profile projects to ensure that public debt remains at low risk of distress. The completion of these projects should reduce infrastructure bottlenecks and support growth”.

“The mission met with Mr. Keith Muhakanizi, Permanent Secretary/Secretary of Treasury of the Ministry of Finance, Planning and Economic Development; Dr. Louis Kasekende, Deputy Governor of the Bank of Uganda; and other senior government officials, and representatives from the business, civil society and international communities. The mission thanks all counterparts for their collaboration”.

“IMF Executive Board consideration of the fifth review of the PSI-supported program is expected by end-November 2015.”