Opinion: If the Cabinet scraps NMS and UNRA, what about the weird expenditures at the Presidential Affairs?

As the giant Cabinet of the Republic are planning to scrap Uganda National Roads Authority (UNRA) and National Medical Stores (NMS), that these are going back into their ministries. Because of how these two organizations has supposed wasted government funds and spending. The National Resistance Movement (NRM) knows the ordeal and the reasons for that, but they are instead scrapping the organizations, to keep the deals in-house and not as sole organization doing the operations as expert organizations for the government. That is why this will go back to Ministry of Works and Transport for UNRA and Ministry of Health for NMS. I have one more vital idea for the Cabinet members, but don’t expect them to so.

Today’s news:

The Cabinet has taken a decision to scrap Uganda National Roads Authority (UNRA) and National Medical Stores and transfer their mandate to the mother ministries to reduce wastage of resources. According to a source, the decision was taken in two meetings with the first held on August 20 and the last one on Monday last week. The source said President Museveni was unhappy with the UNRA performance, especially in the rural areas where roads are impassable yet it is where majority of votes for his NRM party are” (Andrew Bagala – ‘UNRA to be scrapped in merger of government agencies’ 03.09.2018 link: http://www.monitor.co.ug/News/National/UNRA-to-be-scrapped-merger-government-agencies/688334-4740804-qvrsbnz/index.html?utm_medium=social&utm_source=twitter_DailyMonitor).

As these ideas are noble, but we know the reasons in itself. More direct control and cannot use the organizations as faults for the corrupt, graft and embezzlement anymore. The Cabinet are thinking this will stop this, but they are just making sure the deals and agreements made with tenders and buying, will be happening in-house and not by experts in the same regard as today. That is the real reaction to what is happening with this.

My advise would be find ways to merger and move responsibility from the Office of the President, State House and Office of the Prime Minister. As these could be moved to their representative ministries, as the Youth Livelihood Programme should end elsewhere. The budgets for the Residential District Commissioners are put under the President, this should be put Minister of Local Government and not under the President.

Like what does the budget of Internal Security Organization and External Security Organization lay under neath Office of the President, as this should be under the Ministry of Internal Affairs or Ministry of Foreign Affairs.

As well as all the development expenditure that is parts of the Office of the President and Office of the Prime Minister. Both of these should have been put under fitting expertise of certain ministries, as the Ministry of Agriculture, Ministry of Education and Sports, Ministry of Works and Transport and so on. As well, as the ones fitting Ministry of Internal Affairs and Ministry of Internal Affairs. All these ministries could have connected these projects under the State House, Office of the President and Office of the Prime Minister.

Like what does the Uganda AIDS Commission does under the Office of the President, shouldn’t this be under the Ministry of Health? Why does the Office of the Prime Minister have the Disaster Preparedness and not the Ministry of Internal Affairs or the Ministry of Local Government?

This is just what I wonder about, because, if the Cabinet is serious about scrapping UNRA and NMS, why are not the government looking into the weird expenditures at the Office of the Prime Minister, State House or even the Office of the President?

They should really ask and wonder. If they are not doing this as a political stunt, as we know how corrupt these enterprises are, but will it make a difference to cut out the middle-man? Peace.

Chinese Investments in Africa: It is not a free-lunch, the tab has to be paid!

African leaders should not turn the continent into a giant collector of donations and loans from wealthy nations—they must find other plausible means to help established their economic security so as to minimize poverty. This incoherent blunder on the mainland must be scrutinized.”Duop Chak Wuol

As The 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) is scheduled to happen on the 2nd and 3rd December 2018, there is time to remember how the Chinese is operating on the African Continent. The Chinese isn’t coming with empty giving hands of donations or even charity. They come with intent of interests and needs of resources from the continent, by offering loans, serving and building through state owned enterprises (SOE) in various of countries, whether it is roads, ports or railroads are built by Chinese Companies, by Chinese Workers and often on Chinese loans. Therefore, they might end up as Chinese owned enterprises, whose vital for transportation and export of needed minerals and whatnot from the continent.

Instead of coming with loans and direct-aid with strings like Western Powers has done over the last few decades, the Chinese are coming with friendly loans, but the Heads of State should know that the Chinese doesn’t play. They want value for money and expect a return, if it doesn’t they might snatch the new crown-jewel or anticipate to get perks from the state. If that is some sort of trade-off or licenses to extract mineral resources or even minor taxation like toll-roads, where the piece of cash will be sent to Beijing and not the capitol of the country where the road is built. That is how these people operate. They are not in it to play or be giving, but gain advantage and have the upper-hand.

This can be shown by what the State Media in China writes in Xinhua Net wrote today and what a CARI report on the same funds are saying. The Chinese portray the funding as investments on the Continent, as the funds are most likely pushed as loans, which burdens the states and that they have to repay. Loans are not given, but issued because of lack of direct funds to build those infrastructure and investments done. So, what I am saying isn’t mere speculation, but a narrative that has to sink in.

Chinese Investments:

China’s investments into Africa surged by more than 100 times from 2000 to 2017. In the past three years, annual Chinese direct investment into Africa was about 3 billion dollars on average. By the end of 2017, China’s investments of all kinds into Africa totaled 100 billion dollars, covering almost every country on the continent” (Li Xia – ‘Facts & Figures: China-Africa ties: cooperation for shared future’ 02.09.2018 link: http://www.xinhuanet.com/english/2018-09/02/c_137438845.htm).

Chinese Loans:

From 2000 to 2017, the Chinese government, banks and contractors extended US $136 billion in loans to African governments and their state-owned enterprises (SOEs). Angola is the top recipient of Chinese loans, with $42.2 billion disbursed over 17 years. Chinese loan finance is varied. Some government loans qualify as “official development aid.” But other Chinese loans are export credits, suppliers’ credits, or commercial, not concessional in nature. China is not Africa’s largest “donor”” (China Africa Research Initiative – ‘DATA: CHINESE LOANS TO AFRICA’ Version 1.1 August 2018).

They might try to conceal the reality, just like make-up is used on the face to fade the age or even marks that shows stress or pimples. However, the Chinese cannot be able to lie about their intent. They would not offer these sums of cash, without expecting a turnover or even profits. The Chinese wouldn’t allow all these billions of US Dollars spent on these nations to be spoiled and lost on the streets of Lome, Harare, Addis Ababa or Nairobi. They anticipate a return on the loans, either straight cash or getting pieces of the built infrastructure to advance the value of the Belt and Road Initiative (BRI).

That the Heads of State in Africa should be concerned as they are getting in debt traps, instead of being in cycle of positive growth, they are getting new loans to pay the old ones. They are using the same creditor to secure new loans on top of the old-debt. That is how it will continue, until a point where they cannot pay the defaulted debt and the Chinese would then come to snatch something of value to recoup the failing debt. Because they don’t want to write-off the big money without having anything in return. That is what the Chinese has done in Sri Lanka and might start elsewhere. There might be soon more control of port in Djibouti or railroad of Kenya, even the Ethiopia-Djibouti railway line too. As they want their value of money.

They might be all smiles and photo-ops in Beijing these days, the smiles and added loans to dozens of countries. The added “investments” and deals struck, but the Chinese will not do so without getting something in return. To think otherwise, is to be naive and think they don’t have an agenda by doing it.

There is nothing like a free-lunch and the people will learn that, the Heads of State will not directly pay the debt, but the states will do so. Maybe not in this decade or next 5 years, but sooner or later. The bill for the coffee and biscuit will come. Than it is all eaten, but tab still has to be cleared. Peace.

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Kenyatta’s Legacy will not be his fight against corruption: But the staggering growth of it!

I have issues with President Uhuru Kenyatta and Corruption. He has talked so long about battling it. However, nothing of substance happens. There are some political arsonists who is taken out, now and then. But the systems is more of the same. There are parts of judiciary and parts of government that are supposed to work directly against Corruption. Neither does them seem very interested to touch the high-ranking ones and their connected elites. Which eats of the embezzlement, graft, kick-backs and money laundering. This is done at a scale, which isn’t funny.

Why I don’t believe the President isn’t only because of NYS Scandal 1.0 and 2.0, the Ministry of Health tricks, land-grabbing by random individuals within the government or the Eurobond. But because of the report alone, which stated in June 2018, that Kenyatta’s government since 2013 until 2018 the rate of corruption had grown with 240%. That is why I doubt that this man, who is in his second term and final. Really cares about the fight on Corruption. He can lie to Western Media and the BBC. But the reality is that his government is rampant with Grand Corruption and we know it.

Some key quotes from yesterday:

It is something I am committed to do. It is what I want my legacy to be—the fight against corruption, and transparency, and to ensure that the nation’s resources are used in the manner it should be” (…) “As a government, as an individual, I am committed to this fight. This is an animal, this beast of corruption, is an animal that we intend to slay. What is remaining now is for our independent judiciary to do its job, and give justice for and on behalf of the people of Kenya” (…) “We can even go back to my grandfather, great grandfather. . . What we own, and what we have is known to the public. If there is an instance where someone can say what we have done is not legitimate, say it, and we are ready to face any court” – In an exclusive interview with the BBC Hard Talk’s Zeinab Badawi, President Uhuru Kenyatta” (Patrick Lang’at – ‘Kenyatta: Lifestyle audit can go back to my great grandfather’ 29.08.2018 link: http://www.theeastafrican.co.ke/news/ea/Uhuru-Kenyatta-on-Lifestyle-audit/4552908-4734014-143fnxi/index.html).

I have hard time believing this will be his legacy, the fight against corruption. Especially with his track-record. He is more likely about to tarnish the stability of the Kenyan Shilling and add enough debt to the Chinese. So, they have to trade away vital Mombasa Port or even rent away the whole Standard Gauge Way. As the Belt and Road Initiative (BRI) is made for that sort of transactions. That is if he is careful with his outstanding debts, as the state officials are eating more and more of the tab. This while the president claims to fight the rampant grand corruption.

He is maybe playing like a big-shot on BBC. However, when he comes home, it is back to our time to eat. He can be the king and the fighter abroad, but when he comes home. He will stay cool, only take out the ones who are in his way or to prove to point. The rest will get away with the evident thieving and grand corruption. That is to be expected, the ones who is charged is political motivated and done to take down, the previous power or the ones the Jubilee doesn’t need.

If this was his legacy, all the governing bodies wouldn’t have become worse in his time, but had stopped growing since Kibaki. Alas. That isn’t the case. Peace.

Byandala aquitted for the Project 1034 Mukono-Katosi Scandal: Thieving is apparently legal!

The Project 1034 Mukono-Katosi Scandal that is going as far back as 2009-2010, but the official starting point of the project was in 2014, as the scheduled end of the project was in 2017. This was the works of the Ministry of Works Abraham Byandala. He got siphoned money to a non-existent company, which didn’t work on others than imaginary stuff for years. The bills that the state totally paid was up to 24 billion Ugandan Shillings. That this man was in-charge of and took over the years.

This scandal isn’t new, the documentation between Byandala, the companies and Uganda National Roads Authority (UNRA) is all there, but that wasn’t good enough for him to suffer. That is because of his connection and that he is married to the upper-echelon of society. If he was an ordinary con-man he would linger in jail, but since he wears a suit and is connected. He could walk like nothing after a prolonged case and now they are clearing him of the charges. That happens as it has gone years since he ate this money and the state is ready to move on.

That the National Resistance Movement (NRM) are above the laws is proven with judgment like these. As the former Minister made up a company, siphoned money into the accounts of the make belief and made paperwork for possible road-works, without anything being delivered. The state paid for nothing and was still billed. They paid for ghosts and an a mirage made by the Minister.

This is like a really bad scam of the people and whoever carried the footed bills for company, which was non-existent. That shows the nerve of the NRM, as they are charging whoever oppose them, but their own thieves they are allowing freedom.

That Byandala has stolen billions of shillings is known. This was done while he was in power and he did it with others. As they tried all tricks to hide it, but it leaked and hit the public. As the prices of the road between Mukono-Katosi becoming to huge. The state was continuing to paying for a projects that lasted forever. That is why this is are real injustice. The people didn’t get the roads and their funds was taken by a Minister appointed by the President.

That is why this is insulting. As Byandala is walking away without a scratch, without an inch of pain and could take the billions like nothing. Peace.

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Exercise Duty: Tumwebaze and BoU sends mixed messages, today!

Today, it was striking that the government really hitting a home-run in double messaging. The National Resistance Movement (NRM) started from 1st July 2018 to tax all parts of the transactions with Mobile Money Tax. This is receiving, sending and also uploading the funds. That is why these funds have been tripled taxed with the other taxes that is already put on the transactions like PAYE and VAT.

That is why the Honorable Tumwebaze words seems fitting to post on the Mobile Money Tax, as this is discriminating people and making sure they cannot use the technology or digital way of paying bills and such. However, he don’t want people to resist it. How fitting, when the state have made it to expensive for people to be part of the modern world and have to use old methods to pay their relatives and companies, making sure day to day transactions becomes more costly.

Frank Tumwebaze statement:

Continuous technological advancement will further lead to other digital migrations in the way we conduct business. Let us embrace these technology advancements and not resist. If you resist technology it will disrupt” (New Vision, 2018)

BoU report on the tax after a month:

The 0.5 per cent tax on Mobile Money is discriminative and is likely to affect financial inclusion, officials from Bank of Uganda have said. The officials said this while appearing before the Parliamentary Committee on finance on Wednesday to give their views about mobile money tax. The officials, who also appeared before the committee alongside their counterparts from telecom companies, said mobile money transactions declined by 672bn shillings in the first two weeks of implementing the mobile money tax” (Tusingwire, 2018).

I am not surprised that the Mobile Money Market is hit and hard. Even if one percentage of tax doesn’t sound much. However, when you had put in on all parts of the transaction plus the other added taxes, the total cost of a transaction is huge. It is eating a lot of the plate for the same services, which has been provided for ages. There are already costs of the transactions to the companies, therefore the public have shunned and also stopped using it. Many even felt they couldn’t afford the usage of it.

That was to be expected. However, the Minister Tumwebaze have made the people resist moving to digital migration, move into the modern day transactions of money and such. That with the Exercise Duty, which was enforced two months ago.

The NRM cannot talk of people embracing technology, when they themselves making people resist or to expensive to use. Maybe, they have to figure out better ways of taxing people. If they want to be fair, because now even the National Bank of Bank of Uganda is saying it is discriminating. That should worry the Minister, but he is just using fashionable words. So he clearly don’t care. Peace.

Reference:

Tusingwire, Serestino – ‘Mobile Money tax discriminative – BoU’ 01.08.2018 link: http://www.monitor.co.ug/News/National/Mobile-Money-tax-discriminative-BoU/688334-4692428-137ocmdz/index.html

New Vision – ‘Let us embrace technology advancements’ 01.08.2018 link: https://www.newvision.co.ug/new_vision/news/1482566/us-embrace-technology-advancements

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