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Archive for the tag “Bank of Uganda”

Uganda: Civil Society Position on Tax Revenue Measures for FY 2017/18 (21.04.2017)

Report from the MoFPED shows the growing Ugandan debt by June 2016!

Again, the Ministry of Finance, Planning and Economic Development (MoFPED) dropped another report on the fiscal policies and the fiscal health of the economy in Uganda. The National Resistance Movement (NRM) have created this environment as the growing debt and growing interest payment comes with their planned debt rise. Still, the PriceWaterhouseCoopers spelled gloom earlier in the year, as this report was dropped on the MoFPED web page today. Even if the Report was spelled out in December 2016. It is if like the NRM didn’t want this to spelled out early. Since the numbers aren’t compelling of an arts piece, more issues… just take a look!

The stock of total public debt grew from US$ 7.2 billion at the end of June 2015 to US$ 8.4 billion in June 2016. This represents an increase from 30.6% of GDP to 33.8% over the two periods. The increase was largely on account of external debt, which grew from US$ 4.4 billion to US$ 5.2 billion over the period. Domestic debt increased from US$ 2.8 billion to US$ 3.2 billion” (MoFPED, P:V, 2016).

That the debt are growing quick, as the public debt grew with US$ 1.2 billion, that the percentage of GDP went up with 3,2%, the external debt rose with US$ 0.8 billion and the Domestic debt went up US$ 0.4 billion. All of these numbers show the amount of monies that the Government are adding on their debt, as the UNRA and the development projects are suspended by World Bank. So the Infrastructure development can be questioned as the growing debt, as the government must have other uses of the growing and scaled up debt. Since the transparency of the economy isn’t there and that the sanctioned bills comes from the State House. Just look at the growing interest rates as well.

Interest Payment as a percentage of GDP stood at 2.2% as at end June 2016, up from 1.9% as at June 2015. The increase is largely explained by interest payments on domestic debt, which grew from Shs 1,077 billion in FY2014/15 to 1,470 billion in FY2015/16. There was a significant increase in the weighted average interest rate of Government debt; from 5.9% to 6.5% in June 2015/16. This followed increases in the weighted interest rates for both domestic and external debt, from 13.6% to 15.3% for domestic debt and from 0.9% to 1.2% external debt. As interest rates increase, so do the debt service obligations of Government” (MoFPED, P: 4, 2016).

The difference between June 2015 and June 2016 the percentage has grown with 0.3%, the domestic interest rate grew with Shs. 0.393 billion. The Interest rate alone went up by percentage 0.6%, as the weighted interest rates went up 1.7%. The key sentence that the report wrote and I repeat: “As interest rates increase, so do the debt service obligations of Government”.

That idea isn’t only on the interest payment percentages are running higher, but as the debt goes up, the interests goes up. So the Debt Service Obligations are going up for the Government. This is a natural outcome, that the obligations for the state goes up with the amount of debt it rises. So the government can try to portray this is controlled, and to one extent it is under control. Still, the growth in this regard proves that the NRM regime are pilling up debt and increasing their debt, as well as interests. In the end this will make the state worse. Especially knowing that the energy dams have been built poorly and many of the expensive roads haven been fruitful. This is development that the growing debt is being used to…

So the NRM regime and the Ugandan government isn’t believable… the rise of debt and interests show’s the current state of affairs. Even if the percentage is after plan, the government still has to take charge and make sure they can pay back both the debt and interests. Peace.

Reference:

Ministry of Finance, Planning and Economic Development (MoFPED) – ‘DEBT SUSTAINABILITY

ANALYSIS REPORT 2015/16’

The NRM Regime have during the FY2015/2016 fallen behind on paying out UGX 2.7 trillion!

Today I am dropping numbers that are devastating, as the numbers of debt that the National Resistance Movement (NRM) isn’t paying, show’s sufficient motives for malpractice when it comes to budgeting and the structure of payments. There are certainly not enough transparency and clear audit of the state reserves, as the State is misusing seriously amount of funds. The NRM Regime and their President should be ashamed by their record.

Emmanuel Katongole is the Head Information Technology in the Ministry of Finance, Planning and Economic Development (MoFPED) in Uganda on the 12th April 2017, he dropped a document on their web-page that show’s the domestic arrears of the Republic of Uganda in the last Financial Year.

If you wonder what Domestic Arrears means: “The amount by which a government has fallen behind in its payment of interest and principal on debt to lenders within its own country” (Encyclo.co.uk). So Katongole will literately show how bad the National Resistance Movement is on paying their bills and expenditure. All the sums of this report is in Ugandan Shillings (UGX).

Like under the Office of the President and the Internal Security Organisation (ISO) who itself leaves arrears in the margin of 3.8bn shillings and 8bn shillings in other payable arrears. That one part of the budget and current audit of the Office of the President as the total of verified arrears at June 2016 was 37bn shillings alone. So the Office of the President owes a lot of funds that it hasn’t paid, not only for the ISO!

The State House by the verified arrears at June 2016 was 1bn shillings. What is more unsettling is that the Pensions and Gratitude for Veterans are the sum of 183bn shillings, Survivors 315bn shillings, EXGRATIA 10bn and UNLA 26bn shillings. The Ministry of Defense by June 2016 verified arrears was 718bn shillings! So the MoD are a lax payer of their expenses and expenditure.

Ministry of Justice and Constitutional Affairs owes verified arrears by June 2016 the amount of 684bn. Shillings Court Awards unpaid by the Ministry is 203bn shillings. The Electoral Commission has growing verified arrears by June 2016 because of Unsettled penal insterest for URA in the total sum of 3.2bn shillings. Uganda National Roads Authority (UNRA) has by June 2016 billed up verified arrears by 283bn shillings.

This is just some of the government that has not paid their dues and their expenses, their salaries or pensions, even their lacking covering of funds to pay debt, either internal or external. So the National Resistance Movement are clearly running an economy and fiscal policy that isn’t healthy for the republic.

Just to drop the total sum that the Government of Uganda has failed to pay or failed payments on their debt are by June 2016 the total of 2.7 Trillions of Uganda Shillings! Which is an insane number and amount of misspent monies by the state. The strategy by the Republic to fail so miserably cannot be sustainable, as the invoices and the target to pay their debt should be the most important. Still, the NRM doesn’t seem to think so. They are surely missing steps to having a sound economy when the verified arrears are hitting 2.7 trillions by June 2016. So the Financial Year of 2015/2016, the Ugandan government failed to serve out over 2 trillion of their needed expenses!

What is troubling that the year before, the total state had not paid on their debt and failing expenses in the Financial Year of 2014/2015 as by June 2015 we’re totally 1.389 or close to 1.4 Trillion shillings. So the miss-match between FY2014/2015 and FY 2015/2016 are 1.3 Trillion shillings. So the clear picture is that the Election Year for the NRM is very, very expensive.

Just think about that… eat the bill and pound on the amount of lost monies in the system. Peace.

 

Uganda: ICTAU “Re: SIM Card Registration Exercise” (13.04.2017)

Uganda: CSBAG – “Reducing Wastage and Curbing Inefficiences to Finance our Priorities for the FY 2017/2018 (09.04.2017)

President Museveni sanctions now all information on emergencies from the State House!

If you ever needed proof that the departments, ministries and institutions don’t have values in Uganda, than you need the newest revelation. President Yoweri Kaguta Museveni of the National Resistance Movement (NRM), who has run the nation for over three decades. This is proven with the Presidential Handshakes, the growing amounts of MP’s, Ministers and of newly created districts and sub-counties. That sort of government both state-wise and locally has grown out of proportions, this to make it possible to have enough cronies close by and hire them. The government has been built around President Museveni, still he has to control it even more. Take a look!

President Museveni has ordered ministries to stop declaring state of emergencies without his prior approval of their messages to the public. He accused government officials of using loose words which have ended up scaring away potential investors and tourists. President Museveni voiced his concerns in a letter he wrote to the Vice President and copied to all permanent secretaries of all ministries on January 20, this year” (Ahimbisibwe, 2017).

So the controlling behavior of President Museveni, now is to another level since he cannot even trust that the message spread by his ministers are sound enough. He is now controlling the releases of information and vouch for the ones spread from the NRM. The Government is so controlled by him, that it all has to pass by him. Because his rubber-stamp has now to be on the messages.

That the President needs clearance and cannot trust in his ministers, not the agencies or state institutions, proves the lack of transparency, as even the messages has to pass by him before the public gets to know. If it is first in emergencies, than it will on the Presidents desk and he will rewrite it, so that it fits his understanding of it. So if it needs to be addressed as enclave, a colonial relic or even if it is climate change, the President has to speak his peace.

That the Police Force, the Army or any of the ministers can address the matters first in public, to regain trust or even try to amend in the emergency that arrived. That the President shouldn’t have the capacity to control each and every single message the government spreads out. Surely, the President cannot have capacity to follow Hon. Frank Tumbewaze or Uganda Media Centre Chairman Ofwono Opondo’s remarks on the matters. As much as the President cannot have the time or the ability to understand the different events that occur in the Republic.

This here proves that President Museveni only trust himself and no-one else, all his vision has to be spread and people have to believe him. President Museveni wants to control it all and not give way, it is all him and his behavior. Not like Museveni wants to trust anyone. They are only around for Presidential Handshake’s and Brown Envelopes, that is because they follow his system. They know if they stay around and needs it, he will help them out and also create needed jobs for the closest associates.

President Museveni proves with this what we have known for long, that the institutions and the ministries is shell-organizations for the supposed operations of the state. Museveni has to be informed and engaged before actions happens. If it doesn’t happen that way, it is the wrong way and his feels betrayed by his own. Therefore, the ones that falls stopped informing and being independent of their master. Which is Museveni, who feels he is more important than the institutions. Museveni thinks he is the pillar of the State and the key to all the works of the State.

That is why the newest order of controlling information and the flow of information to the public, the enforcement of this proves the systematic control that he has from the Okello House. This proves how belittling the state is and how important the President thinks of himself. The way the State is now his playground and no-one else can play like he do. Peace.

Reference:

Ahimbisibwe, Patience – ‘Museveni set to vet government messages’ (04.04.2017) link: http://mobile.monitor.co.ug/News/Museveni-set-vet-government-messages/2466686-3876432-format-xhtml-5i5i9oz/index.html

Uganda: UPC Calls for Economic Reforms (05.04.2017)

Uganda: There has been no notice issued of a Curfew in Kampala (21.03.2017)

Opinion: Markets endangered in Kampala, by Mzee and his cronies!

museveni-trader-pci

“Fury, angst and despair as hundreds are evicted from Park yard market. The once vibrant market is now a sea of rubble. Is it high time such rickety structures left the city center or is KCCA impinging on the core rights of the masses? Only responses in well-written English will be tolerated” (The Kampala Sun, 27.02.2017).

The traditional market of trade between small vendors and their costumer’s are under fire, not really burning, but still they are stopped. Honourable Beti Kamya, the Minister for Kampala has decreed closure of markets and such, as well as KCCA has unleashed a permit that stops others. Therefore two markets are eaten by a pivot from the State with Minister Kamya and the Kampala Capital City Authority (KCCA) under the leadership of Dr. Jennifer Musisi, who has taken power over the Owino Market. While both ladies are working against vendors and the Lord Mayor Erias Lukwago , who doesn’t believe in this sort of decree without any procedure in either Authority or at the local councils. Therefore the sanctioned rule should go through the Mayor and also the KCCA. Something, the decree didn’t as it was served from the hand of Minister Kamya without any consideration of the rest of the leadership and government structure of the capital of Kampala. That was something that was bound to happen… though the innocent part is he vendors who are under-fire by the State Minister who doesn’t see their turmoil or trouble at all.

“Security has sealed off Nakivubo park-yard market before the ’30 days’ ultimatum given to vendors by Minister Beti Kamya to vacate elapses. Last week, the minister issued a directive ordering vendors at the Park Yard market to vacate citing lack of enough toilets which was a health threat. Lord Mayor Erias Lukwago said Minister Beti Kamya was ‘just politicking’ over the market since she didn’t have an alternative for the vendors. Some vendors have vowed not to leave the market until they are killed” (NBS Television, 27.02.2017).

“Mayhem masterminded by state agencies!!!! How could Police organise goons to lynch and/or harm KCCA elected leaders and MPS in course of executing our duties in the city centre!?.. Mr. Kayihura and Madam Betty Kamya, what motivated you to put our lives in harm’s way?. Our visit to park yard market was lawful as it was sanctioned by a resolution of the Authority that convened this morning. You invade the market on a Sunday night, cordon off the entire place without a court warrant or hoarding permit from KCCA, and then unleash terror on the business community and learders?. Terrible!!!” (Lord Mayor Erias Lukwago, 27.02.2017).

owino-market-feb-2017

Owino Market has been closed because of the issue with DFCU bank that the vendors there in total owns the bank Shs. 4.8bn. Therefore this is a current issue with bankers, but the strange act is that the Police sealed off the market and even destroyed the old vendors’ places, like they want to trade it off and get rid-off the old small-time vendors who have kept stalls there. Today the market was officially sealed off, with the police cars and metal fences by the authorities.

So know we know that the DFCU who just bought Crane Bank after it was under care-taking by the Bank of Uganda. So the funds used to by Crane Bank has to earned back, because DFCU needs profits, as they are even use their newly found wealth to take away the possibility for one of the most popular markets in Kampala. You can wonder who is investing directly and who else has greased the wheels of the minister.

The pictures of football stadium that was planned back in 2013 has resurfaced with pictures of investor together with President Yoweri Museveni that must have sparked the opportunity to pay for the sanction land and given permission to destroy the vendors place to trade goods, which has been a popular market.

If there are other unions of vendors who is struggling with debt like the Owino, expect the bank to erase the place, fill it with investors who knocks on the State House doors and gives permission to crash the place, fill it with fancy malls that won’t be affordable for other than ones on top of Nakasero Hill or Bugolobi, the rest of Kampala cannot afford even soda inside the new furnished extravagant building. The same will happen around this project where the bank DFCU and State has shaken each other’s hand, given envelopes and made sure to get a go ahead.

nakivubo-stadium

Because of this they have even gone further, they we’re given 30 days to vacate the premises on the 7th February 2017 after a decree made by Minister Beti Kamya, so by my rare calculation they should be taken away by the 9th March 2017. So that the State together with the Police was invading the premises last night and this morning; that being 26th and 27th February they did it instead.

So the state of Uganda doesn’t need to be transparent or accountable, as long as they have possible to gain monies into the state coffers and getting vouched from the state house. Rule of law doesn’t matter as long as Mzee says “do it” or “yes”. That what seems to have happen, the vendors and traders loses their ground because of investors has spoken at the state house. Shows the matter of how involved the state house is in all business deals in Uganda. That shows if you have strawmen to send to the state house, the police and the local authorities to work for the corporation. So that the locals or others with “debt” or lacking “titles” can be evicted, that seems like way the legitimize their acts towards the ones who has had the land in the past.

The same happens in Owino or at the Park Yard marked. There are no mercy, only eviction so that a football stadium and other futuristic building appearing there, because President Museveni said it was okay. Peace.

Bank of Uganda: Change in Signature on Uganda Shilling Banknotes (17.02.2017)

ug-shilling

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