#UGBudget18: Museveni – Was this a budget speech?

I don’t know where start or where to finish. As I am not a tool of propaganda and here to make the President look like super-star with a brilliant mind. Warning the media, banning Police Bond for Killers and all other spats of nonsense, which has nothing to do with the budget. It is just like he has defend himself. As President, he even attacked MPs and their attitude. They were ATMs to their voters, something he is and been called himself. He even recently tried to bribe his MP into position in Rukungiri. So that the President has short-term memory is evident.

You know he is in self-hostile territory, when one of the biggest donors and on of the biggest media owners Aga Khan gets a warning. Surely, the President cannot handle journalism and only care about praise. He cannot manage that people are looking into the growing debt. As this budget alone is 10 trillion back-pay of loans of the 32 trillions spent. While there is shortfall and growing deficit and the donor funds are still dwindling. Therefore, the need for loans to cover the shortfall is needed. So what the President is creating is a debt-trap. He can say he managed that since he used 27 guns, but different to blow former-leadership into oblivion and actually being able to repay your debt.

I am just awaiting the salute and the simple minded changes he is progressing into middle-income country, as the President is showing less intent of doing anything. He just talking about nothing and everything. Quoting the bible and acting holier than the pope, while warning everyone else. Not that it is securing anything. He will secure it all, as he is the man who has the answers. If this is getting boring, is that he has done this for 32 years and counting. And has not changed, other than his face and tenure of hair on his head.

It is like he doesn’t care and just say whatever that is on his mind. No one will fact-check or really check the relevance, because why mind. Its a deluded old man, who has been so long in power, that the ones going against are either in jail or possibly monitored by the sleeping police officers his been talking about. He is again blaming the mindset of Ugandans. Because there is never his fault. He has just been running the enclave and people gotten lazy, awaiting handouts. Not like he has delivered any of his pledges, built institutions or prosperous organizations for the citizens. That is just his lack of mindset and work ethic.

Therefore, there is no need to really dig deep into the speech. It is mere facade, a mere forged mirage of utter nonsense. A speech rampant of lies and warnings. If your a journalist or MP, you should feel offended. Because he expect to be praised, while your supposed to carry the nonsense from him.

The saddest part is that he takes no responsibility, that he has no accountability or no common sense. That this man just continuing to utter these words, like a word-salad of mockery of intelligence. While expecting that the spinning-machine of his party, his spokespersons and friendly media will make him look a giant. They will eat the crap out of it and make it look like gold, but its only fools gold. Not worth the bling its made off, better to buy a Rollex in Wandegeya, it will at least fill your tummy for a moment. Because the fools gold will be worthless and just ready for the bin.

President Museveni has no cards to play or nothing to say that changes the narrative. Only 1986ing the world and hoping he can get away with it. However, the debt trap should worry him. Nevertheless, it is the next generation that will pay-back it and he will be dead by then. Peace.

A new look into how the poorest is hit by new Social Media Tax!

Twaweza statistics published on Twitter 8th June 2018

Again, there is proof that the Parliamentary Report on the Exercise Duty Bill Amendment of 2018 was not accurate and not directed to its citizens. I have already questioned it and the lack of due diligence as the 9 page report. The report are directly saying the tax rise and reasons for issuing it. Therefore, I will again show the lowest levels civil servants. They are on salaries, not hawking for money or getting random paychecks. So their estimations are possible to do. The street hustlers will struggle with this. Even the lowest paying civil servants will as well.

By the time of November 2017, the lowest paid salaries for certain government employees are yearly about 250,000 shillings likes the U8 Local Government Workers. Others are the likes of U7 Primary School Teachers about 380,000 shillings. For the U8 Monthly salary about 20,000 shillings and the U7 Monthly salary about 31,000 shillings.

When knowing the lowest have 20k shillings to spend and the lowest teachers about 31k shillings. Because Twaweza has made a reasonable stat on the airtime spending plus the new tax. Everyone will be added 6k shillings. That means the one who has lost the most is the poorest who has about 14k before paying for airtime even. The next lowest is down to 25k and that is before airtime on the cell-phone. If you don’t like the numbers and the costs, no one should because this is huge added tax. An as long you can use and have it installed on your device, the state will take 200,- shillings per day.

All of the numbers I use is from Twaweza statistics. If you 9,900 on Airtime a month, the total cost a month on a phone cost 15,900. That is near the whole salary of the U8 and near half of the U7. Both showing that this is something they cannot afford to do. The ordinary rural spending about 7,900 shillings on airtime and total cost 13,900. even with that the rest of the salary for U8 in rural areas will be about 6,100 shillings. That cannot be enough to sustain their daily lives? It works for the teachers, even if it rough for the U7 who has 17,100 shillings left on their salary. This is just one of the new taxes, not on all the rest of the new issued too. Which all will hit the public differently.

While the lowest estimated usage now is the ones that spend 3,700 shillings on airtime, will totally pay 9,700 shillings. That is still a major part of salaries and nearly no use of the phone. The payment goes all to the Social Media Tax and not onto using the phone itself. They are overly taxing the public, the poorest will have to delete social media and save the money. Because they cannot afford to spend close to 10,000 shillings a month and close 120,000 shillings a year on being on WhatsApp, Facebook and Viber.

It is like the National Resistance Movement (NRM) don’t want to show their retrogressive attitude to the public. Where they are attacking the poorest in the rural areas.

This is all boggling me, that this sort of idea wasn’t put in the report and wasn’t considered. If the report and Members of Parliament cared, they would have considered the implications on the poorests. Even the lack-luster salaries of the U7 and U8, which will be severely hit by this.

Is this what Museveni’s revolution was all about eating of the peasants and taking their spoils, while taxing their leftovers and enriching themselves? Was that what the Bush-War was all about?

Take public for granted, keeping them poor and when the debt hit the fan. Make sure the poorest get doubled taxed. Peace.

Opinion: Taxes get levied deliberately, not by a mistake!

Again, the Mobile Money and the Exercise Duty Tax Amendment of 2018 are proven to be without due diligence. There so many aspects that is left behind. This time it comes from the Minister of Finance, Planning and Economic Development (MoFPED) Matia Kasaija. Whose now is trying hard to wash his hands from the added taxes on the public. Like it would make a giant difference between a half percentage or 1 percentage of the transaction in taxes to the state. Yes, there is a difference and the cost are still hitting the public and making Mobile Money more expensive before even spending it.

This is the proof the National Resistance Movement (NRM), how they have rushed these taxes to please the President. Because there hasn’t been enough consultation or proof of the possible outcome of it. Other than some numbers hitting the wall and hopeful earnings for the state. The state needs revenue, but will they bill themselves into more trouble, as they are hitting the poorest the most. Which doesn’t use banking services. They use Mobile Money for their transfers and use the Cellphones for their transactions. That is why is worrying for the public.

The Excuse from the Minister:

““The NRM caucus and Cabinet sat and agreed on 0.5% instead of 1%. I don’t know what happened,” he said. Last week, Parliament passed a 1% tax on mobile money as part of the Excise Duty amendment Bill. The opponents of this tax say that the 1% tax on mobile money will hurt the economy, its people and it is counterproductive. “I am sorry. I was out of the country when it was passed. I will have a discussion with the President and maybe by the time I read the budget next week, a solution will have been found,” Kasaija said” (Wamala, 2018).

It help to be on vacation. I wonder if the President did the same during the Age Limit debacle, as he traveled around the globe. While the skirmishes was happening in the Parliament. Now the Minister says the same. That he now will try to fix it. No matter if he reverse it, it will still add more cost to the consumers and the ones who needs the Mobile Money. A service that is needed, as the banking system isn’t for everyone and neither is the day-to-day lives of many able to even be parts of it. That is because the state has left these groups of unemployed and poor behind.

What still worries me, is that there are no scope of the possible effect and what it will do to the economy. If there will substantial growth or down-turn. If certain groups that is hit, will be worse of and struggle more. Then the question is, will the added revenue be used in other parts of the economy to boost their need for services or just to pay off old debt?

Because, these taxes will be felt by the amounts of people who struggle, who has little or nearly none. There are plenty of them. These will pay-off huge sums for them, because this is subtracted directly from their salaries and sales as hawkers and traders, farmers and whatnot. Just sending money to relatives in up-country will be more costly. This is clearly just sending the memo, that the digital age is in for the taking and the advantages are becoming more expensive.

This wasn’t error, this was deliberate, even if you we’re away Mr. Kasaija. You can try to save face, but its better to reverse before speaking out. This is you trying to look good for the spotlight before addressing the Parliament. That is all. Peace.

Reference:

Wamala, Maria – ‘Mobile money tax was passed in error – Kasaija’ (05.06.2018) link: https://www.newvision.co.ug/new_vision/news/1479138/mobile-money-tax-passed-error-kasaija

Lack of Due Diligence on the Exercise Duty Amendment Bill of 2018!

The nine page memo on the Exercise Duty Bill Amendment of 2018 is an insult to everyone who cares about governance. The leaked Report from the Ministry of Finance, Planning and Economic Development (MoFPED). Is really just a carbon copy of the initial taxes and rubber stamping the bill without any considerable efforts, arguments or questions to the new taxes.

It is weird that the MoFPED can get away with lax work and lack of work ethic, lack of reasonable numbers and crunches of statistics. Proof that this is actually good for society, that the new taxes on Mobil Communications, Mobile Money and Cooking Oil is of an calibre good. Alas, that is not the case, the report isn’t spelling out that. It is just saying, That it is just unfair that ones actually calling is paying taxes, but the ones using mobile data is not. However, isn’t the Telecommunication Companies already paying huge level of taxes on their profits of every sale of airtime? So now just topping it off by adding taxes on Social Media Apps and on Mobile Money? Also the VAT on the Airtime as well?

You have the tax on the airtime, tax on the profits on the airtime; you will have tax on the usage of social media and mobile money. Meaning the state gets revenue from nearly all aspects of usage of the phones. Soon you cannot open anything without withdrawing money from your account as the state is billing you extra for the top services. They are calling this “over the top service” sort of like all the benefits the Members of Parliament has and is billing on the Republic.

Therefore, reading this report, that no one questioned it or had any concern, that no one said anything or looked into the amount of usage and the cost on the cell-phone user. Neither, the added cost on the basic household for any of the new taxes. Show a unpleasant disregard for the hardships of the citizens in question. You cannot expect to be enlighten on 9 pages of a report, you cannot, because your not digging deep into a problem or a situation on a 4 page brief. Your just touching the subject matter and disregarding the issues at hand. The Parliament has recklessly added this taxes, as the President ordered in his letter. The letter from 12th March 2018 dubbed “Re: Lack of Seriousness in Tax Collection”. As they are just following his words and not considering any implications. That is what is bugging me.

If these was serious MPs who cared about the constituents and the citizens in general, before imposing taxes, they would see what estimates and who would be hit. Secondly, what it would do with quality of life and consequences for the poorest of the Republic. That is if they cared about that. Apparently, they don’t, because they are just whistling after the President and his every whims.

The people should be insulted by their MPs and their lack of understanding, their lack of concern. They should be ashamed to have this sort of people representing them. That they cannot have any of these following government bodies to do, due diligence on the amendment:

Uganda Communications Commission (UCC), National Identification and Registration Authority (NIRA), Uganda Revenue Authority (URA), Ministry of Finance, Planning and Economic Development (MoFPED), and Ministry of Information and Communications Technology (MICT).

All of these should have delivered some sort of report and proper framework, the actual costs and the implications of these taxes on Mobile Money and Social Media Tax. However, the didn’t do that, because they don’t care.

Neither did URA or MoFPED. They just didn’t care to put in the work and show the reality of these proposals. They are just blindly following the blind, aka the President. That is what they do and people have to suffer because of it. Paying much more for service, being invoiced as long as they have the possibility to use the services. That is what the Exercise Duty does, that is what the state do to its citizens. Peace.

Uganda is still not ready for IMF’s PCI!

“The Policy Coordination Instrument (PCI) is a non-financing tool open to all members of the International Monetary Fund (IMF). It enables them to signal commitment to reforms and catalyze financing from other sources. The establishment of the PCI is part of the Fund’s broader effort to strengthen the global financial safety net—a network of insurance and loan instruments that countries can draw on if confronted with a crisis.” (International Monetary Funds – ‘IMF Policy Coordination Instrument (PCI) 26.07.2017).

This here is really spelling out the missing dots in the budget and monetary policy wise, as the IMF has concluded a visit, but told that certain aspects are missing. Even explaining that the Republic have to be careful about borrowing money. As the Republic tend to do these days for all sorts of projects and building infrastructure all around the country. However, the IMF isn’t praising Uganda, the IMF is telling what it needs, if they want to be part of the PCI. That is important, because being part of that, then the state will have systems and ways to gain outside sources of funding and also safety mechanisms in the needs of rainy days. Therefore, following this program would be healthy for the economy, but will the National Resistance Movement and President Museveni comply to this? Would they?

“The authorities have made progress in setting economic policy objectives for FY18/19 and the medium-term. Fiscal policy seeks to keep public debt at a sustainable level which requires raising tax collection and prioritizing spending needs, while protecting key infrastructure projects and social expenditures. Monetary policy targets core inflation of 5 percent. Bank of Uganda aims to maintain international reserves at 4 to 4½ months of imports. Structural reforms would focus on revenue mobilization, public financial and investment management, reducing domestic arrears, enhancing financial sector stability and development, and putting in place the remaining elements of the framework for managing future oil revenues. The mission reached agreement on many key elements of a possible 3-year program under the Policy Coordination Instrument, but further progress in some areas is still needed. Once the FY18/19 budget has been approved as agreed, the mission could resume discussions” (International Monetary Funds – ‘International Monetary Fund (IMF) Staff Concludes Visit to Uganda’ 31.05.2018).

It isn’t the first time the IMF and World Bank says there policies and monetary programs needs changes, needs to be amended and fixed, so it is safer. This is something that always comes back. The NRM are clearly not listening or interested in listening. They are pre-occupied with the handshakes of the State House and the insider trading that they like to do. Not have accountability and transparency, because then all the tools of the shed is in the open. President Museveni doesn’t want his ghosts, his fake projects and his forged paperwork to be in the open. That would hurt his pride and also humiliate him. That is the reality of it all.

Therefore, the state has a long walk ahead still, even with the new revenue sources, as they are not considering the implications yet on the public. Just more revenue for revenues sake, but not how hard the new taxes really will have. They will hurt the public and the poorest the most. Nevertheless, they are not a concern for the state; they are more bargain chips for needed donor funds anyway.

President Museveni will not be interested in opening the books and showing the reality. We know that, therefore the PCI will not introduced shortly, neither will the accountability or transparency change either. It is not in his interest to revolutionize that. Then he would humiliate himself, which he only does to Opposition leaders, not to himself. Peace.

Uganda: The lowest paid civil servants would be hit by the Social Media Tax, up to about 20% of their total yearly salary!

You know that is wrong, when the state is issuing taxes that is insane. This is really banishing the poorest from certain aspects of life. By the time of November 2017, the lowest paid salaries for certain government employees are yearly about 250,000 shillings likes the U8 Local Government Workers. Others are the likes of U7 Primary School Teachers about 380,000 shillings. These are the lowest paid staff in and around in the Republic. Meaning this will be hit by the newly minted taxes that the state has imposed today in Parliament. This being the Excise Duty Amendment Bill 2018. These are on all different aspect of life and on needed services, products that people need, that will all become more expensive.

The reports said this about it!

Parliament has passed the Excise Duty Amendment bill 20l8 by imposing one percent tax on every mobile money transaction and 200 shillings on social media. The tax measures approved by parliament are close to 1 trillion shillings and government argues that they will help in improving the tax base of the country” (Mbarara Sun, 2018).

The approval implies that each person using platforms like WhatsApp, Facebook, Viber and Skype among others, will be subjected to a daily levy of 200 Shillings while each mobile money transaction will be subjected to a 1 percent excise duty. The government is projecting to collect 284 billion Shillings from the measures” (Open Gate FM, 30.05.2018).

There are also some that has calculated it be costing the citizen up to 70,000 shillings on a given year, as the person has to pay the 200 shillings for the use. That will happen from the 1st January 2019. If that is so. Out of the lowest salary, if your paying the total on the Social Media Tax, you will go from 250k to 180k. That is 28% of the salary paying for being on social media alone. That is the poorest of the poor, the salaries which is usually not on time and they are even not getting by. They are the ones that is closed out of the new services and places for information like the Social Media. This is shutting out the poorest from the Social Media, this is only making sure the elite and wealthy can log-on, but the rest will not afford it.

Who wants to use 20% of their salary to go on Facebook, Twitter, Viber and WhatsApp? Who wants to do that? Will people use the VPN to not show their IP Addresses to still come into the Social Media Accounts without paying for the barrier that the Republic has put forward.

This is really making sure the society and space of voices sounding disconcern on social media and in general on the internet. This is closing the web for the poorest. Taking a bargain of about 20% of their check in big swoop. I just wonder how they will enforce this and how they will monitor all accounts, all the log-ins and the grand issue of technical framework to put in place within the spectrum of 6 months too.

It is not like the same state together with the Mobile Industry was able to roll-out the registered Sim-Cards and whatnot over the last two years. It has been hectic, a charade and a mess. It hasn’t been professional or sincere, there been backpedaling and all sort of fatigue within the system. You cannot say the Sim-Card saga was smooth. Then you look into all the government organizations and the orders, which went back- and forth.

Time will tell how the state will enforce this one, this is not just adding a tax, but also the software and the addition of systems on the Mobile Phones. If they all have to be updated and get agreements for payment walls on the Social Media Apps and such. Will that also be on the Computers and whatnot? What is the legal framework that puts this in? Other than the 200 shillings per day!

We should really get people to address the 70k shillings a year possibly, that is lot of money. For some about 20% of their salary. That is just too much for browsing on their phone and looking at what Maureen made for dinner and what Steve wrote about Mao. But that is just what the National Resistance Movement (NRM) are doing.

200 shillings is really nothing, but when you take the whole piece of the puzzle collectively, just imagine all the other taxes put in this bills too. Are they taking 9 slices of the bread and leaving one behind to the taxpayer. Is that what the state is trying to do? Since they are already just on the Social Media Tax alone on the poorest civil servants and the local government workers who cannot afford to go there, because they have to decide to pay rent, food or school payments. Because when this is becoming this much of the salaries. You know just know this hurts the people in general.

This isn’t funny. This is serious. This is theft of the opportunities for the poorest in society. Peace.

Reference:

Mbarara Sun – ‘Parliament Endorses Tax On Social Media, Mobile Money’ 30.05.2018 link: http://mbararasun.com/index.php/2018/05/30/parliament-endorses-tax-on-social-media-mobile-money/

The National Coffee Act of 2018: A sour cup of Coffee or just another Robusta?

It is hard to see any significant change of the Uganda Coffee Development Authority, as the law of 1994 is planned to be repealed, as the Cabinet accepted a new bill yesterday at the State House. Let me explain, It would seem more reasonable, if someone leaked the text of the law, but the short tide bottlenecks of information leaked. That information is showing, that it is more of the same. Just some new buzz-words, to keep the donors buzzing.

Since the UCDA are already in charge of monitoring, pricing and promoting coffee, both internally and externally. They are supposed to help raise the quality of the coffee and educate farmers, both in production of better coffee, but also raise the yields for the cash-crop. The UCDA is rally a state organized body in both education, trade and promoting of coffee. Where all parts of the transaction from the seedlings to the trade of the ready beans has been in connection with the government body.

That is why the Cabinet decision that is released to the public, the one page dossier, as the law and the new provisions aren’t out, but if these footnotes are the realization of the changes from 1994 to become the new law in 2018. There are really just putting in the word sustainable and harmonize the roles of all the roles. Which is fancy lingo, for making sure everyone along the line is taxed and made sure they pay for the government services. Since they are already having the mandate by the law of 1994.

As sub-section 4 in the UCDA Act of 1994 states:

The functions of the authority shall be— to issue certificates in respect of the grade and quantity of coffee; to register in accordance with guidelines issued by the Minister, from time to time, on the advice of the board, all organisations and bodies applying to market coffee; to liaise with the Bank of Uganda in respect of repatriation of foreign exchange obtained from the sale of coffee; to set the quality control standards under which coffee is sold; to certify all coffee exports; to collect, maintain and disseminate statistical data in respect of all aspects of the coffee industry; to advise the Government on the mechanism for determining the minimum price for the sale of coffee; (h) to monitor world market price changes and adjust the minimum price on a day-to-day basis to reflect the changes; (i) to research and make extension arrangements through the Ministry responsible for agriculture or any other organisation established in the country for the purpose; (j) to reconcile coffee subsector policies with the macroeconomic policies of the Government; (k) to liaise with the International Coffee Organisation and be responsible for the administration of the stamps of the organisation; (l) to liaise with other international organisations and promote Uganda’s coffee on the world market; (m) to be responsible for the overall supervision of the coffee subsector, including related industries, and advise the Government on coffee subsector policies; (n) to organise training for technicians, coffee processors and quality controllers” (CHAPTER 325 THE UGANDA COFFEE DEVELOPMENT AUTHORITY ACT, 1994).

So when I read from the spreadsheet from the Cabinet meeting at the State House, where the gist is to replace the 325, because they want to development of competitive, equitable and sustainable coffee, promote Coffee research, good Coffee farming practices, domestic coffee consumption and add value to the Coffee. Also, provide the Authority regulate all on-farm and off-farm activities in the Coffee Value Chain, streamline and harmonize the institution in the development of the Coffee Sector and to promote the Coffee sub-sector.

As what I see, the UCDA Act of 1994, not only hold the grabbing hands on all of this, but the mandate of the Authority is already, just not managed well, apparently. If the state cared about the Authority, they wouldn’t lack needed staff, as the Auditor General Report of December 2016, said the staff had 29 open positions, I don’t know if its as bad today, but wouldn’t be shocked if there was openings that the UCDA couldn’t fill, because of lack of funds.

What is striking to me, is that what the Cabinet Meeting of 21st May 2018, is what is in the statute of 1994. It just using a few different words, but if they cared about the UCDA, they would fund it properly and also actually have proper oversight of the operations. As the UCDA has often given away bad seedlings to Coffee farmers, in the same fashion as the Operation Wealth Creations has to its SACCO’s around the Republic. Like the Auditor General report of December 2016 says: “ Failure to plant and maintain coffee seedlings that were distributed and received by the farmers is wastage of Government Funds and eventually leads to failure to achieve planned coffee outputs at national level. Further, beneficiary lists withfarmers that never received inputs may be an indicator of irregular dealings on the part of seedling suppliers” (AG Report on UCDA December 2016, P: 19).

Therefore, the changing of words within the law is not fixing the remedy of the goodwill to generate more coffee and better yields. It is actually giving the king, what the king needs. That is not more fancy lingo, but actually actions and funds, also accountability, so that the farmers and the other part of the coffee production chain. Can all benefit from the Authority. On December 2017, the MoFPED delivered the National Budget Framework, which said this: “Continued implementation of the Coffee 2020 road map aimed at achieving 20million bags of 60Kg each per annum, including supporting research interventions at the National Agricultural Coffee Research Institute (NACORI) to produce high yielding coffee varieties and disease resistant tissue culture plants for coffee as well as development of a National Coffee Bill, 2017 that focuses on developing the entire coffee value chain and enable the country consolidate its dominant position in export earnings and employment” (MoFPED, P: 18, December 2017).

Therefore, the Cabinet meeting has initially decided to follow the guidelines of the National Budget Framework, as it was in December 2017. That is not surprising, but what is weird is the wording and how little change it is from the original law, that they are repealing. Unless, they have some magical formula sprinkled over it, making it a beautiful cake, instead of a boring bun with a little whipped cream. Because that is what it seems.

If you read the objectives of 1994, it doesn’t seem so far away from 2018, does it?

The objectives of the authority shall be— to promote, improve and monitor marketing of coffee with a view to optimising foreign exchange earnings and payments to the farmers; to control the quality of coffee in order to ensure that all coffee exported meets the standards stipulated by the contract between the seller and the buyer; to monitor the price of coffee in order to ensure that no export contract for the sale of coffee is concluded at a price below the minimum price; to develop and promote the coffee and other related industries through research and extension arrangements; to promote the marketing of coffee as a final product; (f) to promote domestic consumption of coffee” (UCDA Act of 1994).

That seems a lot like the spreadsheet of the Cabinet from yesterday, right?

Its only the value chain and add value on the coffee that is very new, but the rest more of the same. I am baffled or even shocked by this. It is like the Cabinet haven’t read the old bill or cared about the provisions there and thought. Maybe we should have better oversight of the Authority, instead they are changing wording and thinking that is magic wand to change the current predicament. If they wanted real change, they would have reformed the organization internally and used the provisions already there. But it is easier to make a leaflet, than change people’s mind and allocate funds.

Good morning and smell the coffee, well, I smell it, but more of the same. Just attached “sustainable” on the package, but taste is the same as yesterday. Peace.

The Spreadsheet of the aka National Coffee Bill of 2018!

Opinion: NRM, It is hard to see Middle-Income Status coming quickly!

He explained that the NRM manifesto is anchored in Vision 2040 and the second National Development Plan. It commits to deliver Ugandans into middle income status and to ensure sustainable development” (Mubiru, 2018).

Well, it is that time of the year. To prove the National Resistance Movement (NRM), that their empty promises. Because when you collect the news together. It is easy to see how things doesn’t add up. If the NRM was on their way to sustainable development, like Prime Minister Ruhakana Rugunda talked about earlier last week. Then all of the news coming wouldn’t fit. The narrative cannot be growth and development, when all of these issues are happening at the same time. It doesn’t fit. The glove has to fit the hand. The three things that doesn’t add up is the missing funds for the Presidents own Village Poverty Program, relief food for Karamoja and also a missing sugar factory.

Village Poverty Program:

State House has said it needs at least Shs 5bn to roll out the model village poverty alleviation initiative by President Yoweri Museveni. In the request contained in the Ministry of Presidency’s policy statement and budget estimates for 2018/2019, State House said the existing Shs 1bn budget for the project is too little and therefore a 500 percent increase is vital. The current Shs 1bn has only managed to establish small scale commercial agricultural farms in 21 model villages. The country, according to Electoral Commission of 2016 data, has 59,700 villages” (Okello, 2018).

Donate relief food:

The government of China has donated food aid worth $5 million (about Shs 18bn) to the World Food Programme (WFP) to support a feeding programme for vulnerable groups threatened by malnutrition in the Karamoja sub-region. More than 2000,000 people mostly school going children, infants and mothers are threatened by malnutrition in Karamoja according to official figures” (Lyatuu, 2018).

No existent Sugar Factory:

It is five years, since Atiak Sugar Factory under Haryal investment Holdings Limited was rolled out in Amuru District, to commence sugar production, but has since stalled, leaving a number of sugar cane farmers stranded. “The people shifted from food crops with hope to earn from sugar cane. Out growers are now worried that the factory will not take off in time to fully untilise the 4,000 acres planted,” reads part of their petition. Kilak North MP, Anthonu Akol who read out the petition to the Speaker said that the farmers are stuck with no factory to sell their sugarcane and questioning why the minister of Finance, Matia Kasaija, sold to them hot air” (Kyeyune, 2018).

All of these issues shouldn’t be at this state, if the state was seriously developing and on the way to Middle-Income status. There are so many issues that is missing, not only the ghosts and the added debt ratio in the budgets. This is all minor measures in the bigger picture, but it proves the lack of governance and accountability, when the state can grab land in Amuru district, but never deliver the promised the factory. As this been going on for years.

That the middle income cannot be fulfilled when the village poverty is so prevalent, that the scale is not fitting the needs. You know that the state lacks resources and well-funded plans to even achieve this. The President should have made sure and ensured the progress and at the planning stages, it this is his program, to be sure about the right amount and needed facilitation to deliver to the needed villages. That is apparently a mixed bag wooh-ha and nonsense.

Last but not least, is the donating of food to Karamoja, which in it self a sign of lack of progress. When your not able to meet the needs of your population and have good enough agricultural policies and output to feed yourself and your own kind. You know that the Middle Income Status is far-fetched, when this is still an issue. You know there are miles afar from the promise land. That the NRM and the President is clearly not delivering. There is no excuse in the book, that can fix the grandest issues of not being able to feed all communities and districts of Uganda. You know they are far from Middle Income, when China has to donate food to you….

Enough of the nonsense. Peace.

Reference:

Kyeyune, Moses – ‘Acholi sugarcane growers seek Parliament help over stalled factory’ (16.05.2018) link: http://www.monitor.co.ug/News/National/Acholi-sugarcane-growers-seek-Parliament-help-stalled-factory/688334-4565238-ueostj/index.html

Lyatuu, Justus – ‘China donates relief food to Karamoja’ (19.05.2018) link: http://observer.ug/news/headlines/57707-china-donates-relief-food-to-karamoja.html

Mubiru, Apollo – ‘NRM Manifesto: The road to modernity’ (18.05.2018) link: https://www.newvision.co.ug/new_vision/news/1477948/road-modernity

Okello, Dickens H. – ‘Shs5Bn Needed for Museveni’s Village Poverty Alleviation Program’ (21.05.2018) link: http://chimpreports.com/shs5bn-needed-for-musevenis-village-poverty-alleviation-program/

Opinion: Every crony wants to eat; now the Ex-MPs wants a grander treasury chest!

The National Resistance Movement (NRM) is something special and unique, their supposed vital role in society and their added liberation struggle, should in consideration make sure the society was better off after their reign, not being a burden after the NRM MPs leave office. However, they are just figuring out new ways to eat. Now the fallen MPs, the ones who served and had a majestic pay in Parliament want a bigger slice of the cake. Because getting 30 million shillings in pensions isn’t enough for this big-shots. They need more, they we’re representatives and honourable, they cannot go back to ordinary life after that.

The reports that they are poor and unemployed, shouldn’t make Museveni give them favors, he already have over 163 Presidential Advisors, a Cabinet reaching over 60 ministers and the space inside the Parliament isn’t big enough for everyone staying there at a Plenary Session. Therefore, this is just another waste. This is just more greed, from the previous Members of Parliament, who most of them at one point gave more salary increases and perks for themselves. Every single parliament of late has done so. They are getting suits, they are getting cars, they can spend allocated funds on foreign trips, they are paid for if they need health care abroad. Nothing is untouchable for these fellow brothers and sisters.

Now they expect to get a 100 million shillings add-on from the President, in way of a Presidential Handshake, paying them off, as you may, because of their previous engagement. Not that the ones now are getting the same, they we’re getting extra funds for voting on the age-limit and giving Museveni life-presidency. These people most likely we’re part of abolishing the term-limits and go their kick-backs for that.

That is why NRM is so special. So unique, so vibrant and fresh, it is the testament of greed. They we’re while in office, eating millions upon millions and getting kick-backs for voting correctly on the right laws. If they had been smart, they would have put the extra in the bank and in funds. To secure wealth for the years to come, if they cannot go into the private sector or get other jobs in their own districts. However, they we’re busy eating like there is no tomorrow. In addition, even when they have a giant pension package compared to the fellow citizen, they expect to nearly triple it. From 30 million shillings to 100 million shillings. That is insulting, to everyone else in the Republic who goes from hand to mouth.

They we’re supposed to represent the district, the people, the citizens, but their actions, time and time again. Shows, that they we’re only there to represent themselves and their tummy. It is a sad affair. It shows the greed and the lack of understanding of their role in society. Their lack of acceptance of their part of the play, which they anticipate to eat even more of the state. That has already doled dozens of millions on them, when they were representing.

Now they are just citizens, they are not honourable anymore, I am sure that the President can appoint enough advisors to have about 200 of them within next year. To fill the quota of former MPs. However, what they guide him about, expect being another crony on his payroll. Who knows, maybe they can all become deputy and chairpersons under the RDCs. So they get something to “do”. But that is still just a waste of public resources, just like giving them triple salaries. They shown now that they are not there for the public, but was there their tummy!

National Remittance Movement, that is the real NRM. Transmit funds from state reserves to private accounts. Handshakes, bribes, graft or overzealous pricing on government services. All of come into play and these former Members of Parliament knows that perfectly well. Peace.

The World Bank commends the rising taxes in Uganda!

Yep, the biggest bank and the Bretton Woods Organization called the World Bank has commended the works of President Yoweri Kaguta Museveni and his plans for added taxes. That comes from the similar institution like International Monetary Fund, that ordered Uganda to follow the Structural Adjustment Plan (SAP), therefore, the IMF that fixed more privatization without lacking investments. Are now okaying a higher rising taxes on the Republic’s citizens. This is done, while the economy is not strengthen, but with added external and internal loans. Therefore, the rise of GDP and use of loans, as well as repayments on those loans will sooner or later hurt the economy. Even with the rise of taxes. This will be start of vicious cycle where the state is issuing loans and taxes, while the revenue is used to repay loans, not development. It is basically. But before I go into the deep of the part of the troubling take from the World Bank. Let me just show you quickly the result of the SAP and their advice there.

The studies also make it clear that for SAP-type policies to have a chance of success, certain preconditions are necessary. The public sector had certain social responsibilities that the current framework has pushed it out of but without “a proper handing over” to the private sector. The assumption and hope were that the market would fill the gap left by the retreating state. Clearly this has not happened. There is therefore need for Government either to retain certain key social sectors, or only hand them over to the private sector only when the latter is ready to effectively take them over. Clearly non-profit making aspects of social responsibility cannot and do not get taken over by the private sector. For poverty to be reduced there are certain social responsibilities or even whole sectors that can only effectively be handled by the public sector. Welfare systems and subsidies to farmers in the developed world attest to the need for the retention of these key areas by the public sector. Therefore a policy that proscribes such a hand-over must also ensure that it is done in a verifiable manner so that the private sector can be held to account. Civil society has in the past tried to fill the gap but this has been done in an ad hoc manner” (Kevin Akoyi Makokha – ‘STRUCTURAL ADJUSTMENT PARTICIPATORY REVIEW INITIATIVE (SAPRI) – UGANDA COUNTRY REPORT: A synthesis of the Four SAPRI Studies’ September 2001).

So, when the last system from the World Bank and IMF was introduced the system and the government wasn’t ready to privatize, however, that didn’t stop them or the government to do so. Especially since the funds and loans at the time came with the hitch of doing so. Therefore, the troubles with the privatization and the lacking oversight is also partly because of these programs subsidized by these organizations. That is why the World Bank and IMF should be more careful professing what sort of thing would be genuine and sincere, since they have messed up before. It isn’t only the State House who has messed up, he has gotten help and followed the procedures of these mechanisms. If not, he wouldn’t be able to eat such vast amounts of donor funding in the past. This is well-known, but the lack of oversight, is because of the will of wanting to have control and a say in everything. That is why the letter from the President to Minister of Finance, is the reason for the new levied taxes. So, if you wonder why I have distrust to the World Bank and IMF, it is because of their history and that the public is paying for it, because their impact on the governments for the reasons. That these states should be guinea-pigs for the economy belief of trickling down economics, even as the results has begged differ if it really drips back into the system again. Which it doesn’t because the ones that gets a lot want to keep it and get some more. No dole it out to anyone they can find.

Here is what the World Bank stated today: “In the special section of the Update, the report analyses how Uganda could raise more domestic revenues to support its development. Uganda’s tax system is one of the most modern in the region, but revenue collections, at 14 percent of GDP, are low, and way below its tax potential. Tax avoidance and evasion, partly resulting from generous tax exemptions to investors, weak tax administration, and a large informal sector (now at 80 percent), pose challenges to increasing revenues. Up to 5 percent of GDP is lost annually in tax leakages. Personal income tax contributes roughly 18 percent of GDP compared to up to 40 percent in developed countries. VAT collections amount to 4 percent of GDP, but would rise to 6 percent if there were no exemptions. The report suggests that Uganda could widen its tax base by tapping into areas that are outside the tax net; applying tax instruments correctly and fairly; improving efficiency, transparency and accountability in tax administration; and delivering better public services” (World Bank – ‘Improving Taxation to Finance Uganda’s Development’ 15.05.2018).

Therefore, the World Bank likes the idea of adding more tax on the Mobile Money transactions and the movement of digital cash, as well as on Airtime and other needed things. The ones that hasn’t a bank-account or the ability to fund or even try to get a loans from the banking system. Are okayed by the World Bank as possible targets for taxes. This isn’t transparent, but making it more expensive to be poor, as the rates to transmit and the use mobile money will come. The companies whose use this method will bill the users, they will not take the hit. The same with all the traders and the importers of all the other items that was on the lists of the newly taxed items.

I doubt these new taxes will do any good, it will just be more funds for the elites, the NRM and the President to eat. They are not delivering government services with the trillions of shillings they are using now. They are billing up to their asses and spending rampant, without having the revenue. That is why the rising debts are there. Instead of living frugal and thinking of the future, the NRM and President Museveni are eating like there is no tomorrow!

State House, the President and the Cabinet are eating heavy, they are not delivering, they have no plans to do so. If so, they give locally when needed, but the lack of transparency and accountability, is the reason for missing funds. Recently even the documents from the GAVI Funds was taken from the Ministry of Health. Therefore, a government who cannot be trusted with funds giving donations to help the sick, how can we believe the tax put on Mobile Money will go to roads or teachers?

I doubt that, I am not that naive, this NRM has proven for 32 years, that they are eating and not caring. The World Bank can commend and praise. While I condemn, until they prove that they money are delivered to the schools, that the teachers have their salaries and the civil servants are properly paid. Not just hiring some random Cubans to fix the issues for a short time. That is not how to build a national health care system. That is how to mock the ones you already have. Peace.