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Archive for the tag “Bassajalaba”

Kirumira Lawyer letter to New Vision: “Re: Notice of Intention to Sue for Publication of Defamatory Matter” (12.07.2017)

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IMF statement on Uganda’s current Economic framework has a “grey” list, but a steady core inflation!

The International Monetary funds have concluded yet another visit to Uganda. As todays statement and insights to the economy is dim. There is not much prospects or much goodness to take out of it. Unless, you are thinking to invest while the inflations are rising and hoping it does not stop. Even though the needless to say, it has been like this before after General Elections in Uganda. That the economy has suffered a blow and a shock, which has hurt the economy and food prices. Therefore, sparked demonstrations and uprisings, like that last big one in Walk to Work and Activist for Change in 2011. It is clearly on the same path, but just in 2017 instead. President Yoweri Museveni likes to repeat himself!

“Inflation has edged up, mainly reflecting the effects of the drought. Food price inflation rose from 5 percent year-on-year in September 2016 to 22 percent in April 2017. With this, headline inflation recorded 6.8 in April 2017. Core inflation stood at 4.9 percent, in line with the Bank of Uganda’s (BoU’s) 5 percent target” (IMF, 2017). These numbers are showing the decline and increase of common commodities, even if the Core Inflation is around the estimated level; the food prices are showing the problems in the economy in general.

“The authorities have made some progress on structural reforms. Two structural benchmarks have been met on time, three with delay, and the remaining five are pending. Most notably, the authorities moved forward the legislative agenda that will support Uganda’s exit from the Financial Action Task Force “grey” list—the laws now await President Museveni’s assent. The Ministry of Finance, Planning, and Economic Development published reconciled reports on the stock of outstanding arrears at end-June 2016 (3.2 percent of GDP). Pending reforms include sending the BoU Act Amendments to Parliament, publishing the report on end-December unpaid bills, and sending to cabinet a policy for regulating mobile money” (IMF, 2017). The GoU and President Museveni have not complied totally and made laws objectively transparent. Therefore, there are laws awaiting the approval and be requested to Parliament, as the state reserves and budgets are still enforced with the will of the President. In addition, a proof of the maladministration is the amount of budget arrears that was in last budget year, which will hit the economy, as the bills have to be paid this year.

“Uganda’s external position is broadly consistent with fundamentals and desirable policies in 2016. The current account deficit is projected to temporarily increase over the next 5 years as infrastructure and oil sector investment ramp up further. Achieving the envisaged growth dividend of these investments is essential to maintaining external stability—just as for public debt sustainability. International reserves at end-December 2016 stood at US$3 billion (5¼ months of next year’s imports), above the adequacy level suggested by the IMF’s metric for credit-constrained economies. Going forward, the BoU can purchase reserves opportunistically and would meet the EAC convergence criterion of 4½ months of imports. The flexible exchange rate regime is serving Uganda well” (IMF, 2017). Therefore, the government and IMF envisions that the future prospects of oil monies will be sustainable for the current loans into infrastructure projects. It even envision it and with that will ensure external stability and trust into the economic climate of Uganda, that shows that the trust in future gains is the ones; that makes people have faith in the Ugandan economy.

This is all here proof in stated language that the IMF are looking through the budgets and their laws. Nevertheless, is not addressing the trillions shillings suddenly disappearing, neither the Presidential Handshake, as these are just figment of imagination for the foreign economic advisors. They just do not see it or does not want to see it. Peace.

Reference:

IMF – ‘Uganda: Staff Concluding Statement of the 2017 Article IV Consultation Mission and Discussions for the 8th Review under the Policy Support Instrument’ (16.05.2017) link: http://www.imf-fmi.africa-newsroom.com/press/uganda-staff-concluding-statement-of-the-2017-article-iv-consultation-mission-and-discussions-for-the-8th-review-under-the-policy-support-instrument?lang=en

Public Notice: DFCU Bank Limited Takes over Crane Bank Limited (27.01.2017)

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IMF Executive Board Completes the Seventh Review Under the Policy Support Instrument for Uganda (11.01.2017)

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Uganda’s economy has performed reasonably well in a complex environment.

WASHINGTON D.C., United States of America, January 11, 2017 – On January 5, the Executive Board of the International Monetary Fund (IMF) completed the seventh review of Uganda’s economic program under the Policy Support Instrument (PSI).1 The Board’s decision was taken on a lapse of time basis.2 In completing the review, the Board granted a waiver of the nonobservance of the end-June 2016 assessment criterion on the overall deficit of the central government.

The PSI for Uganda was approved by the Board on June 28, 2013 (see Press Release No. 13/78), and a one-year extension was approved on June 6, 2016 (see Press Release No. 16/263).

Uganda’s economy has performed reasonably well in a complex environment. Growth slowed marginally to 4.8 percent in FY15/16, reflecting muted sentiment in an election year and adverse global and regional developments. The current account deficit improved by 1 percentage point to 5.9 percent of GDP, and the Shilling has stabilized after a sharp depreciation in 2015. Growth is projected to nudge up to 5 percent in FY16/17.

Program performance under the PSI has been mixed. Tight monetary policy in 2015 has helped contain inflation in the target range, and the Bank of Uganda (BoU) has started an easing cycle in April 2016. Reserve cover remains adequate. Fiscal revenue and deficit targets were missed, reflecting lower-than-expected growth and election effects. Investment spending fell short, while current expenditure overshot. Structural reforms have progressed, albeit with some delays.

The banking sector remains overall well capitalized, despite elevated non-performing loans. The BoU appropriately took over an undercapitalized bank and is identifying a strategic investor.

Uganda remains at a low risk of debt distress. The scaling-up of infrastructure investment implies a temporary increase in debt, putting a premium on domestic revenue mobilization and ensuring that public investment yields the intended growth dividend.

Looking ahead, priorities include close cooperation with the Financial Action Task Force to ensure Uganda’s swift exit from its “gray” list; strengthening domestic arrears monitoring; and amending the Bank of Uganda Act to reinforce central bank independence.

1 The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF’s Executive Board, signal to donors, multilateral development banks, and markets the Fund’s endorsement of a member’s policies (see imf.org/external/np/exr/facts/psi.htm). Details on Uganda’s current PSI are available at imf.org/uganda.

2 The Executive Board takes decisions without a meeting when it is agreed by the Board that a proposal can be considered without convening formal discussions.

A look into the Crane Bank sudden fall from Grace!

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Mutebile says Crane Bank takeover was because it lacked sufficient capital and posed a systemic risk to the financial system” (NBS TV Uganda, 21.10.2016).

There are too many signs, but the sign today that shatters the fiscal policies not worth the ink printed on the shilling; is the fall of grace from the former engine of the economy Crane Bank Limited (CBL) that we’re owned by a foreign investor and even saved by European Investment Bank (EIB). The refuelled money came in 2014 and had record results in 2015. So it’s weird by May 2016 that the bank we’re all of sudden under heavy losses. It’s not like the ATM Museveni who emptied the State House and needed new funds after Campaigns of 2015/2016. So you start to wonder if this is connected to the #ScamBailouts of Companies that even had very many accounts at the Crane Bank.

There are so many questions and reasons if it is a plot behind the scenes as the Owner Sudhir Ruparelia. That happens with the takeover of National Bank of Commerce (NBC) even at some point to gain bigger markets in 2012.

“We have picked clues that it is about the way NBC was closed and hurriedly taken over by Crane Bank and the second lead relates to politics; there are some individuals who think that Sudhir could have bailed out President Yoweri Museveni with money from his bank during campaigns and so these are trying to spoil business,” the sources say, referring to a brief about the ongoing negative publicity about Crane Bank that was reportedly prepared by Economic Monitoring Desk in the Office of the President” (Eagle.co.ug – ‘Former Premier Mbabazi cited in Crane Bank woes’ 14.10.2016).

All of a sudden the bank even swindles the long-living Honourable Member of Parliament Sam Kuteesa:

A new scandal is raging in Crane Bank after its own staff stole Shs 846m from the bank’s customers. Of this, Shs 800m was withdrawn from the account of H.E Sam Kutesa, the President of United Nations General Assembly and Uganda’s Foreign Affairs Minister and the Shs 46m from other customers in Kabale district” (…) “We contacted Sudhir Ruparelia, the Managing Director of Crane bank and this is what he said: “It is not true anyone lost money. I don’t talk on phone to people I don’t know. Come to my office”. Later, his daughter said: “As a matter of policy, the bank cannot discuss details of a customer. If you want any help, write to me, I will see if can help you”. Kutesa’s aide, Joseph Barigye, speaking from New York in the US said the bank was “sorting the mess”. Meanwhile, the bank has tasked the Forex Manager to compensate the loss” (TheInsider.co.ug – ‘Crane Bank staff swindles Kutesa’s Shs800m’ 29.04.2016).

Newspapers Same Scandal Uganda

In December 2015 an unknown bank could be closed by BoU:

“A highly placed source working with the said bank, told Newz Post that the regulator is concerned with the state of affairs at this commercial bank. The bank of all bankers has advised that something be done urgently or the worst might happen to this bank. –closing the bank” (…) “The December 2015 report by BOU auditors, found that the said bank was ‘‘less than satisfactory’’. The bank was given time to sort itself out. Meanwhile, BOU kept a close eye on bank” (…) “With pressure from BOU to do ‘‘something’’, the bank has increased pressure on the heavy borrowers, who have since resorted to selling their assets and business to pay back the loans. The BOU has also advised that the bank must get an investor to pump in more money as well as bring in management expertise” (Newz.ug – ‘BANK OF UGANDA THREATENS TO CLOSE A TOP COMMERCIAL BANK’ link: http://newz.ug/bank-of-uganda-threatens-to-close-a-top-commercial-bank/ ).

With this in mind, the biggest Commercial bank Crane all of sudden gets into management. That the bank had to close monitored must be because of the ownership and also the recent campaign trial of the government. That cannot be coincidence as the objective of that is over and now the bank is in shatters. Therefore the bank management and stakeholders has tried to keep the costumers and confidence up high, even getting the BoU to lie. As I show here.

So when that transaction happens in that regard, here is something more telling about the Crane Bank of September:

Atlas Mara, the African financial services company co-founded by the former head of Barclays’ Bob Diamond, was in talks to acquire a stake in Uganda Crane’s Bank, a person familiar with the matter said. The talks were at an early stage, the person said, asking not to be identified because the discussions were private. Atlas Mara values the bank at $250 million (R4 billion), while Crane Bank says it is worth $300m, a Nairobi-based east African newspaper reported, without saying where it got the information. Crane Bank said in September that it was looking for a strategic equity investor with a regional or continental network” (Cape Times – ‘Stake in Crane Bank on table’ 20.10.2016).

As that was happening in the hollow chambers of Atlas Mara this we’re the statement from BoU:

As of now, the Bank of Uganda has not received any request from Crane Bank to approve a change in shareholding. Should such a request be received, the proposed share holders will be vetted for “fit and proper” credentials and positively considered if they warrant approval. It should be noted that it is normal practice for financial institutions to change shareholding in line with their strategic objectives, and this has happened several times in Uganda” (Alupo, Christine – ‘Bank of Uganda on the Crane Bank Ownership’ 19.09.2016).

So there was a lie three somewhere in between the Bank of Uganda, Crane Bank and the Atlas Mara; as the Financial Service wouldn’t hunt for a new owner at the same time as the BoU would supress the idea of selling the shareholders and ownership of the same bank. That is just blatant lie from the Central Bank and Government of Uganda who covers up misconduct from their greatest Commercial bank, that had massive profits in 2015.

Museveni Swears In

If we’re talking about misconduct this one from the grandmaster kingpin His Excellency Museveni:

“A few days back (Monday), one of our journalists Sewakiryanga Ivan reported that the first family was withdrawing huge sums of money from Crane Bank. According to Ivan, Museveni had spent huge sums ($ 200 million) on the February Presidential Campaigns money, money reportedly drawn from Crane Bank. He also revealed that Crane Brank among other investments purportedly owned by Sudhir and Bassajalaba was owned by the President” (Buule, John – ‘Museveni finally sells off Crane Bank to Uganda’ 20.10.2016 – Mycampusjuice.com).

So if these reports are true, together with the shady dealings of the past as the Sudhir Raparelia who might even just been a perfect stooge in foreign investment scheme of things; while President Yoweri Museveni could run mad on his own enterprise as the bank has lasted for 24 years of the 31 years he has had the reign. That makes it possible after a little heckling over money he made his own bank to take it away from the reach of Bank of Uganda, the Central Bank and Reserves of the State. A state now so broke that now the funds for his Campaign has shattered the biggest Commercial Bank and it’s put under management of BoU. This is where even the Mighty President was not allowed to borrow for his expensive campaigning and paying of his loyal cadres to be behind after the election because of shillings of glory.

So with this in mind, the sale of Financial Service Atlas Mara wouldn’t be setup as the shoddy accounting and transparency of the bank where not fitting any prospects. Even a former Barclay’s Manager wasn’t able to settle the deal for new ownership. I am sure the finances and books weren’t sweet enough. Another reason why the Bank of Uganda wanted to make sure the Citizens of Uganda didn’t know the misconception of the safety of keeping accounts and transactions at the Bank. Together these indications prove the imbalance and wish to keep the first families activities in the shadow as they want to keep their acts behind closed doors. Still, when it surface it’s usually cause venom or disharmony as the Executive doesn’t have the Ugandans at heart, but his own pockets. Therefore even the Director of BoU Prof. Emmanuel Tumusiime-Mutebile sent him packing before emptying his treasure chest at the Crane Bank.

If this is the fact, than there are certainly many tax-payers and others accounts wiped out because of the greed of the old man with the hat. That used his last option to pay his creditors for the Presidential Campaign of 2016. Which cost a fortune for him with the buses, artists and all the other political aides paid off for the sake of 30 years and counting; the pride of the man with a lost vision. Peace!

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