The State propose a 0,5% Cash Withdrawal Tax (!)

The Ministry of Finance, Planning Economic Development (MoFPED) is preparing a tax on every cash withdrawal from ATMS or Commercial Banks. This means every time someone takes out cash from their accounts. The customers i.e. the citizens have to pay the state a fee to access their money. Just like they do with the mobile money transactions. That’s why the state is proposing this.

This is an easy way to access more funds without adding any value to the monetary market. The state will not do anything, but adding a fee. A percentage on every single transaction. In the meanwhile, they will also deplete funds from the citizens. As the citizens have to calculate every transaction to ensure they are paying less taxes. That is what people does when they want to ensure they get most value out of the money. Which will be standard.

The manner of doing this. Is in a state where there is already lots of cash and money in circulation. The Republic is built with cash based economy and need for cash itself. That is why in some ways this will even be a double tax. Especially for the ones having first mobile money transfer to family members and loved ones. They are first paying a fee to send it too them, which is the Mobile Money Tax. Then the person receiving the Mobile Money will have to pay either at a bank or at ATM the Cash Withdrawal Tax. In this way the state is getting paid twice before the money is even getting in circulation.

I wonder, if the MoFPED have thought of the consequences of this? Has the state considered the implications for the citizens? Or are they only trying to figure out new ways to cash in on every citizens. So that their behaviour and need for money will cost them.

Because, it is normal that foreigners or aliens are paying to take out money at a ATM abroad. They usually pay a transfer fee between their currency and the Ugandan Shilling. That is making sense and the bank also takes a fee for doing so. A tourist knows this and accepts it, as it is a way of easily access and securing local currency. However, what the state is proposing is paying a tax to access your own money.

The state is billing people for withdrawal of cash. In essence the state will take money for service rendered for printing money. They are billing the public for having circulated coins and bank notes. Since, they are taxing every transaction and that’s really ill. This sort of enterprise isn’t growing the tax-base, but taking away more funds from circulating. The more you tax, the more funds you are depleting from the system. In the end you have a evil circle where all taxes are overburdening the citizen. In such a manner, that they start to do all business and transactions on the black-market to save money. That is when the state loses out and cannot access these transactions at all. This because they have found other means of moving money and doesn’t want to pay added taxes on their needed funds.

The more these taxes are put forward. The more funds are taken away from the ones who needs them. This is all taken away from the citizens before they get to access the money. Either it is mobile money or taken from their account through a withdrawal. That should worry the Representatives and the ones making laws. The amount of 0,5% doesn’t sound like a lot, but imagine that on every single transaction or withdrawal. That will be huge sum and be a costly endeavour. Peace.

Opinion: Mzee needs about 3 trillions for secret projects [or a slush fund for his re-election]

In the next financial year it is voted in UGX 2.8 trillion shillings in the Financial Year of 2020/21. This is very special in consideration as the whole budget has grown to 45 trillion shillings. Also in regards to things and rising debts, the state will have to pay UGX 4 trillions in interests payments. That is close to 10 % and the Confidential Expenditure is close to 7,5%.

This is really special that the President needs this amount for confidential expenditure for the FY 2020/21. This is ahead of the General Election of 2021. There is already a supplementary budget for COVID-19 as well. Which is also adding more confidential expenditures too.

That is deliberate. The National Resistance Movement (NRM) and the President is acting with a clear message. They are doing it and we know it. Because, the state needs a lot of funds for the campaigns, for the tours, campaign material, paying ads in New Vision and paying off chiefs, RDCs and whatnots. That is why the President is begging for cars now. He needs them for campaign season, he always buy cars for Pastors, RDCs and other appointed officials to get their loyalty.

So, who knows what they will use Three Trillions Shillings for, but surely it will be for selfish and entitled reasons. NRM and the President will misuse these funds. Just like they are spiking up the budget again. New heights as of the budget is estimated in loans and grants. This means, the state is only able to get revenue for the other half. Meaning 22,5 trillions are gotten from elsewhere and will be more interests to pay later. This is special, as the state is getting debt relief from the IMF. Not like they playing into it. Loaning more, while the IMF is offering relief. Such a brilliant move!

While the state is doing that, they are adding more and more confidential expenditure. This is done in manner and fashion, where we know that it will got devious things. That is why they cannot state it. If it is weapons for proxy-wars. If it is for paying side-dishes, cronies and “foreign investors”. Because, there is a lot of things ahead. The President has a lot of people to pay. A lot of campaigning to do and spend like a drunk sailor in the coming months. Especially after the lockdowns.

The President will use the LDUs, UPDF and Police Force. There will be means and pain, interference and intimidation to ensure another term in office. Not like he can do it with gained popularity at this point. He cannot even get enough to feed the poor. He cannot even find ways to properly serve the public or contact trace within the COVID-19 pandemic.

That is why he needs classified expenditures in the ranking of 3 trillions in the up-coming financial year. Since, he needs secret trading, procurement and usage of funds. These things will not have ordinary due diligence or oversight. The President can use it like his Donations Programs. He can spend it without question and suddenly give a blown-up doll to his wife or something. We don’t know, but that is what he could do.

The NRM has surely ensured they have secured the State House, Office of the President and Office of Prime Minister funds as well. All of this usually spins a big web in the election time. So, expect it to be a supplementary budget for the State House in 2021. As the water-bill, lack of funds for salaries for a few Presidential Advisors and so on suddenly hits the fan. This is partly covered by the Confidential Expenditures. However, it can go anywhere. We just don’t where. It could go to ammunition, Armoured Personnel Vehicles and whatnot. That would be shocking, even if it get some additional tear-gas too.

However, don’t expect these three trillions to make the society better, the Republic to prosper. This is slush funds for the President and his cronies. This is securing their fate ahead of the election. Peace.

Bank of Uganda: Measures to mitigate the economic impact of COVID-19 (20.03.2020)

Bank of Uganda: Monetary Policy Statement for February 2020 (13.02.2020)

Opinion: Spending the future, today and yesterday…

Well, those where the days before the previous election. When the state and the Parliament wanted show some promise of some sort of laws, which would contain and actually save some of proceeds from the Petroleum Industry. However, we are now in 2020 and the news is out. The UGX 700 billion shillings that the Petroleum Fund had has been used over 3 budgets year.

That with:

2017/18 they spent 125bn

2018/19 they spent 200bn

2019/20 they spent 445bn

Which is in total: 765bn.

What is really more beautiful with this, is the PFMA restrictions and means that both the Bank of Uganda (BoU), the Ministry of Finance, Planning and Economic Development (MoFPED) and the Investment Advisory Committee. All of these had an oversight, plus the Auditor General was supposed to write semi-yearly reports on the status of the Petroleum Fund. So, how come they have run empty. That’s because certainly nobody cared that it was used to contain the shortfall in the growing budgets, instead of what the laws said. Like the part 74 of the PFMA of 2015, which says this.

“74. Prohibition on encumbrance of the Petroleum Fund.

(1) The financial assets of the Petroleum Fund including presentor future financial assets shall not be earmarked, pledged, committed,loaned out, or otherwise encumbered by any person or entity.

(2) In this section, “earmarked, pledged, committed, loaned out,or otherwise encumbered by any person or entity” means—

(a) using the financial assets of the Petroleum Fund—

(i)to provide credit to Government, or any other person or entity;

(ii)as collateral for debts, guarantees, commitments or other liabilities of any person or entity; or

(b) borrowing from the reserves of the Petroleum Fund.

(3) Government shall not—

(a) borrow money from the Petroleum Fund; or (b)hold a financial instrument that places or may place aliability or a contingent liability on the Petroleum Fund” (Public Finance Management Act of 2015).

We can see that the government itself used the Petroleum Fund for credit and not what they intended the fund for. Which is a misuse of the own fund it created. Instead of making these instruments and such. They should have just put it straight in the consolidation fund and spent it like drunk seamen. Because, this sort of charade doesn’t make sense.

Why make these sort of laws and don’t follow it? Why try to make a petroleum fund and empty it mere years after making it a thing?

Seems like a fools errand or like a big heist. Instead, the Auditor General, the Bank of Uganda and Minister of Finance all looks like idiots. This is a mess, a self-created mess. Just like the Presidential Handshake. This is a smaller thieving, but thieving never the less. Especially, if the fund should have any meaning.

However, I am not surprised, the state needed to fill their shortfall of revenue and why not do it with the monies already in “one” of your accounts. Because, that is what they did and they did it step by step. Until this year, when they went totally overboard and scraped the whole treasure-chest. Peace.

Bank of Uganda: Monetary Policy Statement for December 2019 (09.12.2019)

Bank of Uganda: Monetary Policy Statement for October 2019 (07.10.2019)

Uganda Peoples Congress: Caution on Coffee Bill (17.07.2019)

Opinion: BoU and UTL share the same sins, just different institutions

We can lie to ourselves, we all do it now and then, and even the most holy of us does it, but acts like saints. Nevertheless, the realities are hard-hitting and not as people tend it too be. In the recent days, there been steady scandals in two institutions connected to the government of Uganda. This being the Bank of Uganda and Uganda Telecom Limited. Both whose place is vital and both under “ownership” of the state.

They have very different roles in society, as one is the Reserve Bank and the one that follows direct guidelines of the Ministry of Finance, Economic Planning and Development, while the same Ministry owns the other! That is why there are some of the same aspects, as the stories are pouring out.

The BoU is rocked by lack of due diligence, lack of minutes, lack of working after protocol and procurement. The UTL is lacking leadership, lacking structure or even basic control from the state. Both is run by the MoFPED and still has the same issues. It is like they are two ugly siblings and none of these bastards can get a date.

The BoU is the epitome of corrupt behaviour from buying pens, securing quick-fix funds for trading commercial banks and so on. While the UTL have shady-back-door deals with willy-nilly abroad in Mauritius or Nigeria, even some skeletons in Libya. Still, even if Hon. Evelyn Anite tries every avenue and use all parts of the dictionary, she still doesn’t have the powers to sack the ones running UTL, because the MoFPED is involved and who knows how the President Museveni micromanages these state owned enterprises. Since his known for guidance everywhere in the Republic. That is why Hon. Anite had to send a letter to him to further her cause in the UTL saga.

We can lie to ourselves, but not that it does any good. At this point, the involvement of the state, the known actors and only the small-fries are getting caught. The ones doing the heist, doing the handshakes and getting the kick-backs from there is working directly with the State House. That is well known and not unknown, they even ask permission before doing so. This is what they do. Its only the ones who doesn’t ask who ends in the files of various departments fighting corruption. Even if they end up there, they might lose the paperwork or minutes before investigation, as the loyal subjects clear the house. So, that the big-man on top, doesn’t get humiliated.

This is just what is up and what is going down. These men who runs these SOEs are allowed to what they do, because the higher power let them do it and they are all eating. Especially, when the “high above” sanctions it, its all cool, but if he doesn’t get a cut; than there is an issue and someone have to pay. That is the end-game, that is why it continues and why it floats like this. Not because this is a healthy practice or even a way that the state should govern, but this is what they are known to do.

The UTL and BoU have similar issues, they are doing similar acts, but with different enterprises. We can act a fool, but that will still not save the face of the ones running it. Sooner or later, someone will fall on the sword of their master. Right now its not needed, but when these two institutions needs a boost of confidence, someone will swallow their pride and do their last act of mercy. That is just how it goes. We just don’t know who will fall and for what cause, other than saving the high above from humiliation. Peace.

Bank of Uganda Scandal: Printing lies and printing money!

Well, we are at this point and time, where the printing company have back dropped their information to the public. As well, as the ones in charge of spin control in the state, this being Uganda Media Centre, as well, as the Police Force itself plus internal statements from the Bank of Uganda.

While the Directors are under scrutiny, the spin is out of bound and showing that they are trying to deceive. That the Bank of Uganda had a scheme going on with the shipment of bank-notes, where the high ranking officials could eat of the spoils, but somewhere, somebody tipped the authorities off. Because someone didn’t get their cut.

That is why the state and Bank of Uganda is trying to back peddle it, while the State House, CMI and others are investigating the efforts of transporting the extra consignment of notes. The billions upon billions of extra funds.

We know there was a scheme and that it wasn’t supposed to get to the headlines, that they wasn’t supposed to fight over notes in mattresses, neither fight over blame either. The Bank was supposed to get these, share the spoils and move along like nothing. That is why the spokesperson for the government pins blame on police, while the Bank says its nothing and the Police says its investigating it. While the new Unit in State House confirms the raid on the bank. Surely, it is all a mess, as the institution and the state itself cannot configure the story, nor the procurement of the extra consigned notes. It is like a gift that keeps giving.

We know now that someone ordered extra notes from Europe. Someone had arranged it to happen, the planes with the notes was scheduled and the transfer was already made by the officials in the bank. The State let it happen and let it even come through customs. The state let the BoU do this and didn’t stop it. Until someone tipped off State House, as off they weren’t properly informed or getting their cut. Therefore, they had to cut it off and send a sign, that they are supposed to be informed of this and get their piece of the action.

That is why the Bank was early stating it was negotiating with the authorities, that it wasn’t a raid, even if the State House, CMI and others claimed it was. We can surely see where this is going. This a badly written novel, even a badly written scheme of soldiers of fortune, of financial mercenaries who couldn’t even pocket the funds without ghosting the procurement. They had to leave breadcrumbs and leave traces of deception.

That is why the Bank, the Police and the Uganda Media Centre, all look like fools. The directors, the consignments and the delivery is all there. The ones who was supposed to earn on this was there too. The whole operation was in session and the class was about to start. But was pre-emptively stopped by the authorities and since then, the people looking at it cannot keep their stories straight.

Time will tell, but this is looking like a heist, smelling like a heist and acting like a heist. Even if they are trying to conceal it. Someone got hurt that they didn’t get their pieces of silver and had to blow the whistle. Now, the ugly truth of the operation is peeled off, layer by layer. Peace.