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Archive for the tag “BOU”

DFCU Bank Attorney’s to Rajiv Ruparelia: “Re: Notice Before Legal Action” (05.10.2018)

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Possible outcome of the revised Investment Code of 2017!

Yesterday at the Plenary in the Parliament, discussed the revised Investment code of 2017. Which in its self isn’t the most exiting thing. Nevertheless, the reality is that this is now in Parliament shows a push from the Members of Parliament and the Committee of Ministry of Finance, Planning and Economic Development (MoFPED). That they are up to something. They are trying to forge something ahead. However, as the President has claimed the bureaucrats for being lazy, this shows another attempt. However, if this parts of the laws are enacted. Will ensure that it takes longer and the quality of the Foreign Investor to hold onto the new demands of the state. This will also give more power to the Uganda Investment Authority (UIA).

As the September report on the bill states. They will register all investments and all incentives inventory, as off who is doing what and licensed to do. As the Foreign Investor has to comply too a more rigid laws to be able to in the first place now.

Because the change of laws is that an exports of a minimum of 70% of the production in the given incentive, hire at least up to 60% Ugandan citizens and accept to monitored by the authorities and the statutes within the law. This being the UIA, which has the oversight.

The Incentive before launching has to verified and certified by the UIA. The same authority that has oversight and register the incentives. The Foreign Investor has to notify the UIA if they are complying with their inventory to the UIA as per law.

As to make it more hectic for anyone to invest is not allowed to directly to be investing in farming, as production of agricultural output. They cannot do that, but they can be able and allowed to own factories and businesses that helps the farmers to get better crops or bigger livestock.

The law states further the priorities for a Foreign Investor, as per law: “1. agro processlng; 2. food processing; 3. medical appliances; 4. building materials; 5. light industry; 6. automobile manufacturing and assembly; 7. household appliances; 8. furniture; 9. logistics and ware-housing; 10. information technology; or ll. commercial farming”.

This really put the parameter for what they can and cannot do. They are specific as to who allows, what sort of investment, who certifies and who monitors. Therefore, a foreign investor, by law has to comply a lot more and has to have more paperwork to prove his business-plan, prove his investment, his hires and his initial plan for getting exports of the giving products. This will clearly hamper investments and create a longer time-table for them. As the Foreign Investor cannot focus on local market, but on international market, because that is how it is by law. In addition, when you invest in something, you don’t want to loose your certification or your rights to produce or export given products.

Also, the same investor needs to incorporate the business with the Registrar General, a certified of remittance by the Bank of Uganda, the second, the certified of remittance to lodge an application to the Department of Immigration and this department have to give the Foreign Investor a permit to do stay and do business in Uganda. Therefore, before engaging with the new criteria of the UIA and MoFPED, the investor has to get the BoU in check and get the Department of Immigration. If all of these factors doesn’t slow down a process, nothing does. This is clearly a way of securing jobs for bureaucrats and lesser the burden of the foreign exchange and remittance in general.

  1. Get UIA Approval and Certification of Business
  2. Get BoU Certification of Remittance
  3. Get Department of Immigration – Permit and Application of Remittance
  4. Getting monitored by the UIA to see you comply with the codes.

If that sounds like an easier way in, it doesn’t, more offices and paperwork, before even spending money. This code will clearly hamper more foreign investors from coming, unless they are giving Presidential Handshakes to the President. I am sure he then lets them in. Peace.

Bosco was warned in 2016 about printing own currency, but in 2018: Goes ahead with it anyway!

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” Ernest Hemingway

There are someone who doesn’t listen to advise, even when it is well written and with shown data to President Yoweri Kaguta Museveni in October 2016, as there was reports and even made deals at the State House on the 7th October 2016. As the meetings was already ensuring and securing the deals between the Government and the printing company Veridos GmBh. By that time the Veridos company had delivered their commitments to print currency in Uganda. Also a comprehensive business plan that envisioned the proposed joint venture between Veridos and the government.

Now it is the 10th October 2018. Surely for many or plenty, this sort of an agreement is forgotten. Again, today at Entebbe State House, the deals was sealed.

As the Chimps Reports stated: “In the meeting that took place at State House Entebbe on Thursday afternoon, President Museveni noted that this new venture would save Uganda a lot of money that it has been spending on printing documents from abroad. “There was hemorrhage of resources that was unjustified. Money was going out to print currency notes for a long time. About US$25 million was spent each year to create Ugandan currency,” he said” (Kyatusiimire, 2018).

He is saying this without saying the cost of what sort of agreement the government has with company they are already using. As the lack of openness is shown from the state. That is why in 2016, the documents leaked and today, they just came on a government friendly web-paper.

To long:

Interestingly, Mr Museveni, who thanked the German company for its joint cooperation, criticized government officials for “taking too long” to act on such “crucial matters that affect the country.” He added that licensing bodies must not “over price working licenses for investors because it cripples investment and discourages potential investors. “These things of taking two years to deliberate on such matters must stop. Why did you spend two years discussing something that was so obvious?” he wondered” (Kyatusiimire, 2018).

That wasn’t obvious to the Governor of Bank of Uganda Prof. Emmanuel Tumusiime-Mutebile or the Minister for the Ministry of Finance, Planning Economic Development Matia Kasaija, who both was skeptical, not only because isn’t a company who is known for producing currency, secondly the costs are likely to be more, than what they have today and last the possibility for more forgery. All of this data was scrapped, as Bosco had decided himself.

So for some weird reason, Bosco want to take a bad deal, which his experts has said is a bad deal. He complains that his experts has made it takes this, because they didn’t have faith in the project. All been done at the State House, as it was started in 2016 and rewinds again in 2018. What value has the Governor of the BoU and Finance Minister, when their words are meaningless towards Bosco?

Someone please tell me, because I got nothing. Peace.

Reference:

Sharon Kyatusiimire – ‘BREAKING: Uganda to Print its Own Money Locally’ 04.10.2018 link: https://chimpreports.com/breaking-uganda-to-print-its-own-money-locally/

Bosco warns bureaucrats of sacking: They are his scapegoats for the lack of foreign investors!

President Yoweri Kaguta Musveni does not miss a beat; he skips on every track and sings his tune. He is never to blame and his patronage or his growing bureaucracy to blame. No, it is the ones that is hired to do the work, not the legislation, he passes through the Parliament, or from the State House even; no, it is the bad-boys in the offices, which are enforcing them. The big problem are the ones following the guidelines and following the rules, which the President has put up over time. Clearly, Bosco have forgotten that memo or these laws for that matter. It is his own words, and actions that tends to end up in scriptures that people has to follow. Not like they are blindly swallowing air at the offices, they are following the protocols and the rules of the day. Which have been implemented over the 32 years the President has resided over the main post of the nation.

“President Museveni warned lazy and bribe-taking bureaucrats to resign or risk being sacked. “We still have these lazy armchair officers at the different offices who continue to disturb our people; the investors. I will chase all these saboteurs,” he said. Investors must be facilitated to bring in expert skills, Mr Museveni said, instead of being frustrated through increased work permit rates and other bureaucratic procedure” (Dan Wandera – ‘Chinese are doers not talkers, says Museveni’ 01.10.2018, link: http://mobile.monitor.co.ug/News/Chinese-Museveni-Tiles-Nakaseke-Kyambadde-bureaucrats/2466686-4785104-format-xhtml-y40t4fz/index.html).

Therefore, Mr. President. You should look into the rules, the regulations and the laws that you have enacted, as the bureaucrats are following them and abiding them. They are making it slow, because the process you have built for them. If it was slim and easy laws to process and security check the investors, then the bureaucrats would do that, however, the NRM and you Mr. President has made it this way. They are most likely also giving you a Presidential Handshake to able to spend fortunes in the nation too. You know this and the state organizations knows too.

Instead of sending warnings of firing and calling them saboteurs, maybe, you should look into the laws, the regulations and use your NRM Caucus to implement changes that opens the gates for investors and also financial transactions in the country, as rigid it is today. That is why people are tending not to remit or sending funds, as the expenses for doing so is bananas. That is why you should use your powers for something good and not just order the army to solve crisis. But before you do that, maybe, just maybe, look into the plenty of laws that is enacted and active. Which are hampering foreign investors. That is if, you really care.

At this moment, you are just using the patronage, the cronyism you have created as a scapegoat. Not to make the state better or the financial climate either. Peace.

Opinion: If Bosco and NRM have a problem with foreign interference, than stop taking their money!

Charity … is the opium of the privileged; from the good citizen who habitually drops ten kobo from his loose change and from a safe height above the bowl of the leper outside the supermarket; to the group of good citizens (like youselfs) who donate water so that some Lazarus in the slums can have a syringe boiled clean as a whistle for his jab and his sores dressed more hygienically than the rest of him; to the Band Aid stars that lit up so dramatically the dark Christmas skies of Ethiopia. While we do our good works let us not forget that the real solution lies in a world in which charity will have become unnecessary.”Chinua Achebe

At this days, the National Resistance Movement (NRM), the peddlers of information and defense of the ill-advised activities of the Ugandan Government are now attack the Foreign Donors for interfering in internal affairs in the Republic. However, what would President Yoweri Kaguta Museveni and the NRM do without the donor funds and direct government support?

As every time there is a launch of government programs and development projects, it is mostly based on foreign currency and funds, which secure the needed services of the government. That is why if a road is built, if a bridge is fixed or even possible investments into oil industry. It all defines by the need of foreign investment and donations. As without these, the government wouldn’t be able to carry it, as they are drowning in debt and lack of fiscal financial funds to actually do it. That is why either United States, European Union or China is behind the support of various development projects and direct government funds.

However, if the Republic has an issue with the criticism from the EU after the Arua By-Election. Then first do yourself a favor. Stop taking their money and their government support. As they are the ones pledging these funds and therefore, they are not wanting to help a government that hurts and kills own citizens to stay in power. That is why the EU is reacting to the open-bazaar torturing and oppressive behavior of the NRM regime. Bosco and his henchmen might be mad that this is leaking and that this hurting their pride. Nevertheless, if they have an issue with the EU, take it in the diplomatic channels and also address it as political operatives. Instead, they are attacking the EU. They should be lucky that the EU isn’t suspending their funds and stops direct support. Because we have seen what that did to Uganda, when the World Bank suspended funds to Uganda National Roads Authority and stopped building roads for a while.

Therefore, if the Ugandan Government don’t want to be transparent or questioned for their behaviors by donors or even foreign powers. Stop taking their money and use their funds for needed government services. Stop taking the donations and loans, the fiscal supply from abroad and forget that there is no free money. There will be strings with taking the money from either Multi-National Organizations, the Breton-Woods Organizations and the other Aid Agencies. All of them have a mission and policies to follow, just like the state. So if the state they operate in breaches this, they have the rights to voice it out. As this is their money and they are using them in Kampala, instead of Mogadishu or Kathmandu.

That is why the NRM and Bosco has to get real, they are not donor darlings anymore, because the reality of the acts of this government is shown to the world. Not because of Bobi Wine, but because of what the NRM does. Their acts are shown and repeated, beating civilians, not taking care of their ill bodies or even making sure their rights as citizens are respected. Especially if they question the President and his party. That is a no-go.

Therefore, the NRM and Bosco have to decide, do they want to only take loans without any interference from China or do they want funds with strings from EU/USA? Does the NRM and Bosco want to make sure that they can pay-back the loans and interests to the Chinese? As they are not as forgiving as the Western Powers, as they did write-off loans in 1980s and early 1990s to Uganda. That should be remembered, but Museveni have become forgetful, unless it fits his continued existence and rule.

That is why the defenders of the government and party, should ask themselves, if it is so critical and important to be independent and sovereign, why take foreigners money anyway? Can you not operate without it? Then you are totally free and they can shut-up, as they are not contributing anyways. They can just be naysayers from abroad and their input will not have any force behind them. However, now, the Ugandan government should ask themselves?

Can you stop the donations, the loans and funding from all the stakeholders and be truly sovereign?

If so, than the power of the donors will be depleted and their reach will be less. However, as long as they are letting donors be key part of government programs and development projects, they are obliged to listen and follow some of the strings attached. Peace.

Uganda: Cabinet Decisons taken during the Cabinet Meeting held on Monday 10th September, 2018 at State House, Entebbe (10.09.2018)

Has the Cabinet repealed the laws to able to merger the Authorities and Agencies? Didn’t think so!

Today, must been a day that President Yoweri Kaguta Museveni have suddenly awaited for since writing a letter dated on the 17th July 2017 titled: “Re: Mushrooming Agencies/Authorities” sent to Finance Minister Matia Kasija, to tell this:

Why, then, should you separate the policy role from the regulation role for the non-commercial bureaucratic portions of the government; Forests, National Parks, Roads, NAADs, etc? Their functions are just two: policy and regulation. There is no business involved. If the Ministries of Works and Finance want to form Road Construction companies that will compete for construction jobs, then it makes sense for those companies to have Boards and Management but not a Board for a unit whose only job is to award contracts using government money” (Museveni, 17.07.2017).

That is why the Press Conference done by Frank Tumwebaze today, was to tell what the giant Cabinet has decided to do on the 10th September 2018. Which is more than one later and also 9 months after the fixed deadline President Museveni gave to Cabinet. Seemingly that haven’t matter. What matters to me, is that they are closing Authorities and such, which is there by law. They are not repealed or gone, as the Cabinet of 80, should be able to figure that out, but certainly they are more preoccupied with doing measures that pleases the President.

I will looking into a few of the Agencies and Commissions that are now in the spotlight, as most of these are parts of laws and are in-forced. Meaning, this laws needs to be repealed or amend them. To take away the legality of having the set commissions and such. This is something the President and the Cabinet should already know, however, this is more a learning sessions of the ones that is mentioned for being reverted into the Ministries of the Republic.

With the likes of Uganda Retirement Benefits Regulatory Authority (URBRA), which was commencement on the 26th September 2011. Have the cabinet a plan to repeal the Uganda Retirement Benefits Regulatory Authority Act of 2011? Until then, they cannot discontinue this Authority, right?

The same can be said with Uganda Free Zone Authority (UFZA), which was established because of the Free Zone Act 0f 2014. The Uganda Investment Authority (UIA) was established by enactment of the Investment Code Act of 1991. The same can be said that Uganda Export Promotions Board Act of 1996 established the Uganda Export Promotions Board (UEPB). This is just three acts, which shows there was laws creating these ones, that being URBRA, UFZA, UIA and UEPB. This I did with very little or no research, all of these laws are still in-force, meaning that they have to repeal these to kill of these boards and authorities.

Who knows if it similar with the rest of the Authorities, but if I was working there, I would sue the government as the laws are allowing their existence and their mandate under a minsitry and lawful funds to operate. Therefore, there should be reactions to the Cabinet Resolutions.

At this point, if there is any rule of law and the laws have some value, than the government should work on repealing the Authorities laws and ensure there is no legal ground to keep them alive, if they are a waste of government resources. Until, then, the laws are giving them mandate and also a lawful existence, no matter what the Cabinet enacts or written resolutions. Peace.

Bank of Uganda: Monetary Policy Statement for August 2018 (13.08.2018)

2 Weeks 2 Go: Let’s add a Supplementary Schedule No. 3 for the Financial Year 2017/18!

Today, the Parliament approved a Supplementary Schedule No. 3. for the Financial Year of 2017/2018, which is ending in eleven days or 30th June. That means the Parliament approved a new added funds to needed government expenditure and spending between 19th June to 30th June 2018. This means this funds that are approved are supposed to cover until the Financial Year of 2018/2019. That budget wasn’t approved long ago either. Therefore, it is hard to take this sort of business serious.

That the Parliament has accepted a third supplementary schedule for covering expenses until the next Financial Year. This was accepting 377bn shillings or $ 97m United States Dollars. If you shouldn’t question this, then you shouldn’t question anything the state does. Because this is really questionable activity.

How come the need of these amounts of money? Why wasn’t this covered on the Supplementary Schedule No. 2 for the Financial Year? Because if the Ministry of Defense and others who needs the added funds was serious. They would have covered this and made sure to have the funds. This is making the daily supplement 34 billion shillings for whatever purpose they professed. But it is fishy this late to add. Especially this big amount of money. Are they trying to cover the expenses for the recent by-elections?

It is hard to believe the necessity, unless they have trouble with the water at the State House. Needs more Presidential Handshakes and secure other private deals of the President. Because they need to cover 34 billion shillings each day. That should boggle your mind.

This is on top of the 1.3 trillion shillings that was put in the budget. Meaning the 1.3 billion shillings wasn’t enough. They we’re not able to plan the spend of defense in the FY 2017/18. Does that mean the recently established Budget for Financial Year of 2018/19 needs to billions too? Because the state didn’t have the capacity to plan or reconfigure the spending of other sectors?

This means the state needs the 1,677 billion shillings on the Defense in this Financial Year. That should also show how much of the state spends on this.

But I feel I am naive if these Number 3 funds getting used for food and other needed equipment for the military. Would be less shocked if it went to a By-Election or even bill collectors, that are knocking on the State House doors. Since they have been waiting for their invoice to be accepted and get a payout on the outstanding debt of the state towards them.

This here is just weird adding a supplementary funds just mere two weeks before the Financial Year end. That would be like adding more funds for Christmas Bonus just mere last Sunday before Christmas Eve. That is what they are doing. It is weird and cannot stop saying it. Peace.

#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.

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