The Rise of the Cassava Republic: Low-Income turned into Middle-Income out-of-nowhere..

“Remember, the locusts, the rising waters of the Lakes, the floating islands, the landslides, the terrorist bombs, the covid-19 and now the rising commodity prices artificially caused by the Ukrainian war. In spite of all these, the Ugandan economy, by the budget time in the next few days, will be standing at US$ 45.7billion by the exchange rate method and at USD 131.6 billion by the method. This means that the GDP per capita is now $1046. You remember, the entrance points for the lower middle-income status, is USD 1036. We have now passed that figure. Congratulations. However, to be declared a middle-income country, you need to sustain this for two to three consecutive years. I am confident, we shall over perform, in achieving that” (Museveni, 07.06.2022).

The President yesterday surely said a lot of things yesterday. I thought this one would be one of the myths and legends of old. That no one would take seriously… because the delusion is real. The powers of the State House and all of his Presidential Advisors should have told him “no”. Even the son who prefers to party and throw birthday parties should have advised him to say otherwise. Because, this is useless…

Museveni isn’t close to Middle-Income Country. Not by stretch, a mile or such. That’s because of the financial policies, the lack of financial integration and all the other means of which is a proper open economy. Alas, if it had been open and tradable, he wouldn’t have his hand in every cookie-jar. That’s why his butt-hurt that his coffee deal with Vinci is under fire. Because, no one see it as a viable enterprise or idea to begin with.

We know in a nation of hand-to-mouth, in a nation of gig-economy and 1 out of 5 is living in direct poverty. It’s hard to believe that nation is a middle-income. Heck, there isn’t even a growing middle-class either. If it had been a growing middle-class, there would be more stores and other sorts of outlets for people to buy luxurious goods. However, there hasn’t been a growth of that either.

The growing inflations, the deficit financing and the running debts of nation is proving otherwise. The state isn’t growing with domestic financing, but the budgets are bloated and covered by expensive loans. Which the next generation or the next President has to clear. Since, Museveni is possible dead when the maturity of these loans has hit peak. There is already trillions of shillings going out of the economy just to finance old loans, as the state is hiking up new one. That’s all to keep the upkeep of a huge entourage and cronies surrounding the President. With a mushroomed cabinet and gerrymandering of epic proportions, that is all costing and the amount 555 MPs says it all. They are all paid and has perks. So, the state is coving these expenses without adding any new revenue or such.

That’s why hearing a man like this saying… they have hit Middle-Income is nonsense. It is pure A QUALIFIED BS. It is utterly ridiculous. It would be funny, if it was a punchline or a joke, but he said this and meant it. Like it was fact. When the World Bank state the nation as a “Low-Income” and the budgets, the domestic revenue and everything else proves it. Maybe the lack of Governor of Bank of Uganda is haunting him. Since, he can now make things up on the spot and make it legit. There will be no push-back from the professionals… We know the MoFPED doesn’t read the papers or look over the numbers before voting on the supplementary budgets. So, the Minister of Finance is far from professional. His just eating and hoping his Permanent Secretary can save his behind.

Well… this is garbage. This is trash. We hope for betterment, but under the self-styled President for Life. I wouldn’t count on it. I would only count on cassava. Peace.

A brief look into Mzee’s State of the Nation Address of 2022…

When you have speaking as much as President Yoweri Tibuhurwa Kaguta Museveni… there is little wiggle-room or ability to “invent the wheel”. He has said most things and is repeating himself. He is trying to forge narratives and sound epic. I will not look into smaller details, but just outright straight nonsense, which is plenty of. A man who has over 130 Presidential Advisors should have the corrections and the staff to secure the facts. Nevertheless, there is “only one man with a vision” and his always “correct”.

The “correct is a running feature in his speech too. About the “Correct Ideology”, “Correct Pan-Africanist Ideology”, “Correct NRM Policy”, “Correct Strategy” and “Correct Ways” which is just typical of Museveni. Where his always correct and cannot be wrong. He has all the remedies, but ironically never really fixed things or been able to elevate the Republic since 1986.

Here is quotes and breaking down each piece by piece:

“Some myopic people, thought that this was sandy ground where the NRM had constructed the house of Uganda. However, the onslaughts to which Uganda has been subjected in the last 2 or 3 years, have proven that the Uganda house the NRM has constructed in the last 60 years, including the preparatory years before 1986, has been built on hard ground, indeed” (Museveni, 07.06.2022).

It is really magical how Museveni rewrites history. The NRM wasn’t established in 1962, which is 60 years from today. The NRA was born out of rebellion in 1980. The Uganda Patriotic Movement (UPM) was born earlier than that and the failure of a campaign in the election. Was a reason for the rebellion and creation of the mentioned NRA. The earliest known body, which people know of and part of was Front for National Salvation (FRONASA). Which dates back to 1971. Therefore, that is far from the vision of NRM back in the day. That’s why I have trouble to see how NRM worked for a better Uganda in 1962 or the 1960s. That’s rewriting history, which should be rebuked.

The NRM was entity, which came into light in 1980 as a rebellious outfit and resulting the prolonged bush-war that lasted to 1986. So, saying that the NRM has constructed a house on a hard ground is foolish. That is a delusion and not legit. That is making historical facts, which cannot be proven and is only a political fiction of the President.

“Moreover, the wise man’s house is currently full of surpluses, without too much use of irrigation or the use of fertilizers. In the coming financial years, we are going to intensify the modest efforts we have already started on, in connection with irrigation. With irrigation, we have worked with the private sector to produce solar-powered water pumps that the rich farmers can buy and engage in mini-irrigation, farm by farm. Once the solar powered irrigation pumps are on the market, the Government will buy them for some of the co-operatives or farming villages, where one pump can be shared by a number of small farmers” (Museveni, 07.06.2022).

This here will never happen… remember the Village TVs and the other pledges during the two-year lockdowns? Well, non of that has happened. Neither has plenty of the other pledges either. It took decades to ensure local councillors could get bikes or even able to give away garden-hoes to the villages. Therefore, when these things has been impossible and taking decades. This will happen the earliest 2030 or 2040. Museveni will not have the funds, the ability or the manpower to make it happen. That’s why he has praised water-bottle irrigation and other means to develop the agricultural sector. I have a hard time believing that this will happen. It needs a miracle or a generous donor who can foot the bill. Because, the NRM will never do this. Nedda ssevo.

“When I met Madame Pinetti, she had no idea about coffee. I, however, could see that she had a wide network of contacts. I asked her to look into coffee. After sometime, she came back with a positive report that it was doable. Therefore, those attacking that project, are supporters of okukenenula, (ekyejwiiso) of Africa – perpetual bleeding. If they were not, they would have responded to our call of 1986 and after, to come forward and add value to coffee and seek government assistance. Instead of attacking the saviour (oyo anataasa), if you are genuine, join the liberation effort. It is criminal for anybody to continue arguing for the continued export of raw-materials in Africa when there is 90% more value in that product that you are giving to outsiders” (Museveni, 07.06.2022).

The President thinks his smarter than anyone. Is his the owner of Hawk Limited or what? Why does he cares so much about the company and the coffee processing in the Republic? It makes sense that his invested and is the shadow owner of the company. When he cares so much about it. Because, the deals written between the state and the UVCC is creating a monopoly and taking over the trading of coffee beans. That’s why people wants to block it. The company has no knowledge or any sort of experience in the business either. While others are already working and processing coffee beans. Therefore, the deal in question is made with wrong intentions and illegal too.

It is striking that his so angry and bad tempered like someone stole a candy from a kid. As an old man he should understand this deal or agreements isn’t righteous. That is if he cares about the industry. Instead he thinks he can trick the public and the farmers. However, people can google and thinks leaks. So, the truths are coming out. The Vinci Coffee deal is a disaster… and Museveni should reconsider, but trust me. His greedy, so his trying to soften the blow and ensure he gets the best deal for himself. Which is what an ageing “revolutionary” does…

“Another danger to our rapid social-economic transformation is the corruption of political actors and Public servants who do not only steal government money, thereby denying the population the services that money would have provided, but they also parasite on our business people. Business people and investors, do not feel beholden to these parasites. Expose both their requests for bribes and their schemes for frustrating those that do not pay bribes. Action will be taken for the benefit of the business atmosphere in the country” (Museveni, 07.06.2022).

This here is the most bogus statement within the National Address… this year and that says a lot. We know that Gilbert Bukenya has no issues, Amama Mbabazi, Jim Muhwezi, Hentry Tumukunde and the list goes on. Corruption and greed is a vital part of the commercialization of politics under Museveni. The kickbacks, envelopes and misuse of power is well known. The President himself vouched for a “Presidential Handshake” not too long ago. So, the President is really caring about this. His earning on corruption himself and his directives is promoting companies that his either getting greased or profiting from. If not, why is Dott Services is so well-known…

“Therefore, let all the NRM MPs and other positive elements, rally around the patriotic programme of the NRM that has transformed Uganda from the failed state of 1986, with the economy expanding in size 30 times plus in 30 years, in spite of the endless betrayals by certain elements. Those who cause frictions among the NRM fraternity, should be carefully examined. Why can’t you discuss any matter in non -antagonistic ways. Antagonistic ways only work for the enemy” (Museveni, 07.06.2022).

Here the President is speaking about possible “NRM Rebels” which is the most endearing thing that is… because a rebel himself isn’t accepting any rebels. That is the truth about the President and his close associates. They are just supposed to listen and give way. The NRM MPs are just there to sign off and do what the President says. That’s what is “patriotic” and the “correct NRM way” just so you know. That’s why he says this and speaks like this. It is a betrayal to stand-up or even question the “high above”. The ones who don’t know that after all these years have clearly not listened. That is obvious by now. If you dares to challenge or go against him from within… than you are an enemy. Therefore, know what you do and never ever consider that.

This was my takes from the National Address of 2022. Peace.

International Coffee Organization: ICO Clarifies statement by Uganda Coffee Development Authority on withdrawal (22.02.2022)

The Uganda Budget Framework Paper FY2018/19 for Energy and Mineral Development is saying that the External Financing is the key for this Sector – Period!

The Budget Framework Paper for Financial Year of 2018/2019 for the Ministry of Energy and Mineral Development is really revealing how the financing of the sector is and how the state is involved with the manner. Also, how low-key the main factors are and lacking transparency is hitting the Energy Sector of Uganda. Not that is surprising, since the agreements, the licenses and the tenders are usually kept behind closed doors.

However, the main part of the Framework Paper is evident of the issues at hand:

“The indicative budget ceilings for the Ministry of Energy and Mineral Development have been rationalised in line with the sector priorities and national priorities as communicated in the Budget Call Circular and in the Presidential Directives. The ceilings for Vote 017 for the FY 2018/19 are as follows: Wage Recurrent is UGX 4.23Bn; Non-Wage Recurrent is UGX 74,04Bn; GoU Development is UGX 307,84Bn and the Development Partner contribution is UGX 1,608.41Bn. Under Vote 123 ceiling is UGX 81.98Bn is for the GoU Domestic Development and UGX594.00Bn is from external financing” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

The building of vital infrastructure, the refinery, the pipelines and energy production facilities are all dependent on funding from abroad. If it is grants, loans or paid-in-full agreements done in secrecy. Because, there are more than the shadows of this budget framework paper. It is saying a lot and the votes for the future is showing the future too. That the Ugandan economy is prospering, as the budget are needing all funding from afar to be able to build needed infrastructure. Also, needs the grants for the Rural Electrification, the ones who the state has even borrowed to do.

Therefore, this Budget Framework Paper is showing the troubles ahead. This isn’t voting for better economy, know this is dependency and also proving how much the donors and partners are involved in making sure the economy gets addicted to it.

When it comes to the refinery, the details are clearly still in the wind: “The process of selecting of the Lead Investor is still progressing and the negotiations are ongoing between Government and the selected investor. The process is expected to be completed in FY 2017/2018. There after FEED and ESIA for refinery development will be undertaken with the Lead Investor on board” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018). So the selecting of it is not finalized, well, for some thought Russians had secured agreement and the reason for Museveni to visit Moscow. Clearly, that ship has sailed, we can wonder if Total or any other company would do this. As Total has the biggest chairs of licenses in the Lake Albertine Basin. Time will tell, but another proof of lack of transparency, when the Ministry has to write this.

“Procurement Bottlenecks including lengthy bidding processes that require no-objections from the external financiers at each stage of execution. There is need for PPDA to revise guidelines for procurements relating to flagship projects. In addition, the following measures need to be considered: financing agreements are signed, project is almost ready to kick off. PPDA should reduce the administrative review timelines that sometimes stall progress” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

This here is initially following the guidelines of the First Amendment of the 1995 Constitution of 2017, the Land Amendment that the National Resistance Movement put forward before the Age Limit. That would fit the narrative of the Ministry and their wishes. It is like reading the same idea, to give more power to the state and able to land issues quickly.

What we can learn, also and which is important, these developments, these infrastructures projects couldn’t have been built if it wasn’t for external loans, externals grants or direct aid, if not on the license fees and the parts that is taxed. However, the grand amount and the majority of the projects needs the external funding.

This is not surprising, it is to be expected because Museveni doesn’t want to use his money. He want to spend other people’s money and also the money of the future. To benefit him today, that is why the deals are done in the secrecy…. We don’t know the reasons and the value of the licenses, the ones who is to build the refinery, even the grand agreement between the Corporations who will build the Pipeline. We know that certain companies has failed to build the dams and used bad material, but that is because of the Chinese Contractors has saved money, while being paid-in-full.

President Museveni blessed that deal and got scraps back. Time will tell, but this isn’t a good look. Not because I want it to be bad, but because the money says so. Peace.

Opinion: Have Kagame put a spell on the West?

You can wonder if the sins of old haunts the West, if the support and the strategies that worked back-in-the-day is now a lost tale. The hope for change and for a different outcome is gone. President Paul Kagame will run indefinitely and never step down. I don’t know if the West feel in debt for the crisis it didn’t prevent and didn’t manage properly in 1994. Where Kagame together with the rebel-militia supported by President Yoweri Kaguta Museveni entered Rwanda. They had already been apart of the National Resistance Army (NRA) and the new government under National Resistance Movement (NRM). Kagame has done the same with the Rwandan Patriotic Army (RPA) and made it into a party with the Rwandan Partriotic Front (RPF). Just after the model in Uganda.

Therefore, what you see in Rwanda is similar to what you have seen in Uganda. However, there are difference, that is why the chilling relationship between the neighbors. Kagame has worked closely with Uganda, they have sent armies together in the Democratic Republic of Congo, they have worked together to support the M-23 there too. They have been weapon brothers and brothers in arms. Still, the West let them both go. It is weird, but that is where we are. Both Museveni and Kagame can do whatever and get away it.

Kagame is either detaining or killing his enemies. He is doing it just like the Russian do. Rwandans has been poisoned in the United Kingdom, strange fatal accidents in South Africa, even in exile there are dangers if you have crossed Kagame. No-one is hidden from him and if they did him bad or even questioned him. He will find you and make sure you pay. Everyone can be touched and everyone can be taken.

Kagame has total control, nothing that he doesn’t have a stake in, there are clear that the state is part of all society. If there a dissidents or people questioning him, even if they are challenging him in public. They will be tarnished and detained, their family enterprises will be seized. There is no mercy and he never shows that to anyone.

That is maybe why the Western media, NGOs and States in general are walking on needles, they need the minerals he is thieving from the Kivu provinces and therefore, let him off the hook for the support of militias within the DRC. Let him of the hook for the human rights violations, for the killings of opposition and for the totalitarian activities. Where no one but his will matters. Kagame is the king and the sun first shines on him.

We should be worried, because he doesn’t lack use of violence and harassment, he hurts and kills. He might be successful to a certain extent, but we should be worried about the efforts and his involvement across the border. There are even claims of his use of spies and such in Burundi. Clearly, that could be the truth, since he has used all sort of manipulation and militias to get funding from abroad. Therefore, it is weird he is a donor friendly person, but also someone who has no issues with silencing his enemies. That should be worrying and that should cut him off the gravy-train, also sanction the companies that are importing his conflict minerals. Peace.

Opinion: UK’s Environmental Audit Committee wants to introduce “Latte Levy” on the consumer, however, what if the government added policies and taxes that hit the companies instead?

“Mary Creagh MP said:

“A reusable cup is one of the easiest ways to reduce cup waste but the discounts offered by coffee companies are ineffective. The plastic bag charge is proof that charges are highly effective at reducing packaging waste. We urge the Government to introduce a 25p charge on disposable cups.” (Parliament.uk, 2018)

Since last year the Environmental Audit Committee (EAC) have worked on finding ways to make the Coffee industry in the United Kingdom more environmental and more sustainable. Since the one-time use of Coffee-Cups from the big international chains is a disaster to recycle and creates new levels of garbage. It is natural that this is looked into as much as other beverage and use of plastic to contain the liquid in ordinary trade. The EAC should look into the beer and soda industry as well, since they use one-time bottles of plastic that also hurts the environment.

What was striking was the recommendation from the EAC:

“The Committee has called on the Government to: Introduce a 25p “latte levy” on disposable coffee cups, and use the money raised to improve the UK’s recycling ‘binfrastructure’ and reprocessing facilities. Set a target that all disposable coffee cups should be recycled by 2023. If this target is not achieved, the Government should ban disposable coffee cups. Make producers pay more for packaging which is difficult to recycle. Improve labelling to educate consumers about how best to dispose of their cup” (Parliament.uk, 2018).

That the “Latte Levy” is coming up is a good idea, but also already could be enforced directly, as the chains to make it more costly for each cup of one-time usable cups. Since, that would make more people aware and also bring cups for the chains. Even sell more cheaply the reusable cups and make offers that are reasonable for the consumer of coffee. Instead of adding more tax on the ones buying coffee on the run to and from works at the coffee shops.

If the government wants the consumer to use reusable cups, they should put in conditions not only to hurt their pockets with a latte levy, but also make it profitable for Coffee shops and Coffee chains to earn more bucks on their sales of this. They are only in the market for the profits, not for saving planet earth. Than the government has to put forward demands and laws that put restraint on the sellers to provide with cups, which actually are recycled or reusable with a fair price.

That the government would put extra pay to extend and make sure the cups are recycled is a good enough idea. To recoup and make sure they can facilitate garbage disposal that fits the one-cup use of the modern day at the coffee shops. That the industry should reshape and change is natural. But they will only do so, if they earn money on it or have to comply with new regulations. That is if the Conservative Government wants to direct and change the policies affecting the industry and their behavior. The consumer will look at price and convenience, so they will use the best options concerning their needs and daily life.

What the “Latte Levy” does is only to make the coffee a bit more expensive, but doesn’t do enough to change behavior or either consumer nor companies. That is what the target should be. The Companies should be affected for their use of one-time use cups and the trash it creates. Peace.

Reference:

Parliament.uk – ‘MPs call for “latte levy” on coffee cups’ (05.01.2018) link: http://www.parliament.uk/business/committees/committees-a-z/commons-select/environmental-audit-committee/news-parliament-2017/coffee-cups-report-publication-17-19/

Opinion: You know that Kagame didn’t really win with 98,66% when he has to intimidate Rwigara!

I know I will shot-out of the gates and say that Paul Kagame, who won with 98,66 % in the Presidential Election in August 2017. Didn’t really win by that margin and have that sort of support. For some this might be controversial, others saying I’m hater. I will take that any part of the day and close my eyes in content. Kagame didn’t win by that margin and he didn’t have that massive support.

For the simple reason, ever since the election he has had to silence Diana Rwigara and her family. Latest stint was in Court this week. She has been arrested on unknown locations and been taken away from home. Why is Kagame so afraid of Rwigara? Well, he is afraid of being questioned and having real opposition. That is because Kagame does whatever he can to have none. The ones who has been is either in exile, detained or gotten the arrested for treason against the state. That means they don’t have loyalty to Kagame or his almighty Rwandan Patriotic Front (RPF).

If the President was a legitimate executive and head of state, he wouldn’t have cared about the candidacy of Rwigara. She wouldn’t have the party-organization or even the structure to compete. It would be like Jill Steins Campaign in 2016 in the United States. She would be a part of the race, but all the eyes would be on Clinton and Trump. It’s not like Frank Habineza of the Democratic Green Party of Rwanda has a size, neither independent Phillippe Mpayimana. If the playing-field between the candidates was fair, they would have gained more popularity, but they are just needed props into the sham of an election.

That Forces Democratiques Unifiees (FDU-Inkingi) is not involved and other parties are not in the elections. Proves my point, that the mere sacrifice of Kagame to run again. Is mere a sham and his own rule is not on popularity, but on fear and oppression. If he was democratic he wouldn’t fear Rwigara and throw phony charges her way. He wouldn’t make a mockery of her family and associates. But he has too, because his popularity isn’t as soaring as he tries to make believe.

President Kagame, don’t have stomach or the bravery to play fair, because he came with the guns and will be like many before him. Only leave by the gun. He is like Rwandan answer to Museveni. If you have real competition, they either end in exile or they are treasonous against the state. Just ask the Ugandan opposition about their toils and intimidation.

Rwigara case is proof that Kagame don’t have the popularity he subscribes. He don’t, if he did he would never step beneath his office and done this to his citizens. But he has too, because he don’t have their support. The only way he keeps the system intact is to spread fear and intimidation. That is why he is charging and shaming Rwigara for opposing him. Peace.

Opinion: President Museveni praises Equatorial Guinea for it’s rampant Oil-Corruption; wants to learn his tricks!

In these days the President Yoweri Kaguta Museveni of the Republic of Uganda are on a state visit in Malabo, visiting and learning tricks from the Equatorial Guinean President Teodoro Nguema Obiang, who has used the oil to enrich himself and his loyal subjects. Not build a welfare state, but make sure the family of Obiang get wealthy. Certainly, Uganda is preparing for their own oil production in the Lake Albertine basin, as the pipeline building from the production to the Port Tanga in Tanzania.

This is why President Museveni are visiting Equatorial Guinea to learn the tricks of the trade, as the state of Uganda are still in the dark of the oil-deals between the international companies and the state. We can wonder how the funds will be spoiled and how Museveni plans to use the oil funds for personal gains. If so, he wouldn’t praise President Obiang, who has his whole career to spend the oil profits from his republic. This is what Museveni wants to learn, since his career has been tricking out all sorts of play from Ugandan republic. The petroleum profits can be misspent and hidden just like in the republic of Obiang. Take a look!

President Museveni’s praise:

“We are therefore in Equatorial Guinea for two things: looking at how to support prosperity of one another and how to push for our strategic security. I also congratulate Equatorial Guinea for using it’s oil and gas very well. When I was last here for the AU Summit, I noticed gaps between the airport and the city centre. Today, all these gaps were gone. In their place are new, well-planned buildings. And I see the city is refurbished. Some people say oil is a curse but in Equatorial Guinea it is a blessing” (Yoweri Kaguta Museveni, 26.08.2017)

Business in Equatorial Guinea:

“Since the discovery of the offshore oil deposits, many investors have shown great interest in the country. Foreign direct investment inflows into the country had thus been consistently high for the past years. Nevertheless, in 2016 the FDI inflow amounted to USD 54 million, a sharp decrease from USD 233 million recorded the previous year (and the historical peak of USD 2.73 billion in 2010) . The total stock of FDI in the country is currently at USD 13.4 billion” (…) “Corruption in particular is problematic. In addition, the business climate of the country remains rather unfavourable for investment. Cumbersome procedures and high compliance costs slow licensing and make starting a business more difficult. Weak regulatory and judicial systems may discourage foreign investment as well, along with high credit costs and limited access to financing. The government controls long-term lending through the state-owned development bank. Equatorial Guinea ranked 178th out of 190 countries in the 2017 Doing Business report published by the World Bank, losing three spots compared to the previous year” (Santander Trade, 2017).

Son of the President on trial:

“The corruption trial of Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, ended in Paris on 6 July with the prosecution calling for a three-year jail term, a €30 million (US$34 million) fine and the confiscation of assets. The Tribunal will return a verdict on 27 October. The 48-year-old vice-president of Equatorial Guinea was not in court to hear the prosecution’s claim that he used money stolen from his country’s treasury and laundered through a shell company to fund a lavish lifestyle in France” (Transparency International, 2017).

This was what that is well-known of the Equatorial Guinea corruption and the son of President has also had challenging cases in the United States. Now the son is also having alleged fraud and criminal charges in France. Clearly, the Ugandan President has already known for corruption behavior. Therefore, even a state agency of PPDA has some words, that the government needs strict regulations before procurement and infrastructure development. This will be clearly important when it comes to petroleum industry. Take a look!

PPDA strict regulation on public procurement:

“Public procurement is a key pillar of the public financial management system. The country’s budget and plans are translated into actual services to our people through the public procurement system. It is also the link between the public sector and the private sector as it is the medium through which the private sector does business with Government. Public procurement therefore involves large sums of money and as our budget grows with the priorities of Government remaining infrastructure development, the proportion of the budget earmarked for public procurement remains significant and therefore calls for strict regulation” (PPDA, 2017).

“Audits and investigations by the Public Procurement and Disposal of Assets indicate that corruption in the procurement process manifests more in the evaluation of bids, reported to be at 58%. PPDA’s Manager Capacity Building Ronald Tumuhairwe says such corrupt practices lead to awarding of contracts to incompetent individuals hence shoddy works in several government projects” (…) “He adds that the second process where corruption manifests is awarding of contracts at 12.5%, followed by receipt and opening of bids, reviewing evaluation of bids, advertising and signing of contracts” (Sebunya, 2017).

President Museveni clearly has own agencies saying it is important with strict regulations on procurement and infrastructure developments like the ones needed for oil industry in the republic. The regulation of oil industry is lax, to make sure the state isn’t transparent with its profits and taxation of the industry. This is what Museveni wants, that the state and the public doesn’t know the contracts or the agreements between the parties involved. That is something President Obiang surely have the capacity to teach Museveni. And how to make sure his family is earning from the state resource, instead of the public and the state itself. Peace.

Reference:

Transparency International – ‘ON TRIAL FOR CORRUPTION: FRENCH PROSECUTORS DEMAND JAIL TERM AND €30 MILLION FINE FOR OBIANG’ (11.07.2017) link: https://www.transparency.org/news/feature/on_trial_for_corruption_french_prosecutors_demand_jail_term_and_30_million

Santander Trade – ‘EQUATORIAL GUINEA: FOREIGN INVESTMENT’ (August 2017) link: https://en.portal.santandertrade.com/establish-overseas/equatorial-guinea/investing-3

Sebunya, Wycliffe – ‘Corruption manifests most in the procurement process – IG’ (25.08.2017) link:http://radioonefm90.com/corruption-manifests-most-in-the-procurement-process-ig/

PPDA – ‘EVALUATING INNOVATIVE ANTI CORRUPTION POLICIES IN PUBLIC PROCUREMENT IN UGANDA’ (02.08.2017) link: https://www.ppda.go.ug/evaluating-innovative-anti-corruption-policies-in-public-procurement-in-uganda/

Opinion: President Kagame won with 98.66%, just like his predecessors Kayibanda and Habyarimana!

Its been 17 years of RPF rule and will be 7 more years with President Paul Kagame. The ones that thought differently has lived under a rock and thought the whole world would stop spinning. The world stop and the hearts would stop pumping if there was a different result at this point. This was massaged and made ready for the world. The whole campaign and the race to the polls. You don’t manage a race of significance and get 98% by coincidence, that is measured and made sure off. Just like the Presidents before him.

“Incumbent President Paul Kagame took a major early lead in Friday’s presidential polls with 5,433,890 votes (98.66 per cent) of the total votes counted by 12:30am. By press time (around 1am), the National Electoral Commission had managed to count about 80 per cent of the votes cast (5,498,414 votes) from 1,732 polling stations. There were 2,340 polling stations across the country. Independent candidate Phillippe Mpayimana was in a distant second having just garnered 39,620 votes (about 0.72 per cent). Frank Habineza, of the Democratic Green Party of Rwanda, trailed with a measly 24,904 votes, which is 0.45 per cent of the votes counted” (Mwai, 2017).

Because if looks into the Rwandan election history, it is not like the history isn’t telling of similar elections like the one seen this week. Not like the Republic of Rwanda has different results. If you go back to voting on the monarchy in September 25^th 1961, if the Kingdom should be preserved it got 78,5%. So the people abolished it 1961 and the other ballot if the King Kigeri V to remain king or had to abdicate, the result that day was 79,60 % who voted him to become a civilian. So even in the 1960s the now Republic voted in high numbers for one thing.

The President George Kayibanda was voted for in 1965 election and he was elected unopposed with 100% support. The same happen in 1969. When Kayibanda was reelected. Then again it took sometime before the next election.

In an unopposed election of President Juvenal Habyarimana in the 24^th December 1978, where he got 98,99 %. Again on the 19^th December 1983 he got reelected and was unopposed who got 99,97%. The third election with President Habyarimana, again went unopposed on the 19^th December 1988, that time he got 99,98%.

After that, there been lots of issues and the civil war, that ended in genocide in 1994. When the Rwandan Patriotic Army (RPA), who became the leading party Rwanda Patriotic Front. In the first Presidential election after the genocide, it was in 2003, when President Paul Kagame got 95,05%. So 7 years later in 2010, the incumbent President got 93,08%.

Now in 2017 and unleashing yet another term for the Rwandan President, who follows his predecessors. The ones that was overthrown and killed. These took so much control that they created a violent legacy. Certainly, President Kagame doesn’t want that, but he is following the footsteps of the leaders in the past. Nothing with is different from them, just another name and another time, but with the same controlling state and dark secrets. Kagame got this year 98,66% in the Presidential Election in 2017. Which, is very much alike like Habyarimana, who was shot down while flying in the 1990s. While the death of Kayibanda is still unknown. Therefore, if Kagame follows his predecessors it will end in genocide and a horrible assassination.

Not that we wish that, but the history repeats itself, as seen with the election and state control of society. As well, as internal affairs are controlled from the state. To way that even banished the World Bank from studying the poverty and analyze it to create programs to fight it. This was because the Rwandan state wanted to control the numbers and make sure the propaganda was fitting the vision of Kagame. Therefore, nothing is surprising.

That Kagame got 98% in the election was waited, just like the generations in the past expected Habyarimana and Kayibanda to win with overwhelming numbers. It is all repeating itself and going in circles. To overlook that is to be blind and trying to overshadow the history, which is the propaganda of the state. But that is to be expected. Peace.

Reference:

African Elections – ‘Elections in Rwanda’ link: http://africanelections.tripod.com/rw.html

Mwai, Collins – ‘Kagame wins presidential poll’ (05.08.2017) link: http://www.newtimes.co.rw/section/read/217433/

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

“For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

“It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

“During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

“The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga