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.

Budget Bonanza for the UPDF: A possible fresh $100m Loan for Classified Expenditure(!!)

Again, the state is spending recklessly, as the state is already not fiscal responsible or planning to behave like that. Instead of living within the means of the state. They are continuing to loan from either international sources or local ones, to balance the budgets. This is nearly impossible, as the National Resistance Movement and their Supplementary Budgets are breaking the bank.

What is really worse about this is that this goes to secret accounts and secret operations, which the state doesn’t trust to explain or even be transparent about. These funds are supposed to go to a Classified Division of the Uganda People’s Defence Force, the Permanent Secretary and Ministry of the Defence and Veteran Affairs are allowed to spend it, as they see fit. But how is that looking and where is these loans going?

The supposed motion says this:

i. To improve the capability of Uganda’s defence and security forces ; and

ii. To enhance Uganda’s defence and security infrastructure” (P: 3, 2019).

What does that mean and where does that go? It could everything and nothing, it could be more ammunition, it could be paying off rebels in the Democratic Republic of Congo. Who knows, right? Could be training of rebels in Kisoro or anywhere else, as the UPDF and the NRM see fit. That is why the funds are confidential and whatever the UPDF and President see needed is these manners. Because, I have a hard time believing these sorts of funds are spent without the knowledge or acceptance from the high above or within the chambers of the State House.

It should be noted that defence classified expenditure has been growing over time – from UGX 347 billion in FY 20l7/18 to UGX 640 billion earlier on approved for FY 2018/19. This additional borrowing will see the budget for classified expenditure grow to UGX 1020 billion representing 34% of the total defence budget for FY 2018/ 19 (incl. now proposed borrowing)” (P: 3, 2019)

The project will be implemented by the Ministry of Defence and Veteran Affairs, with its Permanent Secretary as the Accounting Officer responsible for managing the supply contract” (P: 4, 2019).

Consequently, this will see the budget deficit grow by additional UGX resulting in growth in Net Domestic Financing requirement to UGX 2,163 billion in the FY 2018/19 from UGX 1,783 billion earlier on approved by Parliament. In addition, the domestic interest cost will increase by approximately UGX 39 billion from the 2,132 billion approved for FY 2018/ 19 to UGX 2,171 billion” (P: 4, 2019).

Here is some more of the information from the Ministry of Defence and Veteran Affairs. Still, it doesn’t say much. Except the levels of debt the state will have, how much interest the state will pay as it follows this possible loans. The rest of the Report, states that the Committee sees it fit to get a Bill on the Loan. Not just a motion to explain more. That should be needed. Because, the Ministry and Minister cannot have been specific on what they plan to spend the loans on. Whatever projects or where ever that might be.

It is not just the Members of Parliament (MPs) who should worry about this, but the citizens as the state are piling up loans for various of projects and even some like this whose a total confidential expenditure. It could be spend on whatever the UPDF or State House see necessary. That can be awful lot. Peace.

Reference:

REPORT OF THE COMMITTEE ON NATIONAL ECONOMY ON THE PROPOSAL BY GOVERNMENT TO BORROWING USD 100 MILLION (APPROXIMATELY UGX 38O BILLION FROM THE DOMESTIC MARKET TO FINANCE CLASSIFIED EXPENDITURE UNDER MINISTRY OF’ DEFENCE AND VETERAN AFFAIRS FOR FY 2018/19, March 2019

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