Statement by H.E. Ri Yong Ho, Minister of Foreign Affairs – Democratic People’s Republic of Korea (DPRK – North Korea) at 24th ASEAN Regional Forum (Manila, Philippines, 7 August 2017)

#UGBudget17: Half borrowed and a third paid back in Interests!

Today the Ugandan government, the National Resistance Movement finally read the Shs. 29 Trillion budget for the 10th Parliament. However, it is not necessary the size of funds and all, which is allocated, but the way it is funded. Like “Government hopes to raise sh14.6 trillion in revenues to fund the 2017/2018 budget” (Uganda Debt Network, 08.06.2017). Of the 29 Trillion, they expect to get close to half of that, but the monies has get from somewhere and also be of use. What is left are relieved like this: “The balance sh14.3 trillion (49.5%) of the National Budget will be raised through internal and external borrowing” (Uganda Debt Network, 08.06.2017). With this in mind, half of the budget is adding more debt. So if a nation already having lots of debt and debt repayment, it still adds another half budget. This is a bad cycle of events.

There lets us put things in perspective: “Our concern is sh9.9trillion, which is 35% of the total budget, will be spent on debt repayment” (…) “Amount of money spent on debt repayment has escalated in the recent past now at 9.9 trillion for fy2017/18” (Uganda Debt Network, 08.06.2017).

Therefore, the state and the NRM are clearly getting funds through loans to pay-off their interests. AS the 35% of spending is on interest in the coming fiscal year. This should worry, even if the corruption, misspending of obnoxious amount of funds through the paradise of Okello house. Still, that 1/3 of the coming budget is paid interest on old loans, which are been made by this government and by this President. What it show is the lack of concern of the future and how sound fiscal policies. At this state, the government of Uganda are clearly footing the bill. They are filling in the blanks for where they in the past had happy donors filling the envelopes.

The NRM and President Museveni is overspending and misusing state reserves, as the revenue and the state coffers do not sustain this massive overspending. Certainly, it is visible, also the worry of the running interest rates and growing debt as close to half of this year alone are by loans. Neither if it is local, by foreign or multi-national financial institution does save the fact, that the state has a problem.

That of the coming fiscal year, the state is borrowing half, and repaying that with 35% says a lot. IT says the fiscal policies needs change and it is dire. The state are clearly walking the wrong path. And remember this, there will be supplementary budgets during the fiscal year, that will expose the overuse of funds and needs for more loans. Therefore, they are surely going to exploit the faith in future, without having the funds for it today. Peace.

Revealed: 29th April 2017 Presidential Call – President Trump really begged Duterte to visit the White House!

As the stories has gone, there is time release parts of the phone-call between the world leaders President Rodrigo Duterte and United States President Donald Trump. This one happen on the 29th April 2017. Already some of the parts had been released, but the whole document have been leaked. Therefore, the whole part of the their conversation is possible to reveal. What is the key from this conversation, it is that President Duterte acts an executive and President Trump begs Duterte to visit the Oval Office. And that they are both discussing how to deal with North Korea, which is interesting reading, since you see what sort of weak leader President Trump is.

To prove I have taken the stories from an official document, it was labeled with OAA-919-MASA-2017 and it was from Marshall Louis M. Alferez and the document was dated on the 2nd May 2017. So if you wonder, which document it is, than surely you have to find the whistle-blower. Well, let’s take some key statements between the gentlemen.

On North Korea:

Trump: “What’s your opinion on him, Rodrigo? Are we dealing with someone who are stable or not stable?”

Duterte: “He is not stable, Mr President, as he keeps on smiling when he explodes a rocket. He even has gone against China which is the last country he should rebuke. But it seems from his face – he is laughing always and theres as dangerous toys in his hands which could create so much agony and suffering for all mankind”

Trump: “Well, he got the powder but doesn’t have the delivery system. All his rockets are crashing. That’s the good news. But eventually when he gets that delivery system… What hunk do you have about China? Does China have power over him?”

Duterete: “Yes at the end of the day, the last card, the ace has to be China. It’s only China. He is playing with bombs, his toys and from the looks of it, his mind is not working well and he might just go crazy one moment. China should make a last ditch effort to tell him to lay off. China will play a very important role there”

Trump: “We have a lot of firepower over there. We have two submarines – the best in the world – we have two nuclear submarines – not that we want to use them at all. I’ve never seen anything like they are but we don’t have to use this but could be crazy so we will see what happens”

We can see that Trump has to get involved and doesn’t really listen to the advice, as he has to answer through the submarines of the United States, even as the Philippines President is putting the responsibility of North Korea on the Chinese Authorities. This proves the difference, as Trump doesn’t even really listen, as he even explains of the lacking arms technique the North Koreans have for the moment. So the way it is expressed, you see who is reflected and who just want to shot out of the hip. In this regard it is Trump, who even says it is no issue to use nuclear submarines against the Pyongyang authorities.

On wished visit to the Oval Office:

Trump: “Please call China and tell them we all counting on China. Tell the President – we became friends for two days – he was great. On another subject, I am coming to see you I guess sometimes”

Duterte: “November hopefully, we will be happy to see you”

Trump: “Thank you Mr President. You are a good man. Yes, certainly in November. Welcome and thank you and we will be happy to see you, Rodrigo. I look forward to seeing you. If you want to come to the oval office, I will love to have in you in the oval office. Anytime you want to come. I will be in the Philippines in November, but anytime if you are in the DC or anywhere, come see me in the oval office. Work it out with your staff. Seriously, if you want to come over, just let us know. Just take care of yourself, and we will take care of North Korea. Keep up the good work, you are doing an amazing job. Say hello to people of the Philippines for me”

Duterte: “They know you are calling. It is the last day of the ASEAN Summit and everyone was asking. Sultan Bolkiah just left but I will tell remaining guys here what you told me. We are all peace, there is no secret about that”.

Trump: “Good, you take care of yourself, come see me before November, you are invited anytime”

Duterte: “I will do that Mr. President. Thank you for your concern. God bless you Mr. President”

Trump: “Take care of yourself, Rodrigo. God bless you”.

If you wonder what boggles me here, is the deal-maker and the art-of-the-deal trying to get President Duterte to visit the White House. It is amazing how he was begging Duterte to travel to the White House. He said he was welcome about 5 times in a short span of time. Donald Trump was nearly kneeling in the oval office to get him there, even calling him a good man. Even if he was just passing by Washington DC, he could just pop-by for biscuits and tea. The frankness of the invitation seemed more like beer-buddy, than a conversation between two Presidents.

You know he really does what he can, when he even had to say to Duterte as well, that he has to take care of himself twice. Like a friendly relief. Just like Duterte isn’t a grown man who can tuck his shirt. You would think that President Trump got advice on how to discuss matters and how to be cordial on the phone with world leaders. Instead, Trump sounds like he is trying to hard and not with a serious manner towards a fellow President, as Trump cannot wait to see him in November, which seems to be long time for him. Peace.

Opinion: President Duterte isn’t one call away! President Trump: If you want an ally you need to be cordial about it!

Its might be true that the political game of President Rodrigo Duterte is rough, harsh and brutal. That might be true and so, the people should maybe, also study why he acts like he do and why he is still gained massive respect in the Philippines. That the drug-war has been bloody, the new rules on curfew among others has hit hard. Still, the realm is calm and the business has moved-on. As well as his friendship with China, Brunei and other partners in Asia. Therefore, it is not like the Island state has fought or created issues abroad.

On the other hand, you have an erratic and irresponsible figure as Commander-in-Chief in the United States, which does not play any rules or understands any sentences deep enough to grasp the implications to his actions. He bombs in nations without any plans and start covert missions without any forewarning or any get-go from the United Nations or fellow partners on the ground. His sudden approach to bombing an airstrip in Syria, which was open again a few hours later. The bombing in Afghanistan, that might have damaged some installations of ISIS in the mountains, but not gotten rid of them. Then you have the golden pocket of all, the Yemen strike that killed civilians and innocent, while not even determine the consequences and losing lives of American soldiers. Therefore, President Trump has his battles and has his own issues.

Donald Trump has also enforced the ICE, the Police and Department of Justice in the battle on immigration, his executive orders and his acts against fellow human beings is not sincere and humane. It is more degrading certain individuals and then trying to deport them. Even stopping them from entering. So when people call President Duterte all sort of killer and such, President Trump is not much better, they are similar, but have different approach.

That President Duterte is ruthless when it comes to his drug-war that everyone should know by now. The same could you say about the hatred and concern for immigrants and uncertain warfare approach the Trump Administration have. Therefore, that this happen is not something be concerned about:

President Donald J. Trump spoke today with President Rodrigo Duterte of the Philippines. It was a very friendly conversation, in which the two leaders discussed the concerns of the Association of Southeast Asian Nations (ASEAN) regarding regional security, including the threat posed by North Korea. They also discussed the fact that the Philippine government is fighting very hard to rid its country of drugs, a scourge that affects many countries throughout the world. President Trump enjoyed the conversation and said that he is looking forward to visiting the Philippines in November to participate in the East Asia Summit and the U.S.-ASEAN Summit. President Trump also invited President Duterte to the White House to discuss the importance of the the United States-Philippines alliance, which is now heading in a very positive direction” (White House, 29.04.2017).

So out of the phone call, President Trump invited him without any protocol or guidelines behind him. Just after a friendly chat, this has happen before, they talked together in December 2016 as well. But then more cordial as you should do with foreign leaders. That being an official invite and not just brief talks.

Speaking to reporters in Davao City, Duterte said he has not made any confirmation due to other commitments” (…) “I’m tied up I cannot make any definite promise…I’m supposed to go to Russia, Israel…” he said” (…) “ Asked for more details on their phone call, Duterte said he expressed Manila and other Southeast Asian leaders’ concerns over tensions between the US and North Korea” (…) “It is the concern of everybody not only us but the ASEAN guys,” Duterte said” (…) “I said Mr. President, you cannot scare Kim Jong Un with firepower,” he said” (Merez, 2017).

So President Duterte didn’t just follow the erratic President Trump, as he shows that he is sovereign himself, also that he has loyalty other places. The Philippines are not only allied with the Americans more, they have also agreements with China and others who helps and develops the Republic without interference. Therefore, for Duterte the United States are less important as the Chinese and others are offering more for less. Especially, knowing that Trump only tries to get fellow leaders who can help him, since he doesn’t know anything about North Korea. If he knew he might have said and done things differently, but Trump doesn’t know better. He wants to take a shortcut and an use Duterte in his short-con.

Certainly, if the United States wants to have the President of the Philippines to visit Washington D.C. they should invite him with due process, he runs a nation as well and isn’t the lap-dog of the USA. That is how they have acted towards the Asian Republic in the past. With President Duterte they have to show some more tact and be more cordial. Certainly, he will not buy into the bullshit of Washington. Which, shows the changing ways of diplomacy is now between Manila and Washington D.C. Peace.

Reference:

Merez, Arianne – ‘Duterte says he has yet to accept Trump invitation’ (01.05.2017) link: http://news.abs-cbn.com/news/05/01/17/duterte-says-he-has-yet-to-accept-trump-invitation

Uganda: Civil Society Position on Tax Revenue Measures for FY 2017/18 (21.04.2017)

Uganda: CSBAG – “Reducing Wastage and Curbing Inefficiences to Finance our Priorities for the FY 2017/2018 (09.04.2017)

Report released today proves stronger military ties between the Russian and the Chinese!

Today, there we’re a released American report and study on how the Russian Federation and the People’s Republic of China are cooperative with their military. The military power and exercises proves that the Russians and Chinese are trading technologies and expertise, so the techniques of navy and of land force, and different terrain. Therefore, these relationship proves that added strength on the military powers of both China and Russia. As their support and trust also based on mutual gains from the exercises and trade of technology.

These ones are important as than the world knows the strength between the republics and their own self interest.

Russian arms trade to China:

Russia’s sale of Su-35 fighter jets to China (deliveries of which began in December 2016) will help the People’s Liberation Army (PLA) contest U.S. air superiority, provide China with technology that could help accelerate the development of its own advanced fighters, and serve as a valuable training and learning platform before China fields its next-generation aircraft” (…) “The Russian sale of the S-400 surface-to-air missile (SAM) defense system to China (with deliveries starting in 2018) should help China improve capital air defense and could assist the PLA in achieving increased air superiority over Taiwan if deployed to the Eastern Theater Command (bordering the Taiwan Strait). This SAM system would pose a challenge for Taiwan’s air assets in a potential cross-Strait conflict, the air assets of U.S. allies or partners in a South China Sea or East China Sea contingency, and U.S. aircraft, should the United States decide to become involved in such potential conflicts. The S-400 also could be used to help enforce China’s East China Sea Air Defense Identification Zone (ADIZ)” (Meick, P: 3, 2017).

Russian arms sales to China, including the transfer of major weapons systems and defense technology as well as licensing agreements, have yielded benefits for both sides. According to the Stockholm International Peace Research Institute (SIPRI), since the fall of the Soviet Union nearly 80 percent of China’s total arms imports have come from Russia, and more than a quarter of all Russian arms exports have been shipped to China. From 1992 to 2006, Chinese military equipment procured from Russia totaled approximately $26 billion, according to some estimates. China’s major systems imported from Russia over this period helped to vastly improve PLA Air Force and Navy capabilities. Some of the notable procurements included Russian export versions of the Su-27 and Su-30 fighter, the S-300 SAM defense system, SOVREMENNYY-class guided missile destroyer, and KILO-class diesel electric submarine” (Meick, P:12, 2017).

Military Exercises:

Of the three major areas of defense engagement, military exercises most visibly demonstrate to the international community the commitment shared by China and Russia to close cooperation in the security realm. During a visit to Beijing in September 2015, Russian Defense Minister Sergei Shoigu said, “The most important issue of the Russian-Chinese military cooperation are the … military exercises. They contribute to improving combat training of the Armed Forces of [the] two countries, and demonstrate our readiness to counteract modern threats.” (Meick, P: 6, 2017).

Some observers speculated that China used a recent exercise to market guided missile frigates for Russia to buy, an indication of how far China’s defense industry has progressed over the last decade from its reliance on Russian technology. For example, after the naval exercise Joint Sea-2015 concluded, two PLA Navy Type 054A JIANKAI II-class frigates that participated in the exercise sailed through the Black Sea to a Russian naval base in advance of Russia’s World War II Victory Day 70th anniversary military parade; some analysts assessed this was intended, in part, to advertise the platform” (…) “First, Chinese demand for Russian arms waned as most of Beijing’s orders had been fulfilled and China’s defense industry had become advanced enough to fulfill more PLA requirements domestically. Second, the Chinese side expressed concerns about quality control deficiencies and contract disagreements involving the remaining orders. Third, Russia was unwilling to sell the higher-end systems that China was beginning to demand likely due to concerns that China’s increasing military capabilities could pose a future threat to Russia and that China’s practice of reverse-engineering Russian platforms would enable China to compete directly with Russia in the arms market” (Meick, P: 7, 2017).

As outlined in the authoritative PLA text Teaching Materials on Joint Operations (联合作战教程), the PLA defines “joint” as “two or more arms and services” and “two or more armed forces.” In the Chinese media and China’s own English-language publications, all China-Russia exercises are described as joint exercises. For the purposes of this report, “joint” in a military exercise or operations context is defined according to the U.S. Department of Defense Dictionary of Military and Associated Terms: “Connotes activities, operations, organizations, etc., in which elements of two or more Military Departments participate.” An exception to this definition is any mention of “joint” by PLA or Chinese sources; in these cases, “joint” may refer to combined, joint, or both. U.S. Department of Defense, Joint Publication 1–02: Dictionary of Military and Associated Terms, February 15, 2016, 121. http://www.dtic.mil/doctrine/new_pubs/jp1_02.pdf; Tan Yadong ed., Teaching Materials on Joint Operations, Academy of Military Sciences Press, February 2013, 2–3. Translation” (Meick, P: 6, 2017).

Conclusion:

The three major components of military-to-military ties discussed in this report demonstrate such a trend. In terms of military exercises, the two militaries are staging increasingly complex exercises with an expanded geographic reach in strategically important areas, recently adding a new set of exercises on missile defense cooperation. Military-technical cooperation similarly shows significant progress in recent years, highlighted by a major uptick in the technical capability of Russian arms sales to China, wide-ranging strategic industrial partnerships in key defense sectors, and joint production deals and other cooperation on advanced military and dual-use systems. Finally, Chinese and Russian defense officials are holding more meetings at higher levels in the military bureaucracy than they did in the past, signaling closer coordination” (Meick, P: 23, 2017).

I think this was interesting enough, the relationship between Russia and the China. This will be moves that should be looked after, as the strength of military power, will also affect the others who wish to secure their borders and their resources. The military technology and the exercises proves the new relationship between the neighbors. However, if the relationship is only for internal powers or to counter NATO or other military partnership is not easy to know. This has been significantly focused on certain sales and sort of exercises on terrain both armies need. Just like the Russian Military needs to use the navy and trade LADA sub-marines to China. Peace.

Reference:

Meick, Ethan – ‘China-Russia Military-to-Military Relations: Moving Toward a Higher Level of Cooperation – U.S. – China, Economic and Security Reviews Commission’ (20.03.2017)

A look into the proposed International Contribution to the National Budget of Uganda for the Financial Year 2017/2018

Mengo Hospital needs funds

There are many budget posts in a National Budget, but as there are talk of lacking international support of the budget in the Republic of Uganda. The certainty is that even as the donors are fleeing the National Resistance Movement (NRM) and the President Museveni own way of saying he doesn’t need them. Still, I want to show the world collectively what the NRM government have donor sponsored projects through the National Budget, these are projects and development of infrastructure that the NRM needs to show something after over 30 years reign.

Like take Japan the donor funding to the Northern Uganda Farmer Livelihood Improvement Project in the next Financial Year gives to the project Ush. 31.33bn. also donate funds to is the Nakawa TVET Lead Project got Ush. 4.69bn. Japan also donates to Kampala Flyover Construction and Road Upgrading Project with Ush. 155.44bn.

World Bank itself is donating funds in different ways to two other projects, which is African Centeres of Excellence that got Ush. 13.36bn. and Albertine Region Sustainable Development got Ush. 9.35bn. On the other hand the Kingdom of Saudi Arabia donated to the Construction of 5 Regional Technical Institutes with funds of Ush. 6.98bn.

Belgium has also offered their donor funds into the Ugandan state through various projects, like the Program/Project Support to Improve the Quality of Teaching and Learning with Ush. 11.97bn. also the Rehabilitation of the National Teacher Training Centre Kaliro allocated Ush. 15.16bn, they also gave to Rehabilitation of the National Teacher Training Centre Muni funds of Ush. 15.16bn. another project that Belgium was behind is the Support to the Implementation of Skilling Uganda with Ush. 15.96bn.

The Democratic People’s Republic of China has donated to new development projects in Uganda, like they are donating to Industrial Substations Ush. 91.74bn. they also donated to Isimba Hydro Power Plant Ush. 407bn. and also  Karuma Hydro Power Plant where they have pledged Ush. 1,305.07bn. or Ush. 1.3 trillion to that alone! The Chinese is also involved in Entebbe Airport Rehabilitation where they have funded Ush. 148.13bn. the pledged funds for Standard Gauge Railway will first come next Financial Year 2018/2019 and not this financial year.

African Union (AU) funds to the UPDF Peace Keeping Mission in Somalia with total Ush. 256.66bn. United Kingdom pledged funds to the Road Infrastructure for Delivery of First Oil with Ush. 252.63bn.

The pledged funds for Kampala-Jinja Highway are first for FY 2018/2019, but no official donor or loaner of funds. Therefore the estimated funds come from thin air. What is also relevant is to see that the Funds from Austria and Denmark has been suspended for different development projects. Still, which I haven’t mentioned is the funds from African Development Bank, also GAVI and Global Funds still gives to health care development, even with the knowledge of the rampant corrupt behaviour in the Ministry of Health.

Therefore if the NRM are contemplating that they are themselves giving these sorts of projects to the people, I hope the donors are putting up boards or signs in the entrance or hallways, even start of the roads where it says what sort of amount of funds they spent on it. So that President Museveni or any other crony can take all the credit, because the credit and the footing the bill to somebody else! Peace.

The Auditor General Muwanga really told stories on mismanagement and maladministration of the NRM government (Quotes from the End of the Year AG Report 30th June 2015)

Ugandan shillings

As of yesterday there we’re the reported 111 cars that vanished and weren’t procured by a Ministry in Uganda. Because of that I had to look more through the report of the Auditor General John Muwanga. There are many stories; some of the ones in this Report have already been discussed on my page.

There so many stories to pick, but here is some of my favourites that shows all from a goats, expressways to other where money have disappeared, over-compensated or not allocated needed funds for the planned procurement and projects that the Government we’re supposed to do. Take a look!

Indebted to International Organizations:

I noted that a number of Government entities are indebted to International Organizations such as PTA Bank, ADB, EADB, WTO, UNIDO, COMESA and Shelter Afrique. A sample of five entities revealed indebtedness of UGX.77,724,089,603 and US$.4,968,950” (OAG, P: 36, 2015).

Overpay on construction of Kampala-Entebbe Expressway:

“An analysis was done and adjustments for the different features of the two expressways were made. It was observed that the unit cost for the Kampala-Entebbe expressway was US$ 2.315 million per lane kilometre while the similar expressway was US$ 1.204 million per lane kilometer” (OAG, P: 38, 2015).

NAO Project going nowhere:

“The protocol agreement between Government of Uganda (GoU) and Democratic People’s Republic of China (DPRC) was signed on the 27th June 2008. It involved establishment of a demonstration centre under the National Agricultural Organisation. However, it was observed that after hand-over of the site by Ministry of Agriculture, Animal Industry and Fisheries to the DPRC, there was no proper follow up by Government on the project as such it was difficult to establish whether the anticipated funding of RMB YUAN 50,000,000 equivalent to UGX.26 bn was received and how it was applied to the project” (OAG, P: 42, 2015).

NCIP disbursed funds:

“Government signed fourteen (14) protocols under the Northern Corridor Integration Projects where substantial amounts of funds have been invested and implementation is on-going. For example amounts totalling to UGX4.2bn was disbursed to fund the power interconnection and the Hoima-Lokichar-Lamu oil pipeline. However, the protocols do not provide for regional coordination and monitoring as well as the audit framework to provide an independent assurance on the utilization of joint funds. This renders it difficult to track the progress of the projects and follow up the accountability for the funds disbursed” (OAG, P: 43, 2015).

Advances Unaccounted for:

Uganda National Roads Authority: 47,738,040,619 UGX” (…) “Ministry of Local Government:  3,827,011,454 UGX” (OAG, P:87, 2015).

bidco-uganda

Bidco has avoided VAT:

It was noted that as of November, 2014, the outstanding VAT obligations for BIDCO stood at UGX.744,420,170, included in this figure was late payment interest charge of UGX.168,747,557. Accordingly, a sum of UGX.700,000,000 was paid to URA towards settlement of the tax arrears” (OAG, P: 93, 2015). “After the eleven (11) years, BIDCO would start paying VAT directly on its own and from the 12th year start refunding to Government the VAT plus 5% interest for the first eleven (11) years in (8) equal installments over a period of (8) years. This condition was subject to fulfillment of article 4(3) of the agreement which requires Government to have handed fully to BIDCO all the agreed 26,500 hectares of land” (OAG, P: 94, 2015).

ADB Susbscription:

“In August, 2010, the Governing Council of the African Development Bank (AfDB) under the sixth general capital increase of the bank allocated Uganda shares worth USD.19,759,798 payable over a 12 years period in annual instalments of USD.1,646,649. It was noted that the payment of Uganda’s 4th instalment of UDS.1,293,299 which became due on 16th March, 2015 had not been made. As a result, the callable shares related to the missed instalment had been suspended in line with the Board of Governors resolution on the sixth general capital increase of the bank meeting” (OAG, P:95, 2016).

Banana Project:

“The banana project owns land in Bushenyi together with other movable properties. However, it was noted that the land title is still in the names of the project without the legal mandate to continue owning this land of behalf on government unless the expired legal status is resolved following the legal opinion of the Attorney General to transfer the project under Agriculture sector” (…) “During the financial year 2014/2015, the PIBID project had a budget provision of UGX.9bn out of which only UGX.2.7bn was released as vote on account and as a result, activities worth UGX.6,682,145,000 were not under taken. The affected activities include: purchase and installation of machinery and equipment (UGX.2.5bn), Construction materials (UGX.1.457bn.), marketing of the tooke products (UGX.777,665,000) and procurement of transport equipment (UGX.780,000000)” (OAG, P: 102-103, 2015).

Delayed Construction of Katuna OSBP and swamp reclamation works:

“The construction of Katuna OSBP is undertaken at a contract sum of UGX.8,951,277,750 and Swamp reclamation for access road works estimated at UGX.12,000,000,000. The commencement date for the construction was 13th June 2014 and the estimated completion date was set for 13th June 2015. This was later revised to 30th December 2015. Inspection of construction works showed the following” (…) “The EU Confirmed funding on the 12th May 2014 and all the conditions set by World Bank were met including NEMA’s clearance that was received on the 30th April 2014. I noted that GOU was required to finance the building works for Katuna OSBP since IDA credit funding had been exhausted. The contract for construction of OSBP was finally awarded at a sum of UGX.8,951,277,750 on the 5th June 2014. The EU delayed to operationalize her support and the contractor could not commence on the major building works due to delayed reclamation of the wetland where the buildings were to be constructed” (…) “Management explained that heavy rains, poor terrain and lack of material sources in Katuna such as sand are the biggest challenges. The would be material sources such as hard core are not readily accessible due to the hilly terrain of the area and the contractor can only make a few trips only on a sunny day. For materials like sand, the source is Mbarara (about 150km) and the contractor can only make a few trips given that the road (Mbarara-Ntungamo and Kabale-Katuna) is under construction” (OAG, P: 137-139, 2015).

Uganda Police Force:

“A review of the statement of financial position revealed outstanding payables of UGX.16,454,307,782. Payables worth UGX.10,500,682,162 were incurred during the year which implies that management continued to incur arrears without establishing sufficient mechanisms to monitor and control them” (OAG, P: 183, 2015).

Ministry of Local Government:

“A review of the Ministry of Local Government’s expenditure revealed that the entity charged wrong expenditure codes to a tune of UGX.12,086,792,676. This constituted 40% of total actual expenditure for the Ministry of Local Government. Whereas the funds were spent on items for which they were not originally budgeted for, the accounts have been presented in a way that reflects that the amounts were spent on the earlier budgeted items” (OAG, 2015).

M/S Faw Limited:

“A local company was contracted by the Ministry to provide storage space for the various roads, sanitary and fire-fighting equipment procured under a Chinese loan in 2011/2012 financial year from their parent company. The providers were paid UGX.1,416,000,000 during the year 2014/15 for 20 months storage of the equipment delivered. A review of the procurement file revealed the following” (…) “It was noted that only the Contracts Committee decision on a submission (PP Form 209) approving the evaluation report and contract award at a monthly fee of UGX.70,800,000 were available on file. However, the Solicitor General’s approval and contract agreement were on the procurement file. No initiation of procurement, invitation of potential bidders, record of receipt of bidders, evaluation report and PDU submission of Evaluation Committee report to Contracts Committee were on file to support the award” (…) “A review of the availed documentation revealed that two conflicting pro-forma invoices were submitted by the firm with one quoting a monthly fee of US$.14,160 VAT inclusive for ten months, that is; from 1st June 2012 to 31st March 2013 totaling US$.141,600 and dated 17/5/2012 and another one dated 2/1/2012 quoting a monthly fee of UGX.70,800,000 VAT inclusive for twenty months without clarifying the particular months” (…) “The final batch which arrived in August 2013, was commissioned by the president in October 2013 and handed over to police on 19th December 2013 implying storage of at most five (5) months. This makes fourteen (14) total months of storage as opposed to the 20 months billed resulting into a loss of UGX.424,800,000” (OAG, P: 237-239).

updf-south-sudan

Ministry of Defence:

“During the year the Ministry’s total expenditure on land acquired amounted to UGX.1,119,388,145. However, it was noted that the government policy of capitalising the acquired land from the financial year 2011/2012 did not give guidance on what to include as cost of land acquired. As such, this amount could not be verified due to lack of guidelines on treatment of land costs in the financial statements” (…) “It was observed that a sum of UGX.1,000,000,000 was paid to an individual as part payment on a claim of UGX.2,958,668,733 for the compensation of 683 cattle and 119 goats which were handed over to 4th Division for safe custody during the insurgency period in 1986” (…) “It was not possible to confirm whether this claim had not been paid before since it is now 28 years since the purported supply of the animals” (…) “It also appears that these animals were for various people but instead the compensation was made to one individual” (OAG, P: 285-288, 2015).

State House Entebbe – Okello House:

“State House has been occupying Okello House for many years with a tenancy agreement that expired in 2013. However, it was observed that State House has not renewed the tenancy agreement and no rent payments have been made to the landlord despite continued occupancy. At the close of the financial year, a sum of UGX.1.272,363,507 was outstanding in rental arrears” (…) “National Housing and Construction Corporation owns properties on Plot 1 Kyagwe Road–Nakasero which is currently occupied by State House. Documents indicate that National Housing has been demanding arrears of UGX.201,100,000 from State House. These arrears have not been reflected in the financial statements”  (OAG, P: 294-295, 2015).

If you don’t find this interesting that the Government of Uganda is misspending funds in this way and that this is just a figment of imagination as this is pieces of a giant report. The most interesting is that one man got the whole piece of the pie of what happen in 1986 and secondly that the State House doesn’t even have an agreement with the tenant who owns Okello House where the President has gallant dignitaries. That shows the state of affairs, brothers, time for a change and also better procedures and practices! Peace.

Reference:

OAG – ANNUAL REPORT OF THE AUDITOR GENERAL FOR THE YEAR ENDED 30TH JUNE 2015

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