“BREAKING: In a reply to my Parliamentary question, Minister of Public Works Nathi ‘firepool’ Nhleko, has said that there are no upgrades planned for Zuma’s Nkandla residence. Meanwhile, The chief director of Public Works, Barnie Ntlou told the Sunday Times that work will go ahead at the Presidents residence. Who’s fooling who?” (Mmusi Maimane, 22.05.2017).
The Economic Freedom Fighters notes that Jacob Zuma has paid back the money as directed by the Public Protector and the Constitutional Court. The EFF welcomes the indisputable fact that they money was paid because of the EFF’s insistence and persistence that the remedial actions of the Public Protector must be complied with.
It was through EFF’s efforts and relentless struggle that Zuma paid back the money on the undue benefits he received through the largely corrupt construction of his private residence in Nkandla. The EFF’s work on anti-corruption and undue benefits to politicians should be celebrated by all South Africans because South Africa’s fiscus has additional money from Mr. Zuma.
The anti-corruption work of the EFF should be celebrated because it took our Organisation 2 years to stop the Nkandla corruption, whilst others had failed for many years. The anti corruption work of the EFF should be celebrated because the ruling party continues to harbor and protect corruption.
South Africa should celebrate the fact that no one under constitutional democracy is above the law, and that even a parliamentary majority should exist within the laws that govern our society. The ANC has demonstrated throughout the Nkandla debacle that they do not respect Parliament and the Laws that govern our country and will do everything to undermine the Constitution.
The EFF defeated defenders of corruption, the ANC, which unanimously defended Zuma and protected him from being held individually accountable. Now that the money has been paid, the EFF will seek legal advise to establish whether Mr. Zuma should be held criminally liable for being a recipient of criminal proceeds, since he has accepted that he unduly benefited. The EFF will do this because in the immediate aftermath of the Public Protector report on Nkandla, we opened a criminal case against Mr. Zuma in Sunnyside police station and we still hold the view that there was a certain degree of criminality in his actions.
The EFF will also seek further clarity on the main source and principle that led to a Mutual Bank (VBS Mutual Bank), which is supposed to benefit ordinary people in Vhembe, granting a loan to Mr. Zuma. We will do so to prevent a possible situation where monies are illegally moved in protection of one individual, whom the Constitutional Court said should be individually and personally liable for the non- security upgrades.
The EFF will also write to the relevant authorities, particularly the National Prosecutions Authority and Special Investigations Unit to follow up on the progress made in recovering the money that was overpaid to suppliers in the construction of Mr. Zuma’s private residence.
At all times, the EFF will remain consistent in the war against corruption because corruption is slowly but surely destroying South African society and will reverse the gains of political freedom.
ISSUED BY THE ECONOMIC FREEDOM FIGHTERS FANA MOKOENA (ACTING NATIONAL SPOKESPERSON) Contact: 081 724 4799
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Facebook: Economic Freedom Fighters OR || Twitter: @EFFSouthAfrica
“JOHANNESBURG, 12 September 2016 – eNCA reporter Annika Larsen says a number of questions have been raised about VBS Mutual Bank, following its loan agreement with President Jacob Zuma. The bank has granted Zuma a R7,8m loan to pay back the Nkandla money” (eNCA, 2016)
“the President paid back R7.8m of R246m”. That kind of windfall is worth thinking about! That the President Jacob G. Zuma got of the hook to that extent. The Executive has gotten away easy even with all the scrutiny and all. The ANC and the National Assembly of South Africa hasn’t made him do enough for eating all the Tax-Money for his Nkandla Village Project. Peace.
Well, we are in the middle of election hiatus and all, the Nomination and planned campaign that last to 18th February 2016. This here will not be on that, but be crunches numbers delivered from the Bank of Uganda Yearly report for the 2014/2015 budget year. This here will tell what I see as important from that report.
“The external position weakened with the current account deficit excluding official grants deteriorating to 11 percent of GDP compared to 8,8 percent in 2013/14. The deterioration of the current account deficit was largely driven by the services deficit, which deteriorated to US$ 731 Million in 2014/15 from USD 323 million in 2013/14 mainly account of higher payments of government services related to infrastructure projects, particularly Karuma and Isimba Hydro Power Projects” (BoU P:1).
That is big change in deficit! That must be a bit worrying that the amount of monies is becoming this big. Also with the infrastructure projects makes so big hunch of that deficit.
“Financial Risk:
Financial risk management at Bank of Uganda focuses on the risk exposures in both the foreign exchange reserves portfolio as well as other operational areas of the Bank. Notably, foreign exchange reserves account for over 86 percent (2014: 74 percent) of BOU’ assets” (BoU, P: 12).
A lot of foreign exchange is major parts of the reserves of the bank. Is that a safe way to do it and doesn’t that devalue its own currency?
“The higher than programmed expenditure was partly, compensated for by the over performance in government revenue. Total government revenue, including grants amounted to UGX. 10,866.0 Billion, which has higher than target by UGX. 249.1 Billion. Grants and domestic revenues over performed by UGX. 173. 0 Billion, respectably” (BoU, P: 28).
The good news is that Government is able to collect more revenue as of taxation and grants to the Government. Though we can say it is a steady rise and the bank doesn’t explain how the rise happen, because this can’t all be collected on the Cellphone, Alcohol or VAT taxes, but something else.
“The fiscal deficit of UGX 3,621 Billion was financed by both domestic and external source, which amounted to UGX. 2,479.0 Billion and UGX. 919 billion, respectively. Domestic financing included a drawdown on savings amounting to UGX. 1,060.0 Billion and net issuance of Government securities of UGX. 1,386.0 Billion. The drawdone of savings was specifically used to finance expenditures related to the public infrastructure projects” (BoU, P: 29).
This here continues on how the financed and the fiscal deficit and sure the drawdone on the savings to build infrastructure projects.
“Public Debt:
The total public debt stock, in nominal terms, at end June 2015 is estimated at UGX. 24,242.0 billion, an increase of 24,2 percent of UGX. 19.518. 0 Billion at end of June 2014. External and domestic debt increased by 27,7 percent and 21,1 percent, respectively” (BoU, P: 29).
This here is frightening how much the rise is steady and getting more… The terms of it and the rise should make people shake their heads and worry. The Government of Uganda continues to hedge the Public loans and having a rise like this can’t be a sign of a healthy economy.
“Exchange rates:
The depreciation pressures which started in early 2014 continued through June 2015, with the Shilling depreciating by 18,8 percent year-on-year on a trade weighted basis and by 29.1 percent against the USD to an average mid-rate of UGX. 3,398,49 per USD” BoU, P: 31).
That the currency loses value towards the dollar should also be worring. When you see how much shillings you need now to get the dollar now.
“Petroleum Revenue Investment Fund:
In June 2015, the Government opened two accounts (UGX and USD) in order to operationalize the PF. These accounts are to receive all oil related revenues. In June 2015, USD 36 million was received as part payment of the USD 250 million capital gains tax (CGT) liability from Tullow. This sum includes USD 142 million received in 2012 and USD 108 million to be paid in three equal installments of USD 36 million in 2015, 2016 and 2017” (BoU, P: 45).
“During the year, an amount of UGX 1,607,814 million was transferred from the Oil Tax Revenue Fund to Uganda Consolidation Fund. This balance relates to an amount of UGX 1,161,737 million from Tullow Oil paid to GOU for the settlement of tax dispute between the Government and Heritage Oil & Gas (U) Limited. It also includes stamp duty of USD 171 million (UGX 447 million) on sale of Tullow Oil’s assets to Total and CNOOC” (BoU, P: 107).
“In addition, the bank received USD 36 million (UGX 119,057 million) on 22 June 2015 on behalf of GoU, relating to Tranche 1 Tullow Oil tax settlement” (BoU P: 107).
“Ugandan Consolidation Fund refers to the Government appropriation account where all tax receipts are credited and appropriations made. During 2014/15, UGX 1,612,080 million relating to the oil tax revenue collections was transferred to the UFC” (BoU, P: 107).
As seen Petroleum Revenue Investment Fund and Oil Tax revenue shows how the oil impact has on the economy. We can also see the result of the longstanding dispute of the Government of Uganda and Tullow Oil Company. That has now been overturned and gotten the Total and CNOOC. There will be more monies at stake on a later stage coming with the found oil in the Bunyoro area and Lake Albert.
Presidential Airplane:
“The special loan to government relates to an advance to government for procurement of the presidential aircraft with interest rates (LIBOR plus 100 basis points), maturity date and repayment terms agreed between Ministry of Finance and the Bank as stipulated in the memorandum of understanding. The last loan instalment was paid off on 24 July 2015” (BoU, P: 107).
That was an expensive airplane for the president! Though it’s all back-paid this still shows how the President buys what he needs and wants, and not what the people need.
Uganda Consolidation Fund: (by the 31. June of the year)
2014 it was UGX 3, 245,961 million.
2015 it was UGX 2, 386,056 million.
(BoU, P: 117).
As proof with the rising debt and deficits, even with rise of higher taxs returns the Government of Uganda. Stills shows that their spending more than they getting since the Taxation fund is dwindling and become less and smaller account. That in total with the other numbers should be a worrying thing to see. Especially knowing how the NRM-Regime goes mayhem on the economy the coming months of elections paying for every votes with chickens and goats in the districts. We have seen that before and will see it again. This will also lead to rise of inflation with more running through the economy so the value of the currency might also dwindle towards on dollar. Wouldn’t be surprised if the Shilling comes up to 4,000 on a dollar!
And that is not a good luck, since the imports and prices will rise for the rise of cost of imports. But hope my predictions isn’t correct, but election cycles usual make the ordinary voter pay and those receiving just get a patch on the wound created by the mayhem done to economy by the ruling regime. Peace.
Reference:
Bank of Uganda (BoU) – Annual Report 2014/2015
MinBane 