“Museveni: My critics always forget to mention that I was democratically elected, the others were not. Everyone in Uganda can challenge me, everyone can vote, the elections are free. Not many countries have achieved what we did. One third of the seats in parliament are reserved for women, five seats for youth, five for workers, five for the disabled and 10 for the army. How many democracies with such a record do you know?” (Koelbl & Puhl, 2016).
Just as the knowledge of the all the state businesses and properties of President Museveni that he has amassed over the 31 years in power in Uganda. It reminds more and more of the state of affairs under President Mobutu. Mobutu Sese Seko was a dictator that President Museveni was proud to ouster and reinstate President Laurent Kabila in the Democratic Republic of Congo (DRC). So that President Yoweri Kaguta Museveni knows about Mobutu’s fatal fall, is certainly known.
President Museveni has gotten rid of other dictators before the fall of Mobutu, he even knew or had knowledge of the death of the plane of Juvenal Habyarimana, the plane who got shot down in April 1994, as his fellow comrade General Paul Kagame of Rwandan Patriotic Front was on the way to overthrow the current regime there. Also that the President Museveni together with President Milton Obote overthrew President Idi Amin in the late 1970s. So the current President Museveni has been involved in lots of armed change of power, he is even rumored and not verified if he had knowledge of the death of John Garang of SPLA and the South Sudan.
Still, the man who has used force and taken weapons to change history and his own fate, again and again, also to get puppets in states around. Have certainly thought of the demise of the men he got rid off. So when the stories of the last year of Mobutu sounds like this:
“For 32 years President Mobutu has treated Zaire like a toy and used its rich mineral reserves like his own private bank account. He plundered its mines, insisting their entire annual profits be transferred to personal accounts overseas” (…) ““We had to be close to the regime to do business,” admitted Mohammed Abdul, a Lebanese businessman yesterday as he fortified his shop for an expected pre-Kabila pillage by Zaire’s ruthless and brutal army. The Lebanese are hated by Zaireans who believe they colluded with President Mobutu to plunder the country’s diamonds” (Kinshasa, 1997).
“The decision by the Swiss Federal Council came a day after judicial and police authorities seized his luxurious villa at Savigny near the lakeside resort of Lausanne. The 30-room mansion is estimated to have a market value of more than $5 million” (…) “After three decades of plundering the mineral wealth of his country, Mobutu is believed to have accumulated an enormous fortune. There have been persistent reports that he has stashed as much as $4 billion in Switzerland, but a government review of the country’s 400 banks last week said that none reported having accounts in his name” (Drozdiak, 1997).
Just as you think the dictator of Democratic Republic of Congo would be different than the current one in Uganda, your terribly wrong and President Museveni tries to keep it hidden, the way he is using the state reserves on himself and build his wealth. Just like President Mobutu was trying to move the money to the Swiss accounts, President Museveni has his own way.
A look into Museveni:
“The way the Museveni family is paid royalties, or rent, by escrow accounts for their ownership of the title deeds of the Stanbic Bank business name in Uganda (what was once the Uganda Commercial Bank, Uganda’s largest banking group) is the way it is paid for their ownership of other apparently South African or foreign-owned businesses in Uganda” (…) “These sources say that it is Stanbic Bank that is used to finance businesses like Roofings Ltd, Speke Resort Munyonyo, the J&M Hotel along the Kampala-Entebbe highway, businessman Hassan Basajjabalaba’s hotel and Kampala International University, all of which actually belong to the Museveni family” (The London Evening Post, 2012).
This is just the business side of it, it could be worse by now and they could own more pieces of all the businesses that are bailed out or even getting tax breaks by the government, because who knows the true deeds or royalties going to accounts owned by the royal Ugandan Museveni family. So the next says more about the value of the Museveni family and their estates.
“Museveni’s wealth includes ranches in Rwakitura and Kisozi Uganda which accommodates over 2,000 healthy cows which produce thousands of liters of milk daily. The Uganda president makes at least Ush 100 million per month from his farm” (…) “Apart from livestock farming, Museveni has interests in real estate, hotel industry as well as transport industry. He has also invested heavily in the banking industry” (…) “The longest serving president of Uganda is estimated to be worth $ 700 million” (Venasnews, 2016).
So when you see how the Museveni family has become as wealth and rich as President Mobutu did. Mobutu had after his 30 years of dictatorship stashed away US$ 4 Billion into Swiss Bank Accounts, what is more uncertain is the total value of the 30 years President Museveni rule in Uganda. What is right now and known is the businesses that the President is involved in or having ownership in. Secondly is the knowledge of estates, as well as ranches in Uganda with livestock that the President owns. Therefore, the extended wealth of secret bank accounts and not revealed businesses could show the true value of the Museveni family.
With the knowledge of this and the sudden departure that President Museveni together with President Kagame, as they forced the dictator away in the Democratic Republic of Congo (DRC). I don’t think there will be an intervention on President Museveni from one of the neighbors. Still, the world can see the dictator protocol is kept by Museveni as he himself have crafted ways of emptying the state coffers. Therefore, that the riches, the estates and the value of Museveni have risen over the three decades in power isn’t strange. What is more worrying is how he has been able to keep is wealth and ownership.
That President Museveni wishes to look like a hardworking rancher and that he works for his fortune. The yields are coming from hard-work and dedication. At the same time the ownership in banking industry and in other parts of the economy shows how much control the family and the President does have. The private industries and companies are run or ordered directly from the State House.
So that President Museveni said this in 1997 as he overthrew Mobutu is now insane:
“Mr. Museveni’s ideology is simple. For too long, he says, African politicians have hoodwinked the common people, manipulating tribal sentiments to stay in power and steal millions of dollars in foreign aid and taxes. A former Marxist, he sees the true struggle on the continent as one between corrupt leaders and the dirt-poor people they exploit” (McKinley Jr., 1997).
So he said for to long African Politician played the commoners, using the sentiments of tribe on their populations and using this tools to stay in power, while doing so taking an emptying the state reserves and donor funding to themselves. Therefore, 20 years since he stood for this and said these words, he has now done the same.
President Museveni of today would assassinate himself or overthrow himself… since he is now the Mobutu of Uganda, he has the character of the men he overthrew in past. He should be worried, because the ghosts of the past and the reckless leadership will follow him and that is why he trust the guns more than people. Since his own insincere political game might catch up with him.
On some levels now, there aren’t much difference between President Mobutu and President Museveni. Peace.
Drozdiak, William – ‘Swiss Freeze Mobutu’s Assets; Reports Put Worth at $4 Billion’ (18.05.1997) link: http://www.washingtonpost.com/wp-srv/inatl/africa/zaire/swiss.htm
McKinley Jr., James – ‘Uganda Leader Stands Tall in New African Order’ (15.06.1997) link:http://www.nytimes.com/1997/06/15/world/uganda-leader-stands-tall-in-new-african-order.html
Kinshasa, Mary Braid – ‘Mobutu takes the money and runs to a safe haven’ (16.05.1997) link: http://www.independent.co.uk/news/world/mobutu-takes-the-money-and-runs-to-a-safe-haven-1261945.html
Koelbl, Susanne & Puhl, Jan – ‘’This Is Our Continent, Not Yours’ (10.06.2016) link: http://www.spiegel.de/international/world/interview-with-ugandan-president-yoweri-museveni-a-1096932.html
The London Evening Post – ‘Revealed: How the Museveni family owns Uganda’ (03.01.2012) link: http://www.thelondoneveningpost.com/comments/revealed-how-the-museveni-family-owns-uganda/2/
Venasnews – ‘Yoweri Museveni Salary and Wealth’ (27.06.2016) link: https://venasnews.com/yoweri-museveni-salary-and-wealth/
“For Africa as we wait to see what unfolds and adjust, we should be learning the lesson that we should not be entirely dependent. We will wake up to the reality there are things we should be doing for ourselves. You have made it appear that your situations are perfect and you want others to emulate you. Then you are surprised by what unfolds. It is what you have been hitting us with that is coming back to bite you. I did not change the constitution. If you want to know the truth you will find it is the people who did, not me. My satisfaction lies in the truth that we have not been involved in harming our people. What we are doing is to develop our country. If we don’t take care of ourselves, no one else will. As long as Rwandans are happy, we will keep doing what needs to be done. We will be listening to what others say but we will not be distracted from what needs to be done.”
-President Paul Kagame speaks to Gerard Baker, editor in chief of the Wall Street Journal, at the closing session of Invest in Africa conference.
President Paul Kagame of Rwanda, the long lingering Executive of Rwanda has compelled his words against dependency of the West. Surely, he has had this in mind for while in his own haven, as the Rwandan government has been a donor friendly. Therefore, that he claims now to take a stand against them shows the sudden change of attitude. However, it is sudden donors and programs that have stopped coming Kagame’s way, therefore the Rwandan government have started to run a giant tab of external debt instead of donor aid grants. Like look at some quotes from companies that establish the economic output and the financial flow of nations, like Deloitte and KPMG!
“According to BMI, total external debt levels in the country have been rising steadily in recent years, from 16.1% of GDP in 2010 to an estimated 30.5% of GDP in 2015. Debt levels for 2016 and total external debt are forecast to amount to 35.2% of GDP and will be composed mostly of government debt” (Deloitte, P: 4, 2016).
Failing Foreign Aid, therefore rising debt:
“The primary headwind to the Rwandan economy in the 2016-2025 period will be the impact on debt as a result of falling foreign aid. Despite prudent fiscal policies to date, increases in debt levels will follow from the fall in foreign aid, since Rwanda is now deemed fit to transition from grant-based financing to loan-based financing by the IMF” (Deloitte, P: 5,2016). “The government has been compelled to adopt a more prudent fiscal policy stance in an attempt to reduce the country’s dependence on donor support and increase fiscal autonomy. Recent external headwinds have encouraged the government to ease demand for imports by reassessing its infrastructure investment programme. This will undoubtedly have a negative impact on economic growth. That being said, the benefits of lower donor dependence and improved macroeconomic stability should outweigh the costs related to lower growth over the short term. Turning to external balances, Rwanda’s wide merchandise trade deficit is expected to maintain a shortfall in the overall current account going forward” (KPMG, P: 4, 2016).
“Aid harmonization has been improved and progress continues to be registered in the implementation of the Paris and Busan commitments especially the use of national budget and procurement systems. The Bank was the 6th largest Official Development Assistance (ODA) provider to Rwanda in 2013/14, accounting for 9.4% of total ODA26. The World Bank and EU invest in agriculture and energy whereas the leading bilateral DPs focus, among other things, on human development and social protection (Annex 8a). Annex 8b summarizes the progress made in implementing selected indicators as captured by the Donor Performance Assessment Framework. Use of the sector budget support (SBS) instrument has increased the share of Bank support disbursed using country systems. Under the DPCG, the Bank actively participates in activities to enhance the implementation of EDPRS II such as the 2014/15 assessment of SWGs” (AfDB, P: 9, 2016).
So if you look at the financial policies of the republic of Rwanda, some of it is not really chosen as the donors funds that has been suspended or stopped might be for several of reasons. That might be that if they accept the funds they have to follow a spectre of policies and interferes with the power that Kagame wish to achieve. The RPF and Kagame has total control of Rwanda, the export and the import, also owns dozens of the businesses. So the Rwandan government had to switch their economy with more loans, instead of donor aid. The loans are coming in through external debt as the external donor funds and grants have dwindled.
Therefore, the excuse of suddenly wanting to be independent is more a need, than a wish. If it was a wish earlier, than the AGOA or USAID to the RPF would have stopped decades ago. That should be common knowledge of the relationship between Paul Kagame and Bill Clinton. It is not that it is positive that the Rwandan Government want’s less aid is a healthy stance. Still, the excuse isn’t eaten by me.
The reality is that the increased debt instead of donor grants will hurt the economy, as the levied interest rates and other cost will hurt the economy. It isn’t healthy to be dependent of the aid either, but the reasons now seem more to reactionary than real intent. I am sure Paul Kagame would love funds from Belgium and France to build hospitals and clinics in rural regions of Rwanda. So, suddenly the West isn’t good enough, especially when they are questioning his reasons for staying in power and not having any successors while his regime is keeping a close lid on the opposition. Therefore, the economy and independent from the world becomes more important because then he needs to less show of transparency and accountability. Peace.
AfDB – ‘RWANDA BANK GROUP COUNTRY STRATEGY PAPER 2017 – 2021 (October, 2016).
Deloitte – ‘Rwanda Economic Outlook 2016 The Story Behind the Numbers’ (June 2016)
KPMG – ‘Economic Snapshot H2, 2016 – Rwanda’ (15.10.2016) link:
After reading a Forbes article on Illicit Financial Funds leaving Ethiopia, as they question the need for and the use of donor aid to Ethiopia. I had to read the reports that it partly was based and make my own assumptions. The difference is that I want to focus on the East African Nations and their Illicit Financial Funds that leaves the States. So that the values and the amounts show’s lack of governance and regulation of finance gives way for the African governments and corporations to get away with transferring funds without legal bounds. This is a way of misusing funds and also money laundering through lacking revenue service and authorities to keep up the upkeep of the states. Take a look!
“IFFs are illegal movements of money or capital from one country to another. GFI classifies such flows as illicit if the funds crossing borders are illegally earned, transferred, and/or utilized. If the flow breaks a law at any point, it is illicit” (GFI, 2015).
“African governments have a political interest in IFFs because these flows impact their national development aspirations and encroach on state structures. They therefore have law enforcement and regulatory agencies whose duties include preventing IFFs. Among these are the police, financial intelligence units and anti-corruption agencies. Governments also have customs and revenue services and other agencies whose purposes are thwarted or hindered by IFFs” (IFF, P: 35, 2016).
“The widespread occurrence of IFFs in Africa also points to a governance problem in the sense of weak institutions and inadequate regulatory environments. IFFs accordingly contribute to undermining state capacity. To achieve their purposes, the people and corporations behind IFFs often compromise state officials and institutions. Left unchecked, these activities lead to entrenched impunity and the institutionalization of corruption” (IFF, P: 51, 2016)
“Most African countries do not have enough highly trained lawyers, accountants and tax experts to carry out the oversight functions to prevent or punish perpetrators of illicit financial outflows. The few that exist are often overworked and unable to prepare sufficiently to take on top-class representing large corporations” (IFF, P: 72, 2016).
Illicit Financial Funds ranking in the years of 2004 – 2013:
*(in millions of U.S. dollars, nominal)
* Global Financial Integrity December Report 2015
Total IFFs in the years of 2004 – 2013 (GER+HMN)
*(in millions of U.S. dollars, nominal)
* Global Financial Integrity December Report 2015
* “Trade misinvoicing (GER) dominates measurable illicit outflows, averaging 83.4 percent of total illicit outflows during the years 2004 to 2013. However, there has been a noticeable growth in the hot money narrow (HMN) estimate of balance of payment leakages over those years as well. Though initially only accounting for 6.9 percent of illicit outflows in 2004, HMN rose to 19.4 percent of illicit flows by 2013” (GFI, P: 10, 2015).
If you look at the charts there are some monies that is missing and gone away on all sorts of schemes and tax exemptions, all sort of added invoicing or other types of financial instruments to make sure the monies doesn’t end where they are supposed to be. The East African states have misused giant amount of funds.
Ethiopia, Sudan and Uganda are topping the list. What is weird for me and the report it is not specifying the Sudan as the Khartoum republic or putting South Sudan alone! So the report and the values put on South Sudan, which was independent in 2011, there do not know what of part of Sudan who has illicit funds. Still, the values and the amount of million dollars Illicit Financial Funds (IFFs) from Ethiopia for instance. You can wonder how much of the government budget that is eaten by this sort of financial mismanagement and misuse of public funds. The reserves and state coffers have to be hit when it is these amounts of dollars that are lost. Uganda have also gotten rid of giant amount of funds, these is 10 higher than the revelation during the Oil Probe with the 2.4 Trillion shillings, which is about $640-700m dollars. That we’re oil revenue that has not been remitted to the state, just these values is ten-times of what was revealed in the Ugandan courts. So there is other revenue that the State House, Bank of Uganda and Uganda Revenue Authority not have complied to or have registered as there is a loss of $7,149 million dollars.
These is just two financial instruments as the HMN and the GER that is explained under the table, the other ways of misusing funds, I haven’t even covered. This is just how much that is miss-invoicing and Hot Money Narrow, the others can be shown at another time. The numbers shown here alone show the extent of misuse of funds in a decade. That is the public loss and the state coffers that been looted by the regime and their lack of will of following and regulating the financial markets. Therefore, the state and institutions does not have the will or capacity to follow the money. This shouldn’t be evident, but it is and not a good look. Peace.
Illicit Financial Flows iff – ‘Report of the High Level Panel on Illicit Financial Flows from Africa’
Global Financial Integrity – ‘Illicit Financial Flows from Developing Countries: 2004-2013’ (December 2015)