His Excellency is advising his own advisors [and sadly this is not satire]

Earlier in the year of 2021 after the General Election I calculated that the President has about 179 Presidential Advisors. This means the National Resistance Movement Chairman and Commander-in-Chief Yoweri Tiburhwa Kaguta Museveni has close to 180 of them.

We know this office and position in government is to keep them on his payroll and be loyal to him. They are not there to enhance the government or policies in general. If that is said, it is a lie, because no Presidential Advisor have ever made a legislation or something to vote over at the Parliament. Unless, a Presidential Decree or Directive have been written by them and suddenly the President has signed off from.

President Yoweri Museveni last week lectured his advisors on their role in national development and transformation, tasking them to have patriotism for the country while executing their duties. The President was speaking during a workshop for his advisors at the National Leadership Institute (NALI) in Kyankwanzi” (Chrispus Mugisha – ‘President Museveni advises his advisors on the need for patriotism’ 20.12.2021, Nile Post).

We should be worry about the state and the State House when they are wasting government funds on this. Having lectures or a work-shop for his Presidential Advisors. They are just there to listen to him to become patriotic. Their patriotic spirit is to be loyal to be President.

That is the lesson here. They were gathered to listen and follow his guidance. That’s all there is to it and it’s tragic. Just imagine these are on his payroll … gets allowances and vehicles. The state are even covering offices, which they are renting to them. Therefore, it is just a bit too much…

We haven’t seen any sort of help with these Presidential Advisors. They are just cronies and a large part of patronage, which is helpful for the President. However, it is not helpful for the costs or the expenditure of the state. Therefore, this is just wastage to keep people in line and loyal to him.

Just think about it… these folks are not doing anything, but still on the State House payroll. They are not delivering anything and their duties is just to prop-up the Presidency. We have seen this all before and it’s not changing today.

The President cannot act like this any different. It just another day for the NRM and the President. His trying to make seem like it is a game-changer. When everyone knows the deal and why they are there. Peace.

Chinese Embassy in Uganda: Remarks by the Spokesperson of the Chinese Embassy in Uganda on Some Media Reports Alleging that “Uganda Surrenders Airport for China Cash” (28.11.2021)

Opinion: Financial distress and defaulting on loans causes the state to loose Entebbe International Airport

China is most likely to take over Uganda’s Entebbe International Airport for default on debt repayment. More of Uganda’s national assets are at stake of seizure because of the unrealistic and endless borrowing which has mountained public debt to UGX65 trillion” (Kingdom Media Uganda, 25.11.2021).

The Deficit Financing can only take you so far. The bloated and crony capitalism can only keep you going so far. There been years upon years with loans for all sort of development projects and infrastructure upgrades in general. The loans have gone to buildings, roads and the only international airport in the Republic.

The National Resistance Movement and President Yoweri Kaguta Museveni have over the years promised they have a threshold and control of the amount of debt. However, in 2021 after a downturn and lack of generating revenue. The state is defaulting on it’s loans. The state has taken out loans it cannot carry. Loans are not only the loan, but the services for it too. The loans are with interests and with additional fees, which was accepted on taking the loans. These loans are now maturing and the grace period of not paying interests etc.

The Ministry of Finance, Planning and Economic Development (MoFPED) have promised they can service it and has it under control. They have said it would be used properly and well-spent funds. Nevertheless, the loans are clearly piling up and the state doesn’t have the revenue to pay them. They have recycled to many bad-loans and now they comes to haunt the Republic.

The state is paying for ghosts, huge patronage and a local government structure that is dilapidated from the get-go. Since, the state has such excess of expenditure, but they have to keep that to breathe life into the regime. This is why the state has to spend and use funds like a drunk sailors in port. Just awaiting to be robbed by a bystander or waste a salary at a gentleman’s club. However, this is a serious government and not a drunk lonely man who has been at sea for months on end.

It is tragic, but there been warnings. The Sri Lankan debt to China and what happened there should have been a “red flag”. What happened in Zambia as well should be another story of which the Ugandan government should have reacted too. However, that is clearly asking to much, as kickbacks, graft and grand corruption is part of the diet at the Entebbe/Nakasero State House. They are just eating and doesn’t care about the ramifications of it. Since, the cattle in Rwakitura farm is better taken care off, than how the budgets are financed. This is the sad reality of the Republic in 2021.

The amount of loans and debt will cause more distress. Why? Well, there is no future or ability to clear the debt without any proper revenue. The state needs to find new measures to get fiscal responsible. However, the state cannot just tax things and start to tax people for their every transaction. Because, with doing that… they are taking away money, which will generate more revenue and even more possibility to create new businesses. Yes, the state gets more taxes, but they are also creating a wormhole where there is no option to generate any real income. Since, if you have any transactions, the percentages of money is siphoned by the state and instead of getting invested to make new markets.

Therefore, the state is forced to change the way it operates. However, by doing so… the NRM and Museveni will have to drop cronies. That is something it cannot afford, because they are to eat and not to make the Republic better. This state cannot sustain itself …. and it’s own fault that it defaults on loans. Nevertheless, the citizens and the taxpayers are the first to be hit by this. Not the ones who has issued or taken out the loans over the years. They are the ones that has to fix it or for generations pay the Chinese for ordinary services. Because, the current regime wants SUVs and envelopes to cover for funerals or pay for medical tourism. Peace.

Opinion: 7 years down the line and the China Exim Bank loan to upgrade Entebbe Airport can become a liability

The State Minister of Finance, David Bahati assured the legislators that the implementation of the project will be monitored to ensure the funds are properly utilised” (The Observer – ‘Parliament endorses Shs 680bn Entebbe Airport expansion loan’ 30.10.2015).

It is now evident that the Government of Uganda and the National Resistance Movement (NRM) might struggle with a loan it took out in March 2015 from the China EximBank to fund upgrades of the Entebbe International Airport. We are now in October 2021. There was forewarnings about taking expensive and extensive loans to build and development infrastructure projects. The ones who was steadfast and worried about the rate of loans the state took out was silenced. The state had a plan and initiated with thresholds of loans the state could borrow.

Alas, the state is starting to struggle to cope with all of these loans. It is not shocking as the NRM and the state have been busy with deficit financing it’s budgets to balance it. They are operating with a higher expenses than it has domestic revenue. So to go from red to black the state borrows vast sums from various entities, both locally and internationally. These are taken out with interests and with that… the debt burden is ballooned and at one point… the creditor will either ask for the collateral or make an agreement to cover the funds to cover the defaulted debt. This is what that could happen to Entebbe International Airport…..

Here is how the story went…

How the loan was made:

On October 8, 2014, Uganda’s Civil Aviation Authority (CAA) and China Communications Construction Company (CCCC) entered into a contract for the up grading and expansion of Entebbe International Airport (Phase 1). To access funding for the project, the Government of Uganda (GoU), represented by the finance ministry, signed a concessional agreement with EXIM Bank of China dated March 31, 2015 for the principal amount not exceeding Renminbi 1.26 billion (about $200m) and interest to be charged at a rate of 2% per annum” (Africa Tembelea – ‘AG Muwanga raises queries on Entebbe Airport Expansion’ 12.01.2019).

How CAA looked at the agreement in 2019:

Current overall progress for the upgrade and expansion of Entebbe International Airport is at 52 per cent as opposed to the planned progress of 55 per cent. This is commendable progress. At one point in time, there was a delay in release of money from the Exim Bank of China to the contractor (CCCC), which led to a slight delay that has since been resolved. There was a difference of opinion between Exim Bank and the Government of Uganda on the loan agreement clauses. This necessitated the Government of Uganda and Exim bank of China to renegotiate the terms. This was done and the matter resolved amicably. The contractor has since increased resources committed to the project including manpower and equipment. The rainy season also affected works” ( Dorothy Nakaweesi – ‘Renegotiating loan terms slows Entebbe Airport expansion’ 03.06.2019, Daily Monitor).

Xinhua reports:

Under the Belt and Road Initiative, construction works started in May 2016 after Uganda acquired a 200-million-U.S. dollar loan from the Export-Import Bank of China (China EximBank). The project is scheduled to be implemented in two phases, said China Communications Construction Company (CCCC), which was contracted to design, construct and manage the project. The first phase, with three-quarters finished, involves construction of a new passenger terminal, a new cargo complex, and upgrade of two runways and their associated taxiways, rehabilitation and overlay of three aprons. “For the new cargo building, it is about 10,000 square-meters and when it is finished, it can handle 100,000 tons of cargo per year; for the new passenger terminal building, it is about 20,000 square-meters (and) can handle 3 million passengers per year,” Li Qinpu, CCCC project manager told Xinhua in a recent interview” (Ronald Ssekandi – ‘Feature: China revitalizes Uganda’s aging airport to carry more int’l traffic’ 15.10.2021, Xinhua).

Brian Luwanga tweeted today:

EXIM Bank of China can take over Entebbe Airport in case Uganda fails to pay back a loan of 740 billion shillings ,this has been unearthed by COSASE while meeting Finance Minister Matia Kasaija. The loan was advanced to Uganda for upgrade of Entebbe Airport(Brian Luwanga, 28.10.2021).

It is now a shot that the state promised was safe and would be able to liable for. The state said it would be able to repay the Chine EximBank and service the debt. However, it now seems likely the state is failing to pay back the loans. This means the state is defaulting in it and depending on the agreement. The creditor will have power to cover the debt from the debtor. In this instance, the state has to give collateral or any other sort of value, which will practically cover the lost debt and get returns on the loans issued.

This here is a sad story, but they could have done things differently. Even MPs and some said the state should use other sources to raise the funds for the upgrades of Entebbe International Airport. There was one MP who said the state should borrow this from the NSSF to cover it. Alas, that wasn’t the case and now we are here.

We shouldn’t be shocked at this current rate and with the trillions of shillings of debt. The debt isn’t only the amount you get directly from the lender, but you will also pay additional fees and interests. Meaning the loan isn’t just the fixed funds, which the debtor is receiving, but also the costs of servicing it too. That is what the state has do to when it takes these sort of loans and financial instruments.

The general public should worry about this. Because the state has taken out so many loans and these could it easily default on. The state needs domestic revenue, but is running on huge burden of running costs. While it doesn’t have a growing economy or financial structure to cover the deficits. That’s why the state has taken out loans to cover these expenses and this is why they are defaulting on it.

This was inevitable and the state has to restructure itself. Also, ensure it only has expenses that it can cover and just continue to add debt until the sky. Now the rainy days are coming and the loans taken out in recent years will come to haunt the state. This will hurt the state even more and the spiral of depreciative loans will eat up the budgets, which it is already doing. The rate of paying down on it will be destructive, unless there is a sudden miraculous change of financial fortunes. Alas, await more tragedies like these, as the Entebbe International Airport is the top of the ice-berg. Peace.

Opinion: The Son of Kaguta lied through his teeth

The NRM has never thrown stones. Those who faced our fire were those defending illegitimate interests like dictators and those denying the people free and fair elections like NUP which is an attempt to resurrect KY or the likes of Amin”Yoweri Kaguta Museveni (14.08.2021).

For some reason on the National Address of the 14th August 2021, President of 35 years acts like there never been anyone tortured, extra judicial killed or held without a trial. The President since 1986 acted like no one has been kept in Safe Houses, incommunicado or detained for political reasons.

He act like we don’t know the past of criminal acts and human rights violations. That we haven’t seen the use of military to settle civilian matters. Like we haven’t seen the use of intelligence organizations and other armed agencies to intimidate and silence the opposition. We are just supposed to forget that and that this government uses tear-gas, live-bullets and armed forces to stop demonstrations and protests in general. Therefore, we know today’s speech is nonsense.

Still, here some quotes to remember, as the lies they are:

We even never wanted to kill Idi Amin and Obote. Assassinations are a bankrupt method used by people not sure of their political positions. All the people that have been fighting us (NRM) are defeated- just politically” (Museveni, 14.08.2021).

There should be no killing of any Ugandan for any reason other than in war or battle or when condemned by the court” (Museveni, 14.08.2021).

We defeated Lakwena, Kony and ADF. We can not fail to cope with cowards using boda bodas to kill people” (Museveni, 14.08.2021).

When you kill someone, it means that his argument is so powerful that you cannot respond to it. The NRM is absolutely sure that whatever we do is correct” (Museveni, 14.08.2021).

He sure knows how to paint a portrait and act innocent. However, anyone who knows and his history. Knows that his lying. It is disgraceful and abysmal. Like the “Panda Gari’” of 2020 and 2021 have been forgotten. All the NUP cadres and leaders who lost their lives, been abducted and kept incommunicado. Also, the use of security forces and licenced killers to get rid of the opposition.

With the knowledge of extensive amount of ungazetted “safe-houses” and use of torture in prisons. Also the methods of interrogation used by the Police Force and other security organizations as well. That’s why his lying and its proven, again and again.

The same authorities that is shooting directly at civilians and even killing people at marches in and around funerals of the opposition. There is no boundaries of intimidation or use of harassment against the ones that defies the state. That’s why I know this man is lying. He has lied since he gotten into office and not taken responsibility for the actions of his party or his government.

The President wants to act like he got no blood on his hands and never taken lives. While we know that his own political career is built on skulls of others. We know his drained in blood and the ghosts of the dead is haunting his dreams. They are all encircling him and that’s why their legacies is connected to him. All the ones from the end of 1970s till 2021.

There are so many lives taken, hurt or touched by this government over the years. Civilians, activists, high ranking officials and dissidents in general. This is why the President cannot run away from it and he cannot rewrite history. Since he knows perfectly well what he has done, ordered and ensured over the years.

Museveni is a warlord, a tyrant and a man who is a bloodthirsty goon in office. He masks himself as a statesman, but that is another lie. As his the General, Guerrilla and Rebel who took power never let go. That had to cost the ultimate price for so many… just so he could rule supreme and be His Excellency.

He thinks these lies can fly and people buying it. That isn’t true and everyone should know this. Peace.

Opinion: General Museveni needs 179 advisors…

Today is yet another day for appointments of the President. He appointed both Permanent Secretaries and Presidential Advisors. The General is really busy. The state never retires or fires Presidential Advisors. They are just there and never heard of it.

That’s why today is special when the President have appointed 4 more Presidential Advisors. That’s why I take the calculation from earlier this. A passage I wrote and counted with the methods of the past. Since, it is just rejuvenate old numbers and gets new additions. You never hear of anyone losing it or not having the position. That has never happened as long as I have been alive.

Earlier this year I counted it like this:

That is without counting the people hired, working and being civil servants. Neither looking into all the Presidential Advisors, which by 2017/18 was about 163. He has appointed others since then and in 2020 was about 170. Now there is appointed a 5 more. Meaning the amount of Presidential Advisors is about 175” (Minbane – ‘Opinion: The bloated structures of the Cabinet [and just showing a few ministries(!)]’ 09.07.2021).

With today’s appointments the tally after my count is about 179 Presidential Advisors in various capacities. You can wonder how much advice they really give or if hey are even needed.

The President has 180 Presidential Advisors in 2021. That is my calculation at this point. Because, that is what I have. The President have appointed all of them and none have left in dishonour or sacked. None. Nobody.

That’s why you can wonder why they are there. They are appointed and paid for. These folks is cashing in salaries and getting allowances.

The National Resistance Movement (NRM) and President Yoweri Tibuhurwa Kaguta Museveni needs 179 Presidential Advisors. This is his huge entourage … and cronyism. If something is called a patronage. The Presidential Advisors are now edging super close to be about 200 people. He just needs a few more rounds of reshuffles and begging letters. Before he has hired 200 advisors.

It is unreal to have this many and the costs of this must be foolishly big. This is a money-pit to keep people happy and paying them to be loyal to him. Because, it is not like … these people do something important or help service delivery.

They are just there to cash a check and go home. Peace.

Opinion: Mr. President needs more supplementary funds than the average referral hospital

Today, the Ministry of Finance, Planning and Economic Development (MoFPED) in the first week of the budget year dropped the first supplementary budget of the budget year. What is striking in this one and the International Monetary Fund (IMF) is loaning billions upon billions of shillings for a possible financial recovery after the pandemic.

However, the President is now getting more funds in the Supplementary Budget than the 15 referral hospitals. Yes, the Ministry of Health getting a huge slice of the pie this time. Nevertheless, the fine print shows that the President needs 6,964,000,000 to fight COVID-19. He needs 6.9 billion shillings on his own to combat this.

The 15 referral hospitals, which has been deemed fit for additional funding on the other hand gets the handsome sum of 575,500,000 or 575 million shillings. In total 8,625,000,000 or 8,6 billion shillings. That’s the total direct budget supplement from the state to 15 hospitals in the middle of a pandemic and the second wave.

The funds given to the hospital barely have over 1,5 billions shillings more than the President. However, each hospital gets less funding and they are on the frontline. It is not like the President is giving people vaccine in Kawempe or in Makindye. Heck, he will not even do it in Ankole. The President is rather safe behind bulletproof glass in his vehicle, than ever giving a helping hand. Unless, there are some elders willing to bend their knees for him and kiss the ring for his majesty.

This is a supplementary budget to fight COVID-19 not to further salaries for additional Presidential Advisors or whatnot. Neither it is to cover expenses from the general election or what else you can imagine.

It is just baffling that the state prioritize this way. Just like the External Security Organization gets additional 1.1 billion shillings and Internal Security Organization gets 4.7 billion shillings. You can wonder how these organizations combat this deadly disease. In combination that the Ministry of Defence is getting the 10.4 billion shillings and the Uganda Police Force for some reason has the grand total of 19 billion shillings. This is all security, tear-gas and to enforce the Standard Operational Procedures SOPs or the Presidential Directives plus keeping the officers and soldiers happy during the lockdowns. Because, what does these entities has to offer in the combat of COVID-19?

That is beyond the point, right? Just like the Office of the President has little to nothing to do in the ambition to stop the spread. This just shows how mismanaged the whole thing is and lack of priority. When such vast sums of money can be spent on these parts of government. This is not to procure or get vaccines. This is not to buy PPE or produce more oxygen. This is not train more nurses or doctors. No, this is to boost the fragile ego of one man and secure his reign. Why else would he spend billions on the State House and Security, as a measure to fight COVID?

He is not kidding anyone, only himself and his fellow cadres who eats this nonsense for breakfast. This a mockery and public wastage at it finest. Peace.

Uganda: Statement by Finance Minister Matia Kasaija on IMF Executie Board Approval of extended Credit Facility for Uganda to Support Post-COVID-1 Recovery (30.06.2021)

Common Leauge of Ugandans in the Disapora: Uganda IMF US$1 Billion Planned Disbursement (24.06.2021)

Opinion: Museveni and the NRM is in a ill-advised debt-cycle

The National Resistance Movement and President Yoweri Kaguta Museveni have created a negative spiral of debt. The state have taken out more and more debt over the years. The CSBAG, Uganda Debt Network and other organizations have spoken out about this. As the state have the need to pay more in interests and it takes away more from the general budget.

Now the state is saying it has 65 Trillion Shillings in unsustainable debt. That is happening after the Parliament have had sessions over the last few years. Where the only thing they do is to vote over debt and approve more loans to the state for various of development projects, roads and you can wonder if it does anything.

The state is now owning a lot of money. More money than it usually uses in a state budget. The state budgets of late have had half of the revenue coming from domestic taxes and the other either grants or loans. There is also additional supplementary budgets, which is coming in cycles during the budget year. Which is adding more debt… and creating more debt.

There been worry about the rise of debt, but the NRM and the President has said it has been done within reason. However, that is now the chickens coming home to roost. There is enough problems ahead and the state has created this financial conundrum. It has been done deliberately over time.

The Parliament is on the regular issuing now loans… and taking new loans. While hoping one day they have the revenue to actually do these things. The state is spending money and funds it doesn’t have. That is an unforgiving task… and the NRM cannot run away from this.

The NRM have created problem. The appointments of the President is doing this. The Bank of Uganda (BoU) and Ministry of Finance, Planning and Economic Development (MoFPED) should have seen this coming. They have been looking over the expenditures and the interests rates. They know when the grace periods of the loans are over. These folks are the ones who has the oversight and supposed sound judgement to advice the Parliament to accept all these loans. However, that is clearly not the case.

The state is crippling its budgets, overspending and over-loaning funds over time. Now, the creditors and debtors wants their pieces of coins back. They cannot bail on it or default on it. Then the state will not be trustworthy and be credible as a economic broker. The state is clearly struggling and lacking funds. That’s because they are having trouble to raise domestic revenue and have to high costs.

This is a self-inflicted ill-advised debt-cycle. A government not listening to CSBAG, Uganda Debt Network and others. The NRM and Museveni should have done that. It will be harder for them to get solidarity this time around. As the Museveni era of now is destructive. The state actions against its own citizens and totalitarian acts. Is not the ones who makes outsiders forgiving like it did in the early 1990s when Museveni was part of a new group of leaders that the West had hopes in. However, that boat has sailed and the truth has come out. That is why Museveni is still there and depleting the state like there is no tomorrow. This is why the debt is rising and its run without any balance of the budgets. That is why the debt is rising and there is no way out.

They want debt forgiveness. However, getting that now will be a feat, but not sustainable either. As this state will just take out new loans and not re-coup or try to absorb the lack of revenue, which is causing the problem in the first place. That is why the state doesn’t have any liquidity or equity to trade for the lack of revenue. It is just a sinking boat and the captain seems clueless…

Deficit financing can only take that far and now its at the end of that journey. Peace.

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