Today, the Government of Tanzania have together with the Government of Uganda signed off to a Host Government Agreement (HGA), also together with Total, the supposed builder of the East Africa Crude Oil Pipeline (EACOP).
Today, all the years of waiting, stalling and finding measures of taxes pays-off. We can still wonder what is basic fee structure and what is the price of taxation of the extraction of oil exploitation in the Lake Albertine basin. In the same regard, we can wonder is the specific route for the pipeline and what consequences it will have to nature, reserves and national parks. Because, the drill itself is just in the near proximity of Murchinson Fall National Park. Before it will continue or pass through other untouched areas of both Uganda and Tanzania.
There is still not answers or openness about the deals in the regards to the Uganda National Oil Company (UNOC) and the Tanzania National Oil Company (TNOC), in combination to the ownership and licences of China National Offshore Oil Company (CNOOC) and Total. Therefore, there are plenty of stakeholders and everyone wants to profit on the resources.
With both Republics signing of the HGA agreement and preparing for the Final Investment Decision (FID). The building of the pipeline and the industry can start off. This has also been stopped by taxation and the questionable acquisitions of exploitation licences in Lake Albert. Therefore, the whole Heritage and Tullow taxation case and the costs it had for Total to pay off that. Is still not shown to the public or if the Government of Uganda has forgiven the past company to give way. While Tullow surely wanted profits for their time and the valuable licences they had gotten rights too in earlier rounds.
What is also worrying to me? Well, the deals are not public. The agreements between the Corporations and the Republics are practically unknown and only mere fragments is out. Just like the power-sharing of 60% to Tanzania and 40% to Uganda. Is still not saying much, considering this will be still carved up by Total and CNOOC too, also some sort of deal with UNOC and TNOC. These will not operate on charity, but as a benefactor of the Republic itself.
The public should know this, because it is public resources, state resources and oil exploitation on public land. The companies are using licences and also the same licenses to transport the crude oil in the pipeline from Lake Albert to Port Tanga. Therefore, it is needed to get this knowledge to show the price, the agreements and the possible perks. Because, we don’t if they even have strings or not.
We should wonder why its confidential and kept a secret. The companies should also be displeased, unless they like to exploit without any transparency. Because, these deals and arrangements haven’t been made transparent or with accountability. It has been done in the chambers of Entebbe and in Tanzania. The general public will only see a fraction and not know the full extent.
That is a deliberate action by Presidents and their handlers. The UNOC, TNOC, Total and CNOOC can operate without to much scrutiny and just enjoy the cheers. There is a need to know, but don’t expect it. Since, the GoU and GoT haven’t delivered this in past, neither has the GoU showed anything from the previous deals with Heritage/Tullow. Why should they suddenly change of heart?
I don’t think so… unless there is a sudden miracle. If not … if there is a shady deal and one company feels used and will take it to an international court. Then, we will see some evidence of what went down. However, until then… we only know the bits and pieces. Peace.
Last year in September 2019, the Farm Down Agreement of Tullow Oil was supposed to be traded to Total E&P Uganda. This was a long and prolonged negotiations, as the British Tullow Oil has been in dispute of taxation and payments of fees the Government of Uganda, which was deemed as the “Presidential Handshake”.
What happen yesterday with the Financial Investment Decisions (FID) of Total, as it has taken over the stakes of Tullow Oil. While agreeing on added terms in combination with the China National Offshore Oil Corporation (CNOOC) to drill after petroleum in various of blocks on Lake Albert, also build the petroleum pipeline from Hoima to Port Tanga, Tanzania.
The Port Tanga and Pipeline agreement was sealed in 2017 between the Government of Uganda (GoU) and Government of Tanzania (GoT). That after lots of meetings and consultations between the parties. There was some who even tried to get it Port Lamu in Kenya, but that was ditched. Also, causing a rift between Dodoma and Nairobi.
Now, the next step is that Total and CNOOC is able to get a Host Government Agreement (HGA) for the East Africa Crude Oil Pipeline (EACOP) project. That was agreed by the parties in Entebbe for the territory of Uganda, but it is not sealed with Tanzania.
Though it should be in the interest to sign an agreement with President Magufuli and the CCM. Now, that they have fixed the first part and the licences to drill on Lake Albert. Total and CNOOC needs the HGA in Tanzania too. That will be beneficial for the Republic there too.
This has been a long time… the first reports of agreements and production licenses to blocks on Lake Albert in early 2000s. This was agreements being made between the government and the Tullow/Heritage and ENI as well. Which later has caused rift between the companies and the Republic, as the Oil Companies wasn’t willing to pay taxes and the Uganda Revenue Authority (URA) needed to win a Court Case in 2014 to get taxes owned paid by Tullow, as they had to cover the loss of taxes from their acquisition of Heritage Oil.
So, the news today is big. Maybe, the President got another Presidential Handshake, as the Tullow Oil Taxes case brought a lot of kickbacks. The deals sealed between Museveni and Total is a secret. Therefore, only the agreement of what it does is in public, but not the costs, the tax-grade and the limitations of it. Total and CNOOC can have gotten it for cheap for all we know.
That is something for the time to tell. Now, the Lake Albert Basin, the Lake Albert Blocks for drilling is sealed, which has been in question and awaited a verdict for years. The same has the years of a agreement for a company to build the pipeline and pay the rates for having the operation going.
Now, there is one final agreement that needs to be sealed in Tanzania. By all means, the Republic’s needs also to settle the routes, the land-acquisitions and other arrangements too. While the other HGA is necessary to get started. As the process is now moving. The initial agreements are made, but the companies still needs goodwill elsewhere to make this pop-off. This will be years in the making. As the state of Uganda is scheduling a Oil Refinery in 2023, but that depends on everything else goes as planned at this point.
And in this business, at this point, everything that can be stalled and discontinued can happen. Even, if one of the companies stops seeing the financial viability and lack of profits. Than, they might suspend and try to sell the Producing Licenses Agreement to someone else again.
I wouldn’t be shocked, if Total bails out or something. There been so many companies involved and we are still not starting production. This being in the works since the early 2000s with the modern day deals and new arrangement for petroleum activity in the Lake Albert basin. That is why I am reluctant. Because, at any given moment, someone gives way and it sto
If there was one National Resistance Movement (NRM) Candidate for Member of Parliament (MP) that I would thought would cease to exist, it would be current day Vice President Edward Ssekandi. Who was running for another term in Bukoto Central County in Greater Masaka.
So, to know that he again get a chance to run in a General Election in 2021. A man who has been an MP since 1996. His been the VP since 2011 and this would continue as long as he got ambition to succeed the President. By all his actions and his way of being in the wind. The VP is secured and can eat like crazy.
VP Ssekandi is a ghost and irrelevant. Still, he was able to get recognition in his constituency. This is why its weird that nobody else would win over him. Someone who would go door-to-door over the years. Steady campaign and be recognized.
Everyone knows that VP Ssekandi exists. No one can state what he has done or delivered. Ssekandi is just a mirage, someone behind the scenes who happens to appear every blue moon.
That’s why its weird that he even get voters behind him. VP Ssekandi might be able to shake a few hands and say a few words at a burial. Nevertheless, his not a great lawmaker, neither is he a representative for change.
VP Ssekandi is the one who doesn’t make a fuzz, doesn’t make a difference and doesn’t even utter a public word. Unless, it is a tribute and a speech for the deceased. The Bukoto Central has initially given way to another public speaker to officiate events. Yes, his not won it yet, but don’t expect shock in the up-coming elections in 2021.
This man will win there too. If his on it, because he knows his the VP for the President for Life. The one who has no ambition and only serves his master. The VP for the bad days and for the glorious occasions. However, he will never be there to say anything to rock the boat. Neither, will he cause any controversy or even issue a statement on a scandal.
This man is the true testament to live ghosts. The silent whisperer and the one haunts the VP position.
Ssekandi is like an eidolon or a poltergeist, even if he is a real person. Because, he is usually not seen or in public. Even if he is a high ranking government official and a MP.
It is hard to think he is a mortal, but immortal instead. A supernatural person, who gets re-elected and continues to be spirit flying over the Republic. For some reason, the state, the party sees him as useful.
That’s why he “wins” elections. Because, it cannot be for his charismatic persona or his track-record. Because, anyone who has made a motion, petition or even an article in New Vision has done more than this man. Peace.
“f you are not working for the enemy, you cannot go on the social-media and demand that we publish the names of the personnel of UPDF, their ranks and their jobs. The only thing we can say and what you know is that recruitment into the Police and UPDF is by quota. Beyond that, leave our Army alone and I mean, leave our Army alone” – Yoweri Kaguta Museveni (03.09.2020).
In the response the President wrote today. He addressed a lot of matters. That is why I am making a second post on it. This time about the Uganda People’s Defence Force (UPDF) or the Army. We are seeing how the President is defending it. As there been inquiries and questions about how the army is a “western” Ugandan enterprise filled with high ranking officials from there. This is something Museveni doesn’t want to properly address.
I’m not shocked he is dismissing it. That his calling people enemies for doing so. Because, if the UPDF isn’t filled with loyal cadres. He would be frightened, as his popularity in the public is frail over the years. The President needs the army and armed forces, because the public isn’t behind him anymore. That is why the President doesn’t accept accountability or transparency in concern with the UPDF.
“Coming to the Armed Forces, especially the Army, my advice to all of you, is that leave your Army out of that nonsense. The NRA, the UPDF are Armies of sacrifice, all the time for no pay or low pay. They (we) put their lives on the line. Therefore, leave UPDF out of the circus of sectarianism. Fighters, real fighters, never have interests in tribes or religious sectarianism; but in comrade-in-arms” – Museveni (03.09.2020).
Because, we know the UPDF have a history of selective recruitment and promotions. If the President wanted to be against sectarianism and be open to all tribes of the Republic. There wouldn’t be an issue, if it wasn’t something there.
This has been known for a long while… the UPDF and the army is filled high ranking officials from Western Uganda. That is not just mere speculation, but facts at this point. If it wasn’t so, the President would say so. However, he doesn’t want people to question the reasons for it.
He wants the people to accept it and leave it alone. It is wrong to look into the armed forces and its structure. That shows that the President fears scrutiny and transparency about this. He wants to stop questions and silence it.
The president knows his only way to keep power is having the loyalty and the control of the army. If he looses that at this point…. he will loose power and it will end his reign. The President needs the soldiers, generals and armed forces all behind him. He needs to have their backs and not loose them.
That is why the President doesn’t want anyone to look into the army and what it does. The UPDF is therefore untouchable… at least in the eyes of the President. However, that is not good. As the UPDF should defend the territory and its citizens. Not be a weapon of intimidation or tactics to scare the public. It is there to defend them.
If the President is that defensive and scared of looking into the army. You know his in trouble and worried about the truth. He should be open, transparent and accountable about it. Alas, his not, because he knows… as we know that its not run like it should. Peace.
“Corruption is first and foremost ideological. This is because the corrupt don’t know how to be prosperous sustainably. They don’t look for prosperity sustainably. They want to be rich at the expense of society. They are parasites” – Yoweri Kaguta Museveni (05.08.2020)
When the State House and President Yoweri Kaguta Museveni launches “Expose Corruption Campaign” the man is initially exposing himself. All tides and waters goes to the shores of the State House. The deals, kickbacks and envelopes have an origin of the “high above”. There is no major corruption scandal without some touches from the head of state.
Ministers can run big schemes, Gen. Salim Selah can do whatever, businessmen can launch their businesses as long as there some sort of arrangement. That is what is happening. Everyone knows it, but the President can act like its not a big deal.
While the biggest corruption scandals has gone down without any proper litigation and arrests. This being Ministers who has made fake tenders and waste public funds. That has made roads expensive, medicine vanish and made procurement of cars into national corruption scandals. While, the Prime Ministers, Ministers and associates are all involved in it.
That is why this “expose corruption” is a farce. The President is doing this as a publicity stunt ahead of the polls and the campaign season. However, he has started numerous of organizations and entities to beat corruption. Nevertheless, there is always some shillings who disappear and goes missing.
Just think about this, he calls himself a insect and a bloodsucker too. A leach and a parasite … that is not a way you should describe fellow human beings. However, Museveni have done this plenty of times. Because, he cannot help himself.
President Museveni have used all tricks of the trade. Made dozens of laws, government institutions, but they are all pointless as they are never aiming at the big-fish. The biggest fish being himself. The National Resistance Movement (NRM) will never target itself, but blame others for it.
That is just his common tactic. He has used this trick before and this campaign will not change anything. It is a publicity stunt… and will not change a thing. Peace.
“gold is gold, and they simply need gold” – Gold Smugglers (UN, 2020, P: 19).
The newest UN Group of Experts Report on the Democratic Republic of Congo (DRC) was just recently published. This article here will focus on the gold smuggling operation and the amount of smuggled gold to Uganda from the DRC. This report really states the amount and the way the Ugandan exporters are trading the gold from there. The direct connection between these Republics are clear. This has been stated before, but not to these levels.
If your thinking this sort of business is clean and done after protocol. Then this report will shatter and break the glass. This report is explaining and showing more intelligence on how its done. We can easily see that the Ugandan authorities and the Entebbe Gold Refinery are only having its ability to be trading and minting the gold on the basis of gold smuggling from the DRC.
“The Group estimated, using information published by the Ugandan authorities, that over 95 per cent of gold exports from Uganda were of non-Ugandan origin for 2019” (UN, 2020, P: 20).
The next part is a proof of a way of illegal export and gold smuggling. Where there is one company operating doing so and how they are registered. While other bodies are claiming they are fraud. This shows what sort of ways the traders, smugglers and exporters are doing to be able to deal with the gold. What is really striking is the way the supposed fraudulent corporation are using all sorts of means to operate. They are even using bank accounts for other companies, which in the end might be a sign of illegal activity. As they are keeping everything of the books.
Vaya Forex Bureau forgery:
“The Group found however that during the reporting period, sanctioned entity Uganda Commercial Impex (UCI) Ltd (CDe.009) retained an active business registration according to publicly available Uganda Registration Service Bureau information. The Group also noted that, according to an official ICGLR gold export certificate, Vaya Forex Bureau in Uganda acted as an intermediary in an official gold export (see para. 87 of this report). Incorporated in 2007, the two shareholders of Vaya Forex Bureau were Vaya Kiran Rajendra and Vaya Vipal Kumar Maganlal, family members of Rajendra “Raju” Vaya, owner of sanctioned entity of Machanga Ltd (CDe.007) (see S/2015/19, annex 63). The Group wrote to Vaya Forex Bureau but did not receive a response by the time of writing this report. Finally, the Group noted that, according to publicly available Uganda Registration Service Bureau information, Sameer Bhimji was a signatory on the bank accounts of The Bullion Refinery Ltd (see S/2018/1133, para. 97) until 23 April 2019” (UN, 2020, P: 72).
“AGR told the Group that “a so called Vaya Forex Bureau” was unknown to the company and did not hold an account with AGR. The company further stated that they considered that the ICGLR document may be a “forgery” or “fraud” and that the company had already been the target of several such attacks. The company further committed to preventing forgery or fraud, and to reporting such activities to relevant Ugandan authorities and to relevant authorities abroad, as well as “instituting criminal and civil proceedings against the perpetrators”” (UN, 2020, P: 101).
What is more interesting is that the AGR in Entebbe has switched owners and is also registered in the Seychelles. What is known about the Seychelles in this manner is that they usually is confidential and tax-exempt to a degree. This means the AGR is run most likely in a tax-haven by its owners. While they are earning their profits. That is how I crack this one down. They wouldn’t have registered the company there after selling its stakes. If there wasn’t any benefits in doing so. Right?
Here is the information about AGR:
“The Group established that, on 9 February 2018, African Gold Refinery Ltd sold its shares to AGR International Ltd, a company registered in the Seychelles at Global Gateway, 8 rue de la Perle, Providence, Mahe, Seychelles (see screenshot below). The Group wrote to the authorities of the Seychelles, who confirmed that AGR International Ltd was registered in the Seychelles at the address listed in the Uganda Registration Services Bureau documents” (UN, 2020, P: 107).
We already know the AGR has connections to the President and his family. Therefore, the move of liabilities to Seychelles is to safeguard the profits in a tax-haven. There is no other way to see it. This is so the future state will be in more trouble to follow the money and also get the accounts frozen by authorities.
This is it for today. Peace.
You want another rap? Nah, didn’t think so. Even if President Museveni wants a BOP. Not a DaBaby track or anything. His just approved the US$500 million dollars to the Republic. This was reported earlier this month and he approved it on the 6th of May 2020, but stamped by the Ministry of Finance, Planning and Economic Development (MoFPED) on the 11th of May 2020.
What is unique here is that this loan is given on the idea of “Balance of Payments”. Economist would know that this to cover the deficit and the balance the budgets. This is to ensure the state has enough revenue to already cover the deficit it has. That is why grants and loans comes to ensure the levels of revenue covers the spending. This means that the state has spend a hundred dollars, but only had 50 dollars in liquidity. So, to ensure the accounts are balanced, the BOP comes in and fix the shortfall.
Museveni writes this in the letter:
“The money that goes to the Bank of Uganda is for “balance of payments support”. “Balance of Payments supports” does not only mean helping the country to “import more” but must also mean helping the country to “import less” by manufacturing these products here. With this undertaking, I approve the loan” (Museveni, 06.05.2020).
Because what the support does in the instance of the hundred dollars budget with a shortfall of 50 dollars revenue. The BOP support is the missing 50 dollars and makes it zero. Meaning, the accounts and financial flows should turn into zero. That means with the budget with its expenditure and its revenue its should be a nil or zero sum game. Therefore, when the President claims this helps local industry and less imports. I don’t see it.
Especially, if this is a BOP. Because, a BOP is a fixated way of balancing the budgets, not secure more trade. Its to cover deficits between expenditure and revenue. This isn’t a magical sphere of happiness and joy. This is budgetary measure to cover the shortfalls and lack of domestic revenue. To cover expenses that appeared or was already budgeted. Therefore, the need of Balance of Payments from the IMF to cover those.
This can be seen as a Financial Inflow to cover the deficit.
-100 dollars budget/Import
+50 dollars revenue/Export
+50 dollars Financial inflow (BOP Support)
That is why, when the man says like this. Its a game of balancing the budget. Not putting a wand on the thing and swiftly changing things. This is just a financial measure to cover a deficit. A short-term solution to a shortfall. That will not solve anything, but by time. Not cover debt, not create a market nor make a big difference. Its just covering expenditure. Nothing else.
The President can make it seem so, but that wouldn’t be a BOP. That would be another instrument and another measure. Where the funds was actually meant for investment. This is covering the basics.
Let me end with DaBaby: “I needed some shit with some bop in it (Let’s go)” (DaBaby – ‘BOP’ of KIRK, 2019). Peace.