South Sudan: Letter from Hon. Paul Kordit Akol to Hon. Michael Makuei Lueth – “Subject: Call for intervention from relevant Oversight Bodies of TGoNU” (02.02.2018)

PTA Bank Loan Scandal: US$200m gone missing, you don’t loose that amount money, you spend it!

The government has announced plans to borrow US$200m from the Eastern and Southern African Trade and Development Bank (known as the PTA Bank)” (…) “It will, however, do little to ease the near-term pressures. The weak currency is pushing up the cost of external debt (the new PTA Bank loan will add to the burden of US dollar-denominated debt), while high interest rates are driving up yields on domestic securities. The government originally budgeted USh172bn to service external debt in the current 2015/16 fiscal year and USh4.8trn for domestic debt, but the actual outlays will exceed this” (The Economist, 2015).

In today’s exchange rate the loaned planned would be 727,749,571,653.20 Uganda Shillings, or UGX 727bn. So that means that the Minister of Finance Matia Kasaija cannot find the documentation for a huge amount of money. This isn’t a lost pocket or recite, this is like loosing bank. However, we know the context, the loans that came from PTA came within months of the General Election and the Campaigns. Therefore, we can imagine where the money has gone. That is just speculation, but National Medical Stores (NMS) has given some signs, that the PTA Loans was not for them.

In June 2017, the Public Notice of NMS said this:

This funding facility was the PTA Bank loan, which was later approved by Parliament on 26th April 2016. The record on the Hansard clearly indicates ugx. 68billion required to avert an impending crisis at NMS as one of the primary reasons why the loan “should be urgently” approved. If NMS was therefore not meant to get the ugx. 68billion as additional funds, then the Ministry of Finance, Planning

and Economic Development misled Parliament” (…) “NMS provided the contracts by a letter

dated 13th September 2016, and waited for disbursement of the money from PTA Bank. However the said funds have to-date not been provided. This fact was brought to the Ministry of Health and the Permanent Secretary/ Secretary to the Treasury on 27th March 2017. It is important to note that the PTA Bank Loan, was approved by Parliament on the understanding that part of the Proceeds would go to NMS to cover the sh.68billion deficit” (…) “We wish to restate that if this money is not provided, over and above the Budget for FY 2017/18, all Health Centre IIs, IIIs and IVs, including those of UPDF, Uganda Police and Uganda Prisons, shall not receive Medicines in the FY 17/18 except ARVs, Vaccines, ACTs and TB medicines” (NMS, 2017).

Although documents indicate that PTA Bank released the loan basing on documents submitted by the agencies, it was never remitted to them accordance with the agreed terms of the funding. Last week while requesting for a supplementary budget for NMS, Finance State Minister David Bahati was put to task to explain why NMS lacks funds to procure medicines yet the funders released the money in November last year. MP Cecilia Ogwal (Dokolo) wondered why NMS was going through a financial crisis when Parliament approved a loan request of $200m. During the meeting yesterday, members put Bank of Uganda officials led by the Governor Tumusiime Mutebile to task to explain whether the loan was released from the funders to the respective recipients. Mutebile told the committee that between October20th 2016 and May 23, 2017; BOU received $97.9m from PTA bank and transferred all the money to the Ministry of Finance Consolidated Account as instructed by the Ministry of Finance. “How it was used, is the ministry of finance to explain,” he said” (Karugaba, 2017).

So just part of the loans that trusted to NMS never came and never was delivered. The amount of funds needed the crisis in the NMS was not given. Therefore, the lack of oversight of the funds and the loans was evident even last year. Still, PTA Loan of 2016 has not been honored. The BoU will explain what happen after the money was released. So, it means that the documentation of receiving it is there, but what happen after is now gone. The NMS are clear, the BoU, but not the Ministry of Finance, Planning and Economic Development (MoFPED).

Just to put the loan in more perspective, even the World Bank described there in January 2017:

Uncertainties related to both local and external events, including the freezing of new loans by the World Bank and the impact of the results of the Brexit referendum and the US presidential election being the most significant causes of this uncertainty. This is notwithstanding the fact that the Government has contracted balance of payments support credit from PTA Bank to provide the BoU with sufficient resources to prevent spikes in the foreign exchange market when the need arises” (World Bank, P: 11, 2017).

However something that is striking is the Letter of intent written by BoU Governor Tumusiime Mutebile and Minister of Finance, Planning and Economic Development Kasaija. Who both prepared a statement, to build trust in the economy and the loans made by the government.

Who wrote this this to IMF on 18th May 2016:

Government requested a line of credit of USD 200 million from the Eastern and Southern African Trade and Development Bank (PTA Bank). The three year revolving facility has terms that are deemed more beneficial than those prevailing in the domestic markets at the current juncture and near future, so we plan to use these resources in FY2016/17 and FY 2017/18 to finance our deficits. Therefore, these resources will replace existing, more costly domestic financing, rather than expanding the available envelope. We will not use the loan in FY2015/16” (Kasaija & Tumusiime Mutebile, P: 6-7, 2016).

While this story started after Public Accounts Committee in the Daily Monitor this:

Two of the most prominent Banyakigezi – Bank of Uganda Governor Tumusiime Mutebile, secretary to the Treasury Keith Muhakanizi and other top officials in the Finance hierarchy are set to answer questions over how Shs340 billion of Shs720b ($200m) loan meant for medicines and rural electrification was used. They are going to be quizzed by Parliament’s Public Accounts Committee (PAC) with the vice chairman Gerald Karuhanga saying that Muhakanizi, Mutebile, Auditor General John Muwanga and Mr. Lawrence Semakula, the acting Accountant General have been summoned to appear before MPs on Wednesdays to “explain the whereabouts of the money because no agency has received anything.” Mr. Muhakanizi called the probe ‘misdirected’ because ‘everything was done properly and I will prove that with documents.’ He said the money was pooled into the consolidated Fund and spent on approved expenditures” (Daily Monitor, 05.07.2017).

On the 13th June 2017, Treasury Secretary Keith Muhakanizi tried to explain where the money went:

As explained above, all the funds disbursed from the PTA Bank Loan have been fully accounted for. ii No funds has been lost as the Monitor Newspaper has alleged. iii I thank the PTA Bank for quickly providing the funds to the Uganda government when needed. iv It is, therefore, professionally unacceptable for Monitor Newspaper which has represented at the meeting of PAC in Parliament on Wednesday 7th June 2017, to have published an incorrect story in its editorial of 11th June 2017” (New Vision, 2017).

However, the story is not ended in last year. The PTA Loan continue to haunt the MoFPED and the BoU. They both have answers to give. Now a few months later. The answer from MoFPED are differently. Because the Treasury suddenly promised documents in June 2017. However, we are in February 2018 and still not there. Even his own defense that was a notice in the New Vision. Now a half year later, we see the same story and the same issue in the Parliament. That the same amount of monies are not accounted for. The same actors are trying to defend it. The whole affair smells not like Teen-Spirit, but more of State House affair. Since, they are trying to defend the misuse of funds and loans in the timeline of Campaigning. That is what it seems. Since suddenly during campaigns and such the needs for funds is there. Paying off political parties and loyal commissioners. There are so many things to buy and needs. So much material, buses, t-shirts and bribes. You have to print massive amounts of money. In a way where the State House also always needs bigger Supplementary Budgets after the General Election of 2016.

Here is the movement today:

Mr Kasaija yesterday failed to present a personal statement detailing what went wrong with the loan but maintained that no money was “stolen” as he fought to save his job.“I request that we should give an opportunity to a government authority to find out where this money went. But I want to give assurances to this House that no money was diverted or stolen,” Mr Kasaija said. With the loan approved only after the Finance ministry changed its labelling, Speaker Rebecca Kadaga last evening ruled that she will today make a decision regarding the fate of the report, with the duos fate set to be decided today. “I may not talk much but I had engagements with Ministry of Finance over that money. I had engagements to remind the ministry that that money was partially borrowed for NMS. I had meetings in my office over that money,” Ms Kadaga ruled. The loan put the Executive and Parliament at loggerheads with the Speaker at some point ordering the Rules Committee to investigate Mr Kasaija over contempt of Parliament as the fallout escalated” (Arinaitwe, 2018).

So still to this day there is no proof of where it went. Even if the trail leads to two familiar faces, the MoFPED Kasaija and Treasury Muhakanizi, who both trying to save faces. This all seems like misused funds from the Consolidated Funds for Campaigning. Since it was not used for the Rural Electrification Funds or the NMS. Who was both in dire needs, but not important enough. The NMS has lacked it anyways, and not gotten the needed medicine.

Therefore, the two financial heavy-weights has to either forge the paper-trial, since the NMS and the other agencies hasn’t received the funds. They have been spent elsewhere. Suddenly missing and that Muhakanizi uses so long time, that from June 2017 to February 2018 is unbelievable. If you use that long time proving parliament where the funds went. You know there are some shady misuse of it. It has gone to all sorts of activity, to tear-gas, paying police officers to keep Besigye under house arrest and whatnot. Because it didn’t go the place where the MoFPED and BoU promised.

This the GAVI Funds and CHOGM scandal all over again. This isn’t new, it is just PTA Bank loan gone missing. You miss a shilling, you miss a book or even some keys. But you do not loose this amount of money. They have gone to a growing patronage and securing the President’s Private Plane or something. Peace.

Reference:

Arinaitwe, Solomon – ‘MPs plot to censure Kasaija over Shs700b’ (07.02.2018) link: http://www.monitor.co.ug/News/National/MPs-plot-censure-Kasaija-over-Shs700b-/688334-4294524-r1k3ls/index.html

The Economist – Intelligence Unit – ‘ Loan secured from regional bank’ (11.12.2015) link: http://country.eiu.com/article.aspx?articleid=63762990&Country=Uganda&topic=Economy&subtopic=Forecast&subsubtopic=Fiscal+policy+outlook&u=1&pid=923837876&oid=923837876&uid=1

Karubaga, Mary – ‘Finance makes U-turn on sh150b NMS loan’ (08.07.2017) link: https://www.newvision.co.ug/new_vision/news/1455202/finance-makes-sh150b-nms-loan

Kasaija, Matia & Prof. Emmanuel Tumusiime Mutebile – ‘Uganda: Letter of Intent, Memorandum of Economic Financial Policies, and Technical Memorandum of Understanding’ (18.05.2016) link:

NMS – ‘CLARIFICATION ON FUNDS RELEASED TO NATIONAL MEDICAL STORES (NMS) FOR PROCUREMENT, STORAGE AND DISTRIBUTION OF ESSENTIAL MEDICINES AND HEALTH SUPPLIES (EMHS)’ (16.07.2017) link: https://www.nms.go.ug/jdownloads/Press/NMS%20Full%20pg%202017.pdf

New Vision – ‘Clarification on Allegations that US$200 million meant to procure medicines for health centres and implement Rural Electrification Projects Went Missing’ (17.07.2017) link: https://www.newvision.co.ug/digital_assets/fa485f48-5a96-4b7b-be1a-3969e7a45cc3/9-Min-of-finance.pdf

World Bank – ‘Uganda Economic Update 8th Edition, january 2017 – Step by step Let’s solve the finance puzzle to accelerate growth and shared prosperity’ (January 2017) link: http://documents.worldbank.org/curated/en/662191486394023103/pdf/112621-WP-P161699-PUBLIC-UEU-8TH-edition-final-for-web.pdf

United Nations Mission in South Sudan welcomes release of hundreds of former child soldiers in Yambio (07.01.2018)

A total of 700 children have been screened and registered for release in phases.

JUBA, South Sudan, February 7, 2018 – More than 300 child soldiers have today been officially released by armed groups in Yambio to begin reintegrating into their communities and learning new skills to support themselves, according to the United Nations Mission in South Sudan.

“Children should not be carrying guns and killing each other. They should be playing, learning, having fun with friends, protected and cherished by the adults around them,” said the UN’s Special Representative of the Secretary-General and Head of UNMISS, David Shearer.

A total of 700 children have been screened and registered for release in phases – 563 from the South Sudan National Liberation Movement (SSNLM) and 137 associated with the Sudan People’s Liberation Army In-Opposition (SPLA-IO). The first phase of the release project involving 311 young people was today marked at a ceremony in Yambio.

Eighty seven of the children released today are girls with the final total involved in the Yambio project expected to reach 220.

“This is the first time so many young women have been involved in a release like this in South Sudan,” said David Shearer. “They will have endured suffering, including sexual abuse. It is vital that they receive the support they need to rejoin their communities and that they are welcomed home by family and friends without any sense of stigma.”

UNMISS has been leading the project to release the children for more than six months, including providing peacekeeping troops to escort religious leaders into remote bush areas to make contact and negotiate with the armed groups. It has also worked closely with other key partners such as UNICEF, state and local authorities as well as community groups.

“Without the combined effort of all of these partners, today’s release would not have been possible,” said David Shearer. “I would like to pay particular credit to religious leaders who travelled into conflict zones and risked their own lives to bring these children to safety.”

David Shearer said the challenge ahead is to ensure the young people have the financial, practical, and emotional support they need to undertake training, find jobs, and access the opportunities they deserve to reach their full potential.

To assist in this process, UNMISS engineers have rehabilitated the road between Yambio and a nearby vocational training center so the young people can travel safely for training. UNMISS is also progressing other projects to release child soldiers over the coming months in Morobo, Bentiu, and in Pibor where 315 have been verified and registered so far.

UNHCR Briefing Notes – Burundi risks to become a forgotten refugee crisis without support (06.02.2018)

Tanzania is hosting the largest number of Burundians with 254,000 refugees, while 89,000 are in Rwanda with another 44,000 in the Democratic Republic of the Congo and some 40,000 in Uganda.

GENEVA, Switzerland, February 6, 2018 – Text presented by Catherine Wiesner, UNHCR’s Regional Coordinator for the Burundi situation – to whom quoted text may be attributed – to the Palais press this morning, before the regular press briefing at the Palais des Nations in Geneva:

UNHCR, the UN Refugee Agency, with its 26 other humanitarian partners, is today launching a funding appeal for US$391 million to support some 430,000 Burundian refugees during 2018.

We are urging donors to step up support for desperate refugees who struggle to survive in neighbouring countries as efforts are falling short of acceptable humanitarian standards. The international community must also stay engaged in the pursuit of a genuine and lasting resolution to the Burundi crisis.

Low levels of humanitarian funding for this crisis remains a great concern. Burundian refugees could get a mere 21 per cent of the required funds – making it the world’s least funded refugee response plan.

Our appeal, being presented today to donors in Geneva, aims to ensure the needs of Burundian refugees are not overlooked and the situation does not become a forgotten refugee crisis.

Since 2015, more than 400,000 refugees and asylum-seekers have fled the country, escaping human rights abuses, continued political uncertainty, and the related humanitarian crisis.

Refugee numbers are expected to increase by over 50,000 this year as regional efforts to resolve the political crisis in the country have not made significant progress.

The human rights situation inside Burundi remains worrying. Unless the political situation changes and socio-economic conditions improve, the outflow of Burundian refugees – mostly to neighbouring countries – is expected to continue in 2018, though at a lower level.

Tanzania is hosting the largest number of Burundians with 254,000 refugees, while 89,000 are in Rwanda with another 44,000 in the Democratic Republic of the Congo and some 40,000 in Uganda. Smaller refugee numbers have also fled to Kenya, Zambia, Mozambique, Malawi and South Africa.

In 2017, over 61,000 refugees arrived in the neighbouring countries. Though numbers have dropped in comparison to 2016 (when some 123,000 had fled), thousands still kept crossing the borders to seek safety in the region.

With increasing humanitarian needs, dwindling resources did not allow assistance levels to reach acceptable standards throughout the region despite our efforts.

As the majority of refugees (85 per cent) live in refugee camps, underfunding has impacted all areas of life – including food cuts, dilapidated shelters, overcrowded classrooms, and limited capacity to respond to sexual and gender based violence.

Underfunding also severely affects our ability to invest in integrated social services and livelihood opportunities, limits support to environmental protection and restoration, and prevented us in 2017 from carrying out population verifications, providing documentation, and training government officials on refugee status determination as originally planned.

In the last few years, some Burundian refugees have also decided to return home, and are seeking to re-establish their lives in Burundian communities that are facing considerable economic pressures and food insecurity.

At this stage, UNHCR and partners are not promoting or encouraging refugee returns to Burundi. We are working with the relevant governments to assist those who indicate they have made a free and informed choice to return voluntarily, to do so in safety and dignity.

We are also reiterating our appeal to Burundi’s neighbours to continue to uphold their international responsibilities and commitments to receive asylum-seekers at their borders and offer protection to those who need it. UNHCR reminds States that refugees should not be forced to return to Burundi against their will.

Local EU Statement on Alleged Fraud and Corruption Cases in Refugee Settlements in Uganda (05.02.2018)

Dr. Ruhakana Ruganda (OPM) Government Statement: On Allegations of Possible Abuse of Refugee Funds (05.02.2018)

South Sudan & Sudan: “Decisions of the Extraordinary Sessions of the Joint Political and Security Mechanism” (04.02.2018)

Uganda: The Medical Interns Executive Committee letter to Ministry of Health – “Re: Concern about the Payment of Allowance for January” (02.02.2018)

Burundi: Campagne citoyenne “Teshwa Ute” (03.02.2018)

Opinion: The new arms sanctions on South Sudan will it matter?

I wish I didn’t had to write this piece, because of the constant warfare and civil-war that lasted and lasted. That the Government of South Sudan, Sudanese People’s Liberation Army/Movement In-Government (SPLA/M-IG) with President Salva Kiir Mayardiit and his loyal people around him. There is also the main opposition from Dr. Riek Machar of the Sudanese People’s Liberation Movement – In Opposition (SPLM-IO) from there more and more people have deflected over the recent times. It is hard to keep count in all the rebellious groups. National Salvation Front (NAS) former SPLM-IO Lieutenant General Thomas Cirillo Swaka. As well as Dr. Lam Akol has founded National Democratic Movement (NDM). This is just the beginning and the list could go on. So the situation as the spark after peace agreement of 2015 is different. Because, there isn’t just two direct partners now. There is a bunch and one main government Transitional Government of National Unity (TGoNU), who kind of lost meaning when the shooting in Juba happen and Machar has fled.

Though now that suddenly after all this time, the Intergovernmental Authority on Development (IGAD) High Level Revitalization Forum (HLRF) and United Nation’s Mission in South Sudan (UNMISS) isn’t creating the levels of trust. This combined with the other monitoring missions like Joint Monitoring and Evaluation Committee (JMEC) is making the situation more fluid. While the politics are still controlled by tight little group around the President Kiir. The ones loyal to him get the perks and write his decree’s. Not like the started Parliament with the TGoNU of the peace-agreement has made any changes. Especially after First Vice-President Gen. Taban Deng Gai took the place in his part of SPLM-IO, therefore, it is two of those and you can wonder how real that organization under Deng Gai is. Since he has been controversial from the get-go.

With all this mine, with armed groups and state sanctioned violence not respecting agreements, are creating a continued insurgency and fleeing civilians. While all of this is destroying possible peace and institutions, as long as it is like this, it is the war-lords leading and not the ones building up state structures.

Therefore, that the European Union sanctions on three persons should be seen as good. These individuals are Gen Paul Malong, who has been thrown out of government and been under house arrest. He has his following, but also his enemies after how he did his affairs. Therefore, weird that they are sanctioning him when he is out of government and not when he was in it and using military force against the ones who stood in the way of Kiir. Then you have one in the government, Michael Makuei Leuth for his role in obstructing IGAD process and violations against human rights. Then the Inspector General of the Army Malek Reuben Riak, who is in-charge of buying weapons. Therefore, that sanction makes sense. But I’m puzzled by the time of sanctioning Malong. That should have been done in 2016 or early 2017. Not now in 2018, when his role is more meaningless, unless they are sanctioning him for his past.

The United States are doing this: “Specifically, the Department of State will amend the International Traffic in Arms Regulations to update the defense trade policy toward South Sudan by application of a policy of denial, with limited exceptions, on the export of defense articles and defense services to South Sudan, including all parties involved in the conflict” (Heather Nauert – ‘U.S. Arms Restrictions on South Sudan’ 02.02.2018).

So the United States are more reacting and promising more amending the previous Executive Order then of 2014. Since, the initial changes is not in the direct statement. We cannot know what sort of changes in the arms trade this will have. Especially since the United States are selling weapons to partner states in the East African Region. One of them is Uganda who has had reports of helping with exporting equipment and arms to South Sudan. So if the United States and European Union wants to be serious. Then, the countries with borders to South Sudan also need to be included.

This has not been shown, but that is also because bilateral security agreements and needs for others contributions on the continent. That is why the US hasn’t broken their peace and arms trade with either Kenya or Uganda. They are both involved in conflicts and parts of Blue Helmet operations in Somalia and Central African Republic. That is also a reason for the special arms trade. We can wonder if this will be persistence.

I doubt that the efforts and arms embargo, the sanctions of arms to South Sudan will have much effect. Since the armed groups will get through their channels and cross the borders into Democratic Republic of Congo, Ethiopia, Ugandan and even Kenya to get their supply. That means also if the Sudanese government in Khartoum still opportunity to create havoc, they can support as well. They are already hated in the West and has nothing to lose to trade to some of the newly created military outfits who fights to get rid of Kiir. This should not be shocking, it should be no news. Just like if the Uganda People’s Defense Force suddenly arrived back, even with no agreement with IGAD, UN or AU. Just showed up because Kiir called his friend in Entebbe. That would be plausible and possible, since both parties has done it before. The oil coins given by South Sudan has been positive to the coffers of Museveni. He wouldn’t mind some more. Even if his country is hosting over a million South Sudanese refugees by December 2017. Therefore, the stakes in Uganda is high and should worry that they have contributed not only with peaceful aspects, but also military. They have strengthen the arms and equipment of the SPLA, the government army in South Sudan.

With this knowledge, why are just the sanctions always falling directly on the inner-circle of government, when they are conspiring with neighbors who gladly supply them for a dime and cookie. We should also make sure they couldn’t use merchants of death, use Lord of War sorts of methods to supply the civil war in South Sudan. Even though we do and we just accept it. The EU, US and AU haven’t addressed the third country supply, an important aspect that needs to be scrutinized. Peace.