The Uganda Budget Framework Paper FY2018/19 for Energy and Mineral Development is saying that the External Financing is the key for this Sector – Period!

The Budget Framework Paper for Financial Year of 2018/2019 for the Ministry of Energy and Mineral Development is really revealing how the financing of the sector is and how the state is involved with the manner. Also, how low-key the main factors are and lacking transparency is hitting the Energy Sector of Uganda. Not that is surprising, since the agreements, the licenses and the tenders are usually kept behind closed doors.

However, the main part of the Framework Paper is evident of the issues at hand:

“The indicative budget ceilings for the Ministry of Energy and Mineral Development have been rationalised in line with the sector priorities and national priorities as communicated in the Budget Call Circular and in the Presidential Directives. The ceilings for Vote 017 for the FY 2018/19 are as follows: Wage Recurrent is UGX 4.23Bn; Non-Wage Recurrent is UGX 74,04Bn; GoU Development is UGX 307,84Bn and the Development Partner contribution is UGX 1,608.41Bn. Under Vote 123 ceiling is UGX 81.98Bn is for the GoU Domestic Development and UGX594.00Bn is from external financing” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

The building of vital infrastructure, the refinery, the pipelines and energy production facilities are all dependent on funding from abroad. If it is grants, loans or paid-in-full agreements done in secrecy. Because, there are more than the shadows of this budget framework paper. It is saying a lot and the votes for the future is showing the future too. That the Ugandan economy is prospering, as the budget are needing all funding from afar to be able to build needed infrastructure. Also, needs the grants for the Rural Electrification, the ones who the state has even borrowed to do.

Therefore, this Budget Framework Paper is showing the troubles ahead. This isn’t voting for better economy, know this is dependency and also proving how much the donors and partners are involved in making sure the economy gets addicted to it.

When it comes to the refinery, the details are clearly still in the wind: “The process of selecting of the Lead Investor is still progressing and the negotiations are ongoing between Government and the selected investor. The process is expected to be completed in FY 2017/2018. There after FEED and ESIA for refinery development will be undertaken with the Lead Investor on board” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018). So the selecting of it is not finalized, well, for some thought Russians had secured agreement and the reason for Museveni to visit Moscow. Clearly, that ship has sailed, we can wonder if Total or any other company would do this. As Total has the biggest chairs of licenses in the Lake Albertine Basin. Time will tell, but another proof of lack of transparency, when the Ministry has to write this.

“Procurement Bottlenecks including lengthy bidding processes that require no-objections from the external financiers at each stage of execution. There is need for PPDA to revise guidelines for procurements relating to flagship projects. In addition, the following measures need to be considered: financing agreements are signed, project is almost ready to kick off. PPDA should reduce the administrative review timelines that sometimes stall progress” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

This here is initially following the guidelines of the First Amendment of the 1995 Constitution of 2017, the Land Amendment that the National Resistance Movement put forward before the Age Limit. That would fit the narrative of the Ministry and their wishes. It is like reading the same idea, to give more power to the state and able to land issues quickly.

What we can learn, also and which is important, these developments, these infrastructures projects couldn’t have been built if it wasn’t for external loans, externals grants or direct aid, if not on the license fees and the parts that is taxed. However, the grand amount and the majority of the projects needs the external funding.

This is not surprising, it is to be expected because Museveni doesn’t want to use his money. He want to spend other people’s money and also the money of the future. To benefit him today, that is why the deals are done in the secrecy…. We don’t know the reasons and the value of the licenses, the ones who is to build the refinery, even the grand agreement between the Corporations who will build the Pipeline. We know that certain companies has failed to build the dams and used bad material, but that is because of the Chinese Contractors has saved money, while being paid-in-full.

President Museveni blessed that deal and got scraps back. Time will tell, but this isn’t a good look. Not because I want it to be bad, but because the money says so. Peace.

A brief look into the IGG first report of 2018 with Lira District in FOCUS!

The Inspector General of Government (IGG) Irene Mulyagonja has recently published a new report, showing the corruption and the reported cases that has been sent to the IGG during the 6 month period. This report shows the key places where the complaints are about, which shows what kind of civil servants that has cases going or investigated. There also a major showdown of certain districts, which gets the most heat in this report. Clearly, they are picked up and shown the public, while others are kept in the archives. So I am showing the key aspects of where the complaints go and one key district that has been put on blast. That being Lira District, who together with others was also put on display. What is weird about that is the office of Lira is number 15 on the list of getting complaints. While the Central District and Kampala Headquarters has bigger numbers, but is not chosen to revealed for the public. Only district offices with less numbers are Kampala Regional Office (because all are delivered to Headquarter) and Gulu district office. So this been choice by the IGG to show their cases instead of the ones around the Central Government. That is how it can be perceived!

The Inspector General Report are clearly stating that the most common groups of people, which is mentioned in complaints are either directly individuals (public officials), District Administration/Local Government, Municipal & Town Councils, Head Teachers, District Service Commissions and sub county administration. In the time between January and June 2017, there was 330 complaints about Public Officials. Complaints about District Administration was 328. Municipal & Town Councils complaints was 144. The complaints concerning Head Teachers was 87. The District Service Commissions was 85 and sub county Administration complaints totaled to 68. This here is really showing where the state officials locally are misusing the public funds. It shows a warning sign of how people take advantage of the lack of paperwork and archives of procurement and also facilitation of the state reserves. That is why they could do this before the complaints come to the IGG.

IGG cases in Lira:

“Alleged cause of financial loss by Principal Assistant Secretary, Lira District” (…) “Alleged mismanagement of Shs. 15,000,000/= meant for road maintenance by officials of Ojwina Division Council, Lira” (…) “Allegation of nonpayment of wages to former support staff by Lira Municipal Council” (…) “Report on investigations into alleged payments of salaries to ghost teachers and illegal appointments of Head teachers in Lira District Local Government” (…) “Alleged irregular remittance of Shs. 10M to Mr. Ario Benson’s account and subsequent deletion from the payroll by PPO, Lira” (…) “Alleged creation and existence of ghost primary school in Aloi Sub-county, Lira District” (…) “Alleged misappropriation of UGX. 9,000,000/= meant for the construction of roads in Adekokwok Sub-County Lira District” (…) “Alleged utterance of false academic documents by a Secretary at UTC – Lira” (…) “Alleged irregular earning of higher salary by a person at Lira school of Nursing” (…) “Alleged cause of financial loss by the Principal Assistant Secretary, Lira District” (IGG, P: 77-80, 2018).

I am just showing the alleged cases in Lira as well, as the main reports, since the Report itself should be question for lacking the alleged cases from Kampala Headquarters and Jinja Offices. It shown some cases from Arua, but very limited, since it was the third biggest place of complaints during the 6 month period. While other regions and districts had more open cases. I am really questioning why Lira was so in FOCUS, when the offices of Jinja, Headquarters and Arua had ten times more complaints than Lira did. Why are they not more evident in the report? What is the reason?

That is what we should ask and why the IGG are not revealing those complaint or keeping them on the low. Peace.

Reference:

Inspectorate of Government (IGG) – ‘BI-ANNUAL INSPECTORATE OF GOVERNMENT

PERFORMANCE REPORT TO PARLIAMENT – January to June 2017’ (January 2018)

Opinion: President Museveni praises Equatorial Guinea for it’s rampant Oil-Corruption; wants to learn his tricks!

In these days the President Yoweri Kaguta Museveni of the Republic of Uganda are on a state visit in Malabo, visiting and learning tricks from the Equatorial Guinean President Teodoro Nguema Obiang, who has used the oil to enrich himself and his loyal subjects. Not build a welfare state, but make sure the family of Obiang get wealthy. Certainly, Uganda is preparing for their own oil production in the Lake Albertine basin, as the pipeline building from the production to the Port Tanga in Tanzania.

This is why President Museveni are visiting Equatorial Guinea to learn the tricks of the trade, as the state of Uganda are still in the dark of the oil-deals between the international companies and the state. We can wonder how the funds will be spoiled and how Museveni plans to use the oil funds for personal gains. If so, he wouldn’t praise President Obiang, who has his whole career to spend the oil profits from his republic. This is what Museveni wants to learn, since his career has been tricking out all sorts of play from Ugandan republic. The petroleum profits can be misspent and hidden just like in the republic of Obiang. Take a look!

President Museveni’s praise:

“We are therefore in Equatorial Guinea for two things: looking at how to support prosperity of one another and how to push for our strategic security. I also congratulate Equatorial Guinea for using it’s oil and gas very well. When I was last here for the AU Summit, I noticed gaps between the airport and the city centre. Today, all these gaps were gone. In their place are new, well-planned buildings. And I see the city is refurbished. Some people say oil is a curse but in Equatorial Guinea it is a blessing” (Yoweri Kaguta Museveni, 26.08.2017)

Business in Equatorial Guinea:

“Since the discovery of the offshore oil deposits, many investors have shown great interest in the country. Foreign direct investment inflows into the country had thus been consistently high for the past years. Nevertheless, in 2016 the FDI inflow amounted to USD 54 million, a sharp decrease from USD 233 million recorded the previous year (and the historical peak of USD 2.73 billion in 2010) . The total stock of FDI in the country is currently at USD 13.4 billion” (…) “Corruption in particular is problematic. In addition, the business climate of the country remains rather unfavourable for investment. Cumbersome procedures and high compliance costs slow licensing and make starting a business more difficult. Weak regulatory and judicial systems may discourage foreign investment as well, along with high credit costs and limited access to financing. The government controls long-term lending through the state-owned development bank. Equatorial Guinea ranked 178th out of 190 countries in the 2017 Doing Business report published by the World Bank, losing three spots compared to the previous year” (Santander Trade, 2017).

Son of the President on trial:

“The corruption trial of Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, ended in Paris on 6 July with the prosecution calling for a three-year jail term, a €30 million (US$34 million) fine and the confiscation of assets. The Tribunal will return a verdict on 27 October. The 48-year-old vice-president of Equatorial Guinea was not in court to hear the prosecution’s claim that he used money stolen from his country’s treasury and laundered through a shell company to fund a lavish lifestyle in France” (Transparency International, 2017).

This was what that is well-known of the Equatorial Guinea corruption and the son of President has also had challenging cases in the United States. Now the son is also having alleged fraud and criminal charges in France. Clearly, the Ugandan President has already known for corruption behavior. Therefore, even a state agency of PPDA has some words, that the government needs strict regulations before procurement and infrastructure development. This will be clearly important when it comes to petroleum industry. Take a look!

PPDA strict regulation on public procurement:

“Public procurement is a key pillar of the public financial management system. The country’s budget and plans are translated into actual services to our people through the public procurement system. It is also the link between the public sector and the private sector as it is the medium through which the private sector does business with Government. Public procurement therefore involves large sums of money and as our budget grows with the priorities of Government remaining infrastructure development, the proportion of the budget earmarked for public procurement remains significant and therefore calls for strict regulation” (PPDA, 2017).

“Audits and investigations by the Public Procurement and Disposal of Assets indicate that corruption in the procurement process manifests more in the evaluation of bids, reported to be at 58%. PPDA’s Manager Capacity Building Ronald Tumuhairwe says such corrupt practices lead to awarding of contracts to incompetent individuals hence shoddy works in several government projects” (…) “He adds that the second process where corruption manifests is awarding of contracts at 12.5%, followed by receipt and opening of bids, reviewing evaluation of bids, advertising and signing of contracts” (Sebunya, 2017).

President Museveni clearly has own agencies saying it is important with strict regulations on procurement and infrastructure developments like the ones needed for oil industry in the republic. The regulation of oil industry is lax, to make sure the state isn’t transparent with its profits and taxation of the industry. This is what Museveni wants, that the state and the public doesn’t know the contracts or the agreements between the parties involved. That is something President Obiang surely have the capacity to teach Museveni. And how to make sure his family is earning from the state resource, instead of the public and the state itself. Peace.

Reference:

Transparency International – ‘ON TRIAL FOR CORRUPTION: FRENCH PROSECUTORS DEMAND JAIL TERM AND €30 MILLION FINE FOR OBIANG’ (11.07.2017) link: https://www.transparency.org/news/feature/on_trial_for_corruption_french_prosecutors_demand_jail_term_and_30_million

Santander Trade – ‘EQUATORIAL GUINEA: FOREIGN INVESTMENT’ (August 2017) link: https://en.portal.santandertrade.com/establish-overseas/equatorial-guinea/investing-3

Sebunya, Wycliffe – ‘Corruption manifests most in the procurement process – IG’ (25.08.2017) link:http://radioonefm90.com/corruption-manifests-most-in-the-procurement-process-ig/

PPDA – ‘EVALUATING INNOVATIVE ANTI CORRUPTION POLICIES IN PUBLIC PROCUREMENT IN UGANDA’ (02.08.2017) link: https://www.ppda.go.ug/evaluating-innovative-anti-corruption-policies-in-public-procurement-in-uganda/

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

“For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

“It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

“During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

“The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

Ugandan economy could get Oil-Shocks due to external factors, recent BoU report claims!

Surprise, surprise the Bank of Uganda (BoU) has made a working paper on the possible consequences of the oil price, the oil exports and the oil imports on the Ugandan economy. This didn’t exceed my expectation of a report or paper, but said enough to clearly anticipate changes in the economy with the coming export. Even as the BoU called the domestic oil production in embryonic stages, which means the real impact will come when it is closer petroleum production the GDP and CPI feel more impact of the oil prices and the volumes exported from the Lake Albert Basin.

That the Ugandan State and the Republic of Uganda, should know that the fresh foreign exchange and currency into the economy, as the domestic parts of petroleum is not having big impact on the economy! Still, the export can change it as the oil prices and change the consumer price index for instance. Take a look!

“One such shock that is a source of major concern and risks to monetary policy-making in Uganda is the oil shock. To our knowledge, the effects of oil shocks in Uganda, to date, have not yet been analyzed. The objective of this paper therefore, is to analyze the nature and importance of oil shocks to Uganda’s economy in a dynamic framework” (Nyanzi & Bwire, P: 4, 2017).

“According to the Uganda’s Ministry of Energy and Mineral Development (2012), oil provides about 10 percent of Uganda’s energy requirements – the rest is sourced from the small and underdeveloped and unreliable electricity sub-sector and the cheap biomass energy. The oil sector was also deregulated in 1994, under the broad structural reforms implemented by the Government of Uganda, which effectively eliminated oil prices subsidies. Uganda is endowed with commercially-viable oil reserves, but domestic oil production is in embryonic stages. Consequently, all of the oil-energy needs of the country are satisfied by imports” (Nyanzi & Bwire, P: 8, 2017).

“The results of the variance decomposition in regard to oil shock are not entirely unexpected, given the structure of Uganda’s economy. Oil and its products constitute 8 percent of total intermediate consumption and 10 percent of energy requirements. In addition, oil is crucial to electricity supply in Uganda because hydro-electricity is unreliable and insufficient. This implies little or no substitutability of oil with hydro-electric energy in production in case of adverse oil shock, which could justify the long-run 20 percent variance in output due to oil shocks. Regarding consumer prices, the small percentage of variance in consumer prices due to oil shocks is justified by the small weight of oil in the CPI basket. Oil constitutes about 1 percent in the 2009/10 rebased CPI basket, of which 0.8 percent is oil for personal transportation and 0.2 percent a source of liquefied energy at home. These numbers are not surprising given that over 75 percent of the population live in rural areas and depend mainly on wood and charcoal as a source of energy, and that rates of car ownership are generally low. Moreover, the main source of short-run volatility in the Uganda CPI is weather-related factors affecting food prices. This leaves the bulk of fluctuations in the core consumer prices (Comprising over 80 percent) explained by demand” (Nyanzi & Bwire, P: 18, 2017).

“Oil shocks are transmitted through the supply channel, as a shock that increases the international price of oil leads to opposite movements in real output and consumer prices in Uganda” (Nyanzi & Bwire, P: 19, 2017).

It is hard to say how it could impact and how the petroleum production and exports will change the economy, how the prices and the inflation, as the measure of how much the price of the crude-oil will be at the given time. That the government has secret agreements with oil companies and also agreements with other to build the crude-oil pipeline that goes to Tanzania. Therefore, the reaction in the economy is not yet known, but with the background and knowledge of the how it is now. Most likely a real output and change in consumer prices in Uganda.

That will be an oil-shock no-one can be prepared for. Unless the Government and Parliament created legislation and policies who might soften the change of the economy. Therefore, with this in mind, the National Resistance Movement, the State House and the President Museveni have work to do. That is if they consider the implication the petroleum production and exports will have on inflation, currency value and consumer prices index as well. This report should open some eyes into it, but it should not be surprising. Peace.

Reference:

Nyanzi, Sulaiman & Bwire, Thomas – ‘Working Paper No. 04/2017 – The Macroeconomic responses to Petro Shocks for Uganda’ (May, 2017)

Uganda: Clarification on BOU’s Ownership of Plots 15-17 Birch Avenue, Masaka Municipality. (04.01.2017!)

IG Kakooza uncovers corrupt behaviour at all corners of Uganda in the May 2016 Report!

Because of General Election 2016, this one here got lost for me, but not for too long as the Report from Inspectorate of Government that came in 27^th May 2016 has some clear issues within Government.

What it indicates is how many civil servants that use their position to gain extra funds and salaries, but also with the knowledge of troubles gaining enough income or salary on time therefore the acts of cheating, grafting and impersonation seem like a way out of poverty and actually just eat for a brief moment. That doesn’t justify thieving, but proves the systemic defaults on its own.

The Government and this IG has business to handle as there are cases in may districts and areas of the Republic only in the last 6 months. This here is just some fragments of the report from the IG. Still, shows the extent of Corruption in the current 30 years of the National Resistance Movement. How President Museveni can be proud of the system he has lead and built over the years. Take a look!

Breaching of the Leadership Code:

“In one (1) investigation it was recommended that a refund of Shs.3,480,000/= by a leader be made for using a company vehicle while he received transport allowance. A policy guideline on transport and fleet management was also recommended for the institution investigated” (IG, P: 17, 2016).

Lacking funds for the IG:

“Although Government has shown commitment to avail more resources to the institution as evidenced by the IG budget growth from Shs.13 million in 1986, Shs.3.1 billion in 1998 to Shs.35.4 billion in 2013 including donor support, the funding provision under the IG ceiling is still insufficient compared to the operational cost of investigations, prosecutions, verification of declarations and public awareness programmes” (IG, P: 33, 2016).

Government Institutions who hasn’t acted on IG recommendations:

“Alleged abuse of office and fraudulent tendering during the FY 2008/09 by MMC: The Senior Finance Officer/MMC was directed to refund. UGX 3,600,000/= being half of the money misappropriated to IG Assets Recovery A/C in BoU and thereafter present evidence for deposit to the IG failure of which she would be prosecuted in Courts of Law” (IG, P: 38, 2016).

“Alleged abuse of office by the Ag. PPO, Sembabule District: Mr. Turyarugayo Monday was directed, within three months, to refund Shs.4,890,804/= to IG A/C in BoU, which he irregularly earned in salaries for no work done” (IG, P: 38, 2016).

“Alleged abuse of office and mismanagement of a contract to extend council block by Lyantonde district officials: Submit Mr. Christopher Okumu to the DSC for appropriate disciplinary action for advancing Shs.150,000,000/= to M/S Bakaruma Contractors Ltd” (IG, P: 39, 2016).

“Alleged embezzlement of Shs.3,092,691/= meant for villages and 5% for Parishes in the FY 2010/2011 by the former Sub-Accountant Rubaya S/C In Mbarara: The Accountant should pay Shs.3,092,691/= within sixty days to the IG Assets Recovery Account with Bank of Uganda failure to do so will lead to tougher action being taken against him” (IG, P: 40, 2016).

“Alleged abuse of office and mismanagement of funds worth Shs.14,000,000/= by Kazo Town Council: The CAO Kiruhura should submit the Physical Planner Kazo to the DSC for disciplinary action for false accounting of Shs.2,000,000/= and failure to account for Shs.4,096,000/=. The Physical Planner ordered to pay Shs.6,096,000/= to IG Assets Recovery Account within 60 days. The Senior Physical Planner, Ministry of Lands directed to refund Shs.2,250,000/= received for facilitation for the work he did not do” (IG, P: 40, 2016).

“Alleged judicial misconduct and bribery by the Chief Magistrate Ibanda Court: The Chief Registrar Courts of Judicature should submit the Chief Magistrate to the disciplinary committee of the Judiciary for disciplinary proceedings and he should refund Shs.13,154,000/= to the Judiciary” (IG, P: 42, 2016).

“Alleged abuse of office and misappropriation of CDD funds by Busiisi Division Officials: Town Clerk to recover Shs.1,800,000/= being funds for Agahikaine Kibingo group that was put to personal use” (IG, P: 42, 2016).

“Alleged mismanagement and abuse of office by the Headteacher of Rukondwa Primary School in Masindi: Letter issued to Head teacher directing him to refund Shs.470,000/= through Assets Recovery Account being money he misappropriated as Headteacher of Rukondwa Primary School between 2004 and 2006” (IG, P: 43, 2016).

“Alleged forgery and impersonation of a teacher at Nyanja P/S in Rakai District: The teacher was directed to refund a total of Shs.19,579,287/= within 90 days with effect from 13/05/2015 which he illegally earned in salaries masquerading as a teacher who had left the teaching service in 2005/2006” (IG, P:43, 2016).

“Alleged embezzlement of Shs.85,000,000/= from Malaba Town Council: The CAO, Tororo was directed to submit the name of the former acting Town Clerk, Malaba Town Council and currently Assistant Chief Administrative Officer, Tororo to the DSC for appropriate disciplinary action for spending revenue earned from property tax, contrary to section 37 (2) and (3) of the Local Government Rating Act, 2005” (IG, P: 44, 2016)

People arrested by the IG:

“Hon. Abraham James Byandala, Minister without Portfolio: Abuse of office, Influence peddling, Disobedience of lawful orders” (…)”Asiku Ben, Accounts Assistant, Yumbe District Local Council: Embezzlement, abuse of office, forgery” (…) “Kiddu Ssali Bonny, former Chairman LC III, Lukaya Town Council & Luyimbazi James, former Town Clerk, Lukaya Town Council: Abuse of Office” (IG, P: 58 & 59).

People Concluded Prosecution cases:

“Wanyaka Samuel, Director Parliamentary Budget Office: Convicted on all the counts and sentenced to ten years in prison. He was further ordered to refund Ug. Shs.822,965,000/= which he stole” (IG, P: 61).

This here is just key aspects of the Report, not the whole one, but show’s how certain levels of corruption are and how it is taken. The smaller ones and the ones that are not important can be questioned and asked for refund. The others are being equitted or using long trial time to hopefully be forgotten.

There in the smaller district centrals and provincial towns where the cases are in North, West and East, but very little in the Central parts of Uganda; which is seem a little bit weird as the Central Government institutions are in Kampala and the teachers and supervisors that are taken to the Inspector General of Government are further in the districts. Not that I can believe the Ministries and Central Government is clean, as this report even at one point claim:

“Kalungi Robert, Principal Inspectorate Officer, Inspectorate of Government: Soliciting and receiving gratification; Convicted and sentenced to two years imprisonment on each count” (IG, P: 62, 2016). When even the Government body working to uncover corruption and graft are soaked in it as one of their own are taken doing the deed. Then the Central Government has to have an issue, not only Principals at Primary Schools in Mbarara, but also at Ministry of Sports and Culture.

The pride of the nation is not at stake, this is the ordinary, the normal and expected. The word of warning come and goes from time to time. Still, the validity of these claims is strong and shows the level of corruption. This is surely the same in 2016, as it was the last 6 months in 2015. Even more during the campaign of the NRM and General Election usually flamboyant spending from the Government; this is towards the folks and extent the boundaries of corrupt behavior to get the citizens to drop ballots in good faith.

So we can look forward to the next report if it is censored by the Central Government, that wouldn’t be surprising. So we can see if the IG get the ability to drop more stories or if the creative NRM will hide the corrupt behavior.

The ones coming here is not a good look as the small and minor, even bigger institutions has corrupted and abused their office for their own gain. This is a giant problem and comes from the top that doesn’t serve the civil servants and also often doesn’t allocate the needed salaries on time. That makes the civil servants creative to get the needed funds. The Government of Uganda got work to do, but as long as the NRM and their Mzee leads the realm I am sure there will be more of the same, because that fits him just fine. Peace.

Reference:

Inspectorate of Government – ‘Report to Parliament July to December 2015’ (27.05.2016) ‘Kakooza, Irene Mulyagonja the Inspector General of Government (IGG)

Uganda: Leadership Code Amendment of 2016; what are the important changes in the law?

The original Leadership Code of Uganda where commencement 26^th June 1992 in the early years of the National Resistance Movement; so the Government of Uganda need more to revised and amended as the Minister for Ethics Reverend Simon Lodoko has ideas to make the Leaders and Civil servants more ethical inspired. This done with amending a new law and making it stricter and giving the Ministry a strong Authority with a legal power as the law propose to change a very subtle committee who discuss proposed leadership breaches with Parliament and Minister; the Tribunal are having more ability to actually following the breaching and unethical behavior from leaders and their snitching ways. That is why the Tribunal gets revised from a measly Committee towards a powerful Tribunal!

Take a look at important issues that are wished revised and changed to make the 1992 law better and more control from the Central Government!

In the original – 

Section 10:

(1): “A leader shall not put himself or herself in a position in which his or her personal interest conflicts with his or her duties and responsibilities”

In the new Amendment:

(1)“A gift or donation to a leader at any public or governmental occasion shall be treated as a gift or donation to the Government or the institution represented by the leader and shall be declared so to the Inspector General; but the Government or the institution shall keep an inventory of the gift”.

There is a giant different between putting himself in a conflict and getting a gift. The Conflict is by approaching an offer that might substantially discredit the decisions alters the judgement done by the leader of government or in any government institutions. That is different from becoming somebody who get gift and has to give it to the government and institution who the leader works for. The gifts system is normal in many states as the leader and civil servants represent the states and cannot take bribes of gifts and such therefore these laws exist to make sure gifts and donations doesn’t become an issue to secure the vote/regulation/license or use the government institution to gain more than the competitor that doesn’t give or donate to the government leader.

Therefore the rule change is healthy, but will it just be lawful text and followed up the current leadership and only done as PR stunt as the NRM Regime hasn’t really been showing talent for accountability and transparency other than stern warnings and when donor aid has been cut. Then the government has swallowed a few bloody court cases and showing grand-corruption to prove their ability to honest budgeting; while going back to office when the court are gone and the questions from donors are silent. Therefore I have doubt that this law has affect as the Auditor General and Inspector General of Government (IGG) doesn’t even dig deep into the current corruption; so this seem like beautiful words, but will they acted upon?

Create a Tribunal:

Other key ones are adding a Tribunal that the leaders and representatives for government institutions report to and follow the ethics of their actions. They will have a chairperson that is elected by the Parliament and the ones in Parliament cannot appoint a chairperson, unless they can appoint a High Judge of the High Court. Which is part of the new 19 Section in 19A and 19B; this Tribunal will be elected by the President and Public Service Commission; with approval of the Parliament (19C).

This Tribunal will follow the case if non-else party is available to fetch evidence and collect affidavits as long as they believe it is “subject cause”. They can even interrogate needed persons even “abroad”. New in 19R (5): “The Tribunal may make an order in to costs against any party, and the order shall be enforceable in the same manner as an order of the High Court”. So the Tribunal will get the same value as a Court Order to follow the cases and follow the alleged breaches of the Leadership Code.

The strictest clear rules on the Tribunal is in the 19Z:

“A Person who –

• Insults a member in, or in relations to, the exercise of his or her powers or functions as a member of the tribunal;
• Interrupts the proceedings of the Tribunal;
• Creates a disturbances, or takes part in creating a disturbance in or near a place where the Tribunal is sitting; or
• Does any other act or thing that would, if the Tribunal were a court of record, constitute contempt of court, commits an offence and is liable, on conviction, to a fine not exceeding twenty-five currency points or imprisonment not exceeding six months or both”

Another change is the total replacement of this part of the law:

“20. Report of the committee.

Upon the completion of an inquiry conducted by the committee or upon receipt of a report of findings submitted by the Inspector General of Government or the Inspector General of Police or the Auditor General under section 19, the committee shall make a report to the authorised person; and in a case where the committee or the Inspector General of Government or the Inspector General of Police or the Auditor General has found that the leader whose conduct was inquired into is in breach of this Code, the committee shall make such recommendations as it considers appropriate as to action to be taken against the leader.

The committee’s report under subsection (1) shall be made public and shall state whether the leader is or is not in breach of this Code in respect of the specific matters inquired into by the committee and, in the case of a breach, shall set out—

 the nature of the breach which the leader has been found to have committed;

the circumstances of the breach;

a brief summary of the evidence received during the inquiry into the breach; and

its findings and recommendations.”

This with the amendment changes to this:

“(1) The Registrar of the Tribunal shall inform the authorised person in writing, of the decision of the Tribunal, within thirty days after the date of the decision.

(2) The authorised person shall upon receipt of the decision under subsection(1) take actions within thirty days.

(3) The authorised person shall report to the Tribunal in writing within fourteen days after the explaination of the thirty days referred to in subsection (2) of the action taken by him or her”.

Here the Tribunal doesn’t need to go public as they needed before, because this section is changed and amended with the new Leadership Code of 2016, this proves the writing happens between authorised person and the Tribunal and not to commit it public. It means within 30 days actions against a person will happen, but not publicly. So the Tribunal compared to the Committee of old can work in silence and act against somebody without common knowledge.

As the Section 23 original law says this:

“23. Procedure of the committee.

Subject to this Code, the committee may, after consultation with the Minister, make rules regulating its procedure under this Code”.

The newly amendment says this:

“Procuring information and attendance of witnesses.

Subject to this Act, the inspectorate may –

• Summon any person who, in the opinion of the Inspectorate, is able to give information relating to any matter relevant, to the investigation being conducted by it, to appear before inspectorate and to furnish such information and produce any documents, papers or thing that may be in possession or under the control of that person; and
• By order in writing, summon the person to attend before the inspectorate at a specified time and place and to be examined on oath”.

With this substantial change together with the others, the powers of the Tribunal is to inspect and get witness report or an affidavit as the summons of a person who might have information has to answer to the Inspectorate for the Tribunal under oath. The relevancy of this is the powers that the law might give the Tribunal as they can investigate and summon. Not only consult with minister after the code has been followed by the Committee. So the powers of following breaches of the set the law gets more ability to sanctions citizens. While the Tribunal get more power than a Committee that ask the Parliament for ability to act like the Leadership Code of 1992 does. Peace.

Alleged Corruption Scandal involving BoU Director Emmanuel Tumusiime-Mutebile and his new ‘Governor’s Residence’ (01.07.2016)

The Warning of the alleged corruption: 

Afterthought:

This can be questioned, as the paperwork provided unless the Bank of Uganda and the  Prof. Emmanuel Tumusiime-Mutebile have something to counter these allegations. As the questionable behavior and use of cash for the procurement for the real-estate and the vacant land. We can all ask question in what interest the Bank Director is getting this home payed by the NRM Elite, is because he has given all access to the Executive and this is how he repays? Peace.

Letter – “Re: Recruitment Process of the CEO of the Uganda National Oil Company Limited” (20.04.2016)