President Museveni letter to Hon. Muruli Mukasa, Minister of Public Service: “Re: Emolument on Personal to Holder Basis” (01.08.2017)

Opinion: President Museveni wants cronyism on steroids!

We know that the loyalty based between former Members of Parliament, former NRM historical’s is not based on merit or on ideology anymore. It is on the possible paycheck and envelopes given by the state and the favors it gets the President. Everything else is and should be seen as a lie. Therefore, when the Observer quotes a letter from 1st August 2017 sent to his loyal cronies, saying they have to make sure the other loyal cronies get more perks. It fits the paradigm of his growing entitlement and his regime. The President do know the only way of keeping them within reach and loyal to him, is to pay them. That is the only way he can sway them and make sure they got his back. This is the reason for the sudden; we need to give MP allowances and benefits to the ones ousted and who has left office in disgrace. They need a new form of payday, since I still need their loyalty. Just look!

“In an August 1 letter, President Museveni directs the minister of Public Service, Muruli Mukasa, to give the former ministers who were appointed ambassadors the same remuneration they used to get while they still served in cabinet. “As you are aware, I have appointed some former ministers as ambassadors. I, therefore, direct, if it is not against any law, their remuneration, personal to holder, like when they were ministers, minus of course elements like constituency allowance because they no longer have constituencies,” Museveni’s letter reads. The letter is copied to Vice President Edward Ssekandi, Prime Minister Ruhakana Rugunda, Foreign Affairs Minister Sam Kutesa, head of Public Service and secretary to cabinet John Mitala and the permanent secretary of the ministry of Foreign Affairs, Patrick Mugoya. Museveni’s letter suggests that the former ministers could alternatively be paid an equivalent of the monthly pay of Shs 15m for permanent secretaries, although this could come with additional benefits. “Sort it out in a rational manner on the basis of maintaining some of the benefits the individuals were getting previously minus the elements that are no longer applicable,” Museveni further wrote” (Kaaya, 2017).

It is amazing that former Cabinet Members will get perks when they have left office, that can only be keeps his cronies at bay. Not because it is benefits the state or is fiscal responsible. Since the Ministers and Members of Parliament get very high salaries and their reunification, that the ordinary worker in Kampala could “die” for.

Certainly, the President knows this and wants to make sure the former loyal cronies get their paycheck, which they will smile and grin. That they will continue to support him and speak well of him. If that weren’t the case, then this wouldn’t be necessary for him to propose. This isn’t for the love of the country and to take someone. These are the former well-paid politicians and loyalists, who are now sure they get another payday, without any work or office! It should be insulting, but is more of the same, seriously, since many former cabinet members becomes ambassadors, presidential advisors or any sort of title to pay for their loyalty. Not for their advice or political savviness. We all know better.

This certainly will bill up more funds and put more strains on the debt-ridden economy. But why doesn’t President Museveni, he will be dead when the interests and the debt has to be repaid to the creditors. Peace.

Reference:

Kaaya, Sadab Kitatta – ‘Museveni wants ex-ministers to draw cabinet-level pay as envoys’ (18.08.2017) link: http://observer.ug/news/headlines/54467-museveni-wants-ex-ministers-to-draw-cabinet-level-pay-as-envoys.html

President Museveni has directed that all Government Loans needs his “Personal Approval”!

“Parliament: President Museveni has written to the Speaker Rebecca Kadaga directing that all government loans must get his “personal approval” before they are tabled in Parliament” (Arinaitwe, 2017).

Yesterday in the Daily Monitor, all government loans has to go by and get approval by the President. So now, it is not all information relating to crisis. Neither is only the matters of grants, presidential donations or presidential handshakes for that matter. It is needless to say, more and more, if there was ever enough that has to get the provisions or the sanctions by the President Yoweri Kaguta Museveni.

If there is a street in Kampala that has damaged sidewalk, soon the President has to be involved and check his budget. Since now if the government needs loans from either internal banks, state reserves or even multi-national financial institutions, his Excellency needs accept it all.

Certainly, this will hamper any development and stop all the financial inclusions and provisions, who when you look true it all had given lots of power to the Parliament and the Ministry of Finance, Planning and Economic Development (MoFPED). Therefore, the Public Finance Management Act, which gives the government a go-ahead actually to loan without the approval of parliament. Now the President orders all loans to be levied by him. That shows his need for control and his passion to cease all the cash.

We can clearly imagine the Ministers, the Members of Parliament and the Local Councilors, all have to travel to the august house of Okello in Entebbe or jointly to Nakasero to plea a deal and get vouches for their needed bills and needed funds. Especially, considering that all State Affairs are now handled by the State House. The need for the parliament and its functions are dwindling when the President are the one that decides these details.

There are clear misconceptions of power, when all the money are under control by one-man and he does the decision. The need for a director of Bank of Uganda is only for show, the fiscal policies and needed understand of the financial markets are bonkers, when the President takes it all in his hand. More and more, the values of Presidential Advisers and Ministers are just for the effort and show. Therefore, they will not turn against him, instead of actually doing the state needed function.

This I say, since even business agreement between trade-off of banks, of estate and public lands are arrangement directly in the chambers of the State House. With investors and merry-men who promises to make gold out of bulk goods and Chinese imports. So that former markets, farms and former private lands are extorted with the benefit of the President, without concern of the traders, the ones living in the houses or the general effect of these efforts. Even the destruction of the National Theater is a prime example of a short-con to gain personal wealth on former old institution in Kampala.

Transparency and good governance, budget control and fiscal responsibly only becomes words needed when begging World Bank and International Monetary Fund for steady cash relief, or even African Development Bank (AfDB). Since it is the stakeout and possible needs of the President those matters, not the general state of schools, hospitals or refugee settlements. If the President see the need and issue or if one, of his fellow cronies beg on their knees and kiss his ring. Then the offer will be settle as a token of loyalty.

Now that the PFMA is out-done and out-played, even outfoxed if you will, because of the Presidential personal approval, therefore the parliament values is close to zero. They are just leaflets of envelopes and extra personnel for him. The parliament is more a front and piece of possible “democratic” institution when needed be, but not in reality. Since the last word and the last decision of any value comes from the State House. Peace.

Reference:

Arinaitwe, Solomon – ‘Museveni takes over loan approvals, rejects 11’ (12.07.2017) link: http://www.monitor.co.ug/News/National/Museveni-takes-over-loan-approvals–rejects-11/688334-4011990-124ocj0z/index.html

 

Uganda: Civil Society Position on Tax Revenue Measures for FY 2017/18 (21.04.2017)

Report from the MoFPED shows the growing Ugandan debt by June 2016!

Again, the Ministry of Finance, Planning and Economic Development (MoFPED) dropped another report on the fiscal policies and the fiscal health of the economy in Uganda. The National Resistance Movement (NRM) have created this environment as the growing debt and growing interest payment comes with their planned debt rise. Still, the PriceWaterhouseCoopers spelled gloom earlier in the year, as this report was dropped on the MoFPED web page today. Even if the Report was spelled out in December 2016. It is if like the NRM didn’t want this to spelled out early. Since the numbers aren’t compelling of an arts piece, more issues… just take a look!

The stock of total public debt grew from US$ 7.2 billion at the end of June 2015 to US$ 8.4 billion in June 2016. This represents an increase from 30.6% of GDP to 33.8% over the two periods. The increase was largely on account of external debt, which grew from US$ 4.4 billion to US$ 5.2 billion over the period. Domestic debt increased from US$ 2.8 billion to US$ 3.2 billion” (MoFPED, P:V, 2016).

That the debt are growing quick, as the public debt grew with US$ 1.2 billion, that the percentage of GDP went up with 3,2%, the external debt rose with US$ 0.8 billion and the Domestic debt went up US$ 0.4 billion. All of these numbers show the amount of monies that the Government are adding on their debt, as the UNRA and the development projects are suspended by World Bank. So the Infrastructure development can be questioned as the growing debt, as the government must have other uses of the growing and scaled up debt. Since the transparency of the economy isn’t there and that the sanctioned bills comes from the State House. Just look at the growing interest rates as well.

Interest Payment as a percentage of GDP stood at 2.2% as at end June 2016, up from 1.9% as at June 2015. The increase is largely explained by interest payments on domestic debt, which grew from Shs 1,077 billion in FY2014/15 to 1,470 billion in FY2015/16. There was a significant increase in the weighted average interest rate of Government debt; from 5.9% to 6.5% in June 2015/16. This followed increases in the weighted interest rates for both domestic and external debt, from 13.6% to 15.3% for domestic debt and from 0.9% to 1.2% external debt. As interest rates increase, so do the debt service obligations of Government” (MoFPED, P: 4, 2016).

The difference between June 2015 and June 2016 the percentage has grown with 0.3%, the domestic interest rate grew with Shs. 0.393 billion. The Interest rate alone went up by percentage 0.6%, as the weighted interest rates went up 1.7%. The key sentence that the report wrote and I repeat: “As interest rates increase, so do the debt service obligations of Government”.

That idea isn’t only on the interest payment percentages are running higher, but as the debt goes up, the interests goes up. So the Debt Service Obligations are going up for the Government. This is a natural outcome, that the obligations for the state goes up with the amount of debt it rises. So the government can try to portray this is controlled, and to one extent it is under control. Still, the growth in this regard proves that the NRM regime are pilling up debt and increasing their debt, as well as interests. In the end this will make the state worse. Especially knowing that the energy dams have been built poorly and many of the expensive roads haven been fruitful. This is development that the growing debt is being used to…

So the NRM regime and the Ugandan government isn’t believable… the rise of debt and interests show’s the current state of affairs. Even if the percentage is after plan, the government still has to take charge and make sure they can pay back both the debt and interests. Peace.

Reference:

Ministry of Finance, Planning and Economic Development (MoFPED) – ‘DEBT SUSTAINABILITY

ANALYSIS REPORT 2015/16’