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Archive for the tag “John Muwanga”

Possible outcome of the revised Investment Code of 2017!

Yesterday at the Plenary in the Parliament, discussed the revised Investment code of 2017. Which in its self isn’t the most exiting thing. Nevertheless, the reality is that this is now in Parliament shows a push from the Members of Parliament and the Committee of Ministry of Finance, Planning and Economic Development (MoFPED). That they are up to something. They are trying to forge something ahead. However, as the President has claimed the bureaucrats for being lazy, this shows another attempt. However, if this parts of the laws are enacted. Will ensure that it takes longer and the quality of the Foreign Investor to hold onto the new demands of the state. This will also give more power to the Uganda Investment Authority (UIA).

As the September report on the bill states. They will register all investments and all incentives inventory, as off who is doing what and licensed to do. As the Foreign Investor has to comply too a more rigid laws to be able to in the first place now.

Because the change of laws is that an exports of a minimum of 70% of the production in the given incentive, hire at least up to 60% Ugandan citizens and accept to monitored by the authorities and the statutes within the law. This being the UIA, which has the oversight.

The Incentive before launching has to verified and certified by the UIA. The same authority that has oversight and register the incentives. The Foreign Investor has to notify the UIA if they are complying with their inventory to the UIA as per law.

As to make it more hectic for anyone to invest is not allowed to directly to be investing in farming, as production of agricultural output. They cannot do that, but they can be able and allowed to own factories and businesses that helps the farmers to get better crops or bigger livestock.

The law states further the priorities for a Foreign Investor, as per law: “1. agro processlng; 2. food processing; 3. medical appliances; 4. building materials; 5. light industry; 6. automobile manufacturing and assembly; 7. household appliances; 8. furniture; 9. logistics and ware-housing; 10. information technology; or ll. commercial farming”.

This really put the parameter for what they can and cannot do. They are specific as to who allows, what sort of investment, who certifies and who monitors. Therefore, a foreign investor, by law has to comply a lot more and has to have more paperwork to prove his business-plan, prove his investment, his hires and his initial plan for getting exports of the giving products. This will clearly hamper investments and create a longer time-table for them. As the Foreign Investor cannot focus on local market, but on international market, because that is how it is by law. In addition, when you invest in something, you don’t want to loose your certification or your rights to produce or export given products.

Also, the same investor needs to incorporate the business with the Registrar General, a certified of remittance by the Bank of Uganda, the second, the certified of remittance to lodge an application to the Department of Immigration and this department have to give the Foreign Investor a permit to do stay and do business in Uganda. Therefore, before engaging with the new criteria of the UIA and MoFPED, the investor has to get the BoU in check and get the Department of Immigration. If all of these factors doesn’t slow down a process, nothing does. This is clearly a way of securing jobs for bureaucrats and lesser the burden of the foreign exchange and remittance in general.

  1. Get UIA Approval and Certification of Business
  2. Get BoU Certification of Remittance
  3. Get Department of Immigration – Permit and Application of Remittance
  4. Getting monitored by the UIA to see you comply with the codes.

If that sounds like an easier way in, it doesn’t, more offices and paperwork, before even spending money. This code will clearly hamper more foreign investors from coming, unless they are giving Presidential Handshakes to the President. I am sure he then lets them in. Peace.

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Bosco was warned in 2016 about printing own currency, but in 2018: Goes ahead with it anyway!

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” Ernest Hemingway

There are someone who doesn’t listen to advise, even when it is well written and with shown data to President Yoweri Kaguta Museveni in October 2016, as there was reports and even made deals at the State House on the 7th October 2016. As the meetings was already ensuring and securing the deals between the Government and the printing company Veridos GmBh. By that time the Veridos company had delivered their commitments to print currency in Uganda. Also a comprehensive business plan that envisioned the proposed joint venture between Veridos and the government.

Now it is the 10th October 2018. Surely for many or plenty, this sort of an agreement is forgotten. Again, today at Entebbe State House, the deals was sealed.

As the Chimps Reports stated: “In the meeting that took place at State House Entebbe on Thursday afternoon, President Museveni noted that this new venture would save Uganda a lot of money that it has been spending on printing documents from abroad. “There was hemorrhage of resources that was unjustified. Money was going out to print currency notes for a long time. About US$25 million was spent each year to create Ugandan currency,” he said” (Kyatusiimire, 2018).

He is saying this without saying the cost of what sort of agreement the government has with company they are already using. As the lack of openness is shown from the state. That is why in 2016, the documents leaked and today, they just came on a government friendly web-paper.

To long:

Interestingly, Mr Museveni, who thanked the German company for its joint cooperation, criticized government officials for “taking too long” to act on such “crucial matters that affect the country.” He added that licensing bodies must not “over price working licenses for investors because it cripples investment and discourages potential investors. “These things of taking two years to deliberate on such matters must stop. Why did you spend two years discussing something that was so obvious?” he wondered” (Kyatusiimire, 2018).

That wasn’t obvious to the Governor of Bank of Uganda Prof. Emmanuel Tumusiime-Mutebile or the Minister for the Ministry of Finance, Planning Economic Development Matia Kasaija, who both was skeptical, not only because isn’t a company who is known for producing currency, secondly the costs are likely to be more, than what they have today and last the possibility for more forgery. All of this data was scrapped, as Bosco had decided himself.

So for some weird reason, Bosco want to take a bad deal, which his experts has said is a bad deal. He complains that his experts has made it takes this, because they didn’t have faith in the project. All been done at the State House, as it was started in 2016 and rewinds again in 2018. What value has the Governor of the BoU and Finance Minister, when their words are meaningless towards Bosco?

Someone please tell me, because I got nothing. Peace.

Reference:

Sharon Kyatusiimire – ‘BREAKING: Uganda to Print its Own Money Locally’ 04.10.2018 link: https://chimpreports.com/breaking-uganda-to-print-its-own-money-locally/

Bosco warns bureaucrats of sacking: They are his scapegoats for the lack of foreign investors!

President Yoweri Kaguta Musveni does not miss a beat; he skips on every track and sings his tune. He is never to blame and his patronage or his growing bureaucracy to blame. No, it is the ones that is hired to do the work, not the legislation, he passes through the Parliament, or from the State House even; no, it is the bad-boys in the offices, which are enforcing them. The big problem are the ones following the guidelines and following the rules, which the President has put up over time. Clearly, Bosco have forgotten that memo or these laws for that matter. It is his own words, and actions that tends to end up in scriptures that people has to follow. Not like they are blindly swallowing air at the offices, they are following the protocols and the rules of the day. Which have been implemented over the 32 years the President has resided over the main post of the nation.

“President Museveni warned lazy and bribe-taking bureaucrats to resign or risk being sacked. “We still have these lazy armchair officers at the different offices who continue to disturb our people; the investors. I will chase all these saboteurs,” he said. Investors must be facilitated to bring in expert skills, Mr Museveni said, instead of being frustrated through increased work permit rates and other bureaucratic procedure” (Dan Wandera – ‘Chinese are doers not talkers, says Museveni’ 01.10.2018, link: http://mobile.monitor.co.ug/News/Chinese-Museveni-Tiles-Nakaseke-Kyambadde-bureaucrats/2466686-4785104-format-xhtml-y40t4fz/index.html).

Therefore, Mr. President. You should look into the rules, the regulations and the laws that you have enacted, as the bureaucrats are following them and abiding them. They are making it slow, because the process you have built for them. If it was slim and easy laws to process and security check the investors, then the bureaucrats would do that, however, the NRM and you Mr. President has made it this way. They are most likely also giving you a Presidential Handshake to able to spend fortunes in the nation too. You know this and the state organizations knows too.

Instead of sending warnings of firing and calling them saboteurs, maybe, you should look into the laws, the regulations and use your NRM Caucus to implement changes that opens the gates for investors and also financial transactions in the country, as rigid it is today. That is why people are tending not to remit or sending funds, as the expenses for doing so is bananas. That is why you should use your powers for something good and not just order the army to solve crisis. But before you do that, maybe, just maybe, look into the plenty of laws that is enacted and active. Which are hampering foreign investors. That is if, you really care.

At this moment, you are just using the patronage, the cronyism you have created as a scapegoat. Not to make the state better or the financial climate either. Peace.

UNOC Signs Memorandum of Understanding With CNOOC to Start a Partnership in Exploration in the Albertine Graben (05.09.2018)

The Presidential Handshake lives on!

You would think certain scandals and certain ways of thieving the public funds would be died down. The stories would end and the beneficiary of these scandals want it to go away, as it taints their legacy and remaining words about their time as Public Officials, as Clerics and Civil Servants within the State. However, in the matter of the Presidential Handshake, this whole thing just getting more legs and doesn’t die. It is like the President is proud of his bribing ways and proving a point today.

As the NBS TV reports:

“The High Court in Kampala has issued an interim order stopping the Inspector General of Government (IGG) from investigating and forcing beneficiaries of the 6 billion shillings presidential handshake to refund the money” (…) “The public officials had received the money as a token for their role in the 400-million-dollar Heritage Oil arbitration case which Uganda won” (NBS Television, 13.07.2018).

It is like the whole charade was mocked by the legendary report calling it an ‘error’ but not a crime. To give away public funds to civil servants and public officials, as a handshake after winning a court case. It is like the state doesn’t care about their lack of transparency, as long as the cronies are funded.

My favourite quotes from the report published in May 2017 says:

“This “handshake” expenditure was not budgeted URA activity and therefore, a diversion of the UGX 6 Billion without lawful authority was contrary to the PFMA” (…) “H.E. The President’s approval of this “handshake” was bonafide. However, it was an error of judgement” (…) “That all funds paid out of URA account to the beneficiaries of the “handshake” should be refunded” (…) “The Executive should come up with a Bill within 90 days to regulate and streamline the Presidential Donations Budget” (COSASE, P: 45, 2017).

After my calculation were all well beyong 90 days and nothing fruitful has happen, except now the High Court are saying the non-budgeted and the error of judgement by the President is “okay”. They don’t even have to refund, while there is no bill to regulate or streamline any Presidential Donations Budget, because who would dare to cross the authority of the State House and President at this point of time. No one with a clear mind, who will not end up in prison or lose his or her livelihood.

This is a proof of how little power the Parliament have in the current state, as they cannot even look into or question the Presidential Handshake. They cannot even check into the sudden gifts and donations made by the President. Which is a substantial part of the State House yearly budget.

This isn’t funny, this is a mockery of all the ones paying added taxes and paying for state services, as they are being hold in contempt, where a certain amount of big-men and cronies within the state can eat directly of it, without any consequence. Who knows what else the President misuse funds on, right now? Peace.

Reference:

The Committee on Commissions, Statutory Authorities and the State Enterprises (Cosase) – ‘Report of the Committee on Commissions, Statutory Authorities and the State Enterprises (COSASE) on the Investigations into the Circumstances under which the reward of UGX 6 BN was given to 42 Public Officers who participated in the Heritage Oil and Gas Arbitration Case’ (May, 2017)

Uganda: The Judiciary – Courts will follow the law on matters of bail – Chief Justice (15.06.2018)

Opinion: Museveni, how many agencies do you need to battle corruption?

Museveni buying shoes in Wandegeya, 02.06.2017.

I wonder how many types of government institutions does President Yoweri Kaguta Museveni needs to investigate, report and check-upon one the White Collar Crime called Corruption. I am boggled if this has even passed his mind. Because you have the Uganda Police Force, Public Procurement And Disposal of Public Assets Authority (PPDA), Office of Attorney General (OAG) and Inspectorate of Government (IGG). All of these institutions should be capable of battling this issue.

Therefore, I know the National Resistance Movement (NRM) are out of touch and not in order. When he is extending and mushrooming the state even more. The President has clearly lost his touch. How many agencies does the President needs to combat corruption?

President Museveni made the announcement during his 2018 State of the Nation address to parliament in Kampala today. The unit will be led by Mr. James Tweheyo, Ms. Martha Asiimwe and Sister Akiror. President Museveni said the members of the unit have been directed to provide their phone numbers to the public. The public will be encouraged to report any corruption cases that come to their attention to the unit. While making the announcement, President Museveni turned on the office of the IGG and accused it of incompetence” (Agaba, 2018)

That this new Unit, the Corruption Committee will be another one. Even as the PPDA has mandate concerning procurement of the state and review it. The IGG are reporting and looking into the state resources and use of funds. The Attorney General are also overlooking and another branch who is fixated on usage of state resources and funds. The Police Force against indict, prosecute and make sure the prosecution of the people caught up in corruption. Therefore, to extend into a Corruption Committee is obnoxious. This is in the same regard as last years proposal of Presidential Handshake Committee, this is just make provisions to legalize it and clean-the-slate as you may.

That this Unit is cronies and other people close to the President. This is handpicked personnel and not hardliners. They will follow the lead of the President. I doubt they will dig any deeper, than any of the organizations that is there. If you already have the UPF, PPDA, IGG and OAG, what is the need for a separate committee? Except for adding a few more paychecks to some lovable cronies. It is amazing and foolish.

If the President thinks he is fooling anyone. That is just mere ignorant people who are already far up his leopards anus. Because we all know, this is just fooling the public. If you already have all the other government bodies, why are you extending yet another hand? Are you trying to make the state like Octopuses and have dozens of legs on a giant head. The head being the President and the rest being his loyal minions, which is the legs. That is how it is perceived.

I do not buy it that the Republic needs another body to fight corruption. If the will for fighting it was there. Then the state would have used one of the several bodies it already has. Now it is just extending another branch and another leg on the octopus. Thinking no one will mind.

Here ye, here ye, yo you fool, you are just a tool and this is not cool. I thought Mr. President that you learned this school. Peace.

Reference:

Agaba, Tabitha – ‘Museveni Names New Anti-Corruption Unit, Bashes IGG for Incompetence’ (06.06.2018) link: http://nilepost.co.ug/2018/06/06/museveni-names-new-anti-corruption-unit-bashes-igg-for-incompetence/

Uganda: MoDVA – Supplementary Expenditure Schedule No. 3 for the FY 2017/18 Budget (22.05.2018)

Greed 101: The 10th Parliament MPs are doubling their own salaries!

“They have plundered the world, stripping naked the land in their hunger… they are driven by greed, if their enemy be rich; by ambition, if poor… They ravage, they slaughter, they seize by false pretenses, and all of this they hail as the construction of empire. And when in their wake nothing remains but a desert, they call that peace.” – Tacitus

These Members of Parliament is are the definition of greed. They already have cars paid by the government, and then not some off-back neck-in-the-woods ones, but something with 4 Wheel Drive and usually a SUV. These same MPs got tax exempt in 2016, that gotten suits, foods and other benefits in their salaries, they are so caked up with funds for themselves, it isn’t funny. And comparing these fellow brothers and sisters to average salary rate in the Republic. Would be an insult to salary rate in the Republic.

They are now in 2018 trying to get their salary doubled from 11 million shillings to 24 shillings. When they are already paid hefty sums for the cars, the monthly gratuity, medical expenses covered through insurance, wardrobe grants, furnished offices, mileage facilitation, constituency facilitations, sitting fees, allowances for plenary sittings and airtime allowances as well. There is nothing that is already covered, expect for the side-dish allowance, so if they have a man or woman on the side, the state will cover that too!

Because this is an insult to the state, the whole republic. They are already the special class who has a salary, which is tax-exempt, that they fixed for themselves in 2016. They have added and added for every Parliament, added more perks and more covering of their expenses, while their own salary has sky-rocketed.

It is a reason why they are unaccountable and not trusted, its because they are eating, while so many and plenty are living hand to mouth. While the state is figuring out more loans and added debt, these people are topping off on the loads of cash borrowed or donated. They are taking the aid and donations, the squeezing of every buck from the Republic as God-given right. They continue to do so.

So these subject isn’t new, at every twist and turn, these MPs are trying to hash out more funds from the public. Because of any reason within here and the moon. Let’s just be clear, this isn’t fair salary, this is a theft of a nation and the MPs are the embodiment of it. If they weren’t thieving like this, they are still getting kickbacks, grabbing land and also getting paid to vote in favour of the Presidents bills. That is known as the handshakes and “suits” has been given in the past for favourable bills.

This is the National Resistance Movement paradigm, we eat and the rest of you starve, because we need everything and deserve everything. We liberated you so we could eat off your plate and everyone else too. Because we deserve that, while the rest of you fork-up the money, so we can represent you. That is what they are saying and continue saying, without showing any signs of accountability or responsibility to their constituents, because they don’t matter anyway.

As long as they are paid, and paid-in-full. Peace.

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.

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