Uganda: “Re: Media coverage of the achievements of Karuma Project”
I write what I like.
Today the Ugandan government, the National Resistance Movement finally read the Shs. 29 Trillion budget for the 10th Parliament. However, it is not necessary the size of funds and all, which is allocated, but the way it is funded. Like “Government hopes to raise sh14.6 trillion in revenues to fund the 2017/2018 budget” (Uganda Debt Network, 08.06.2017). Of the 29 Trillion, they expect to get close to half of that, but the monies has get from somewhere and also be of use. What is left are relieved like this: “The balance sh14.3 trillion (49.5%) of the National Budget will be raised through internal and external borrowing” (Uganda Debt Network, 08.06.2017). With this in mind, half of the budget is adding more debt. So if a nation already having lots of debt and debt repayment, it still adds another half budget. This is a bad cycle of events.
There lets us put things in perspective: “Our concern is sh9.9trillion, which is 35% of the total budget, will be spent on debt repayment” (…) “Amount of money spent on debt repayment has escalated in the recent past now at 9.9 trillion for fy2017/18” (Uganda Debt Network, 08.06.2017).
Therefore, the state and the NRM are clearly getting funds through loans to pay-off their interests. AS the 35% of spending is on interest in the coming fiscal year. This should worry, even if the corruption, misspending of obnoxious amount of funds through the paradise of Okello house. Still, that 1/3 of the coming budget is paid interest on old loans, which are been made by this government and by this President. What it show is the lack of concern of the future and how sound fiscal policies. At this state, the government of Uganda are clearly footing the bill. They are filling in the blanks for where they in the past had happy donors filling the envelopes.
The NRM and President Museveni is overspending and misusing state reserves, as the revenue and the state coffers do not sustain this massive overspending. Certainly, it is visible, also the worry of the running interest rates and growing debt as close to half of this year alone are by loans. Neither if it is local, by foreign or multi-national financial institution does save the fact, that the state has a problem.
That of the coming fiscal year, the state is borrowing half, and repaying that with 35% says a lot. IT says the fiscal policies needs change and it is dire. The state are clearly walking the wrong path. And remember this, there will be supplementary budgets during the fiscal year, that will expose the overuse of funds and needs for more loans. Therefore, they are surely going to exploit the faith in future, without having the funds for it today. Peace.
Today I am dropping numbers that are devastating, as the numbers of debt that the National Resistance Movement (NRM) isn’t paying, show’s sufficient motives for malpractice when it comes to budgeting and the structure of payments. There are certainly not enough transparency and clear audit of the state reserves, as the State is misusing seriously amount of funds. The NRM Regime and their President should be ashamed by their record.
Emmanuel Katongole is the Head Information Technology in the Ministry of Finance, Planning and Economic Development (MoFPED) in Uganda on the 12th April 2017, he dropped a document on their web-page that show’s the domestic arrears of the Republic of Uganda in the last Financial Year.
If you wonder what Domestic Arrears means: “The amount by which a government has fallen behind in its payment of interest and principal on debt to lenders within its own country” (Encyclo.co.uk). So Katongole will literately show how bad the National Resistance Movement is on paying their bills and expenditure. All the sums of this report is in Ugandan Shillings (UGX).
Like under the Office of the President and the Internal Security Organisation (ISO) who itself leaves arrears in the margin of 3.8bn shillings and 8bn shillings in other payable arrears. That one part of the budget and current audit of the Office of the President as the total of verified arrears at June 2016 was 37bn shillings alone. So the Office of the President owes a lot of funds that it hasn’t paid, not only for the ISO!
The State House by the verified arrears at June 2016 was 1bn shillings. What is more unsettling is that the Pensions and Gratitude for Veterans are the sum of 183bn shillings, Survivors 315bn shillings, EXGRATIA 10bn and UNLA 26bn shillings. The Ministry of Defense by June 2016 verified arrears was 718bn shillings! So the MoD are a lax payer of their expenses and expenditure.
Ministry of Justice and Constitutional Affairs owes verified arrears by June 2016 the amount of 684bn. Shillings Court Awards unpaid by the Ministry is 203bn shillings. The Electoral Commission has growing verified arrears by June 2016 because of Unsettled penal insterest for URA in the total sum of 3.2bn shillings. Uganda National Roads Authority (UNRA) has by June 2016 billed up verified arrears by 283bn shillings.
This is just some of the government that has not paid their dues and their expenses, their salaries or pensions, even their lacking covering of funds to pay debt, either internal or external. So the National Resistance Movement are clearly running an economy and fiscal policy that isn’t healthy for the republic.
Just to drop the total sum that the Government of Uganda has failed to pay or failed payments on their debt are by June 2016 the total of 2.7 Trillions of Uganda Shillings! Which is an insane number and amount of misspent monies by the state. The strategy by the Republic to fail so miserably cannot be sustainable, as the invoices and the target to pay their debt should be the most important. Still, the NRM doesn’t seem to think so. They are surely missing steps to having a sound economy when the verified arrears are hitting 2.7 trillions by June 2016. So the Financial Year of 2015/2016, the Ugandan government failed to serve out over 2 trillion of their needed expenses!
What is troubling that the year before, the total state had not paid on their debt and failing expenses in the Financial Year of 2014/2015 as by June 2015 we’re totally 1.389 or close to 1.4 Trillion shillings. So the miss-match between FY2014/2015 and FY 2015/2016 are 1.3 Trillion shillings. So the clear picture is that the Election Year for the NRM is very, very expensive.
Just think about that… eat the bill and pound on the amount of lost monies in the system. Peace.
There are many budget posts in a National Budget, but as there are talk of lacking international support of the budget in the Republic of Uganda. The certainty is that even as the donors are fleeing the National Resistance Movement (NRM) and the President Museveni own way of saying he doesn’t need them. Still, I want to show the world collectively what the NRM government have donor sponsored projects through the National Budget, these are projects and development of infrastructure that the NRM needs to show something after over 30 years reign.
Like take Japan the donor funding to the Northern Uganda Farmer Livelihood Improvement Project in the next Financial Year gives to the project Ush. 31.33bn. also donate funds to is the Nakawa TVET Lead Project got Ush. 4.69bn. Japan also donates to Kampala Flyover Construction and Road Upgrading Project with Ush. 155.44bn.
World Bank itself is donating funds in different ways to two other projects, which is African Centeres of Excellence that got Ush. 13.36bn. and Albertine Region Sustainable Development got Ush. 9.35bn. On the other hand the Kingdom of Saudi Arabia donated to the Construction of 5 Regional Technical Institutes with funds of Ush. 6.98bn.
Belgium has also offered their donor funds into the Ugandan state through various projects, like the Program/Project Support to Improve the Quality of Teaching and Learning with Ush. 11.97bn. also the Rehabilitation of the National Teacher Training Centre Kaliro allocated Ush. 15.16bn, they also gave to Rehabilitation of the National Teacher Training Centre Muni funds of Ush. 15.16bn. another project that Belgium was behind is the Support to the Implementation of Skilling Uganda with Ush. 15.96bn.
The Democratic People’s Republic of China has donated to new development projects in Uganda, like they are donating to Industrial Substations Ush. 91.74bn. they also donated to Isimba Hydro Power Plant Ush. 407bn. and also Karuma Hydro Power Plant where they have pledged Ush. 1,305.07bn. or Ush. 1.3 trillion to that alone! The Chinese is also involved in Entebbe Airport Rehabilitation where they have funded Ush. 148.13bn. the pledged funds for Standard Gauge Railway will first come next Financial Year 2018/2019 and not this financial year.
African Union (AU) funds to the UPDF Peace Keeping Mission in Somalia with total Ush. 256.66bn. United Kingdom pledged funds to the Road Infrastructure for Delivery of First Oil with Ush. 252.63bn.
The pledged funds for Kampala-Jinja Highway are first for FY 2018/2019, but no official donor or loaner of funds. Therefore the estimated funds come from thin air. What is also relevant is to see that the Funds from Austria and Denmark has been suspended for different development projects. Still, which I haven’t mentioned is the funds from African Development Bank, also GAVI and Global Funds still gives to health care development, even with the knowledge of the rampant corrupt behaviour in the Ministry of Health.
Therefore if the NRM are contemplating that they are themselves giving these sorts of projects to the people, I hope the donors are putting up boards or signs in the entrance or hallways, even start of the roads where it says what sort of amount of funds they spent on it. So that President Museveni or any other crony can take all the credit, because the credit and the footing the bill to somebody else! Peace.
“We are struggling, the situation is not as easy, but we are not desperate and the situation is under control. For us [government] we are ready to listen and to learn” (…) “The economy is not receding, the disposable income for drinking may not be there but we are not in recession” (…) “To avoid having arrears, we have to budget appropriately and the money budgeted for has to be absorbed” said Finance Minister Matia Kasajja earlier today (Oketch, 2016).
Nakumatt Holdings is apparently struggling as evident today of their Corporate Statement, that they have to even state it to the Nation, even after the takeover of Shoprite Supermarket Limited; they are still not financial stable. This news is coming days after the Crane Bank got into Administration by the Bank of Uganda (BoU). That after the bank tried to subdue the public together with the BoU in September, telling that the Bank we’re not looking for new owners. This is happening while the troubling times for Cairo International Bank and United Bank of Africa (UBA) Uganda… this is known as the Prof. Emmanuel Tumusiime-Mutebile of BoU said they we’re under notice.
Just as this is known in March 2016 the Exim Bank Uganda, that is a subsidiary of the Exim Bank of Tanzania. That bank took over Imperial Bank of Uganda and also Imperial Bank of Kenya. This is banks licenced by the BoU. So there have already been issues for the banks in Uganda, just more silent movement as the Investors of Exim Bank wanted it to die down.
Cancelled funding from Exim Bank:
“The major funder of Karuma and Isimba dams has withheld money for the country’s two biggest hydro-power projects until the legal disputes in Ugandan courts about the two ventures are resolved. The Export-Import Bank of China has written to Uganda’s Ministry of Finance, asking the Secretary to the Treasury, Mr Keith Muhakanizi, to explain why the ministry submitted to them documents of due diligence on the two dams and confirming the tendering process had been properly concluded yet the power projects are now a subject of litigation in court” (…) “Mr Muhakanizi was in State House yesterday for a meeting with President Museveni, but after consulting him, Ministry of finance spokesperson Jim Mugunga said: “It is true that the Export Import Bank of China like any other responsible party, expressed concern about the court case by a concerned Ugandan citizen which listed the bank among defendants. The Government of Uganda, through the Attorney General, secured a court order dismissing the case against the Exim Bank. The bank, therefore, is no longer party to the suit and the PSST Mr Keith Muhakanizi this week communicated the same to the bank.” (…) “Mr YuMeng expressed concerns that the outcome of the case in question would affect the commercial contracts related to Karuma Hydropower Dam and Associated Transmission Lines Works and Sub Stations Project, the 183MW Isimba Hydropower Project and the Isimba-Bujagali Interconnection project under Preferential Buyer Credit facility” (Mugerwa, 2016).
This is new that the Exim Bank is answering with postponing the building of the dam. Something that is the Markie and big Infrastructure projects that the Movement needs to shine a light into the dim situation of the Government. Certainly this answer from them could not be anticipated by President Museveni and his friend in the State House.
This is not the first blow this year as Uganda National Roads Authority (UNRA) has been under fire all year ever since first response from World Bank on the 8th January 2016:
“Following the cancellation on December 21, 2015 of the World Bank-supported Uganda Transport Sector Development Project, overseen by the Uganda National Roads Authority (UNRA), the World Bank has suspended the disbursement of funds for civil works in two other projects in Uganda. Those projects, overseen by the UNRA, are the North Eastern Road-Corridor Asset Management Project and the Albertine Region Sustainable Development Project which are suspended pending a review and strengthening of the capacity of UNRA to adhere to the required environmental and social standards” (World Bank, 08.01.2016).
If you though it wasn’t demeaning enough the World Bank continued later in the year with this statement: “UGANDA, September 13, 2016 –The World Bank Group took a decision to withhold new lending to Uganda effective August 22, 2016 while reviewing the country’s portfolio in consultation with the Government of Uganda. We continue to actively work with the Ugandan authorities to address the outstanding performance issues in the portfolio, including delays in project effectiveness, weaknesses in safeguards monitoring and enforcement, and low disbursement” (World Bank, 13.09.2016).
This is now evident that they used all the months from December 2015 to September 2016, that means the suspended funds for the projects been delayed for 10 months already, which is a close to year. Certainly that must hurt the UNRA and Government of Uganda really, really hard. The World Bank has because of this made the UNRA change how their work, as the Director and staff has sacked at a point. Now in October the agreement made between UNRA on behalf of GoU has been looked over and seen that some has been fraudulent and not made with due-diligence.
And your know there is issues in the finance market when even the states own National Social Security Fund (NSSF) have to explain where they invests their funds after social media spreads rumours of buying a mall in Nigeria and borrowing heavy funds from the Banking Sector of Uganda. This is happening as there 3 banks under fire and struggling already and if you forgotten they are Crane, Cairo International and United Bank of Africa. So the citizens and costumers of Uganda are already worried, they have been there before with the Greenland Bank and other who has lost confidence and gotten into receivership.
Yesterday even the IMF has answered the financial issues of the republic under the Movement:
“The mission notes the difficult environment for fiscal policy in FY15/16. While revenue collection increased as a share of GDP, it fell short of program expectations, reflecting lower than projected nominal GDP growth. At the same time, current spending was higher than anticipated. Taken together, the overall deficit target was missed by 0.4 percent of GDP, and the government partly relied on BoU advances for its financing needs. The execution of externally financed projects lagged behind target” (…) “the financial sector remains well capitalized, though non-performing loans have edged up. This has prompted a tightening of lending standards and a slowdown in credit to the private sector. The third largest domestic bank had become undercapitalized, and the BoU appropriately took over its management to protect deposits and safeguard financial sector stability. As a next step, the financial position of the bank needs to be established, and BoU will look for a strategic investor” (IMF, 2016).
If you see all of this and wonder how can this be, that one government has all of this just months after a General Election, than you know something isn’t as it supposed to be. The Government of Uganda are not running a steady ship when a bank is trailing, 3rd biggest commercial in the nation by 19th October into Administration, Cairo and UBA under the watch-list of the BoU; World Bank suspending loans for the Infrastructure Projects that is needed. While the BoU are fixing some financial stability it is not helped by the giving ways of the President Museveni and his dropping funds like a Walking ATM.
“Prof Joe Oloka Onyango said every crisis in this country is being solved by way of brown envelopes, a scenario he described as being sad and far below the rule of law in the country” (…) “In early 1980s, when this country was under the leadership of Godfrey Binaisa Lukongwa, State House was like a market place. Today, State House has been converted into an ATM,” he said amid cheers” (Wesaka & Adengo, 2016).
So for the once that do forget, the ATM Museveni is the cause of the issues that are now; this is his fiscal responsibility and Monetary Policies that made this happen. This is the reactions to the overdue and overspending of the Presidential Campaigns. These reactions should also lead to higher Inflations that it has done before after the elections. Therefore the Finance Minister Kasajja and Executive director Tumusiime-Mutebile have made some progress from previous elections in the Republic. Though the aftermath is now vivid for the citizens who are costumers at Cairo, UBA and Crane… there visible proof and the evidence are in the reaction of the Campaigning as the fraudulent and maladministration of the Banking Sector. This comes into mind as the State House had this message after February:
“As parliament’s budget committee tussled with an avalanche of supplementary budget requests late last week, which totalled Shs 1.04 trillion, some officials confessed that they emptied their initial budget allocations in order to sustain President Museveni’s campaign expenditure. State House comptroller, Lucy Nakyobe, whose office tabled a supplementary budget request of Shs 49.7 billion, told the parliamentary budget committee on April 1 that her coffers were depleted by the so many inland travels of President Museveni, who addressed four campaign rallies daily on average for the campaign period” (Namuloki & Oluka, 2016).
So the debt has to repay and taken from somewhere as the Central-Government, Banks and Multi-National Organizations are stepping off from the Ugandan Government, the Movement are running in circles taking care of their own while the citizens is now trailing and falling off. That is why businesses are giving in.
Just as people might have forgotten the paying of businesses connected to the family and General Salim Selah: “Prominent businesses in the country might soon run out of business if a decision that could see the use of Shs1.3 trillion taxpayers’ money to bailout companies in distress is not taken in their favour” (…) “Talking to Daily Monitor on condition of anonymity, a source privy to the talks revealed that “there is concern that bailing out companies without correcting the economic situation in the country will not resolve the problem.” (…) “The economy is not growing fast enough to generate activity for these companies to perform at full capacity. A bailout will not deal with the core problem. That is the argument being fronted by several government technocrats against the bailout,” the source said” (Muhumuza & Adengo, 2016).
So with this in mind, there are some sound imbalance about the bailouts months before one of the great banks put into Administration, NSSF has to answer for Social Media outbursts, two more Banks on a stroll, State House being broke months ago, UNRA projects suspended by the World Bank, IMF are seeing that infrastructure projects are lagging behind, Exim Bank suspended pay to the two dam projects and the strange bailout. There are too many evidence of lacking financial sound practises… Even Nakumatt the Supermarket are having troubles. There just more pawns on the set ready to move, but how they fall only the kings knows; because the Kings stay King. Peace.
IMF Communication Department – ‘IMF Staff Concludes Review Mission to Uganda’ (26.10.2016) link: http://www.imf.org/en/News/Articles/2016/10/26/PR16462-Uganda-IMF-Staff-Completes-Review-Mission
Mugerwa, Yasiin – ‘Chinese bank holds back Karuma funds’ (27.10.2016) link: http://www.monitor.co.ug/News/National/Chinese-bank-holds-back-Karuma-funds/688334-3431376-qxr194/index.html
Muhumuza, Keith & Adengo, Jonathan – ‘FULL LIST: 65 loan-stressed firms line up for Shs1 trillion taxpayer bailout’ (22.07.2016) link: http://www.monitor.co.ug/Business/65-loan-stressed-firms-line-up-for-Shs1-trillion-tax/688322-3305166-d6h193/index.html
Namuloki, Josephine & Oluka, Benon Herbert – ‘State House broke after spending on Museveni campaign’ (09.04.2016) link: http://www.observer.ug/news-headlines/43556-state-house-broke-after-spending-on-museveni-campaign
Oketch, Martin Luther – ‘Economy is struggling – Minister Kasaija’ (27.10.2016) link: http://www.monitor.co.ug/News/National/Economy-is-struggling—Minister-Kasaija/688334-3432534-t8dv3c/index.html
Wesaka, Anthony & Adengo, Jonathan – ‘State House turning into ATM, says Mak don’ (11.10.2016) Link: http://www.monitor.co.ug/News/National/State-House—ATM–Mak-don-/688334-3411968-1155d8t/index.html
Kampala August 23, 2016– The Elections for the Omoro District Woman MP will be held next week Monday 29th August 2016. We wish to retaliate that our Candidate Pamella Grace Lanyero is still a front runner in the race. We have finalized all efforts to protect the vote and this week we shall round up the campaigns with three Main Rallies. We shall with effect from tomorrow send our teams led by Members of Parliament; DP Whip Hon Ssewungu Joseph Gonzaga and the Women President Florence Namayanja. The Party President Norbert Mao will be the overall Field Commander. We have mapped the Constituency to the effect that the DP District Leaderships are to be deployed in respective sub-counties. This therefore puts a straight forward warning to all those with ill intensions of pandering in malpractices. The Kifeesi teams, crime preventers and police should therefore limit themselves only to the constitutional provisions pursuant to Electoral laws. We wish to participate in a free and fair process and we shall not be liable for any repercussions pursuant to contradicting the process.
Constitution Amendment Bill 2016
We are also concerned about the proposal, which is part of several amendments proposed in the Constitution Amendment Bill 2016 and is spearheaded by the Nakifuma County MP to provide for an open term of office for Commissioners under the Electoral Commission. The Bill seeking to extend the term of office of the Commissioners from the current ten-year non-renewable term to an open in a guise to allow for the Commission to retain more experienced individuals to run it is a blunder. This move by all means serves interests of Government and the President in particular. The appointment and permanent retention in such a move is ploy of recycled inefficiency and reward for stealing a vote at a period when no one has trust in the Commission as the President’s employees. This is evidenced in rewarding Eng. Badru Kiggundu in his new appointment as in-charge of Karuma and Isimba Power Dams Construction for the job well done in the EC. We are aware that this is a pilot plot to pave way for Life Presidency and we ask the President and his team to put their hands off the destiny of Uganda.
Police Public Relations Office Reshuffle
The country received the news of the reshuffle of the former Police PRO Fred Enanga. It is never astonishing that the Police Spokesperson is reshuffled because we have seen many come and go. What is startling is how a one Fred Enanga is replaced by the cantankerous Andrew Felix Kaweesi. The move saves Fred Enanga from living a life with his foot perpetually in his mouth. The Party is convinced that this reshuffle at such a time is uncalled for, diversionary and a political move from the IGP to cover up his recent mess in the Police but worse still; the organized mob he aided to attack the Courts of Judicature. We wish to stand clearly and state that the appointment of Kaweesi as the Police image, whether in interim or utilitarian capacity is not welcome at all. The personality of the Spokesperson brings out the entire image of the institution and that cannot be Kaweesi. We have a track-record of him from the days when he was in charge of the Police training school in Masindi. All Police officers who were passed out during his time have messed up the institution and haven’t acted any different from Aron Baguma, Arinaitwe Bwana among others. These are the fruits of Kaweesi!
When he was appointed Kampala Metropolitan Zonal Police Commander, his rough, inhuman and deadly actions as an individual are still fresh in the minds of the people of Kampala and the Metropolitan. This was a bit covered up when he was transferred to head the Human Resource Department and AIGP Director of operations. We have for long known that this is the true image of the Police, but the appointment of a person of such calibre will leave all Ugandans weeping whenever he appears in the media to justify police positions. Whereas the entire institution is rotten, we are convinced there is a better rot than Kaweesi! As a Party, we task Kaweesi in his new capacity to parade IGP Kale Kayihura instead of parading lower officers such as the truck driver. The IGP is at large and he disobeyed Court Criminal Summons.
Kakande Kenneth Paul