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Archive for the tag “Keith Muhakanizi”

Bank of Uganda: Monetary Policy Statement for October 2019 (07.10.2019)

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Opinion: Is the 64th CPC another car scandal in the making?

When Ofwono Opondo today said the Parliament bought 80 cars for the upcoming 64th Commonwealth Parliamentary Conference (CPC). I could help to recall the previous similar event at the Commonwealth Heads of Government Meeting (CHOGM) in 2007. As with that time the sudden need for buying car for a short time period comes up.

Not only the reckless spending on visitors coming for a conference, but also the lack of tenders and procurement protocol. Just like last time, when the CHOGM taskforce just enforced a bid through a company owned by Minister of Foreign Affairs Sam Kuteesa. Who knows what happen this time around. Who owns the company that was procured from and by what protocol was it made?

Because, now the amount of cars is much more. We can wonder if they will be is idle and left behind, as the 30 BMWs left at the Ministry of Works and Transport post 2007. As the CHOGM cars was already not the newest model, but a two year old. Whose tender was questionable at best. Even the President questioned it in a letter back-in-the-day.

Therefore, when the Press Conference today, says the “Parliament” aka the state bought 80 cars or vans for the event. So, let it be clear, the Value for Money is peanuts and the usage minimal. The state would have been better off, renting all rentals and not buying. Which means they have to find ways of using them. Unless, they plan to store them of site at MoTW.

Surely, the VIPs could have used the old ones and leased cars. They don’t newly minted cars fresh from the factory or unused even. They surely just want to arrive and on-time to the conference itself. But, the government want to splash out money like no tomorrow.

We remember the procurement scandal surrounding the CHOGM. The state should be more careful with their ways of buying these cars. There is no proof of value of money, neither the way the tenders nor the budget was for it. Lastly, not plan for usage or whose need for these post-CPC.

That seems like a mismatch of work and also questionable spending at best. When the same government has done the same stunt a decade ago. It should be obvious, that they could have the capacity to do this again.

So, be warned… it is a scandal in the making, unless Ofwono knows something we doesn’t as it is not like the documents, the proof and purchase methods are proven at this point. Unless, a Parliamentary PAC is looking into it or the Auditor General looks through the paperwork. Which we only will know in the next budget year or something. Peace.

Opinion: Will the 64th CPC have a similar aftermath as the CHOGM in 2007?

Now that there is a month or so away from the 64th Commonwealth Parliamentary Conference (CPC) in Kampala. When the 500 delegates from all the Commonwealth member states are coming to the Republic of Uganda. To be part of conference and work for a week.

By all means, the National Resistance Movement (NRM) and its handlers see this a opportunity to spread the good news, to show the grand side of the Republic and its nation. However, why I am writing is that I fear this will be another Commonwealth scandal.

Last time was the Commonwealth Head of Government Meeting (CHOGM) held in Kampala a few days in November 2007. Which in retrospect was a graft-party for the Prime Minister Amama Mbabazi and Vice-President Gilbert Bukenya, also Foreign Minister Sam Kuteesa. Who all were implicated in millions of dollars gone missing on tenders and spending on the CHOGM conference that year.

As we know that the same people and organizers were around. The same people running the ministries and having vital roles. We know, that the NRM and its high ranking officials might see a new opportunity to eat. Don’t be shocked if the CPC becomes a modern day CHOGM. It is 12 years apart, but the same President and his party at the helm.

I would not be shocked if the Office of the Prime Minister Dr. Ruhakana Rugunda, Foreign Minister Sam Kuteesa, Gen. Salim Selah and someone implicated in the State House would suddenly misuse allocated funds, which Keith Muhakanizi can explain nor anyone else. They will vanish in a tender, fake tent or even some VIP cars whose never gotten imported through a shell-company owned by high ranking officials. The IGG, Auditor General or Attorney General can implicate any of them, as they cannot find the paperwork, which also happen to go missing. As the state prosecutors doesn’t have enough evidence to produce a case against them. Don’t be shocked, it is just business as usual.

This is just me thinking loud. I wouldn’t be shocked or surprised if the CHOGM scandal in a new version for the CPC would happen. If it appear for us in late 2019 or in 2020 as the revision of budgets, the value of money reports and whatnot. They will reveal that some company, which happens to be in connection with high ranking officials, suddenly have vanished government funds.

Let’s wait and see. I hope I am wrong, but don’t be surprised if suddenly we have modern day version of CHOGM scandal. Don’t be amazed if the 46th CPC suddenly turned into a goldmine for the big-men at the NRM. Peace.

Uganda: Fresh report states that the debt-service has grown 129% within one financial year!

 

The Republic of Uganda’s economy is really reeling, it cannot be sustainable as the Government of Uganda is growing their debt like there is no tomorrow. While the fiscal growth is substantially lower than their rate of debt-service. As the growth of debt combined with lacking growth to substantiate the shortfall.

In addition, with the knowledge of added expenses, growing shortfall of funds in the upcoming Financial Year of 2019/20 and the election year of FY 2020/21. There will be more add-ons on the need for debt service, as the state already had loans outstanding, which the grace period ends and the debt-service begins on. Therefore, the amount of loans will transpire even more, than what is in this report. The endless cycle of debt and growth of it, is worrying, as well, as the state thinks that the magical wand of oil-money will clear this debt. Even as the first operational oil field and such has been postponed yet again.

Just look!

“The total Government of Uganda external debt service by end of FY 2017/18 amounted to US$275.75 million, which was an increment of l29% compared to US$120.62 million in FY 2016/17” (…) “Debt service of Uganda’s external debt is on the rise and outstripping growth of the country’s income, currently at 6%. This poses risks for future debt repayments, especially as the country continues to acquire external debt at less concessional terms, especially to finance the oil development programme” (P: 6-7, 2019)

“It follows that as interest rates increase, the debt service obligations of Government also increases. The rise in external debt interest costs attests to the fact the government is increasingly contracting non-concessional debt, which will increase the repayment burden” (P: 24, 2019)

“However, this may not be the most likely scenario, as most projects have been discounted and some excluded in the macroeconomic framework. With the development of the NDP III, additional project and other pipeline project related to the oil developments and other infrastructure, will increase the financing requirement of government in the medium term. The inclusion of the above projects will re-classify Uganda from low risk of debt distress to moderate risk of debt distress or high risk if the export shocks materialize. A downgrade would have significant implications for the program with the IMF, where Uganda’s credit risk rating will worsen; implying that accessibility of nonconcessional financing will be limited. This will limit credit to Uganda to only concessional and grants financing.” (P: 28, 2019)

You don’t need to smart about it, as the state has bigger budgets with higher shortfall in the economy, combined with debt service and higher interest payments on the growing amount of loans. You know sooner or later, the economy will tank, as the fiscal responsibility is taken for granted and that fresh funds are lacking, because these are taken out of the economy to finance the payments of the old debts. Instead of generating growth and actually naturally grow the economy, by spending and investing as a state. The money is taken away to service debt, instead of building the state. That is what they are doing and at a alarming rate. Peace.

Reference:

NEC1-19 – ‘REPORT OF THE COMMITTEE ON NATIONAL ECONOMY ON THE STATE OF INDEBTEDNESS, GRANTS AND GUARANTEES’ June 2019, Parliament of Uganda

Uganda National Oil Company: Press Release (14.05.2019)

Uganda National Oil Company (UNOC): Dr. Josephine Wapakabulo resignation letter as Chief Executive Officer (13.05.2019)

Uganda: Anti-Corruption Unit – Request for Your Intervention in the Delayed Confirmation of Officers in Acting Capacity and Irregular Recruitment of Inspectorate Officers into the Inspectorate of Government (20.03.2019)

Bank of Uganda: Monetary Policy Statement for April 2019 (01.04.2019)

Uganda: Announcement of the National Dialogue on Compulsory Land Acquistion (20.03.2019)

Bank of Uganda: Monetary Policy Statement for February 2019 (07.02.2019)

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