Opinion: 4 MPs issues a Motion to praise the SONA 2022 to get some recognition…

When it comes to the recent high commodity prices, caused, initially, by the re-launch of the world economy after the two years of lockdown and, additionally, by the war in Ukraine, our decision, after careful analysis, is to avoid the traps of tax cuts and subsidies” – President Yoweri Tibuhurwa Kaguta Museveni (07.06.2022).

It is really a spectacle when 4 Members of Parliament uses time and energy to make a motion to praise the President for a speech he held on the 7th June 2022. The 4 MPs saw it fit and usage of their valuable time to speak of the glory of His Excellency. They are having a ceremonial act and showering the old man with the hat with positive vibes.

These MPs are:

Mover: Hon. Emely Kugonza, MP Buyanja East County

Seconder:

Hon. Michael Bukenya Iga, MP Bukuya County

Hon. Sarah Kayaga Netalisire, Namisindwa DWR

Hon. Okot Boniface Henry, MP Youth Representative Northern

It is really amazing that Kugonza MP, Bukenya Iga MP, Kayaga Netalisire MP and Okot MP who are all in on it. These 4 MPs have used their time in office to file a motion of praise and appreciation of the State of the Nation Address of 2022. That’s what they are using their time on.

This is clearly done so the President and the State House notice their existence. They wants to score-some brownie-points and get goodwill from the old man. The MPs wants to shed a positive light and show loyalty. They are using their time to give credit to inaction and lack of concern to the rising prices, the inflation and the lack of government help in the middle of crisis. That’s what the MPs are doing and it should be called out.

Going solar:

Once the solar powered irrigation pumps are on the market, the Government will buy them for some of the co-operatives or farming villages, where one pump can be shared by a number of small farmers” (Museveni, 07.06.2022).

The MPs wants to envision the empty pledges which is so common placed in any speech from the President. The MPs must look forward to get “solar powered irrigation pumps” because I think that’s a mirage. The President promise a huge leap when he in the last period or last term was proud of bottle-Irrigation as a way of solving irrigation cheaply. This is just following the pledges of the President during the lockdowns, which was Village-TVs and Village Radios… that no one ever saw. Therefore, people should expect the same of the “solar powered irrigation pumps” as with other pledges, which shows this will never happen under his reign. It is to costly, a big burden and it will not be sustainable…

They are directly acknowledging a speech with this sentiment:

Another danger to our rapid social-economic transformation is the corruption of political actors and Public servants who do not only steal government money, thereby denying the population the services that money would have provided, but they also parasite on our business people. Business people and investors, do not feel beholden to these parasites. Expose both their requests for bribes and their schemes for frustrating those that do not pay bribes. Action will be taken for the benefit of the business atmosphere in the country” (Museveni, 07.06.2022).

It is really vivid when someone calls people insects and parasites. This is a posture and tough talk, as his government is known for being corrupt and accepting graft. The same government that promoted and was proud of the “Presidential Handshake”. That way civil servants got kickbacks for photo-copying papers in a court trial winning the state money. The same President and Government calls the corrupt parasites. This doesn’t add up and still the MPs wants to sing psalms in the Plenary Sessions for greatness of the State of Nation Address of 2022. That sounds stupid, right?

So, I don’t get what the MPs are seeing in this speech. Unless, they are only doing this to give empty sloganeering and show their loyalty to him. That’s the true legacy of doing this sort of motion. Just to signal the State House and the Office of the Presidency. We can just expect a small acknowledgment from His Excellency.

The 4 MPs really wasting their time doing this. Instead of looking into the fallacy of the speech. They uses it to be in the good graces. The MPs are not using their time or their wisdom to actually make a difference. They are just there to bow down to the master and hopefully get a moment to kiss the ring. Peace.

The Rise of the Cassava Republic: Low-Income turned into Middle-Income out-of-nowhere..

Remember, the locusts, the rising waters of the Lakes, the floating islands, the landslides, the terrorist bombs, the covid-19 and now the rising commodity prices artificially caused by the Ukrainian war. In spite of all these, the Ugandan economy, by the budget time in the next few days, will be standing at US$ 45.7billion by the exchange rate method and at USD 131.6 billion by the method. This means that the GDP per capita is now $1046. You remember, the entrance points for the lower middle-income status, is USD 1036. We have now passed that figure. Congratulations. However, to be declared a middle-income country, you need to sustain this for two to three consecutive years. I am confident, we shall over perform, in achieving that” (Museveni, 07.06.2022).

The President yesterday surely said a lot of things yesterday. I thought this one would be one of the myths and legends of old. That no one would take seriously… because the delusion is real. The powers of the State House and all of his Presidential Advisors should have told him “no”. Even the son who prefers to party and throw birthday parties should have advised him to say otherwise. Because, this is useless…

Museveni isn’t close to Middle-Income Country. Not by stretch, a mile or such. That’s because of the financial policies, the lack of financial integration and all the other means of which is a proper open economy. Alas, if it had been open and tradable, he wouldn’t have his hand in every cookie-jar. That’s why his butt-hurt that his coffee deal with Vinci is under fire. Because, no one see it as a viable enterprise or idea to begin with.

We know in a nation of hand-to-mouth, in a nation of gig-economy and 1 out of 5 is living in direct poverty. It’s hard to believe that nation is a middle-income. Heck, there isn’t even a growing middle-class either. If it had been a growing middle-class, there would be more stores and other sorts of outlets for people to buy luxurious goods. However, there hasn’t been a growth of that either.

The growing inflations, the deficit financing and the running debts of nation is proving otherwise. The state isn’t growing with domestic financing, but the budgets are bloated and covered by expensive loans. Which the next generation or the next President has to clear. Since, Museveni is possible dead when the maturity of these loans has hit peak. There is already trillions of shillings going out of the economy just to finance old loans, as the state is hiking up new one. That’s all to keep the upkeep of a huge entourage and cronies surrounding the President. With a mushroomed cabinet and gerrymandering of epic proportions, that is all costing and the amount 555 MPs says it all. They are all paid and has perks. So, the state is coving these expenses without adding any new revenue or such.

That’s why hearing a man like this saying… they have hit Middle-Income is nonsense. It is pure A QUALIFIED BS. It is utterly ridiculous. It would be funny, if it was a punchline or a joke, but he said this and meant it. Like it was fact. When the World Bank state the nation as a “Low-Income” and the budgets, the domestic revenue and everything else proves it. Maybe the lack of Governor of Bank of Uganda is haunting him. Since, he can now make things up on the spot and make it legit. There will be no push-back from the professionals… We know the MoFPED doesn’t read the papers or look over the numbers before voting on the supplementary budgets. So, the Minister of Finance is far from professional. His just eating and hoping his Permanent Secretary can save his behind.

Well… this is garbage. This is trash. We hope for betterment, but under the self-styled President for Life. I wouldn’t count on it. I would only count on cassava. Peace.

A brief look into Mzee’s State of the Nation Address of 2022…

When you have speaking as much as President Yoweri Tibuhurwa Kaguta Museveni… there is little wiggle-room or ability to “invent the wheel”. He has said most things and is repeating himself. He is trying to forge narratives and sound epic. I will not look into smaller details, but just outright straight nonsense, which is plenty of. A man who has over 130 Presidential Advisors should have the corrections and the staff to secure the facts. Nevertheless, there is “only one man with a vision” and his always “correct”.

The “correct is a running feature in his speech too. About the “Correct Ideology”, “Correct Pan-Africanist Ideology”, “Correct NRM Policy”, “Correct Strategy” and “Correct Ways” which is just typical of Museveni. Where his always correct and cannot be wrong. He has all the remedies, but ironically never really fixed things or been able to elevate the Republic since 1986.

Here is quotes and breaking down each piece by piece:

Some myopic people, thought that this was sandy ground where the NRM had constructed the house of Uganda. However, the onslaughts to which Uganda has been subjected in the last 2 or 3 years, have proven that the Uganda house the NRM has constructed in the last 60 years, including the preparatory years before 1986, has been built on hard ground, indeed” (Museveni, 07.06.2022).

It is really magical how Museveni rewrites history. The NRM wasn’t established in 1962, which is 60 years from today. The NRA was born out of rebellion in 1980. The Uganda Patriotic Movement (UPM) was born earlier than that and the failure of a campaign in the election. Was a reason for the rebellion and creation of the mentioned NRA. The earliest known body, which people know of and part of was Front for National Salvation (FRONASA). Which dates back to 1971. Therefore, that is far from the vision of NRM back in the day. That’s why I have trouble to see how NRM worked for a better Uganda in 1962 or the 1960s. That’s rewriting history, which should be rebuked.

The NRM was entity, which came into light in 1980 as a rebellious outfit and resulting the prolonged bush-war that lasted to 1986. So, saying that the NRM has constructed a house on a hard ground is foolish. That is a delusion and not legit. That is making historical facts, which cannot be proven and is only a political fiction of the President.

Moreover, the wise man’s house is currently full of surpluses, without too much use of irrigation or the use of fertilizers. In the coming financial years, we are going to intensify the modest efforts we have already started on, in connection with irrigation. With irrigation, we have worked with the private sector to produce solar-powered water pumps that the rich farmers can buy and engage in mini-irrigation, farm by farm. Once the solar powered irrigation pumps are on the market, the Government will buy them for some of the co-operatives or farming villages, where one pump can be shared by a number of small farmers” (Museveni, 07.06.2022).

This here will never happen… remember the Village TVs and the other pledges during the two-year lockdowns? Well, non of that has happened. Neither has plenty of the other pledges either. It took decades to ensure local councillors could get bikes or even able to give away garden-hoes to the villages. Therefore, when these things has been impossible and taking decades. This will happen the earliest 2030 or 2040. Museveni will not have the funds, the ability or the manpower to make it happen. That’s why he has praised water-bottle irrigation and other means to develop the agricultural sector. I have a hard time believing that this will happen. It needs a miracle or a generous donor who can foot the bill. Because, the NRM will never do this. Nedda ssevo.

When I met Madame Pinetti, she had no idea about coffee. I, however, could see that she had a wide network of contacts. I asked her to look into coffee. After sometime, she came back with a positive report that it was doable. Therefore, those attacking that project, are supporters of okukenenula, (ekyejwiiso) of Africa – perpetual bleeding. If they were not, they would have responded to our call of 1986 and after, to come forward and add value to coffee and seek government assistance. Instead of attacking the saviour (oyo anataasa), if you are genuine, join the liberation effort. It is criminal for anybody to continue arguing for the continued export of raw-materials in Africa when there is 90% more value in that product that you are giving to outsiders” (Museveni, 07.06.2022).

The President thinks his smarter than anyone. Is his the owner of Hawk Limited or what? Why does he cares so much about the company and the coffee processing in the Republic? It makes sense that his invested and is the shadow owner of the company. When he cares so much about it. Because, the deals written between the state and the UVCC is creating a monopoly and taking over the trading of coffee beans. That’s why people wants to block it. The company has no knowledge or any sort of experience in the business either. While others are already working and processing coffee beans. Therefore, the deal in question is made with wrong intentions and illegal too.

It is striking that his so angry and bad tempered like someone stole a candy from a kid. As an old man he should understand this deal or agreements isn’t righteous. That is if he cares about the industry. Instead he thinks he can trick the public and the farmers. However, people can google and thinks leaks. So, the truths are coming out. The Vinci Coffee deal is a disaster… and Museveni should reconsider, but trust me. His greedy, so his trying to soften the blow and ensure he gets the best deal for himself. Which is what an ageing “revolutionary” does…

Another danger to our rapid social-economic transformation is the corruption of political actors and Public servants who do not only steal government money, thereby denying the population the services that money would have provided, but they also parasite on our business people. Business people and investors, do not feel beholden to these parasites. Expose both their requests for bribes and their schemes for frustrating those that do not pay bribes. Action will be taken for the benefit of the business atmosphere in the country” (Museveni, 07.06.2022).

This here is the most bogus statement within the National Address… this year and that says a lot. We know that Gilbert Bukenya has no issues, Amama Mbabazi, Jim Muhwezi, Hentry Tumukunde and the list goes on. Corruption and greed is a vital part of the commercialization of politics under Museveni. The kickbacks, envelopes and misuse of power is well known. The President himself vouched for a “Presidential Handshake” not too long ago. So, the President is really caring about this. His earning on corruption himself and his directives is promoting companies that his either getting greased or profiting from. If not, why is Dott Services is so well-known…

Therefore, let all the NRM MPs and other positive elements, rally around the patriotic programme of the NRM that has transformed Uganda from the failed state of 1986, with the economy expanding in size 30 times plus in 30 years, in spite of the endless betrayals by certain elements. Those who cause frictions among the NRM fraternity, should be carefully examined. Why can’t you discuss any matter in non -antagonistic ways. Antagonistic ways only work for the enemy” (Museveni, 07.06.2022).

Here the President is speaking about possible “NRM Rebels” which is the most endearing thing that is… because a rebel himself isn’t accepting any rebels. That is the truth about the President and his close associates. They are just supposed to listen and give way. The NRM MPs are just there to sign off and do what the President says. That’s what is “patriotic” and the “correct NRM way” just so you know. That’s why he says this and speaks like this. It is a betrayal to stand-up or even question the “high above”. The ones who don’t know that after all these years have clearly not listened. That is obvious by now. If you dares to challenge or go against him from within… than you are an enemy. Therefore, know what you do and never ever consider that.

This was my takes from the National Address of 2022. Peace.

A bitter cup of coffee: A brief look into the Parliament Report on the agreement with Uganda Vinci Coffee Company Limited

Today the Plenary Session spoke about the “Report of the Sectoral Committee on Tourism, Trade and Industry on the Investigation of the alleged unfair terms in the MoU between Government of Uganda and Uganda Vinci Coffee Company Limited” published on the 29th April 2022. This is unravelling as the public and media is surrounding it. As the UVCCL company would get tax-wavers, coffee beans monopoly and other parts of the agreement, which is favourable to a company, which isn’t operational or fair for the farmers or coffee industry as a whole.

The UVCCL agreement is already questioned. The Ministry of Finance, Planning and Economic Development (MoFPED) and other high ranking officials adamant defence of it. Only shows how the faulty and unfair, partly illegal agreement was put into play. While this agreement would also endanger and certainly become a real hurdle for a growing coffee industry. A cash-crop turned into a monopoly.

I will not discuss the free-land, the lease or any of those sorts. That is interesting on it’s own, but there are several of other quotes, which just shows how bad this deal was and how in the wrong the authorities are to authorize it. Secondly, the UVCCL was supposed to do magic and get huge funds out of nowhere. While not being operational to build a big coffee processing plant. It just shows how this deal was the rig the economy and the whole coffee sector towards on entity. That’s really despicable…

Here are some quotes from the Parliament Report:

6.1.7.5 MOU is not sincere on the quantity of premium grades According to the MOU, UWCL’s coffee supply requirement for the start of the project is estimated to be 27,000 metric tonnes and 60,000 metrics tonnes at full capacity. The committee was informed by Uganda Coffee Private Sector that the conversion rate of Green coffee to soluble coffee is 3:1 and this means that UVCCL requires about 180,000 metric tonnes of green coffee. The committee however observes that Uganda’s average annual export for the past 5 years is about 5.2 million bags which is equivalent to about 309,000 metric tonnes. This implies that WCCL at full capacity will take 58.2% (180,000 metric tonnes) of Uganda’s coffee production. The committee notes that the stated reason for UVCCL’s desire to “ring-fence” is to ensure uninterrupted supply of high quality soluble beans” (P 23, 2022).

The Committee observes that whereas UVCCL has share capital of USD 10 Million, the money required to construct such a factory envisaged in the agreement is estimated by UCDA to cost about USD 44OM in the first year alone. The committee is convinced that UVCCL given its limited share capital cannot be in position to borrow a sum which is 44 times the value of the company” (P: 28, 2022).

The Committee observes that UVCCL was not eligible to benefit from the 49- year lease extension since it had not complied with the building covenants under the initial Lease agreement. This means that the lease was irregularly extended” (P: 30, 2022).

The Committee further observes that the UVCCL has not, even after the extension of the lease to a full 49-year, done any construction works on site to-date” (P: 30, 2022).

The Committee notes further that, the VAT Act does not grant any person, not even the Minister, the right to waive a tax. In that regard therefore, the Minister acted irregularly and illegally in granting the VAT exemptions to UVCCL” (P: 38, 2022)

The Committee observes that clause 4.2 creates a monopoly in favor of UVCCL to the purchase of superior quality coffee beans from Uganda by restricting Government from registering any contract or acknowledging any arrangement for the export of coffee beans. The Committee observes that this means that no export of super quality coffee beans shall be allowed by Government until the quantity required by UVCCL is attained. Further still, a monopoly is created in favor of UVCCL since it controls the prices it pays for the coffee beans supplied to it” (…) “The committee also observes that this monopoly is a threat to the already existing 47 licensed processors of coffee with possibilities of causing unemployment, loss of tax and in the worst long term scenario, shut down of operations” (…) “This means the farmer has the right to determine how and to whom he or she sells his or her coffee to. The Agreement therefore interferes with the exclusive rights granted to farmers over their coffee by article 26 of the Constitution by pledging the coffee to a single entity without the consent of farmers. The farmer’s proprietary rights have been affected by the Agreement, irreversibly” (…) “The Committee also observes that whereas farmers are being promised premium prices, the agreement is silent on the method of supply of coffee beans to the factory. This therefore, this opens a window for possible contracted brokers by UVCCL since the factory will need constant supply from different regions of the country. Thus reducing the margin on the farm gate price. The Committee is concerned that designating UVCCL as a price determinant will distort coffee prices in Uganda by disregarding the forces of demand and supply, both locally and internationally, in determining coffee prices” (P: 47-49 + 51, 2022).

It is really interesting the whole agreement, as the inept or the gravity of the whole situation was never there. If not, the MOFPED and other agencies involved never studied or thought of the implications of the arrangement. That a company with lacking funds was to build a big coffee processing plant. Secondly, the plant in question wouldn’t be able to fulfil its mission or planned monopoly itself. As the scale of production only will not meet the targets or the available beans for the plant in question. The farmers are producing to much beans for it process. Therefore, the monopoly is faulty from the outset. Thirdly, the agreement is done without thinking or considering the ones processing coffee-beans already, which is 47 companies and their livelihoods are in danger because of this agreement.

The agreement further has irregularly given a lease of land and it has done any construction work on the site. Meaning the company has some funds on paper and exists, but the operational and plant itself is far ahead of time. The UVCCL gotten dozens of advantages, but has nothing to prove for it. Neither does it has anything materialized.

The state has furthered breached several of tax-wavers to the company and given incentives, which is breaching with laws and regulations. It is like a whole enterprise of inept, incompetent and ill-advised high ranking officials inside the MOFPED. It just like all procedures, all protocols and all safeguards of the state has been thrown out of the window in a haste to sign a deal or amend it in favour of the paper-tiger called UVCCL. A brief-case company which is getting monopoly on the coffee-industry.

The company would further undermine the whole industry from the farmer to the exporters. This company would have all the rights and the positive outcomes. The farmers would be locked into selling to it and that after the price it would set. The UVCCL would practically be a state owned enterprise and be the only one allowed to operate. This giving no incentives and no rights to either farmers or former coffee processors of the Republic. Because, the UVCCL would have the monopoly of the industry for years. That is really bitter and shows how destructive this agreement is.

The MOFPED has served some “high above” or “interests” which we don’t know today. Because, we still don’t know who is behind Hawk Limited, which is the biggest shareholder of the company. However, sooner or later that information will trickle out as well. Because, that is the main benefactor of this agreement and a company like that is owned by somebody with influence and power to get such favours from the state. Peace.

The Art of Deficit Financing: Budget 2022/23 and the worrying affects of the growing debt…

The proposed budget for FY2O22/23 hos increased to UGX 47.25 trillion from the approved budget of UGX 44.77 trillion in FY2O21/22. ln the proposed budget, recurrent expenditures amount to UGX 33.54 trillion (71%) while development expenditures amount to UGX 13.70 trillion (129%). Worryingly, the projected revenue collections of UGX 25.54 trillion cannot fund the country’s entire recurrent expenditures” (Opposition Response to the Annual Budget Estimates for FY 2022/23, 03.05.2022).

When you read the first numbers on the Budget for the Financial Year of 2022/23 you see a problem that has been a long lingering issue. The National Resistance Movement (NRM) and Government of Uganda (GoU) has done this for several of years now. The state has banked on loans and grants to cover the deficits. While the state is budgeting with a deficit financing method, which is far from covering fiscal funds by the lack of domestic revenue. That’s why the rising debt and the cycle of recycling debt isn’t making things better.

Just read this paragraph here:

It is critical to note that debt management costs hove risen from UGX 8.58 trillion in FY2017/18 and ore projected to be UGX 15.94 trillion in FY2022/23. This translates to on increment of 86%. The costs take first coll on the budget to cater for interest payments, commitment charges, debt management fees and amortisation. Therefore, from the onset 33% of the proposed budget will

not be available for service delivery. instead, it will be utilised for payment of partial debt commitments” (Opposition Response to the Annual Budget Estimates for FY 2022/23, 03.05.2022).

Just seeing this number, as you see the lack of domestic revenue to cover the budget of 47 trillion shillings, which is only at the level of 25 trillions. While the project debt management is put to about 16 trillions shillings. That means most of the domestic revenue would be used to pay old debt. Unless, the state plans to take out more loans and recycle debt to pay the old debt. That is just pushing the problem further down the line and get more interests as well. Therefore, the state finances isn’t tricky anymore, but a tragic phenomenon. These sorts of numbers are getting closer to default and a possible debt trap at one point. As the state needs more loans to cover current loans. That is not how to run a nation and neither how to run a fiscal responsible government.

The numbers becomes even more striking:
“The advance effect of this astronomical level of borrowing is felt through interest payments of over UGX 5.5 trillion in FY2O22/23 rising from UGX 2.4 trillion in FY2017/18. An increment of 130%. This is coupled by external debt repayments that ore projected at UGX 2.4 trillion in FY2022/23 rising from UGX 589 billion in FY2017/18. An increment of 307%. These toke first coll on the revenue collection and reduces funds available for service delivery” (Opposition Response to the Annual Budget Estimates for FY 2022/23, 03.05.2022).

We see the debt management and now we see the rising interest payments are also doing the same. The ones that has been crying wolf and worried for the rising debt portfolio is catching up with the government. The Ministry of Finance and Planning and Economic Development (MoFPED) has failed to comply with the mechanisms and the codes of Public Finance and Management Act. Clearly, the Government and the all the Ministries has to be following suit.

These sorts of numbers should strike fear of a debt default and a crashing economy. The art of deficit financing … is now becoming a growing issue. The state cannot hide from this and this should worry the citizens. As there is nothing given that the creditors will be merciful or give way. They might … be vengeful and take collateral over failure to repay the debt. Peace.

Opinion: Have the Ministry of Foreign Affairs lost 160 vehicles in the last few years?

The Ministry of Foreign Affairs led by Gen Jeje Odongo is appearing before the Foreign Affairs Committee of Parliament to answer different questions raised by the committee. The Ministry of Foreign Affairs has raised concern over the poor state of fleet vehicle for transporting dignitaries. According to PS Vincent Bagiire, the Ministry is using old fleet from the 2007 Commonwealth Heads of Government Meeting which are “Nolonger fit for purpose” (Parliament of Uganda, 13.01.2022).

When reading this from the Parliament of Uganda handle on Twitter. I was boggled, because it was only last year when the Chinese Ambassador in Uganda handed over 70 vehicles to then Minister of Foreign Affairs Sam Kuteesa. That happened in the end of March ahead of summits, which was supposed to be held later in the year. The Chinese government spent 5 millions United States Dollars on these SUVs last year.

Therefore, when Gen. Odongo says the Foreign Ministry has “ancient” cars from the CHOGM summit. The state also bought another additional 80 vehicles ahead of the Commonwealth Parliamentary Conference (CPC) in 2020. Therefore, the Ministry and the state should have vehicles in their car-lot. They have not only bought these 80, but gotten donated another additional 70 cars in the year after.

It seems to be the time to re-issue the statement from the Auditor General Report of 2021:

Furthermore, I observed that 38 entities (76.0%) out of the 50 entities did not have a specific policy or guidelines on Motor vehicle management to guide the usage and eliminate theft, losses, wastage and misuse of motor vehicles. This was in addition to the absence of a comprehensive standardized fleet management policy of Government. Different aspects of government vehicles management are found in different policies and guidelines cited in various government documents, such as; the Uganda Public Service Standing Orders 2010, the Public Procurement and Disposal Act, 2014, and Treasury Instructions, 2017. This affects the entities’ ability to address the unique motor vehicle management challenges which may not be envisaged in the standing Orders and Treasury Instructions” (OAG February 2021).

So, it seems like the Ministry of Foreign Affairs has no control or policy in concern to their car park. They are one of these entities with no management of the car park. That is very clear by Odongo’s statement. As it is easy to see the Ministry have purchased and gotten donated in total 160 vehicles or cars in the last three years alone. The state and the Ministry be able to keep it up and general up-keep.

Unless, the state has suddenly issued these for others and given them to other state affiliates like appointed district officials or whatnot. That’s how it looks like to me. Because, how do you base you vehicle-park on CHOGM in 2022. When your own Ministry have bought vehicles ahead of the CPC and donated from China the year later?

Are there no accountability for the ministry and could Sam, the man just drive away with all of these to the sun-set and sell them on a car-lot in Mbarara? Because, what happened to all of them or they given to the former Ministers employees at Entebbe International Airport?

Since, cars cannot vanish, unless it is part of a Hollywood script or a car lost at a plot forgotten by the state. In such a manner of which, Mobutu had hidden vehicles and his administration held vehicles in foreign missions, which years later was found in forgotten garage abroad. Therefore, is that the issue of the Ministry in Uganda too?

Because, how do you loose 160 vehicles in the time span of about 3 years? Peace.

A very brief look into the recent appointments of Permanent Secretaries

Yesterday, President Yoweri Kaguta Museveni has had his little reshuffle of Permanent Secretaries to the Ministries and Offices of the State. There wasn’t much juice to see. It wasn’t like he offered yet another Forum for Democratic Change (FDC) leader or stalwart to a position. No, Museveni just did more of the same.

Plenty of the secretaries retained their roles and continues to be “permanent”. This being Lucky Nakoybe and Dr. Kenneth Omona who is kept in the same office. Someone who is lucky and in good favours of the state is Keith Muhakanizi who went from the Minister of Finance to the Office of the Prime Minister.

The appointment of Dr. Ramathan Ngobi, the aide of Salim Selah, the brother of the President has been appointed to be the Permanent Secretary of Ministry of Finance, Planning and Economic Development (MoFPED). A clear indication of how family affairs mattes and this is why Muhakanizi was moved to another office.

The one that sent a begging letter recently to the President after losing in the election and not being appointed to a Ministry. The forever in the public eye, Adolf Mwesige was appointed as a Permanent Secretary as a Clerk in Parliament. So, the President has him still in his good favours, as he knows he will be loyal for yet another appointment.

All of the President’s appointments are more of the same. These are just the few I see worth mentioning. Museveni is recycling most of the same people. Just a few new faces, but these are known for the general public.

The NRM doesn’t change and neither does the President. This is just more of the same. It is just some changing chairs, but not appointing more qualified or better equipped people. No, these are hired after loyalty and not after merit. That’s why these folks continues to get retained and work like they do. Peace.

Common Leauge of Ugandans in the Disapora: Uganda IMF US$1 Billion Planned Disbursement (24.06.2021)

Opinion: Museveni and the NRM is in a ill-advised debt-cycle

The National Resistance Movement and President Yoweri Kaguta Museveni have created a negative spiral of debt. The state have taken out more and more debt over the years. The CSBAG, Uganda Debt Network and other organizations have spoken out about this. As the state have the need to pay more in interests and it takes away more from the general budget.

Now the state is saying it has 65 Trillion Shillings in unsustainable debt. That is happening after the Parliament have had sessions over the last few years. Where the only thing they do is to vote over debt and approve more loans to the state for various of development projects, roads and you can wonder if it does anything.

The state is now owning a lot of money. More money than it usually uses in a state budget. The state budgets of late have had half of the revenue coming from domestic taxes and the other either grants or loans. There is also additional supplementary budgets, which is coming in cycles during the budget year. Which is adding more debt… and creating more debt.

There been worry about the rise of debt, but the NRM and the President has said it has been done within reason. However, that is now the chickens coming home to roost. There is enough problems ahead and the state has created this financial conundrum. It has been done deliberately over time.

The Parliament is on the regular issuing now loans… and taking new loans. While hoping one day they have the revenue to actually do these things. The state is spending money and funds it doesn’t have. That is an unforgiving task… and the NRM cannot run away from this.

The NRM have created problem. The appointments of the President is doing this. The Bank of Uganda (BoU) and Ministry of Finance, Planning and Economic Development (MoFPED) should have seen this coming. They have been looking over the expenditures and the interests rates. They know when the grace periods of the loans are over. These folks are the ones who has the oversight and supposed sound judgement to advice the Parliament to accept all these loans. However, that is clearly not the case.

The state is crippling its budgets, overspending and over-loaning funds over time. Now, the creditors and debtors wants their pieces of coins back. They cannot bail on it or default on it. Then the state will not be trustworthy and be credible as a economic broker. The state is clearly struggling and lacking funds. That’s because they are having trouble to raise domestic revenue and have to high costs.

This is a self-inflicted ill-advised debt-cycle. A government not listening to CSBAG, Uganda Debt Network and others. The NRM and Museveni should have done that. It will be harder for them to get solidarity this time around. As the Museveni era of now is destructive. The state actions against its own citizens and totalitarian acts. Is not the ones who makes outsiders forgiving like it did in the early 1990s when Museveni was part of a new group of leaders that the West had hopes in. However, that boat has sailed and the truth has come out. That is why Museveni is still there and depleting the state like there is no tomorrow. This is why the debt is rising and its run without any balance of the budgets. That is why the debt is rising and there is no way out.

They want debt forgiveness. However, getting that now will be a feat, but not sustainable either. As this state will just take out new loans and not re-coup or try to absorb the lack of revenue, which is causing the problem in the first place. That is why the state doesn’t have any liquidity or equity to trade for the lack of revenue. It is just a sinking boat and the captain seems clueless…

Deficit financing can only take that far and now its at the end of that journey. Peace.

The State propose a 0,5% Cash Withdrawal Tax (!)

The Ministry of Finance, Planning Economic Development (MoFPED) is preparing a tax on every cash withdrawal from ATMS or Commercial Banks. This means every time someone takes out cash from their accounts. The customers i.e. the citizens have to pay the state a fee to access their money. Just like they do with the mobile money transactions. That’s why the state is proposing this.

This is an easy way to access more funds without adding any value to the monetary market. The state will not do anything, but adding a fee. A percentage on every single transaction. In the meanwhile, they will also deplete funds from the citizens. As the citizens have to calculate every transaction to ensure they are paying less taxes. That is what people does when they want to ensure they get most value out of the money. Which will be standard.

The manner of doing this. Is in a state where there is already lots of cash and money in circulation. The Republic is built with cash based economy and need for cash itself. That is why in some ways this will even be a double tax. Especially for the ones having first mobile money transfer to family members and loved ones. They are first paying a fee to send it too them, which is the Mobile Money Tax. Then the person receiving the Mobile Money will have to pay either at a bank or at ATM the Cash Withdrawal Tax. In this way the state is getting paid twice before the money is even getting in circulation.

I wonder, if the MoFPED have thought of the consequences of this? Has the state considered the implications for the citizens? Or are they only trying to figure out new ways to cash in on every citizens. So that their behaviour and need for money will cost them.

Because, it is normal that foreigners or aliens are paying to take out money at a ATM abroad. They usually pay a transfer fee between their currency and the Ugandan Shilling. That is making sense and the bank also takes a fee for doing so. A tourist knows this and accepts it, as it is a way of easily access and securing local currency. However, what the state is proposing is paying a tax to access your own money.

The state is billing people for withdrawal of cash. In essence the state will take money for service rendered for printing money. They are billing the public for having circulated coins and bank notes. Since, they are taxing every transaction and that’s really ill. This sort of enterprise isn’t growing the tax-base, but taking away more funds from circulating. The more you tax, the more funds you are depleting from the system. In the end you have a evil circle where all taxes are overburdening the citizen. In such a manner, that they start to do all business and transactions on the black-market to save money. That is when the state loses out and cannot access these transactions at all. This because they have found other means of moving money and doesn’t want to pay added taxes on their needed funds.

The more these taxes are put forward. The more funds are taken away from the ones who needs them. This is all taken away from the citizens before they get to access the money. Either it is mobile money or taken from their account through a withdrawal. That should worry the Representatives and the ones making laws. The amount of 0,5% doesn’t sound like a lot, but imagine that on every single transaction or withdrawal. That will be huge sum and be a costly endeavour. Peace.

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