Back in the day, President Yoweri Kaguta Museveni in the end of the 1990s the World Bank let the Republic of Uganda the opportunity to join their Heavily Indebted Poor Countries (HIPC) to cut the debt of the Republic. However, even with the massive amount of debt relief done in 1998 and later never stopped him from taking up more debt.
That is why the amount of interests paid on every single budget is debt burden, which is created by the President himself and his extensive cronyism. The President has ensured that the state owns so much money, while he stills continues the drill by financing half of it by more debt. Which has been method the National Resistance Movement (NRM) and Mzee has used in the recent years.
That is why such a big amount of funds is going into interest payments. Also, why the Republic are going in a negative spiral, while the lack of domestic revenue isn’t following the projections of growth that the state always promises.
With the knowledge of this, as the President is asking for a debt relief now. His using the Coronavirus or COVID-19. The whole world are into a recession because of this. It is the perfect smokescreen. The President had the 2000s and 2010s to fix issues, but instead the plunge the economy anyway. He just need an excuse for a bailout.
Last time it was Universal Primary Education, a empty campaign promise and now there are plenty of dilapidated schools. They played and tried to focus on it, but gave it up along the way. Because, doing this properly would actually cost time and effort. The President and his big convoy would actually have invested more, than they wanted too. More promising spending on proxy-wars, than on proper education for everyone.
So, knowing that the Multi-National Organizations, Bretton-Woods Organizations and donors gave way to the Uganda in between the late 1990s and early 2000s. They offered billions in various of schemes, not only HPIC and Poverty Eradication Action Plan (PEAP). This has been done already and still the state is bound by loans and grants to function its government. Therefore, the bullet of debt relief has been wasted.
The amount of US Dollars spent on the debt relief earlier in the reign of Museveni. The Head of State has misused this in the past. Not like he will change now. He has used the system to pimp his budgets and his wealth. His enriched himself and his cronies. While the Republic is still poor and the revenue isn’t growing like the economic recovery of the 1990s said it should have done. If the cure of the past would have worked, than the need for debt relief now would be unnecessary.
In 2020, the Republic shouldn’t get debt relief. It will be only spoils for the elites and the cronies around the President. It will be used buying tear-gas and SUVs. The WaBenzi will eat the spoils and only give away beans to the ones in need.
That Museveni says the continent needs debt relief. He means that himself needs it now. Even if his a wealthy guy in an impoverished republic. A republic he has run for three decades. Which already got special treatment and had a controlled Consultative Group. So, its not like this man hasn’t pimped the system already. He has tricked it and promised to juice up vehicle, but instead continue to run it to the ground. Hoping he could trick some new leaders to do the same mistake. Trusting him and his “high above” leadership.
They already spent millions of dollars to cut of the debt of the Republic under his control. The leadership is the same and they will misuse this if they get it again. When he had the opportunity to use it the last time. He instead wasted it and has ensured the state is more addicted to loans. That is why he hopes someone else can bail him out. While his paying ghosts, fake tenders and whatnot.
So, the IMF and World Bank should know this, but they are maybe more afraid of their image, than the result of letting go of some funds. These funds will not help anyone directly out. Only ensure the President longer life in office. This will not help the ones in need. Than he would have already ensured that. Instead his continuing this ballad and serenading the international community. While he hopes that no one knows history.
He has failed the last debt-relief and misused his chance. That is why his continued to grow the debt, addicted to grants and not created a space for more development. Unless, they give the President some handshakes at the State House. This is the way it goes.
The President of the Republic has had all the time since 1986 and we are still here. There are still opposition Members of Parliament who are tortured, there are still lack of free space and militarization of politics. That has never changed, but he hopes nobody notice. That is why he hopes he can pimp the International Community another time. He already did the trick and hope he can get them buzzed by a few buzzwords.
I know for some this is a moment of nostalgia, but for some its deja vu’. We have been here before and we shouldn’t need to repeat the same bad tune, again and again. However, I expect nobody to listen to me. Peace.
Lawyer Rama Omonya failed in his article today in New Vision. As his trying to use the Constitution to point that there is only way to criticize the President and his actions. That the public are only legally allowed to go after the Member of Parliament. This is all because of the 10 billion shared to all MPs as part of the Supplementary Budget
Especially this part triggered me:
“Our constitution does not provide the citizens with such profound powers over the executive. The social accountability mechanisms for citizens to hold the Executive accountable only come in a general election after every five years or a referendum” (Omonya, 2020).
I am not a citizen of the Republic, but can read the Constitution of 1995 myself and know there is a article number 17(d) and 17(i), which states:
“17. Duties of a citizen.
(1) It is the duty of every citizen of Uganda—
(d) to protect and preserve public property;
(i) to combat corruption and misuse or wastage of public property” (Constitution 1995).
To top it all off, there is article 107(b) which states:
“ (1) The President may be removed from office in accordance with
this article on any of the following grounds—
(b) misconduct or misbehaviour— (I) that he or she has conducted himself or herself in a manner which brings or is likely to bring the office of President into hatred, ridicule, contempt or disrepute; or (ii) that he or she has dishonestly done any act or omission which is prejudicial or inimical to the economy or security of Uganda” (Constitution 1995).
Yes, that removal can only happen, if there is a motion from the MPs and the Speaker has put forward a tribunal for the inquiry and investigation in the allegations of the President. So, the Lawyer is right on the money there.
Still, if the citizens are supposed to follow the duty, they are supposed to be angry at both the MPs for the usage of 20 million shillings on themselves and cuss out the President for his Classified Expenditure, the State House and the Office of the President. All of these funds needs to checked and balanced. Not only the MPs, unless their duty is only to lower-ranking officials. Which the duties of the citizens doesn’t state. Unless, the lawyer can elaborate that for me?
He also wrote this: “In summary, the citizens have every iota of rights to the bay for the blood of the MPs over the sh10b and it is for the MPs to the bay for the blood for members of the executives who are mismanaging the “other” trillions as our laws dictate” (Omanya, 2020).
It’s the duty to combat corruption and misuse or wastage of public property. This is not based on where it happen, as long as it happens within the Republic. It does not state who is acting corrupt, who is misusing the power or wasting the public property. That is all fair game, if this article has value and not only symbolic. Because, Omonya make it seem that way.
Because, there is nothing stating in the duties of the citizens to only look into the Local Councillors, Mayors or Members of Parliament, but not the President. The duties are very clear and the citizens are righteous to do so. Even if they don’t have direct powers, but they can push their MPs to petition a motion for a tribunal. That would be justified to investigate the classified expenditure and other questionable use of public resources. So, there is also oversight of the President, not only in the General Election like lawyer states. Since, the duties are there as citizens. That should be fundamental. Therefore, the citizens should push on the buttons of the MPs to look into the Executive. Not only call fire for the little burning bush of 10 billion shillings, but also the trillions of shillings in questionable allocations. Peace.
Rama Omonya – ‘Why the public must be mad with the MPs and not the executive’ 01.05.2020, link: https://www.newvision.co.ug/new_vision/news/1518425/public-mad-mps-executive
In the next financial year it is voted in UGX 2.8 trillion shillings in the Financial Year of 2020/21. This is very special in consideration as the whole budget has grown to 45 trillion shillings. Also in regards to things and rising debts, the state will have to pay UGX 4 trillions in interests payments. That is close to 10 % and the Confidential Expenditure is close to 7,5%.
This is really special that the President needs this amount for confidential expenditure for the FY 2020/21. This is ahead of the General Election of 2021. There is already a supplementary budget for COVID-19 as well. Which is also adding more confidential expenditures too.
That is deliberate. The National Resistance Movement (NRM) and the President is acting with a clear message. They are doing it and we know it. Because, the state needs a lot of funds for the campaigns, for the tours, campaign material, paying ads in New Vision and paying off chiefs, RDCs and whatnots. That is why the President is begging for cars now. He needs them for campaign season, he always buy cars for Pastors, RDCs and other appointed officials to get their loyalty.
So, who knows what they will use Three Trillions Shillings for, but surely it will be for selfish and entitled reasons. NRM and the President will misuse these funds. Just like they are spiking up the budget again. New heights as of the budget is estimated in loans and grants. This means, the state is only able to get revenue for the other half. Meaning 22,5 trillions are gotten from elsewhere and will be more interests to pay later. This is special, as the state is getting debt relief from the IMF. Not like they playing into it. Loaning more, while the IMF is offering relief. Such a brilliant move!
While the state is doing that, they are adding more and more confidential expenditure. This is done in manner and fashion, where we know that it will got devious things. That is why they cannot state it. If it is weapons for proxy-wars. If it is for paying side-dishes, cronies and “foreign investors”. Because, there is a lot of things ahead. The President has a lot of people to pay. A lot of campaigning to do and spend like a drunk sailor in the coming months. Especially after the lockdowns.
The President will use the LDUs, UPDF and Police Force. There will be means and pain, interference and intimidation to ensure another term in office. Not like he can do it with gained popularity at this point. He cannot even get enough to feed the poor. He cannot even find ways to properly serve the public or contact trace within the COVID-19 pandemic.
That is why he needs classified expenditures in the ranking of 3 trillions in the up-coming financial year. Since, he needs secret trading, procurement and usage of funds. These things will not have ordinary due diligence or oversight. The President can use it like his Donations Programs. He can spend it without question and suddenly give a blown-up doll to his wife or something. We don’t know, but that is what he could do.
The NRM has surely ensured they have secured the State House, Office of the President and Office of Prime Minister funds as well. All of this usually spins a big web in the election time. So, expect it to be a supplementary budget for the State House in 2021. As the water-bill, lack of funds for salaries for a few Presidential Advisors and so on suddenly hits the fan. This is partly covered by the Confidential Expenditures. However, it can go anywhere. We just don’t where. It could go to ammunition, Armoured Personnel Vehicles and whatnot. That would be shocking, even if it get some additional tear-gas too.
However, don’t expect these three trillions to make the society better, the Republic to prosper. This is slush funds for the President and his cronies. This is securing their fate ahead of the election. Peace.
““As you are aware on the 28th February 2020 this Ministry transferred USD 600,000 to the Uganda mission in Beijing to support the affected students,” Keith wrote in a letter dated March 10, 2020. “However upon receipt of the cabinet extract, we noted that there is discrepancy between the amounts therein and that stated in the letter from Ministry of Education and Sports.” The letter directs the accountant to return 538,200 USD (1.997 billion Shillings)” (Edge.ug – ‘Uganda erroneously sends Shs2bn to students in China’ 11.03.2020).
Someone has had a bad ending of February 2020, maybe the Ministry of Finance, Planning, Economic and Development (MoFPED) Permanent Secretary Keith Muhakanizi suddenly seen the boo-boo done by someone. There was someone who didn’t due their due diligence, when the state signed off the amount of money sent from a government account over to the Chinese Embassy.
They clearly don’t have the protocol of two people checking the accounts, if they did then one brother would call out the other one. The second brother would say, “hey man, isn’t that more than what where supposed to go there and isn’t this wrong, sir?”. The Permanent Secretary Muhakanizi should clearly implement this. So, that two people have to sign-off transactions made on public accounts, because then they might save the humiliation of letter writing to a embassy asking for the return of the added US Dollars.
This is why you have check-points on spending and especially government spending. Since, this is money that supposed to be spent on the public and services made for the citizens. If this is for diplomatic work, help citizens and such. This is why, the transparency and the accountability is so important. That tenders, transactions and procurement done by the government and its organizations are done properly and through standards. However, we know that is not the case.
The person behind this transaction, surely has signed it off somewhere. They tend to be imprinted on the accounts, the rights to send or transfer funds and has put in the documentation to do so. That guy should answer for this. The Permanent Secretary looks like a dumb-dumb, but it might be either someone higher up the food-chain or a knuckle-head down in the Ministry who messed up. Nobody caught a whiff off it, until they saw their account had less shillings in it.
However, that is also a scary thing. Considering the 11 days it took to catch up on the movement of the unaccounted funds. The massive load of 2 billion shillings gone missing. It had a destination, but surely not intended there. MoFPED surely needs new guidelines and mechanisms to stop this. Unless, they are doing more of it and it doesn’t go public. Like a new type of Presidential Handshakes and kickbacks for public servants. This is why, the MoFPED doesn’t have the security checks before any transaction from the public accounts. Peace.
Keith Muhakanizi, the Permanent Secretary to the Treasury wrote a letter to the Parliament asking for a second supplementary budget for 2019/2020. This he did on the 28th February 2020. This time, the Ministry of Finance, Planning and Economic Development (MoFPED) is asking for an additional Ushs 662.337 billion.
The President is getting Ushs. 35,218 billion for Classified Expenditure. Since, the paperwork says nothing about it. It is either for his security or to fill his pocket. Because, putting into a account like this, open up a bunch of can of worms. This could even be spending for preparations for the General Election of 2021. Paying the ghetto children or another Operation Wealth Creation (OWC) campaign. We don’t know, but can only speculate, as his not buying a new jet plane nor buying new cars to his close family.
The Uganda People’s Defence Force (UPDF) is getting Ushs. 400 billion for yet another classified expenditure. Who knows if this goes to Gen. Salim Selah or the Special Force Command. Even if this is going to war-games of Philemon Mateke. We got no idea, as it is just specified as classified. It could go into buying more ammunition, tear-gas or even anti-riot equipment ahead of the 2021 elections. We cannot know, since the state doesn’t specify.
Ahead of an election, as there are plenty of things happening. This is a clear message. Even as the next budget will be really constrained by it. The budget of 2020/21 will prove it. If you calculate, you see I only looked into one piece of the supplementary budget. However, it is huge hunk of it. The load of the budget goes there. Not elsewhere.
While for instance, the run-away maids in Abu Dhabi only get Ush. 300 million shillings in comparison. That shows the priorities for instance. I just took one random thing on the 4 page list made by MoFPED. It still show the priorities of the state. Peace.
“Deficit financing, however, may also result from government inefficiency, reflecting widespread tax evasion or wasteful spending rather than the operation of a planned countercyclical policy. Where capital markets are undeveloped, deficit financing may place the government in debt to foreign creditors. In addition, in many less-developed countries, budget surpluses may be desirable in themselves as a way of encouraging private saving” (Encyclopaedia Britannica – ‘Deficit financing’ (25.08.2015).
In the original budget for 2019/20, the estimated domestic revenue of the state was about Shs. 20 trillion shillings, while the rest would be covered by close to Shs 10 trillion shillings in this manner the budget would cover the 40 trillion shillings. Today in Parliament, the debt trap, which was forecasted by several of Civil Society Organizations and others was proven.
Not only with the recent stipulation of the first Supplementary Schedule to the Budget Year of 2019/20, but also the lack of domestic revenue. This again proves the trouble with generating even half of the budget. As the Parliament are this week, either accepting borrowing 2 trillions domestically to boost the lack of domestic revenue. That means the Uganda Revenue Authority (URA) and the state haven’t delivered on the promise. As the state was spending more and more, but not having the funds to do so.
Therefore, if the state does this. Than, Shs. 2 trillions are loaned to cover for the lack of delivery, the lack of preparations from the government and the added costs of the local government units created. The government knows this, but acts surprised that state have to invest in it. That’s why they have a supplementary budget for it and surely there will be more schedules before the end of the financial year.
Just look at this:
“To address the projected revenue shortfall presented in paragraph 3 and the additional expenditure pressures presented under paragraph 9, Government requires a total amount of Euro 600 million equivalent to UGX 2,439 bn (Two Thousand Four hundred and Thirty-nine Billion) to finance part of the budget deficit” (Ministry of Finance, Planning and Economic Development (MoFPED) – ‘THE PROPOSAL TO BORROW UP TO EURO 300 MILLION (EURO THREE HUNDRED MILLION) FROM STANBIC BANK (U) LTD AND EURO 3OO MILLION (EURO THREE HUNDRED MILLION) FROM TRADE DEVELOPMENT BANK TO FINANCE THE BUDGET DEFICIT FOR FY 2019/20, December 2019).
“Given the revenue performance in the first two quarters of the FY 2019/20, the projected revenue turnout for FY 2019/20 is Shs 181575.18 billion, against the target of Shs 20,448.73 billion. This
reflects a projected shortfall of Shs 1,873.55 billion” (MoFPED, 2019).
“In line with the above Section of the PFMA 2015, Ushs 437.631 billion representing 1.08% of the Approved Budget for FY 2019/20 has been authorized by the Minister of Finance, Planning and Economic Development as Supplementary funding. The purpose of this letter therefore, is to submit Supplementary Schedule 1 FY 2019/20 for consideration by Parliament. Please make arrangements for the Minister of Finance, Planning and Economic Development to lay the schedule before Parliament” (Keith Muhakanizi – ‘SUPPLEMENTARY SCHEDULE 1 FY 20I9/20’, 21.09.2019).
“Rt. Hon. Speaker, in line with Section 25 (1) of the Public Finance Management Act, 2015 (as amended), I authorized and have accordingly submitted to Parliament Supplementary Schedule 1 amounting to Ushs. 437.6 billion for this FY” (MoFPED, 2019).
“In line with the above, the budget for FY 20Lgl20 is facing the following constraints:
– URA shortfall in revenue of Shs 1,873.55 billion;
– Additional expenditure pressures of Shs. L,432.2bn
– Non-receipt of World Bank budget support funds of Shs. 375 bn
– Non-receipt of capital gains tax of Shs. 225 billion (USD 60
10. The total revenue resource shortfall in the FY 2019/20 therefore amounts to Shs. 2,473.55 billion” (MoFPED, 2019).
We know this is serious, when the budget of the FY 2019/20 was 40 trillion. When 2,4 trillion of these have to get borrowed domestically. Even if 437bn of these are supplementary budget and wasn’t in the original budget of the FY. Still, the 2 trillion are a big slice to borrow and gain more loans. This is a debt trap, trapped by even more trap. As the tax-base isn’t growing as forecasted or as possible. By this estimation of the original budget, the domestic borrowing in this financial year would go up from about shs. 10 trillion shillings to about shs. 12 trillion shillings.
Because, with to much taxation, the funds are taken out of the circulation and isn’t spread as much. Not having the ability to generate more earnings for the citizens. They cannot spend, because they are actually paying taxes. That’s why you need sustainable taxes, which makes sense.
That’s why these loans are coming, because the state defaults on taxes, lacks the tax-base and doesn’t have the opportunity to gain the needed revenue. This the reality of the state. They will ask for the loans and add more debt. However, the government will not take responsibility for the acts done. The state are deficit financing and not generating revenue. That is why they are loaning even more debt. At a rate, which should worry anyone following it. Peace.