U.S. Supreme Court allows politicians to get the donors to cover their own personal campaign “debts”

The American Dream is dying, one step at the time. Senator Ethan Roark Jr. of Sin City is becoming the norm of society. Senator Ted Cruz of Texas did deliberately violating campaign finance laws just so he could petition the courts and get the laws changed. He has achieved his mission and by doing so. The donors, the corporations and the Public Action Committee’s (PACs) can circumvent certain stipulations and indirectly pay a candidate. Therefore, the candidate or politician will be beholden to their interests and in the end… not work for the citizens, but for the companies, lobbyists and other interests groups who is paying for their campaign.

The United States of America isn’t getting any better, but only turning worse. The Supreme Court is using benign reasoning. Calling it a political speech to loan money to fund their own campaigns. While we know the loans will be paid by the donors and beneficiaries of the candidates in question. This is ensuring the corporate candidates and the ones who serve certain industries to get massive funding, which will be pocketed by the candidate itself.

A candidate can take out a loan to his/hers own campaign of a ONE MILLION US Dollars and after the campaigns the His/Hers for House/Senate can cover these debts with interests, which goes straight into the account of the politician. That is self-serving and free money, a bribe that ensures the interests of the companies or industries are taken care off. So, it is so weird that this getting allowed, but shows what the Supreme Court really believes in.

Here’s the vital information:

“The U.S. Supreme Court’s conservative majority on Monday continued a decades long dismantling of federal campaign finance limits in a divided decision in favor of Texas Republican Sen. Ted Cruz. The 6-3 ruling, written by Chief Justice John Roberts Jr., struck down Section 304 of the 2002 federal Bipartisan Campaign Reform Act that limited post-election contributions to repay a candidate’s personal campaign loans” (Zack Needles – ‘Texas Republican Sen. Ted Cruz Wins Federal Campaign Finance Limits Case Before U.S. Supreme Court’ 16.05.2022, Texas Lawyer, Law.com).

“For the reasons set forth, we conclude that Cruz and the Committee have standing to challenge the threatened enforcement of Section 304 of BCRA. We also conclude that this provision burdens core political speech without proper justification. The judgment of the District Court is affirmed” (Federal Election Committee Versus Ted Cruz for Senate, May 16, 2022).

The next U.S. elections the campaigns can get vast loans from the candidates themselves. While later cash-that-in, as they are fundraising and getting donor funds from various of sources. All of these sources and lobbyists are doing so for their interests and policy needs. Therefore, we all know the gist of this.

The U.S. elections and campaign funding is already a corporate white-wash of funding. This is just tripling down and ensuring a “sign-on-fee” for politicians, which is only have been known for athletes. If not it is securing a means for an advance by “loaning” to your own campaign and getting a donor to cover the “debt”. So, in return the candidate will cash-in and get refunded this as personal revenue.

Ted Cruz and the current Supreme Court has made it possible for the rich candidates to enrich themselves on their own campaigns. In some regards, the way and manner of which they are elected has now also become a cash-grab for the wealthy representatives of Washington D.C. The Republican’s are clearing the swamp, but creating a bigger one. Where they are destroying the rules and opening up all avenues for creating personal wealth. While they are hoping the public doesn’t see or doesn’t care. Because, this is just a way of gaining more money on the job. Since the campaigns are part of the lifestyle and needs to get elected into office. Now the way of getting the job is also a possible way of getting vast profits. This is defended by need of political speech.

So, in the minds of the Supreme Court moving money from one account to another is a sign of political speech. Clearly, the banks of JP Morgan Chase, Bank of America, Wells Fargo, CitiGroup and such will be really happy about this. They don’t even need to get this politicians to hold speeches and get paid. No, they can just donate funds, which will cover the “debts” of the candidates and that will go right into the pocket of whoever they deem fit for their cause. Peace.

Amuru Land Grab – Apaa Village Evictions: A long process of failure from the state!

That the Northern Uganda have been in deep end of the stick in many eyes is evident, by how lax the state has been to take care of their needs and their rights. That can now be proven by the forceful evictions from land in Apaa Village in Amuru District/Adjumani District. Where the previously have been attempts to make a giant farm for an investor called Bruce Martin and also become sugar cane plantations and factory for Kakira Sugar Factory owned by the Madhvani Group, this goes all the way back to 2006. Therefore, the plans to evict these people has been slow process from the state.

Now in 2018, the Uganda Wildlife Authority (UWA) have evicted dozens upon dozens of the local residents from their lands. As the purge on the village and the area continues, this has been in the making, but the ones losing their lands get nothing, but lose their homes and their livelihoods at the same time. The government authorities have torched the houses and left nothing behind, as they are continuing to evict people. Their lives are no meaningless, as they have to flee their land and are living on the United Nations Compound in Gulu, while awaiting their future, as the state, UWA and the Uganda People’s Defence Force have been evicting them over the last two months. Surely, the hurt is felt and real.

Who can wonder if the state is finalizing the agreement with Madhvani Group to deliver his second sugar factory and also sugar plantation in the area or they are making a game drive from Bruce Martin. However, this is still grabbing the land without any forewarning and also taking their livelihoods without any compensation for the hurt.

The District Land Board and Area Land Board cannot been informed or care to inform the people, as the army and UWA have been busy evicting people with force. They are just pawns on the chess-set, and the authorities in Kampala let it happen. The leadership from afar are accepting it and have gazetted the land and taken the land. Therefore, the people who has settled in Apaa have to flee or be evicted from the land, without any justice or law helping them out. No compensation and nothing left for them.

This sort of play has to stop; I am sure the State House is fully aware and let it happen, as they are getting their cut of the transaction of the land for whatever purposes it has. Its been planned for years, but doesn’t make it better, when they could have had solutions back-in-the-day as the government knew this would come. They were already in talks with both Kakira and with Martin. They knew perfectly well, what was up. There is even a third scenario where the land is sold to someone else named Linton Brimblecombe.

Clearly someone forgot the memo and left it stranded. They just evicting people in the favour of one lucky bastard who capture all lands, without paying the needed ones who was actually living their and done so for generations. This is a violation of the trust between the citizens and the government. Because someone accepted the trade of the land people where living on and had rights too.

The Apaa village and Apaa community deserves better, all of the Acholi deserves better. They are being misused and taken for granted by the government. They are just pawns on the chess-set. No value, the first one in the battle-line to take out so the ones of value can be put into play. That is how it looks from the outside.

This have been planned for decades and now it happens.

Amuru Land Grab: What is ours, is OURS; What is their’s, is OURS; and Whatever is your’s, is still OURS. Peace.

Kakira Sugar Limited addressing farmers strike (02.07.2018)

Be woke!

Never let anyone take your soul, take your spirit and thinking mind. Not accept everything said and done. Put questions on to the men and woman in power, not just accept it. There are secrets and there are state secrets, but that doesn’t mean we can rationally questioned the ones who represent us. That is what we have to do. We cannot accept to just shuffle their snow and their regulations, without any contribution coming our way.

We have to question the social media, the media itself and also the written word. The government press releases will be the subtle and wanted spin on the manner. They can try to say it rosy affair, when we know their was dirty laundry behind the scenes, kinda like CD full of hits like Shakira’s Laundry Service.

As the people are tired after work and trying to live hand to mouth, as the corporations are getting more wealthy. The major political parties are working for corporate greed and the 1% wealthy, we have to question, if the system we have is the right one. If this is how it is supposed to be. We might not have to much slave-trade in the world at the moment, but the biggest corporations are really reeling and betraying the ideals of fair trade and righteous wages for their workers. Even Unions are squashed, the tariffs are hurting the low-level productions and the strict codes of conduct, even stops some from exporting to major markets.

The poor is kept, so that the aid industry can continue to be relevant, also so the rulers can beg for loans and donations for state institutions without having much of transparency and neither real results. Misusing the funds for own personal gains and elites, which offers the needed Forex Exchanges. This is all happening day-to-day and no-one blinks of an eye. We just let it happen, clap our hands and gives a coin. But not question how the operations are done and why the Lesser Developed States doesn’t evolve or even deliver governance that matter. That is because it doesn’t, it is cycle of desperation and despair, where the poor is used by both parties, while the public sympathy abroad is securing the need of delivering more direct state aid. Even if the rulers has no plan of making sufficient systems or building institutions, because if that happens. Then the donors will back-off and the funding for the lavish and easy life-style will vanish. An unjust ruler cannot let go off the simple money delivered smack-daddy in the middle of the face with very few strings attached. The game is rigged and some elites are eating the whole plate.

It is with this in mind, we needs to question ourselves and be woke. We need to ask ourselves, is the world we want? Where lobbyist and elites are trading the resources, where the states are near vassal states of the superpowers, even the dwindling ones like the United States. While Russia and China is promoting their clear agenda. China is rigging itself nicely with major loans, big infrastructure building and economic stimulus. Not only to make partnership with this states, but also to secure the first hand grab in needed resources. Even get control of the infrastructure if the state starts to fail on their loans. The latest victim for this tactic was Sri Lanka. We will know that more nations will fall as prey for this. It is just a matter of time, before someone lacks funding for loans and default.

Not that I have all the answers, I don’t, I usually have to few and asks questions, because we have to see and the steps ahead is uncertain. We cannot anticipate how it will go, but the ones in power. The ones with the biggest cut, will not share. They will lie and deceive to trick us, to make us feel okay and move-on. Instead of we questioning why they are ruling, why the corporations are taking over and why they are allowed to do what they do.

We have to question, we cannot accept that all of the media on one side or another sounds like robocalls of each other. Where the media isn’t checking and balances of the power, but instead are making enough drama and enough entertainment. So that ignorance breathes ideocracy. We could have questions, we could have minds, where the state isn’t arrogant and ignorant of the needs of the people, but they are, because they are more vital for consumption, but not for service delivery. When it becomes like that, then the nations are lost. Also the real advantages of our times.

When Multi-National Corporations, Multi-National Organizations and Big Corporate Media is working together and making sure we doesn’t think of what they do and how it becomes the way it are. Not because everything is devious. Because everything is not made with the mind control, with the ability to spin. But it is made for profit and made for the cash. The world moves on the currency and the monies made that day. If there wasn’t money in wars, there wouldn’t been invested such vast amount of money in killing people. Mercenaries is a thriving business, hired guns in international operations are a thing. Dark money is a thing, because the society is not supposed to tax every industry.

We still need to question their behavior, even as we their main motivation and their reason for existing in our lives. To deliver products, but also profits for their shareholders. That doesn’t mean their should have total secrecy and not be transparent in their ways of handling affairs and employees. As well, as Multi-National Organization, which needs to deliver Bi-Lateral Agreements and Negotiations. They are important to create trust and security. To check the states, but when they get to friendly and become hired guards, than we should worry. When the United Nations Organizations get to involved, instead of being their on short time mandate and with backing for the International Community. We should worry that this weakens the sovereign nations and the institution building, as the UN Organizations are there instead. Creating the same vacuum for the rulers as the Non-Government-Organizations, which are there to deliver one mission, but ends up filling the gap of the state. So the state doesn’t have to work on the matter, because foreign donations and work covers it.

That is the grandest of it, the lacking questions, it isn’t a quick fix. This wasn’t created in a swift hand. This system wasn’t there from just yesterday, it has been there for years and we need to think and ask. Is this the best we can up with? Isn’t there other ways to make sure of governance and institution building? Isn’t there a better way to secure the free mind and spirits? Or do we need to live in fear?

There are many questions, many unanswered, but there is a need to ask. I don’t have the answers. But we cannot hide under a rock and anticipate that it moves on its own. That only happens to Jesus. For the rest of us, we have to find tools, call for help or start digging in the dirt around the rock to get out.

Ask questions, write what you like, but don’t just accept everything. Being critical is good and doing more research on matter is good to. Because we need that to have a healthy discussion about our time and our problems. That is why I have little answers, but have questions. Because I don’t fear asking them. Neither should you. Peace.

The sorry state of the nation of WaBenzi!

You are now entering into an alternative universe, where we have a nation called WaBenzi. Where the elites was eating of the state reserves, where the elite was there because of their connections with the political elite. A political elite made by patronage and nepotism. This political elite was made out a liberation battle done decades ago, either from a foreign force or from some dictator, whose legacy was murder of ethnic groups or even expelling others. The leader on top would be seen as a hero back in the day, but with lingering time, the party (the Movement) and the President would tarnish his own reputation for lingering on.

While that is happening, the written word is losing meaning in WaBenzi. Because the political are afraid of challenging the President and his party. They might have some newspapers, but their circulation isn’t on the basis for anyone outside many urban townships of the nation. Neither is the social media sites. The intelligence that has been leaked, has made the elite to shut-down, arrest and revoke the licenses of these media houses. Therefore, the media is careful and awaiting approval from the elite before publishing. They are careful with how they address the President and his movement. Because they don’t want to question his rule. At least not too much, because they don’t want to suffer. They got families to feed. Even if there is an inflation, even if the economy is in shambles. Even if the rising debt and lack of foreign exchange is hurting the economy.

The patronage is destroying the state, the lack of institutions that is meaningful is shown from anything from SIM-CARDs, or even as foolish as monitoring porn. The boards are busy bodies, while the state is eating the funds for the top-class. The state owned enterprises are giving away tenders to developers without any oversight of the contractors or their delivery. If this get public scrutiny, the President will offer them a new chance after a short suspension. Because someone he knows are eating of this plate.

In WaBenzi, the elite can get away with murders, they can get away with thefts and even land grabbing. As long as the State House is informed, it doesn’t matter if the house is a colonial masterpiece or a grand-farm. Everything can be taken, even evict whole villages for foreign investors, for factories which is promised on the land. The state can take away land for roads and for rail projects, even if the building is only on planning stage and not even the tenders of building it is open to the public. Therefore, if a garden estate for one of the elites is built there instead, it doesn’t matter. The elite of the Movement can do whatever they want.

The people of WaBenzi is so used, they are used that the President can what he wants and say whatever he wants. He can contradict himself, he does that weekly and yearly. If you followed the President. You know he talks against corruption, but let his ministers who is caught in international fraud walk around like nothing happen. The WaBenzi is so used to lied to, that their ignorance and lack of care is natural. They are tired and praying for the ending of the President. Because the President doesn’t plan to leave.

The WaBenzi are used to that the government talk about fair share of resources and development projects, even if the elite in West is getting more, than the Central, Eastern or Northern Regions. The Western has the best schools, the most Cabinet Members and the best infrastructure. The networks of hospitals and other needed government structures are there, but not in the others in that extent. The schools are decapitated, the police stations are unworthy shacks and the government offices for higher officers are looking like mansions for high-end business-men. The mayors and councilors are well-fed, the police-officers are beating on the public to get fed, the school-teachers are having side-jobs or even farming on the side. The civil servants are asking for kick-backs and fill their plate to do their civic duty, because the salary hasn’t risen in decades. If paid on time, it still would barely be enough for the rent of their home.

The hospital are lacking basics, politician of opposition parties are trying now and then to help out. They use their salaries to buy sheets, beds and even medicine. As the national medicine importer and delivery system is understaffed, lack preparation and even the tools to have enough medicine for all institutions. The lack of funding and governance is hurting the hospitals. As they cannot afford to pay their bills, as black-outs and lack of oxygen are common place.

The Electric company is run by private contractors and also private investments from abroad. The development of the energy companies and the plants are all based on either multi-national funding or possible foreign investments. These are done in random, while the different part of the sector is underfunded and also because of the issues from within, is overpriced, hard to get good rates on the electricity and also often blackouts. This hurts the industries, the public, who has to have generators and cannot trust the government run company to deliver enough and stable enough electricity.

The WaBenzi is hurt by the Western, little Elite whose eating of everyone’s plate. They are grabbing it all, while all part of society is hurting. They are not even caring about the Parliament, where the laws are rubber-stamped and secured in favor of the will of the President. The legislation is to favor his agenda and not the good-will of the people. The Elite is more busy securing tenders and their own future, than securing the better institution and society for the public.

The WaBenzi has strict laws on political gatherings, the laws are to secure that no-one will ever have the power or possibly can topple the President. No one should be able to create a protest or demonstrations that could take him down. He has the army and the police on his side. They are keeping people at bay, even invade the Parliament to get his will served. The Courts are listening to him and the orders are happening to his service. Opposition leaders can easily find themselves behind bars, the ones who voices against the Movement will easily get into trouble. That is the state of WaBenzi. Where the thieves and murders walk free and the opposition is the real criminals. Therefore, the trust in the Police and Security Organizations are not there. Because they are misusing their powers to arrest innocent people, activists and youths who are standing up against the President. He cannot manage that.

The government is usually fixing issues that doesn’t matter that much and making sure to make a stamp. Has some sort of campaigns, and making taxes on ordinary stuff, but not making sure the taxation is used properly. That is because the existence of the regime is because they feed the elite. The WaBenzi elite needs the President and the President needs the elite. The chronic patronage and nepotism combined with grand corruption is like daily. The Executives, the funds misused and the mismatch behind the use on programs and what is left to the public is staggering. The President claps his hands and gladly take his percentage of it too.

This is just a story about WaBenzi, how a country became a hostage of an elite that lives on the goodwill of the President. They are there and don’t want change, because they eat. Even if the people starve, even if they cheat on levels of poverty, even if the elite cheats on the amount of people living there and how many projects they have for development. The aid is still coming, the United Nations will still show up and pay for the supper of the poorest of the poor.

While this continues, the liberator who promised to never rig elections. The President has appointed and made sure the Commission who controls the elections are in his favor. The Election Laws are always amended and changed just before. So that the so-called opposition has another disadvantage. Not only that the state is busy giving away gifts to the public during rallies, even busing them to the stages if they have too. Paying off the popular musicians to perform and also pay-off journalists to write favorable coverage. The President is also busy paying the clan-leaders, the religious leadership and even some appointed leadership in the districts. They are getting cars and houses, as a token of their good work and making sure the President is elected again.

The President is also busy using the army and police to harass the opposition in the run-up to the election. Even make them illegal to make a point. The ministers and the Security Organization will defend it as constitutional and say the opposition are making war, not only campaigning. The President will use vile language and say people are fools if they trust anyone else. The Police will bar people, will be more into politics during campaigns, than actually doing police work. The Police will defend their monitoring and the micro-managing of the people. This is all to install fear and secure the President, that people will not really challenge the Presidency.

So after months of campaigning, the elections usually ends with days of tensions. While the Commissions are cooking the numbers, the ballots and the paper-trail, the police is busy chasing the opposition and the civil society. Offices are raided, the media are under attack, the internet is blocked and the observers are watching idly by, while silently saying the process has to move-on and electoral laws can be changed later. It is still progress for society. That WaBenzi had an election, even if it was rigged and the President took total control. He left nothing to coincidence. The public of WaBenzi was props to buy legitimacy for the Presidency, the Commission was another tool and the international observers was there. Just to secure the display of elections was shown. That people could que and wait in line before being registered to vote. Even if there was pre-ticked ballots. Even if the police officers was working and making sure the district got the right result. As the Police arrested people entering or even being party officials registered to be looking over the tally and getting copies from the return officers at the Polling Stations. That doesn’t matter. Because the result has to be in favor of the incumbent President in WaBenzi.

That is just WaBenzi, we are all happy that this what WaBenzi has to offer. This is what the WaBenzi gives of governance, of institutions and of lacking taxation without representation. We are all looking idly by, why the WaBenzi is taken for granted. The President knows this and lives on, happy and ready.

If you demonstrate or try to strike, he will catch and make a treacherous human being, because no one has the power to question the power of the army and the liberation. Even if the liberator only liberated himself and his cronies. The rest has to be hostages in the President’s will and President’s vision. That is the decision of the President, who can get away with anything and no-one cares. Therefore, the nation of WaBenzi is misused and the people are too. Every single day. Peace

The Uganda Budget Framework Paper FY2018/19 for Energy and Mineral Development is saying that the External Financing is the key for this Sector – Period!

The Budget Framework Paper for Financial Year of 2018/2019 for the Ministry of Energy and Mineral Development is really revealing how the financing of the sector is and how the state is involved with the manner. Also, how low-key the main factors are and lacking transparency is hitting the Energy Sector of Uganda. Not that is surprising, since the agreements, the licenses and the tenders are usually kept behind closed doors.

However, the main part of the Framework Paper is evident of the issues at hand:

“The indicative budget ceilings for the Ministry of Energy and Mineral Development have been rationalised in line with the sector priorities and national priorities as communicated in the Budget Call Circular and in the Presidential Directives. The ceilings for Vote 017 for the FY 2018/19 are as follows: Wage Recurrent is UGX 4.23Bn; Non-Wage Recurrent is UGX 74,04Bn; GoU Development is UGX 307,84Bn and the Development Partner contribution is UGX 1,608.41Bn. Under Vote 123 ceiling is UGX 81.98Bn is for the GoU Domestic Development and UGX594.00Bn is from external financing” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

The building of vital infrastructure, the refinery, the pipelines and energy production facilities are all dependent on funding from abroad. If it is grants, loans or paid-in-full agreements done in secrecy. Because, there are more than the shadows of this budget framework paper. It is saying a lot and the votes for the future is showing the future too. That the Ugandan economy is prospering, as the budget are needing all funding from afar to be able to build needed infrastructure. Also, needs the grants for the Rural Electrification, the ones who the state has even borrowed to do.

Therefore, this Budget Framework Paper is showing the troubles ahead. This isn’t voting for better economy, know this is dependency and also proving how much the donors and partners are involved in making sure the economy gets addicted to it.

When it comes to the refinery, the details are clearly still in the wind: “The process of selecting of the Lead Investor is still progressing and the negotiations are ongoing between Government and the selected investor. The process is expected to be completed in FY 2017/2018. There after FEED and ESIA for refinery development will be undertaken with the Lead Investor on board” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018). So the selecting of it is not finalized, well, for some thought Russians had secured agreement and the reason for Museveni to visit Moscow. Clearly, that ship has sailed, we can wonder if Total or any other company would do this. As Total has the biggest chairs of licenses in the Lake Albertine Basin. Time will tell, but another proof of lack of transparency, when the Ministry has to write this.

“Procurement Bottlenecks including lengthy bidding processes that require no-objections from the external financiers at each stage of execution. There is need for PPDA to revise guidelines for procurements relating to flagship projects. In addition, the following measures need to be considered: financing agreements are signed, project is almost ready to kick off. PPDA should reduce the administrative review timelines that sometimes stall progress” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

This here is initially following the guidelines of the First Amendment of the 1995 Constitution of 2017, the Land Amendment that the National Resistance Movement put forward before the Age Limit. That would fit the narrative of the Ministry and their wishes. It is like reading the same idea, to give more power to the state and able to land issues quickly.

What we can learn, also and which is important, these developments, these infrastructures projects couldn’t have been built if it wasn’t for external loans, externals grants or direct aid, if not on the license fees and the parts that is taxed. However, the grand amount and the majority of the projects needs the external funding.

This is not surprising, it is to be expected because Museveni doesn’t want to use his money. He want to spend other people’s money and also the money of the future. To benefit him today, that is why the deals are done in the secrecy…. We don’t know the reasons and the value of the licenses, the ones who is to build the refinery, even the grand agreement between the Corporations who will build the Pipeline. We know that certain companies has failed to build the dams and used bad material, but that is because of the Chinese Contractors has saved money, while being paid-in-full.

President Museveni blessed that deal and got scraps back. Time will tell, but this isn’t a good look. Not because I want it to be bad, but because the money says so. Peace.

Mzee complains today about waste, however he haven’t rehabilitated sugar industry or revamped pharmaceutical industry either!

“In this regard, we need to learn and apply lessons from emerging economies such as India, whose total healthcare industry revenue is expected to increase from US$ 110 billion in 2016 to US$ 372 billion in 2022 in response to deliberate investments in telemedicine, manufacturing of medicines and health technologies, medical tourism, health workforce training and risk pooling/health insurance, among others. In order to achieve this, we need to plan in a harmonized way. In Uganda, for instance, we, indeed, have a nascent pharmaceutical industry producing Aids/HIV, Malaria, Hepatitis-B, pharmaceuticals, etc. drugs. These are, however, still using imported pharmaceutical grade starch and imported pharmaceutical grade sugar. The pharmaceutical grade starch and sugar are crucial for making tablets and syrups for children’s medicines. Yet, the starch is from maize and cassava and the pharmaceutical grade sugar is from sugar. I am told the drugs would be 20% cheaper. Moreover, apart from helping in the pharmaceutical industry, more refined sugar is also needed in the soft drinks industry. Uganda is squandering US$34 million per year importing refined sugar for the soft drinks, about US$ 20 million for importing the pharmaceutical grade starches not including the other raw materials, US$ 77million for taking patients to India etc. Africa is incredibly rich but wasteful” (Yoweri Kaguta Museveni at THE OFFICIAL OPENING OF THE JOINT EAC HEADS OF STATE RETREAT ON INFRASTRUCTURE AND HEALTH FINANCING AND DEVELOPMENT, 22.02.2018).

Seems like the 1980s World Bank loans to restart Kakira Sugar Works hasn’t done enough, since the Ugandan state did right after the National Resistance Army takeover of the state. They went into an arrangement with the World Bank getting loans for the company, to restart. That deal was done 8^th March 1988. As the documents said back in 198:

“Uganda currently imports US$15-20 million worth of sugar annually, which ranks second only to petroleum imports. Import substitution through restoration of domestic production capacity is therefore a high priority and eminently justified given the considerable comparative advantage Uganda enjoys as a result of its landlocked situation. Conditions for sugar production at Kakira are highly favorable. Cane growing benefits from excellent soils, good rainfall distribution (requiring only limited sunplementary irrigation) and relatively low levels of inputs of fertilizers and pesticides. The project brings back to the Kakira complex the original owners who have a demonstrated ability to manage sugar operations at Kakira and elsewhere” (SUGAR REHABILITATION PROJECT, 08.03.1988).

Therefore, what the President said today, the Sugar Rehabilitation Project, which was done to stop the heavy imports of sugar and for consumption, has clearly not worked as projected. Since his own state is squandering their resources and not even following the loans to make the project work. That is my take on it. The president of 32 years has clearly mismanaged this and not finished his job. Since he hasn’t been able to rehabilitate the industry.

When it comes to pharmaceutical industry there massive challenges, not just the sugar starch for medicine coverage of the pills. Nevertheless, the whole arrangement, since the technology to operate these machines are imported, as well is the parts. Not only the sugar starch, but also the ingredients are imported too, than you have few companies who has automated manufactures, which makes hard to make medicine on a larger scale. It is also high operation cost, because of use of back-up generators because of blackouts and shortfall of electricity. Because of this, it is expensive to have cold storage of the medicine and have a storage for the final products.

So the Idea from Museveni that it is simple, it is the whole system around it, that makes it more profitable to import ready made medicine, than actually produce it. Even if the added value of production would be there, but with the circumstances put by United Nations Industrial Development Organization, seemingly it is from 2009. However, the state of affairs hasn’t changed that much.

We can really estimate, that the adjustment and the needed organization to pull forward both industries during the years of NRM hasn’t been totally fruitful. If so, why would he complain about the imports of sugar and medicine, when he hasn’t been able to make it function with his 32 years of reign? Someone who has 3 decades, should have the ability and time to find the information, finalize plans and execute as seen fit. That is if he cared about the industries in question and their possible engines for growth and riches of Africa. Nevertheless, he hasn’t cared and haven’t used the time wisely. He has used the time bitching and not acting. That is just the way things is and it isn’t becoming better either.

He could have made sure that the pharmaceutical industry had energy, had the sufficient organization behind it to make the medicine, not only import and assemble certain medicine, he could have made sure the sugar industry was profitable and had the equipment to make the refined sugar used in the pharmaceutical industry. However, both is a lost cause, because it takes money and time. Both, is something he doesn’t have, since the narrative isn’t making him wealthy.

Alas, he we are at the status quo, with a President running for life and complaining about waste. When he has wasted 32 years and not made effort to change it. It is all talk and no fire. Peace.

Opinion: President Museveni praises Equatorial Guinea for it’s rampant Oil-Corruption; wants to learn his tricks!

In these days the President Yoweri Kaguta Museveni of the Republic of Uganda are on a state visit in Malabo, visiting and learning tricks from the Equatorial Guinean President Teodoro Nguema Obiang, who has used the oil to enrich himself and his loyal subjects. Not build a welfare state, but make sure the family of Obiang get wealthy. Certainly, Uganda is preparing for their own oil production in the Lake Albertine basin, as the pipeline building from the production to the Port Tanga in Tanzania.

This is why President Museveni are visiting Equatorial Guinea to learn the tricks of the trade, as the state of Uganda are still in the dark of the oil-deals between the international companies and the state. We can wonder how the funds will be spoiled and how Museveni plans to use the oil funds for personal gains. If so, he wouldn’t praise President Obiang, who has his whole career to spend the oil profits from his republic. This is what Museveni wants to learn, since his career has been tricking out all sorts of play from Ugandan republic. The petroleum profits can be misspent and hidden just like in the republic of Obiang. Take a look!

President Museveni’s praise:

“We are therefore in Equatorial Guinea for two things: looking at how to support prosperity of one another and how to push for our strategic security. I also congratulate Equatorial Guinea for using it’s oil and gas very well. When I was last here for the AU Summit, I noticed gaps between the airport and the city centre. Today, all these gaps were gone. In their place are new, well-planned buildings. And I see the city is refurbished. Some people say oil is a curse but in Equatorial Guinea it is a blessing” (Yoweri Kaguta Museveni, 26.08.2017)

Business in Equatorial Guinea:

“Since the discovery of the offshore oil deposits, many investors have shown great interest in the country. Foreign direct investment inflows into the country had thus been consistently high for the past years. Nevertheless, in 2016 the FDI inflow amounted to USD 54 million, a sharp decrease from USD 233 million recorded the previous year (and the historical peak of USD 2.73 billion in 2010) . The total stock of FDI in the country is currently at USD 13.4 billion” (…) “Corruption in particular is problematic. In addition, the business climate of the country remains rather unfavourable for investment. Cumbersome procedures and high compliance costs slow licensing and make starting a business more difficult. Weak regulatory and judicial systems may discourage foreign investment as well, along with high credit costs and limited access to financing. The government controls long-term lending through the state-owned development bank. Equatorial Guinea ranked 178th out of 190 countries in the 2017 Doing Business report published by the World Bank, losing three spots compared to the previous year” (Santander Trade, 2017).

Son of the President on trial:

“The corruption trial of Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, ended in Paris on 6 July with the prosecution calling for a three-year jail term, a €30 million (US$34 million) fine and the confiscation of assets. The Tribunal will return a verdict on 27 October. The 48-year-old vice-president of Equatorial Guinea was not in court to hear the prosecution’s claim that he used money stolen from his country’s treasury and laundered through a shell company to fund a lavish lifestyle in France” (Transparency International, 2017).

This was what that is well-known of the Equatorial Guinea corruption and the son of President has also had challenging cases in the United States. Now the son is also having alleged fraud and criminal charges in France. Clearly, the Ugandan President has already known for corruption behavior. Therefore, even a state agency of PPDA has some words, that the government needs strict regulations before procurement and infrastructure development. This will be clearly important when it comes to petroleum industry. Take a look!

PPDA strict regulation on public procurement:

“Public procurement is a key pillar of the public financial management system. The country’s budget and plans are translated into actual services to our people through the public procurement system. It is also the link between the public sector and the private sector as it is the medium through which the private sector does business with Government. Public procurement therefore involves large sums of money and as our budget grows with the priorities of Government remaining infrastructure development, the proportion of the budget earmarked for public procurement remains significant and therefore calls for strict regulation” (PPDA, 2017).

“Audits and investigations by the Public Procurement and Disposal of Assets indicate that corruption in the procurement process manifests more in the evaluation of bids, reported to be at 58%. PPDA’s Manager Capacity Building Ronald Tumuhairwe says such corrupt practices lead to awarding of contracts to incompetent individuals hence shoddy works in several government projects” (…) “He adds that the second process where corruption manifests is awarding of contracts at 12.5%, followed by receipt and opening of bids, reviewing evaluation of bids, advertising and signing of contracts” (Sebunya, 2017).

President Museveni clearly has own agencies saying it is important with strict regulations on procurement and infrastructure developments like the ones needed for oil industry in the republic. The regulation of oil industry is lax, to make sure the state isn’t transparent with its profits and taxation of the industry. This is what Museveni wants, that the state and the public doesn’t know the contracts or the agreements between the parties involved. That is something President Obiang surely have the capacity to teach Museveni. And how to make sure his family is earning from the state resource, instead of the public and the state itself. Peace.

Reference:

Transparency International – ‘ON TRIAL FOR CORRUPTION: FRENCH PROSECUTORS DEMAND JAIL TERM AND €30 MILLION FINE FOR OBIANG’ (11.07.2017) link: https://www.transparency.org/news/feature/on_trial_for_corruption_french_prosecutors_demand_jail_term_and_30_million

Santander Trade – ‘EQUATORIAL GUINEA: FOREIGN INVESTMENT’ (August 2017) link: https://en.portal.santandertrade.com/establish-overseas/equatorial-guinea/investing-3

Sebunya, Wycliffe – ‘Corruption manifests most in the procurement process – IG’ (25.08.2017) link:http://radioonefm90.com/corruption-manifests-most-in-the-procurement-process-ig/

PPDA – ‘EVALUATING INNOVATIVE ANTI CORRUPTION POLICIES IN PUBLIC PROCUREMENT IN UGANDA’ (02.08.2017) link: https://www.ppda.go.ug/evaluating-innovative-anti-corruption-policies-in-public-procurement-in-uganda/

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

“For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

“It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

“During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

“The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

Looking into the inflation of 1987 as the Sugar prices are rising in today’s Uganda!

“We have had a wonderful collaboration with IMF since 1987. We have managed to control inflation. By controlling inflation, we have succeeded in preserving the people’s earnings” – Yoweri Kaguta Museveni (State House, 2017).

Well, there been many who has set similarities with the inflation and price shocks of the year 1987. The Republic of Uganda has been through their mess before. The government of Uganda and the National Resistance Movement/Army (NRM/A) had just taken power in 1986. This was a year after the coup d‘etat, which brought the NRA into power. President Yoweri Kaguta Museveni in collaboration with International Monetary Fund (IMF), which had agreements and Structural Adjustment Program (SAP), which promoted deregulation and less state control of the economy. This was also put forward to settle inflation and the deficit that the state had.

So, because some has put similarities between 1987 and 2017, as the prices has gone from about 3,000 Uganda Shillings (UGX) in 2016 and 7,000 Uganda Shillings (UGX) in 2017. There is clearly that there was problems in 1987, but whole another level. The Sugar Industry wasn’t established, the economy of Uganda needed export of coffee and this was the sole benefit of foreign currency into the economy.

“Inflation in Uganda is running as high as 200 percent, and low prices to farmers serve as a disincentive to agricultural production in a country of rich soil and mild equatorial climate” (…) “At the center of the debate is the issue of devaluation. In its first year in office, the Government revalued the currency from 5,000 to 1,400 shillings to the dollar, saying that the move would make imports cheaper. But exports have become increasingly expensive. Devaluation Debated. Some hard-line nationalists in Government insist that the cost of devaluation would be devastating. The cost of such imports as sugar, cooking oil and soap would increase significantly, they say, making the average Ugandan even worse off than he is now” (Rule, 1987).

“In 1987 the Uganda shilling was demonetizated during the currency reform and a currency conversion tax at a rate of 30% was imposed to further reduce excessive liquidity in the economy. There was an immediate drop in average inflation from 360.7% in May to about 200% cent in June. However, with the possible fears of complex and drastic currency reform, the premium shot up, representing essentially a portfolio shift to foreign currency, and possible capital flight, and suppressed inflation. The intended aim of the conversion tax, apart from reducing excessive liquidity, was to lend money raised through this tax to the government. This was to finance the budget deficit over a short period, rather than financing it through printing more money. Nonetheless, inflation shot up again within three months mainly due to renewed monetary financing of increased government expenditure, domestic credit expansion by commercial banks to meet coffee financing requirements and financing of the newly launched rural farmers scheme” (Barungi, P: 10-11, 1997)

“Prices for sugar and vegetable oil (both imported goods) increased rapidly in the early part of the year, falling between May and August — replicating the pattern of the premium between the parallel and the official exchange rate. The subsequent fall in sugar prices and stability of cooking oil prices were due to greater official imports. Inflationary pressures on food prices have been aggravated by supply shortages on account of severe transportation problems” (World Bank; P: 36, 1988).

“In October 1986, Mulema was replaced by Dr. Crispus Kiyonga, who has a medical background Kiyonga has a difficult task. The government’s finances are shaky at best. In an attempt to enable Ugandan citizens to purchase imported consumer goods, the government fixes their prices below world prices. This, of course, puts considerable pressure on the government’s finances: for example, in July 1986 the government imported $4.8 million worth of sugar to sell at subsidized prices” (Warnock & Conway, 1999).

Perspective from Kakensa: “Today sugar costs 7000/- per kilo. When Museveni came to power in 1986 each kilo was at 4/-(four shillings). Immediately he came to power he said Ugandan shilling had lost value, in 1987 all money was changed, not only changed but two zeros were cut off to give it value on addition to the 30% levied on each shilling. This means on every 100 shillings, you got 70cents. Those who had 100,000/- got 700/-” (Kakensa Media, 12.05.2017).

We can see there was certain aspects, but the sugar industry now is different. The Sugar factories are now real and the business are now in full affect. While, in 1987 the state needed coffee exports to get funding and foreign currency. The sugar was imported and was put on fixed prices. The inflation back then was because of the crashing economy after the bush-war and the effects of it. The Sugar prices now are rising for different reasons. These reasons are the yields of sugar-cane, the hoarding of sugar and the export of surplus sugar. Also, the production of ethanol and bio-fuel. That was not the situation and context in the past.

Still, history is repeating itself, since the NRM, let the prices run as crazy in the past. The price has gone up a 100% in a years time. Which, means the prices who doubled from 3000 to 7000 Uganda Shillings. This is not a stable and the ones who get hurt is the consumer and Ugandan citizens. Peace.

Reference:

Barungi, Barbara Mbire – ‘EXCHANGE RATE POLICY AND INFLATION: THE CASE OF UGANDA’ (March 1997).

Rule, Sheila – ‘UGANDA, AT PEACE, IS FACING ECONOMIC BATTLES’ (28.01.2017) link:http://www.nytimes.com/1987/01/28/world/uganda-at-peace-is-facing-economic-battles.html

State House Uganda – ‘President commends Uganda – IMF collaboration since 1987’ (27.01.2017) link: http://statehouse.go.ug/media/news/2017/01/27/president-commends-uganda-%E2%80%93-imf-collaboration-1987

Warnock, Frank & Conway, Patrick – ‘Post-Conflict Recovery in Uganda’ (1999)

World Bank – ‘Report No. 7439-UG: Uganda – Towards Stabilization and Economic Recovery’ (29.09.1988)