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Archive for the tag “Local Government”

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

 

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

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

Just look!

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

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

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

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

Reference:

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

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Uganda Peoples Congress: Caution on Coffee Bill (17.07.2019)

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

A fresh Parliamentary Report on the newly created Town Councils and Sub-Counties: Say they lack funds to run them!

“A government which robs Peter to pay Paul can always depend on the support of Paul.”George Bernard Shaw

This January, the Parliament made a Report (REPORT ON THE STATUS OF FUNDING FOR SUB-COUNTIES AND TOWN COUNCILS, January 2019) into the creation of new Town Councils and Sub-Counties, the Local Governments if you may. As the National Resistance Movement (NRM), have with swift haste over the recent years split up the Republic in record speed. As they are continuing to do so. There are added expenses and more salaries to pay, even more officials and public buildings to procure or facilitate. As the Local Government does gain revenue over night either.

Therefore, the release of this report is a story been told before, about how the Parliament are enacting more districts, but doesn’t have the pocket to facilitate it or the fantasy of thinking of the costs of doing so. In the same vein comes this report, that is rewind of the previous ones, but still important to address.

“Government created 108 Town Councils to commence operations on 1st July 2017 and 95 Town Councils to become effective on 1″1 July 2018. Government also created 204 Sub-Counties that became in FY 2018/ 79 (refer to annex 1). However, the operationalisation of the newly created local governments units has not been matched with the requisite budgetary resources”.

Government created a total of 203 Town Councils and 196 Sub-Counties which have not received operational funds. However, during the FY 2017 118, a provision of Ush. 2bn in the budget was made to cater for startup activities for the 35 Town Councils. In FY 2018/ 19, government released Shs. 2.5bn to cater for startup activities for 50 Town Councils. However, the Committee notes that some Town Councils received partial funding against what had been approved by Parliament”.

“The funding requirement for operationalization of the newly created 203 Town Councils and 196 sub-counties is estimated by Ministry of Local Government at Shs. 108.5bn and Shs. 30.7bn respectively and this excludes costs for public administration such as establishment of a police post, health and education facilities in line with the current government policy

The final quotes from the report, which is the recommendations is worth to mention as well: “The government should provide Shs. 139.2bn for operation of all approved Town Councils and Sub- Counties in FY 2019 l20” (…) “The government should review the policy of creation of new, districts and other local government administrative units in view of the constrained resource envelope”.

Surely, we can see that the state is not sufficiently ensuring the creation of the new Town Councils and neither the Sub-Counties. This is the costs of office equipment, the payment of salaries of the local government and all the procurement that needs to be done.

That is if these entities matters or supposed to govern locally. If not it is just made up areas before the elections to garn voters and spilt the districts to ensure problems for the opposition. Which seems more likely. Since the state, haven’t done much to facilitate or even tried to make them functional.

Even with the funding proposed by this Parliamentary Committee, they are still not discussing the other needs for public administration, police posts, health care or education facilities. Which should be the basis for these entities in general, if not their offices with no portfolio in the districts. That is how it seems.

Surely, the Memo on this matters are the same as before, a ploy to gain voters and promise patrons and cronies of a job after elections, but not having the bank balance or the funding to actually do it. That is how the state operates in these matters and that is why this is a recurrent issues. That is always coming up to discussions about the splitting of districts, sub-counties and town councils. It is just reappearing like the monster of the past and the government acts clueless about to get rid of it. Peace.

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

Mzee is halting the creation of new districts: Only to do it right before next General Election!

It is a hard time taking President Yoweri Kaguta Museveni serious, when he comments like today about creating districts. As he is the King of creating these, he has made a dozens in his span of Presidency. Museveni when he took power in 1986, there was 33 districts and by the o’clock 2018, there is registered 127 districts. Therefore, the map of districts and Local Government institutions have become a hectic mess.

That he is asking for halting today, only comes as a sign, that he wants to save of the funding and creations right before the next General Elections. Like he usually does. It is hectic to do it in the midst of term, but do it by the end. Also, as a way to sponge cronies and mend old wounds. Is a better way, than openly bribing during mid-terms like now.

About creation of districts, some of them were created because of ethnicity and others for geographical reasons like Moyo and Adjumani which are separated by water. But some people now want districts for greedy reasons. We can halt creation of districts for some years if we agree. We are spending 40% of the budget on the wage and administrative bills. They can wait till we have more money” (Yoweri Kaguta Museveni, 09.11.2018).

So, when you see that within the basis of 32 years rule. That he has in general created 2,9 or 3 district per year. This shows the intent to carve up the districts and bases, as a political game and also sufficiently make the local government bases so small. That the President easily manipulate and stipulate the results. Especially carve into districts where there is a huge opposition, or where he needs more support. As he lacks the basics of ordinary state delivery and even good governance.

That is usual end-game and most likely this time too. As there are already talks of carving up other districts, like Kasese and Budama (Tororo County) Districts, which has speculations about. Nothing is carved out yet, but there are plans to do so. That is why even Members of Parliament and local politicians has made plans in these districts. Now, the President calls them out.

However, he is the man that has made races and made it a goal to make small benign districts out of everywhere. That is why there is race to become of one of the three, every year made by the President. They want to get a slice too and that shouldn’t be shocking for anyone. Peace.

Resident District Commanders Re-Shuffle: A list of Honourable Mentions! (October Edition) Part II

I just had to go over the list of one more time, as there are plenty of names and figures in it. The Residential District Commanders are the ones whose supposed to implement the government agenda. That is why they are there as appointed officials, which the President directly put forward their agenda for their work and also oversee the elected officials and civil service there. That is why the manner and the acts of the RDCs could be important, as they are the ones reporting to the President.

For instance the former Kitgum RDC Captain Okot Santos Lapolo are re-appointed for the Gulu District, which has been a career RDC first for over 12 years in Kitgum, before he has now been in Gulu since 2016. In early February 2018, he closed Radio Mara as he ordered the arrest of Choice FM editor there.

The Fred Bamwine, the former RDC of Nakawa, Rubaga, Bukiwe, Butambala and Ntungamo has now been appointed as the RDC of Mukono. He has addressed the amount of Ghost Workers in Ntungamo District in 2014. He is a career RDC, whose been often moved and not worked long. As shown by all the districts he has worked in, in 2017 he said: “What happens to districts that don’t get certificates of compliance so that they don’t do the same things,” (CSBAG – ‘Poor infrastructure, weak accountability hurting Local gov’t service delivery’ – CSOs, 18.09.2017).

The Former FDC Deputy Speaker of Kumi, Ambrose Oronia, gone from being a Deputy RDC of Amuria and is appointed to be RDC of Ngora district. She went from the FDC to NRM because she “wanted to serve the people”. That was back in 2008.

The newly appointed Rukungiri RDC Dan Kaguta is the former Wakiso District RDC. Kaguta has been called the brain behind the NSSF Bribe case of the IGG in the 2014, where he was an accomplice with Jane Mpeirwe. Back in 2012, he was involved in possible extortion of the KCCA. So this man has a record himself and been steady in questionable cases, however, that doesn’t stop the President from not appointing him.

Then there was Wilberforce Tukei, who lost the NRM Primaries in 2015 to become the NRM MP Flagbearer for the Bukedea district. He is now appointed as the RDC of Soroti District. He is the former LCV Chairman of Bukedea. Wilberforce has also fallen out with Rose Akol in 2015.

Richard Andama Ferua has been taken with forged academic papers (2006), jailed over rental arrears (2011) and jailed for debt in 2016. The former Arua LCV Chairman are now appointed to become the RDC of Yumbe District.

Then you have Maj. Ret. David Matovu, who is the former RDC of Mukono and Masindi. Before that he has been appointed as early as in 2008 by the President to be Chairman of the University Council at Makerere University.

In 2006 was the former Adjumani District Chairman Nixon Owole freed after being jailed for defilement. He has also been the LCV Chairman of the same district since. He is now appointed the RDC of Tororo.

This was just 8 more persons on the long list of appointed RDCs. Therefore, hope more people scan through and shows the past of the people, that Bosco put his trust in. Peace.

Resident District Commanders Re-Shuffle: A list of Honourable Mentions! (October Edition)

Again, there is shuffles within the Residential District Commanders, which not to long ago, he bitched about their uselessness, however, with that in mind. He still uses them and has them in his upkeep of his growing state apparatus, which he controls with an iron fist. Today, the list of the shuffles was released to the public. This changes was sanctioned by Bosco on the 30th September 2018, but is public now on the 3rd October 2018.

Former Tororo RDC Martin Oroch is moved from there to Budaka district, he is famous for saying this in July 2016: “He stressed that some of the students are in advanced stages of HIV/Aids so parents should not “waste their resources” on them. “I have heard about situations where parents have wasted resources to raise tuition and before completing university education, they [students] die. Parents should be aware of their children’ status before undertaking risks,” Mr Oroch said amid boos from parents and students” (Joseph Omollo – ‘Don’t take HIV-positive children to university – RDC’ 10.07.2016, Daily Monitor).

The Former Flying Squad Commandant Herbert Muhangi is now assigned as the RDC of Isingiro. Darius Nandinda continues as the RDC in Kabale, where his bodyguard earlier this year shot a civilian. Because of his loyal contribution through the election period, where his orders was to seal of a local radio station in 2015 and arrest panellist who differs from the stance of the government.

Lt. Joe Walusimbi is moved from Masaka and reassigned to Kasese district, one of the things done while his tenure in Masaka, was to close down the Mutesa 1 University after student riots in 2017. There has also been Taxi Strikes in 2017, as the local authorities has issued an illegal tax on them. Therefore, it is interesting times ahead for Kasese.

The former deputy RDC of Kasese Aminadabu Muhindo has been reassigned to Kiruhura district. This man is famous and infamous for working directly for the NRM Program, to an extent where he has warned radio presenters, parents to keep their properly for schools and engaging the army for the Kasese attacks on the Rwenzururu Kingdom. Therefore, this man will do whatever it takes to please the government. He is also a director and a board member for the Kilembe Investments Limited (K.I.L).

The former RDC of Kasese Maj. James Mwesigye have also gotten reassigned to Mbarara district. So the ones overseeing the Kasese skirmishes and clashes have been moved without any injury.

This are just a few on the massive list, but how easy it was to find weird and special events concerning this promoted individuals or re-assigned, is if the crimes or questionable behaviour would have demoted someone had been natural. Not be re-assigned to another district. Peace.

Bank of Uganda: Monetary Policy Statement for August 2018 (13.08.2018)

Cambridge Analytica becomes AUSPEX International: Launch of New Geopolitical Communication Consultancy (10.07.2018)

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