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Archive for the tag “Local Government”

Brexit: Hilary Benn MP letter to David Davis – “on the urgent need for clarity about the UK’s future relationship with the EU” (21.02.2018)

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Brexit: ERG Officers Letter to PM Theresa May demanding “full Brexit” (16.02.2018)

When did it become okay? That the Politicians of our time are richer than businessmen!

There is no art which one government sooner learns of another than that of draining money from the pockets of the people.” Adam Smith, The Wealth of Nations

Something is wrong in our day and age. When the Members of Parliament, the politicians and the appointed leadership are richer, than ever before. When the politicians and the ones representing us are richer than the ones building factories and owning businesses. That is just wrong, that is not right. It wasn’t supposed to be like this.

The Members of Parliament, the politicians, the councilors and the local government officials wasn’t supposed to be the kingpins and have the biggest mansions. They are supposed to represent us and make sure that society are working for all of us. Maybe with different ideology and party affiliation, but their existence and their livelihood depend on the idea, that they are representing us. The politicians are supposed to be there for us and be there as guards. And if we don’t like they way they are guarding our society, we change them with someone else in the next election. That is how it is supposed to be, right?

However, that is not the case in our day. To many places they are honorable, they are noble, they have more businesses than businessmen, they have more investment too. They are using their connections for government tenders and also trading with State Owned Enterprises (SOE). All of this so they can sponge off the state and secure even more profits on the dime of the citizens. Instead of delivering and representing, they are become traders of faith and billing society too.

That wasn’t the intention. It wasn’t supposed to be rigged elections and fixed results. That makes sense for the leadership not representing the people or delivering. Since they don’t have to, it is just a charade securing the leadership “legitimacy” with an election, but the people didn’t elect them. That was ghosts, bots and algorithms. They have no interests in caring or delivering. Neither has the ones who used a coup to gain power. They fought there for their own will, not depending on the goodwill and trust of the public.

There are so many leaders and MPs, so many parliamentarians who seems more preoccupied with their SUVs, Mansions, Salaries and expense accounts. That they are not considering the troubles of the working people, about the pensioners and the ones unemployed. They are just happy go lucky, that the fortune hit them. The poverty, the lacking services and the misuse of power doesn’t mind them. These people could make it on their own, that is why they are unfortunate. Not that it’s the MPs, the Presidents or the representatives who didn’t see who they represent.

When we forget that they are representing us, they are representing the ideas of our society and the will of change that is needed. There is always need for change and need for productivity. There is always need for service delivery and making sure the government are accountable. However, when the representative is more keen on their own pockets and getting connections to enrich themselves. Then they loose their meaning and their purpose. They are then marionettes for the elites and the corporations. The politicians becomes stooges and relics instead of the representing the people of their constituency.

This has to change, we have to change this, we cannot accept that the MPs, the politicians are taking us for granted and using us for their own gain. They are there to serve, unless they don’t change. We have to serve them, we have to demonstrate and boycott their well-wishers. We cannot just look at these leaders of ours and be happy with it.

If they wont represent us, then we have to get fresh blood. Get people who actually care and give a damn. Because the ones in our time are greedy, selfish loot of people, who needs to recognized and be dealt with, before we are dealt with and we will be left behind. Peace.

Minister Kasaija are borrowing more money, because of a shortfall he say!

Uganda is your country. When you’re writing a story, ask yourself if it is going to build or destroy Uganda. Is it going to bring peace or anarchy?” (…) “I’m advising my good friends of New Vision that for the good of your country, do not publish stories that are not true. My telephone number is known by everyone, call me. If I can’t respond then wait, because I’m also a busy man but I’ll respond. Let me repeat, for the good of your country, please don’t publish false stories” – Matia Kasaija, Minster of Finance.

I know, some people get touchy when stories comes out. Out of the woodworks suddenly the questions arise and people are thinking? Why? Why does the state borrow even more funds, is it needed even? How come the State, who is already borrowing heavy sums of money from all sort of bilateral, multi-national banking institutions suddenly need to borrow money from domestic sources. That question should be asked and need to questioned. Since the reality of the matter, isn’t what it is used to, since this government cannot even explain where the PTA Loans went. It is amazing how things are going, that the State can take up loans like this after already no accountability on the previous ones. The same minister is already questioned for the loans done with PTA loans, who knows what else that has gone missing, as the GAVI and CHOGM Funds of the past suddenly vanished into thin air, hard not imagine that this could happen again.

“Yesterday, Monday 19th February 2018 the New Vision Newspaper front page lead headline stated that Government is borrowing UShs. 700 Billion to pay salaries for public servants. I would like to inform the General Public that this story was an exaggeration of the proposed borrowing that I laid before Parliament. We borrow to a large extent to finance capital development and production. In my letter dated 9th February 2018; I submitted a proposal to Parliament seeking authority from the House, in accordance with the requirements of Article 159 of the Constitution of the Republic of Uganda, to borrow additional Ushs 736 Billion from the domestic financial market to finance the Budget for FY 2017/18” (Uganda Media Centre, 2018).

This money will go to “development and production”. We can wonder where that is, if it is the bills of Gen. Salim Selah hotels as the seedlings delivered by, Operation Wealth Creation (OWC) is lack-lustre at best. Who knows where all the pooled monies for NAADS are going, but clearly not all of it is not going to micro-economic benefits for the society.

Shortfall is clearly there and the weak economy, that has been juiced up and run like a drunk seaman. That is why as the last end of bottle of beer is there and the need to go down to the bar and buy more brew on credit. That is the ordeal of the day. It is not a narration by Morgan Freeman and a beautiful tale of forgiveness and hope. No, it is a tragic day of even more debt, this time internally and used by the state. Since they are embezzling and taking away funds from the public. This will create more pressure for liquidity in the banks who borrows to the state, as this is taking from their own reserves to bailout the state. Eventually, the state has to find other funds to pay back the banks.

It doesn’t take a wise to understand, that adding more debt, while growing debt and also paying interests is a vicious cycle. They are recycling loans and adding more interests and more debt to be repaid in due time. We can just pound on that and wonder why the state hasn’t made a budget that is within the reach of the economy, but the government isn’t like that. They are spending money like there are no tomorrow. Having one beer, another one and another one. Now it’s drunk and don’t want to lose the edge, the steam and the good feeling of tipsy. The state doesn’t want to get the hangover and deal with the cure. They just want to shug more bottles and hope no one notice. Peace.

Reference:

Uganda Media Centre – ‘Statement on the proposed government borrowing of UGX 700 billion #UGCabinetResolutions’ (20.02.2018) link: https://ugandamediacentreblog.wordpress.com/2018/02/20/statement-on-the-proposed-government-borrowing-of-ugx-700-billion-ugcabinetresolutions/

Philippines: DILG’s directive of creating a BIT registry will make it harder for the Barangay’s officials to eat the money!

President Duterte’s unwavering political resolve to defeat corruption and bring about positive change makes our efforts all worthwhile” – Carlos Dominguez III

On the 14th May 2018, the Barangay and Sangguniang Elections are scheduled to take place in the Philippines. Therefore the Commission on Elections (COMELEC) are preparing elections. This is the local elections for the local government, meaning wards and municipalities are preparing for the coming elections, where mayors, councilors and governors are elected. Therefore, this is vital for the local democracy and the city halls. Also for the parties and the citizens as a whole to see the state of affairs and the leadership. If they need renewal of the incumbents or need new blood to generate change. If the citizens locally can change out the old and get fresh eyes to local questions and budgets. To secure better service delivery.

The good news from the Central Government and the Department of the Interior and Local Government (DILG) are preparing this for the election and future leadership of the Local Government:

As part of the DILG’s preparations for the forthcoming Barangay Elections this May, DILG OIC-Secretary Eduardo Ano is directing all incumbent punong barangays to conduct an inventory of barangay financial records and properties under their custody from the start of their term of office up to the present” (…) “Ano issued the directive this early to ensure smooth and systematic transition from the outgoing barangay officials to the incoming newly elected or re-elected barangay officials come June 30” (…) “This is also part of our efforts to sustain transparent and accountable local governance at the barangay level and to further ensure that all concerned barangay officials exercise due diligence in using barangay funds and properties,” he said” (…) “Under the directive, a Barangay Inventory Team (BIT) shall be created in each barangay to be chaired by the punong barangay. Its members shall include at least two kagawads, a barangay secretary, a barangay treasurer, a bookkeeper or city or municipal representative, and at least two civil society organization (CSO) representatives, preferably from a faith-based organization or members of the Barangay Development Council” (…) “Part of the functions of the BIT is to ensure the completeness of all barangay properties, financial records and documents (BPFRDs). BPFRDs include legislative and administrative records, transcript or minutes of meetings, list and status of complaints filed before the Lupong Tagapamayapa, updated registry of barangay inhabitants, list or inventory of current local or international development assisted projects, and all other documents containing barangay transactions” (DILG, 2018).

So this directive made by Minister Eduardo Ano is clearly setting up guidelines and the protocols to secure the funds of the Local Government. The new officials will have to keep the books and records of spending or financial transactions. This so the local officials cannot embezzle and misuse the public funds. This is yet another measure to stop corrupt behavior by President Rodrigo Duterte who has already established an Anti-Corruption Commission or the Philippines Truth Commission (PTC) in October 2017. The Philippines already have the Revenue Integrity Protection Service (RIPS), who was established in 2003 to also combat corruption, but this is made strictly for the ill-behavior in the Department of Finance. You also have the Office of the Ombudsman who has a mandate, which is specified to this: “The Ombudsman shall give priority to complaints filed against high ranking government officials and/or those occupying supervisory positions, complaints involving grave offenses as well as complaints involving large sums of money and/or properties (Sec. 15, R.A. No. 6770)” (Ombudsman.gov.ph – about us – Mandate). Final institution to look into the Finances and Assets of the Government concerning corruption is the Commission of Audit, the Komisyon ng Pangsuri. Which is also mandated to examine, audit and settle all accounts of the government. Check if the local authorities are following procedure or if they have overpaid for their services.

So Ano with the directive with Local BIT within every Barangay plus the already sufficient monitoring agents of RIPS, Ombudsman, COA and PTC. There should be such amount of measures to stop graft, corruption and kickbacks. Even if someone will always try to use their power for favors, build the most fantastic house in field outside of town or just making sure Mayor can use the ATM at the City Hall more than anyone else. Now they have the BIT to make sure the jobs of COA, Ombudsman and PTC is easier. Since the Barangay has to make sure their portfolio and their assets are verified before a transition. The local government has to deliver stocks, accounts and the lists of properties. To prove what they do have and not hide funds away from the Central Government. Clearly, this is a trick to make sure the Public Officials doesn’t misuse or hide information, values that the tax-payer pays for or even funds that embezzled from the public coffers.

If mayors or Barangay officials has misused funds and cannot account for the funds before the election. There are several bodies that can investigate it and if it is big enough, the Department of Finance might send others too. What this is a sign off, is that the Philippines are trying to tackle the amounts of corruption and known behavior it has had in the past and present. So that all the different parts of the government has to use even more effort to be able to get away with corruption. That the state now even makes list of inventory, funds and assets in general at the Barangay level. Proves the will of combating it and using stronger means stop it. It isn’t just words, since it is done right before elections. Therefore, the bragging lists and the possible truths of stocks can come forward. Because if the Barangay officials lie and someone else get elected. Finds nothing in the account. Clearly, its starting to report the previous local official to either of the bodies fighting corruption. So that the Barangay can get back the funds and assets the previous ones took from the state. Peace.

Reference:

DILG – ‘Año to brgy chiefs: Prepare inventory for turnover to next brgy officials’ (08.02.2018) link: http://www.dilg.gov.ph/news/Ao-to-brgy-chiefs-Prepare-inventory-for-turnover-to-next-brgy-officials/NC-2018-1017

Revealed: Brexit Assessment Report has kept people in the dark – No positive results leaving the EU!

This wasn’t surprising since the hidden reports from the Department for Existing the European Union (DexEU), the Secretary David Davis and Prime Minister Theresa May wanted this hidden. Because they knew these numbers and the speculations would stop. I was expecting bad numbers, but these are serious consequences. While the campaigning for leaving seemingly like it was a pick and mix. Now the reality is there. The United Kingdom will loose out and hit the people in real way. The independence might be there, but the economy and the hardships starts when they have left. The Tories must have been worried about it, because they knew about the damage this can cause to the public. The rich will skate off to a tax-haven. If it is the British Virgin Island or Cayman Islands. Who knows, but this has been all hidden because they knew they we’re hurting themselves.

I will take the numbers crushed from Britain Stays, which has analyzed the numbers so they give a meaning. I’m not a grand fan of EU, but I don’t like people are without knowledge of the consequences of their actions. Which the politicians in the UK did to their people when they had their referendum. So the people voted blindly without knowing the possible outcome. The Brexit will cost.

First deal is the famous “No-Deal” will give an 8% lower GDP, a total of 2,800,000 jobs lost and an economy losing 156b pounds. If that isn’t dire a consequence, let me put it in perspective. Since the population numbers of UK of 2016 said there was living in Birmingham (1,200,000), Glasgow (800,000) and Leeds (760,000). So all of these major towns would be ghost-towns with no jobs. That says the possible “No-Deal”, no work for the population of cities or towns of Birmingham, Glasgow and Leeds. If that isn’t worrying, and sending you a signal of how bad it is. Then your blind to amount of people hurt by this sort of policy with the EU.

Second deal is the Comprehensive Free Trade Agreement, which means being outside the Single Market and Customs Union. It will lower the GDP with 5% and economy will go down with 99b pounds yearly. The job losses here too is significant, the numbers are estimated to be 1,750,000 jobs gone. That is like all people living in Birmingham (1,200,000), Sheffield (518,000) and Hucknall (32,000). So you cannot say this deal is good for the United Kingdom either, its better, but not all roses and candy either.

Third deal is the infamous “Soft Brexit” where the UK will be in the Single Market through the EEA, a place where UK cannot make the rules and have any say within the EU. This will damage the economy too, but less. First it will damage the GDP by 2% and loose 39bn pounds yearly. The amount of job-loss is estimated to be 700,000 jobs. To put it into perspective its the amount of people living in Bristol (617,000) and Burnley (82,000). So the losses aren’t as big, but the estimates and pain of it is still dear. Not even this one is a good idea.

Fourth deal is “Remain”, the one giving up the whole thing and continuing like it is. Where the GDP will remain at the levels it is the day and it will not have any impact on the current work market. No one will lose their jobs and prepare any ghost-towns.

Even me who is not a fan of the EU and the whole ordeal can see easily after the assessment reports that been hidden from the public on purpose. Because this is damaging information. The sort of tales that should shatter the glasses and break the pulse. Will the Tories really hurt the amounts of people combining the cities of Birmingham, Glasgow and Leeds. Is that the final destination or will they make it less costly?

These numbers should be carefully understood and put in perspective to prove the danger of Brexit. Not just think that Independence is all cool, but also that it costs. Not just for poorest, but for whole towns and cities. We can ask how much poison is the British people about to take or wanting to take? Peace.

PTA Bank Loan Scandal: US$200m gone missing, you don’t loose that amount money, you spend it!

The government has announced plans to borrow US$200m from the Eastern and Southern African Trade and Development Bank (known as the PTA Bank)” (…) “It will, however, do little to ease the near-term pressures. The weak currency is pushing up the cost of external debt (the new PTA Bank loan will add to the burden of US dollar-denominated debt), while high interest rates are driving up yields on domestic securities. The government originally budgeted USh172bn to service external debt in the current 2015/16 fiscal year and USh4.8trn for domestic debt, but the actual outlays will exceed this” (The Economist, 2015).

In today’s exchange rate the loaned planned would be 727,749,571,653.20 Uganda Shillings, or UGX 727bn. So that means that the Minister of Finance Matia Kasaija cannot find the documentation for a huge amount of money. This isn’t a lost pocket or recite, this is like loosing bank. However, we know the context, the loans that came from PTA came within months of the General Election and the Campaigns. Therefore, we can imagine where the money has gone. That is just speculation, but National Medical Stores (NMS) has given some signs, that the PTA Loans was not for them.

In June 2017, the Public Notice of NMS said this:

This funding facility was the PTA Bank loan, which was later approved by Parliament on 26th April 2016. The record on the Hansard clearly indicates ugx. 68billion required to avert an impending crisis at NMS as one of the primary reasons why the loan “should be urgently” approved. If NMS was therefore not meant to get the ugx. 68billion as additional funds, then the Ministry of Finance, Planning

and Economic Development misled Parliament” (…) “NMS provided the contracts by a letter

dated 13th September 2016, and waited for disbursement of the money from PTA Bank. However the said funds have to-date not been provided. This fact was brought to the Ministry of Health and the Permanent Secretary/ Secretary to the Treasury on 27th March 2017. It is important to note that the PTA Bank Loan, was approved by Parliament on the understanding that part of the Proceeds would go to NMS to cover the sh.68billion deficit” (…) “We wish to restate that if this money is not provided, over and above the Budget for FY 2017/18, all Health Centre IIs, IIIs and IVs, including those of UPDF, Uganda Police and Uganda Prisons, shall not receive Medicines in the FY 17/18 except ARVs, Vaccines, ACTs and TB medicines” (NMS, 2017).

Although documents indicate that PTA Bank released the loan basing on documents submitted by the agencies, it was never remitted to them accordance with the agreed terms of the funding. Last week while requesting for a supplementary budget for NMS, Finance State Minister David Bahati was put to task to explain why NMS lacks funds to procure medicines yet the funders released the money in November last year. MP Cecilia Ogwal (Dokolo) wondered why NMS was going through a financial crisis when Parliament approved a loan request of $200m. During the meeting yesterday, members put Bank of Uganda officials led by the Governor Tumusiime Mutebile to task to explain whether the loan was released from the funders to the respective recipients. Mutebile told the committee that between October20th 2016 and May 23, 2017; BOU received $97.9m from PTA bank and transferred all the money to the Ministry of Finance Consolidated Account as instructed by the Ministry of Finance. “How it was used, is the ministry of finance to explain,” he said” (Karugaba, 2017).

So just part of the loans that trusted to NMS never came and never was delivered. The amount of funds needed the crisis in the NMS was not given. Therefore, the lack of oversight of the funds and the loans was evident even last year. Still, PTA Loan of 2016 has not been honored. The BoU will explain what happen after the money was released. So, it means that the documentation of receiving it is there, but what happen after is now gone. The NMS are clear, the BoU, but not the Ministry of Finance, Planning and Economic Development (MoFPED).

Just to put the loan in more perspective, even the World Bank described there in January 2017:

Uncertainties related to both local and external events, including the freezing of new loans by the World Bank and the impact of the results of the Brexit referendum and the US presidential election being the most significant causes of this uncertainty. This is notwithstanding the fact that the Government has contracted balance of payments support credit from PTA Bank to provide the BoU with sufficient resources to prevent spikes in the foreign exchange market when the need arises” (World Bank, P: 11, 2017).

However something that is striking is the Letter of intent written by BoU Governor Tumusiime Mutebile and Minister of Finance, Planning and Economic Development Kasaija. Who both prepared a statement, to build trust in the economy and the loans made by the government.

Who wrote this this to IMF on 18th May 2016:

Government requested a line of credit of USD 200 million from the Eastern and Southern African Trade and Development Bank (PTA Bank). The three year revolving facility has terms that are deemed more beneficial than those prevailing in the domestic markets at the current juncture and near future, so we plan to use these resources in FY2016/17 and FY 2017/18 to finance our deficits. Therefore, these resources will replace existing, more costly domestic financing, rather than expanding the available envelope. We will not use the loan in FY2015/16” (Kasaija & Tumusiime Mutebile, P: 6-7, 2016).

While this story started after Public Accounts Committee in the Daily Monitor this:

Two of the most prominent Banyakigezi – Bank of Uganda Governor Tumusiime Mutebile, secretary to the Treasury Keith Muhakanizi and other top officials in the Finance hierarchy are set to answer questions over how Shs340 billion of Shs720b ($200m) loan meant for medicines and rural electrification was used. They are going to be quizzed by Parliament’s Public Accounts Committee (PAC) with the vice chairman Gerald Karuhanga saying that Muhakanizi, Mutebile, Auditor General John Muwanga and Mr. Lawrence Semakula, the acting Accountant General have been summoned to appear before MPs on Wednesdays to “explain the whereabouts of the money because no agency has received anything.” Mr. Muhakanizi called the probe ‘misdirected’ because ‘everything was done properly and I will prove that with documents.’ He said the money was pooled into the consolidated Fund and spent on approved expenditures” (Daily Monitor, 05.07.2017).

On the 13th June 2017, Treasury Secretary Keith Muhakanizi tried to explain where the money went:

As explained above, all the funds disbursed from the PTA Bank Loan have been fully accounted for. ii No funds has been lost as the Monitor Newspaper has alleged. iii I thank the PTA Bank for quickly providing the funds to the Uganda government when needed. iv It is, therefore, professionally unacceptable for Monitor Newspaper which has represented at the meeting of PAC in Parliament on Wednesday 7th June 2017, to have published an incorrect story in its editorial of 11th June 2017” (New Vision, 2017).

However, the story is not ended in last year. The PTA Loan continue to haunt the MoFPED and the BoU. They both have answers to give. Now a few months later. The answer from MoFPED are differently. Because the Treasury suddenly promised documents in June 2017. However, we are in February 2018 and still not there. Even his own defense that was a notice in the New Vision. Now a half year later, we see the same story and the same issue in the Parliament. That the same amount of monies are not accounted for. The same actors are trying to defend it. The whole affair smells not like Teen-Spirit, but more of State House affair. Since, they are trying to defend the misuse of funds and loans in the timeline of Campaigning. That is what it seems. Since suddenly during campaigns and such the needs for funds is there. Paying off political parties and loyal commissioners. There are so many things to buy and needs. So much material, buses, t-shirts and bribes. You have to print massive amounts of money. In a way where the State House also always needs bigger Supplementary Budgets after the General Election of 2016.

Here is the movement today:

Mr Kasaija yesterday failed to present a personal statement detailing what went wrong with the loan but maintained that no money was “stolen” as he fought to save his job.“I request that we should give an opportunity to a government authority to find out where this money went. But I want to give assurances to this House that no money was diverted or stolen,” Mr Kasaija said. With the loan approved only after the Finance ministry changed its labelling, Speaker Rebecca Kadaga last evening ruled that she will today make a decision regarding the fate of the report, with the duos fate set to be decided today. “I may not talk much but I had engagements with Ministry of Finance over that money. I had engagements to remind the ministry that that money was partially borrowed for NMS. I had meetings in my office over that money,” Ms Kadaga ruled. The loan put the Executive and Parliament at loggerheads with the Speaker at some point ordering the Rules Committee to investigate Mr Kasaija over contempt of Parliament as the fallout escalated” (Arinaitwe, 2018).

So still to this day there is no proof of where it went. Even if the trail leads to two familiar faces, the MoFPED Kasaija and Treasury Muhakanizi, who both trying to save faces. This all seems like misused funds from the Consolidated Funds for Campaigning. Since it was not used for the Rural Electrification Funds or the NMS. Who was both in dire needs, but not important enough. The NMS has lacked it anyways, and not gotten the needed medicine.

Therefore, the two financial heavy-weights has to either forge the paper-trial, since the NMS and the other agencies hasn’t received the funds. They have been spent elsewhere. Suddenly missing and that Muhakanizi uses so long time, that from June 2017 to February 2018 is unbelievable. If you use that long time proving parliament where the funds went. You know there are some shady misuse of it. It has gone to all sorts of activity, to tear-gas, paying police officers to keep Besigye under house arrest and whatnot. Because it didn’t go the place where the MoFPED and BoU promised.

This the GAVI Funds and CHOGM scandal all over again. This isn’t new, it is just PTA Bank loan gone missing. You miss a shilling, you miss a book or even some keys. But you do not loose this amount of money. They have gone to a growing patronage and securing the President’s Private Plane or something. Peace.

Reference:

Arinaitwe, Solomon – ‘MPs plot to censure Kasaija over Shs700b’ (07.02.2018) link: http://www.monitor.co.ug/News/National/MPs-plot-censure-Kasaija-over-Shs700b-/688334-4294524-r1k3ls/index.html

The Economist – Intelligence Unit – ‘ Loan secured from regional bank’ (11.12.2015) link: http://country.eiu.com/article.aspx?articleid=63762990&Country=Uganda&topic=Economy&subtopic=Forecast&subsubtopic=Fiscal+policy+outlook&u=1&pid=923837876&oid=923837876&uid=1

Karubaga, Mary – ‘Finance makes U-turn on sh150b NMS loan’ (08.07.2017) link: https://www.newvision.co.ug/new_vision/news/1455202/finance-makes-sh150b-nms-loan

Kasaija, Matia & Prof. Emmanuel Tumusiime Mutebile – ‘Uganda: Letter of Intent, Memorandum of Economic Financial Policies, and Technical Memorandum of Understanding’ (18.05.2016) link:

NMS – ‘CLARIFICATION ON FUNDS RELEASED TO NATIONAL MEDICAL STORES (NMS) FOR PROCUREMENT, STORAGE AND DISTRIBUTION OF ESSENTIAL MEDICINES AND HEALTH SUPPLIES (EMHS)’ (16.07.2017) link: https://www.nms.go.ug/jdownloads/Press/NMS%20Full%20pg%202017.pdf

New Vision – ‘Clarification on Allegations that US$200 million meant to procure medicines for health centres and implement Rural Electrification Projects Went Missing’ (17.07.2017) link: https://www.newvision.co.ug/digital_assets/fa485f48-5a96-4b7b-be1a-3969e7a45cc3/9-Min-of-finance.pdf

World Bank – ‘Uganda Economic Update 8th Edition, january 2017 – Step by step Let’s solve the finance puzzle to accelerate growth and shared prosperity’ (January 2017) link: http://documents.worldbank.org/curated/en/662191486394023103/pdf/112621-WP-P161699-PUBLIC-UEU-8TH-edition-final-for-web.pdf

The NRM continues their evil financial circle, as the state debt grows to 31.2% in the FY 2018/19!

The National Resistance Movement (NRM) have over created a growing the debt. This meaning parts of the Financial Year of 2018/2019 is directly going to repay debt. NRM Regime is clearly paying more and more on the debt, than what they are paying for government services and also interest payment. The citizens of Uganda should be worried about how the NRM is projecting and using their funds, how they are adding debts to pay old debts. They are really disrespecting the wise people and the Republic. Since, they are over the time, not making the economy more healthy, but making it more sick. The signs has been there the last few years, as they are projecting petroleum profits. Even before it hits the ground running. It is worrying, that they are showing it this month in the numbers from the Parliamentary Budget Office.

The Present Value of public sector debt to GDP stood at 27.1 percent in FY 2016/17 and is projected to increase to 31.2 percent in FY 2017/18 below the thresholds of 50 percent stipulated in the Charter of Fiscal Responsibility” (Parliamentary Budget Office, P: 2, 2018).

If you wouldn’t worry that the debt in the public sector rises with 4.1 percent in one year. I don’t care about the charter. When a state is able to make it rise with 4.1 percent in budget year, it shows that the economy is not fiscal responsible, neither healthy. It’s like continue to super-size burgers, when you already fat and having high blood-pressure. It will weaken the system with the continued eating of the super-sized burgers, instead of trying to find a healthy diet. Which will change the blood-pressure and how the body will feel with a balanced diet. However, when it comes to economy, the NRM doesn’t believe this.

Domestic refinancing (borrowing to finance domestic debt) will account for 22 percent of total domestic resources” (…) “Domestic borrowing for purposes of financing the deficit is projected to

amount to UGX 939.9 billion” (…) “Project support will account for 97 percent of the total external resources while budget support will account 3 percent (from the World Bank and part of the PTA loan)” (Parliamentary Budget Office, P: 4, 2018). “Interest Payment projections include UGX 2,279bn for domestic securities (Treasury bills and bonds) and UGX 422bn for interest on external debt” (Parliamentary Budget Office, P: 5, 2018).

This here shows how the state is financing the debt and the repayment. Also how high they are pushing the domestic resources to repay domestic debt. This is clearly hitting the economy hard, when so big parts of the budget and resources is spent on repaying debt. This is all destroying the possibilities, since its taken a giant slice of the budget and using it on debts instead of paying salaries of teachers and civil servants.

This are the numbers, that people should take to heart. Because this debt and the rising debt is eating the budgets. The state is making it grow and is not containing it. That should worry anyone. Especially, the NRM who is in-charge and the President who has created this avenue and has to make sure this get payed. Peace.

Reference:

Parliamentary Budget Office – ‘INDICATIVE BUDGET AT A GLANCE – FY 2018/19’ (January 2018)

A brief look into the IGG first report of 2018 with Lira District in FOCUS!

The Inspector General of Government (IGG) Irene Mulyagonja has recently published a new report, showing the corruption and the reported cases that has been sent to the IGG during the 6 month period. This report shows the key places where the complaints are about, which shows what kind of civil servants that has cases going or investigated. There also a major showdown of certain districts, which gets the most heat in this report. Clearly, they are picked up and shown the public, while others are kept in the archives. So I am showing the key aspects of where the complaints go and one key district that has been put on blast. That being Lira District, who together with others was also put on display. What is weird about that is the office of Lira is number 15 on the list of getting complaints. While the Central District and Kampala Headquarters has bigger numbers, but is not chosen to revealed for the public. Only district offices with less numbers are Kampala Regional Office (because all are delivered to Headquarter) and Gulu district office. So this been choice by the IGG to show their cases instead of the ones around the Central Government. That is how it can be perceived!

The Inspector General Report are clearly stating that the most common groups of people, which is mentioned in complaints are either directly individuals (public officials), District Administration/Local Government, Municipal & Town Councils, Head Teachers, District Service Commissions and sub county administration. In the time between January and June 2017, there was 330 complaints about Public Officials. Complaints about District Administration was 328. Municipal & Town Councils complaints was 144. The complaints concerning Head Teachers was 87. The District Service Commissions was 85 and sub county Administration complaints totaled to 68. This here is really showing where the state officials locally are misusing the public funds. It shows a warning sign of how people take advantage of the lack of paperwork and archives of procurement and also facilitation of the state reserves. That is why they could do this before the complaints come to the IGG.

IGG cases in Lira:

Alleged cause of financial loss by Principal Assistant Secretary, Lira District” (…) “Alleged mismanagement of Shs. 15,000,000/= meant for road maintenance by officials of Ojwina Division Council, Lira” (…) “Allegation of nonpayment of wages to former support staff by Lira Municipal Council” (…) “Report on investigations into alleged payments of salaries to ghost teachers and illegal appointments of Head teachers in Lira District Local Government” (…) “Alleged irregular remittance of Shs. 10M to Mr. Ario Benson’s account and subsequent deletion from the payroll by PPO, Lira” (…) “Alleged creation and existence of ghost primary school in Aloi Sub-county, Lira District” (…) “Alleged misappropriation of UGX. 9,000,000/= meant for the construction of roads in Adekokwok Sub-County Lira District” (…) “Alleged utterance of false academic documents by a Secretary at UTC – Lira” (…) “Alleged irregular earning of higher salary by a person at Lira school of Nursing” (…) “Alleged cause of financial loss by the Principal Assistant Secretary, Lira District” (IGG, P: 77-80, 2018).

I am just showing the alleged cases in Lira as well, as the main reports, since the Report itself should be question for lacking the alleged cases from Kampala Headquarters and Jinja Offices. It shown some cases from Arua, but very limited, since it was the third biggest place of complaints during the 6 month period. While other regions and districts had more open cases. I am really questioning why Lira was so in FOCUS, when the offices of Jinja, Headquarters and Arua had ten times more complaints than Lira did. Why are they not more evident in the report? What is the reason?

That is what we should ask and why the IGG are not revealing those complaint or keeping them on the low. Peace.

Reference:

Inspectorate of Government (IGG) – ‘BI-ANNUAL INSPECTORATE OF GOVERNMENT

PERFORMANCE REPORT TO PARLIAMENT – January to June 2017’ (January 2018)

The Uganda Budget Framework Paper for FY2018/19 signals growing debt and steady growth of interest repayments!

I will go over key points of the National Budget Framework Paper of Financial Year 2018/19 – FY 2022-23, that the Ministry of Finance, Planning and Economic Development released at the end of last year on December 2017. MoFPED or Minister of Finance Matia Kasaijja must surely flatter himself with this release. As the numbers and troubles ahead has to be meet with swift action. That the National Resistance Movement (NRM) and President Yoweri Kaguta Museveni should answer for the consequences their economic policies has affected the financial stability and fiscal responsibility.

On page seven of the paper, it was said this:

i) Low revenue to GDP ratio, poor planning and budgeting due to non-adherence to Sector Investment Plans and increasing trends in supplementary pressures; ii) Lack of inter and intra sectoral coordination and increased cost of public administration resulting from creation of Authorities, Universities, Districts and related Administrative Units. iii) Accumulation of domestic arrears, arising majorly from court awards and delayed payment to the private sector that supply Government; and, iv) Low budget absorption especially for infrastructure projects resulting from delayed acquisition of right of way for projects and lengthy procurement processes” (MoFPED, P: 7, 2017).

If this isn’t signs of trouble ahead and lack of control of the economy, nothing is. When the government has trouble paying their dues, when they cannot absorb needed budgeted funds and also create longer procurement processes, while there is poor planning and lack of cooperation between different parts of the government and institutions. Therefore, the basic cost of developing projects and day-to-day services will be more costly, while the misuse of funds will grow. That is not the good steady progress, the ruling government promised in recent elections or anytime else for that matter in the reign of Museveni.

As the scale of debt has been on the rise of different years. The paper is clearly signaling bad news as well: “Amortization of external debt is projected at US$ 236.5 million, equivalent to Shs 894 billion in FY2018/19, which is relatively high compared to past levels because of repayment of the PTA loan. Thereafter, external debt amortization is projected to reduce to US$ 131.8 million in FY 2019/20” (…) “Government‟s interest payments are projected at Shs 2,701 billion in FY2018/19, of which Shs 2,279 billion is interest on domestic securities (Treasury bills and bonds) and the rest is interest on external debt. Interest payments constitute 9.8 percent of total resources available for spending next financial year. The figure is projected to rise to Shs. 2,788 billion in FY 2020/21 and will amount to Shs. 3084 billion during FY2021/22. A great percentage of interest payments about 84 percent is domestic interest payments which partly reflects high cost of domestic borrowing” (…) “Total government expenditure and net lending (excluding debt refinancing) will amount to Shs 22,520 billion in FY2018/19 and further increase to Shs 25,059 billion in FY2019/20. The bulk of this expenditure (10.5percent) is largely on account of increase in development spending arising from the scale up of public investments by Government. However, moving forward the implementation of the infrastructure projects will be more gradual to ensure consistency with the requirements to meet the EAMU convergence criteria. Recurrent expenditure is projected to increase by Shs. 166 billion during FY 2018/19 mainly driven by an increase in domestic interest payments” (MoFPED, P: 13, 2017).

That this combined with the early signs of worrying of procurement process, bad collective effort of ministries and also growing debt. None of this is a well-made government to secure services and institutions to serve the public. Clearly, there are other outlines and worries, since none of the early pages of the paper are too hopeful. These numbers has been shown before, but the MoFPED are really not hiding the fact, that the growing debt and services of it is taking a bulk of the budget this year.

As in previous years, the State House and Office of the President are getting big chunks of the budget. In the coming financial year the State House total budgeted funds are in the massive amount of UGX. 265,342 billion shillings and the Office of the President gets the amount of UGX. 56,436 billion shillings.

Will look more into that, when I get the hold of the Budget Framework paper directly made for that part of government. Since it is always showing some inspiring expenditure, if it is expensive water or spending on bad seeds for Operation Wealth Creation (OWC). That depends on what excuse the President and NRM needs to overspend on the majesty for life.

More will come later. Peace.

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