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Archive for the tag “Lt. Gen. Yoweri Kaguta Museveni.”

A brief look into the COSASE Report: Digest the lack of due diligence!

Well, sooner or later this report was bound to happen as the deadline of the Parliament’s Commissions, Statutory Authorities and State Enterprises (COSASE) report into 7 defunct banks in the Republic. It had to be interesting to see how the National Treasury or National Bank, the Bank of Uganda handled it, as the Bank have been going around all cowboy and not with protocol. As the proper guidance nor minutes have arrived to the COSASE as the months of investigations has gone on.

As well, the lack of trust between the parties, lawyers and stakeholders itself. Therefore, the report, had to stinking of it, the lack of due diligence and care for delivering proper craftsmanship, where the profession and their ethics are shining true.

Instead the process of investigation have shown utter contempt of honesty and transparency, as documents have gone missing and people have taken trips away, while they were supposed to testify to the Committee.

That is the introduction. Let’s dig into the mess, which was unleashed today on the 21st February 2019.

The committee further observed that there are no documents relating to the post closure and management of Teefe Trust Bank assets and liabilities. This further complicates the process of winding up including resolving claims and some securities still in possession of the Central Bank” (COSASE, P: 9, 2019).

No inventory report was availed in respect of ICB but an inception report for liquidation by the Liquidation Agcnt (KPMG) dated 30th September 2001” (…)”without a proper inventory report, BoU did not know what it was taking over in terms of entirety of assets and value. Accordingly, BoU acted in breach of section 32 (3), of the FIS, 1993” (COSASE, P: 10, 2019).

Sold on the Same Day:

What further the report states is that the National Bank of Commerce was closed and sold on the same day. This being done on the 27th September 2012. The takeover and sale took only 6 hours time and was in convention of the FIA. The same actions happen to Global Trust Bank (U) Limited, which was closed and sold on the same day, on the 25th July 2014. This was also done in convention of the FIA.

While on Crane Bank:

The auditors produced the inventory report on 21st of December 2016 however, BoU had invited DFCU to bid for the purchase of assets and assumption of liabilities of CBL on 9nd December 2016 and subsequently DFCU submitted the bid on the 20th December 2016 a day before the production of the inventory report” (…) “BoU did not carry out valuation of the assets and liabilities of CBL. BUT relied on the inventory report and due diligence undertaken by DFCU to accept their bid to arrive at the P&A. However, the final inventory report was submitted on 13th January 2017. In essence, the final inventory report was never used in evaluating the bid for the purchase of assets and assumption of liabilities of CBL” (COSASE, P: 12 & 13, 2019).

Selling assets on discounts:

In the case of ICB, Greenland Bank and Co-operative Brank, the total loan portfolio sold of UGX 135bn included secured loans of UGX 34.5bn which had valid legal or equitable mortgage on the real property and were supported with legal documentation BUT were sold, to M/s Nile River Acquisition Company at 93% discount” (…) “Whereas the GTB and NBC discount percentages of 20 and 30% respectively appear reasonable, the 93% discount in respect of the loan portfolio of ICB, Greenland Bank and Co-operative Bank acquired by M/s NRAC was incredibly outrageous” (COSASE, P: 23-24, 2019).

Winding Up:

The winding up process of all the defuct banks has taken an unjustifiably long time to settle creditor claims. For Teefe Trust Bank (26 years), Co-operative Bank (20 years), ICB (21 years), Greenland Bank (20 years), NBC (7 years), GTB (5 years) and CBL (2 years)!!! Regrettably, many of the creditors and shareholders have and indeed continue to die” (…) “Due to absence of documents, it was not possible to ascertain whether the UGX.9 1 .22bn used to settle customer claims of ICB, Cooperative bank and Greenland bank went to the bonafide beneficiaries. The absence of documents could among others be attributed to the long delay in concluding the winding up process” (COSASE, P: 39, 50 2019).

This is really just a proof of some of the mismanagement and quotes that proves how the Bank of Uganda didn’t do due diligence. They didn’t fix the issues, neither the work that was needed for the distressed financial institutions, the BoU didn’t follow the laws and statutes. All of the banks seems to be closed without protocol. Without proper documentation, neither overlooking assets and the securities.

Therefore, the Bank of Uganda … have not acted as the Central Bank and having the supervisory role over the financial market. They have surely acted in ill-will and not like they are supposed too. If not, these seven banks shouldn’t been closed like this, even closed and sold within 24 hours. Peace.

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BoU Probe: Lukwago statement – “Re: Salient Matters Concerning The Parliamentary Probe Into The Closure of Greenland Bank and Other Defunct Commercial Banks” (12.02.2019)

Opinion: Mzee, its your system that let the Minister’s sleep!

Do not blame people and their attitudes: the problem is not corruption or greed, the problem is the system that pushes you to be corrupt. The solution is not, “Main Street, not Wall Street,” but to change the system where Main Street cannot function without Wall Street.” Slavoj Zizek

That this is an issue now isn’t strange. The National Resistance Movement have run the Republic since 1986. The growing amount of cronies, corruption and filled with useful idiots around the President. The President are clearly acting out. The NRM knows this, because they have made the entitlement, the ones who are eating, but not talented or anything. They are appointed, not on merit, but by either family or loyalty. That is why the Ministers and Presidential Advisors are like they are.

President Yoweri Kaguta Museveni knows this perfectly well. He could have sacked all of them. The growing level of the Cabinet, which is about 81 Ministers in total and 146 Presidential Advisors. They can all chill-out, as they can rarely be changed or even sacked. Cannot remember that in a long while. If something is happening, there are some minor changes or they end up in the NRM Party Organizations, like Dr. Tanga Odoi ended up with NRM Electoral Commission for the Primary Elections. That is how the NRM does and the President knows. Therefore, there are no need to overwork or do to much. Because, there are no sanctions or such. Since they are all secured and eating as they are in office under this President.

Many of my ministers are sleeping. They are selfish and only think about themselves. Ugandans know how to listen if they are told the right things, that is how we managed to build the Movement by learning and listening to others” Yoweri Kaguta Museveni while addressing investors during the sixth Presidential Investors Round Table (PIRT) at State House on the 8th February 2019 (Misairi Thembo Kahungu – ‘Museveni: My ministers are selfish, sleep on job’ 08.02.2019, link: https://www.monitor.co.ug/News/National/Museveni—My-ministers-selfish–sleep-job/688334-4971964-60mn1qz/index.html).

There are reasons why they are sleeping. There are Ministers for small or minor Ministries with Micro-Budgets, where they have a lax mandate or not even enough Principal Secretaries or Organization that matters to fulfil the work they need. The Ministries are inter-connected and doesn’t have the funding or the manpower. As there are so many Auditor General reports, where the open post of lacked hired staff comes up, again and again.

There are so many systemic defects, but surely that is done deliberate by the President. As he offers the most funds to the Ministry of Defence, State House, Office of the Prime Minister and so on. The others are getting less, as well, as the amounts of funds that goes to pay back loans that the state has collected. This is known, as the deficit are filled not with donor funds, but loans, which they are now paying more and more by every year.

The President can complain about his Ministers. But he appointed them and trusted them. He has made their positions and made them responsible. They are supposed to answer to him and follow the mandate the government have given them. The possibilities to do so, are made by the budget and funds given. Also, the strategic and willing to let them develop it. However, the President usually goes for quick fixes and not for long-term planning, as his erratic micro-management style. That is well-known. As well, as the President always blame others, but take all CREDIT.

Therefore, this President is not someone who will stay behind his people, but push them to the crocodiles, if they are not doing their thing or if they become to ambitious. Certainly, the President can complain, if they don’t do enough. He should sanction the ones or give them a carrot to act. Peace.

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

Preparation for General Election 2020/21: When these budget posts are served extra-funds!

As we are aware and since the National Resistance Movement (NRM) dropped their Road Map for the General Election of 2020/21, the whole system has started to flair up for it. Both with Electoral Reforms and other measures, to secure swift results in favour of the President and secure his cronies. That is just the way it is.

As we will see in the Budget Framework Paper for Financial Year 2019/2020, the government and their agencies are clearly gearing up for elections. As the NRM wants to make sure the appointed and anointed get their cut ahead of scheduled elections.

The first ones whose secured and getting well funded is the Residential District Commanders, they are getting 5,5bn shillings to promote government policies. There is also estimated right before the elections, the state will go from 128 districts in 2018/19 to 135 districts in 2019/2020, there the state has to use more on them just for the need of new RDCs too.

To give RDCs possibility to do their work, the Office of the President has asked for 25.4bn shillings to buy 165 Double Cabin Pickups, but there is only small fry for what is coming up.

The State House itself is gearing up, as the Office of President has asked for an allocation of 741.1bn shillings.. Just to give a feeling of the changes of gear, is that in National Budget Framework for Financial Year 2018/19, alone, the State House got 265,342bn shillings. We can see a significant change ahead of the coming elections.

To top it off, the logistical support, welfare and security to H.E the President, Vice President require 118.38bn shillings. Therefore, the Presidency, the State House and everything concerning that is much more expensive in Election Times and ahead of campaigns. As proven by the Report delivered to the Parliament.

This are just small pieces of what the Committee and what Jesca Ababiku MP delivered the Parliament, as requested to secure funding and also more funds to certain aspects. As it is fitting the elections and the timing for more cash to certain places. We saw it before the General Election in 2016 and is seeing it now. Repeating itself, getting budget for cars and more expenses paid. More funding to the State House and President. Just as programmed. To think otherwise is to be blind to what is up.

This is just what they do, not building institutions or such, but buying to time to linger in Office. Peace.

Reference:

REPORT OF THE COMMITTEE ON PRESIDENTIAL AFFAIRS ON THE BUDGET FRAMEWORIT FOR F’Y 2OL9/12O – 2023/2024, Parliament of Uganda, January 2019

Uganda: Ministry of Health – Press Release – Government launches the Health Sector Integrated Refugee Response Plan (2019-2024) – (25.01.2019)

Ministry of Health Statement to Parliament on Cholera Outbreak in Kampala City, 9th January 2019 (09.01.2019)

BoU Scandal: Mmaks Advocates – Press Release (12.01.2019)

Uganda: Ministry of Health – Press Release – Cholera Outbreak in Kampala (11.01.2019)

Age Limit: The value of the Life Presidency is now about two Koenigsegg CCXR Trevita!

What if I told you that, based on the incoming numbers from today’s reporting and last year. We can establish the certain cost of the Age Limit Bill and how much the National Resistance Movement (NRM) or the NRM MPs has cost in total. An amendment of the Constitution, which in purpose have given President Yoweri Kaguta Museveni, Life Presidency.

With that in mind, I have calculated what each of the NRM MPs have gotten in payment. As it first was the cost of Consultations and the total value of that, later I have taken the direct payment for passing the bill. So take a look!

Latest report on the payment:

The first installment of Shs 40 million was paid before the amendment was passed in 2017 with another installment of Shs 100 million coming immediately after the passing of the Bill. The final installment of Shs 60 million was to be paid on November 30 last year. At the beginning of this week, the MPs received telephone calls from the leadership of the NRM Parliamentary caucus to go for the money but instead of the Shs 60 million, the MPs received Shs 45 million” (Kabuubi, 2019).

Lets do some calculations:

Each of the 317 Members of the NRM Caucus have gotten in total Shs. 85 million shillings or offered this, as it is reported. I will look at the whole sum for everyone, as it is to hectic to calculate the ones that didn’t receive it all, as they wanted the whole sum of Shs. 100 million, but the proof of cost is still up-to-date. As it shows how much the state anticipated to pay for the whole operation to the MPs in question.

So the sum for passing to date is about Shs. 85 million Ugandan shillings doesn’t say so much internationally, so if your using the foreign exchange today. Each MP would get in about $22,740 US Dollars. That is in both instances with the total fee, however, today, they got equlent about “only” $ 12,041 US Dollars or £9,415 Great British Pounds.

This is the payment done for the bill itself, but for the ones remembering back in time. This isn’t the first fee, these honourables got for doing so. The MPs got a consultation fee each. Which I stated like this in October 2018, when the MPs got Shs. 29 millions each for consulting their constituents.

To put the 29 million in perspective is about $ 8000 United States Dollars or £ 6000 Great British Pounds (With the exchange rate in October 2018). So it isThe whole cost of the consultation of the bill was $ 3,553.660 or about 3,5 million United States Dollar. That is the cost of the MPs consultations is equivalent of 13 billion Uganda Shillings or about 3,5 million US Dollars.

That was then, but now with the revelation, there are more money at play. Making the calculation more interesting. As the whole freaking project is getting under wraps. Because, we should calculate all the millions spent on these MPs, to prove the value of Life Presidency in the eyes of Bosco. As he sees this sums fit to give life to his dream of ruling until eternity. The $ 3,5m USD was premature. Since there was even the direct payments to the 317 NRM Caucus MPs. Which was revealed today.

With that in mind, lets do the Math:

Shs. 29m + Shs. 85m = Shs. 114m or $ 30,501 USD or even £ 23,844 GBP each.

That is what the MPs gotten each in Consultation Fees and Direct Payment. We should still look at the whole shindig. Therefore we have to look into how much Shs. 114m are times 317 MPs. That is about Shs. 36 billion or into $ 9,6m USD, or about £ 7,5m GBP.

To put that in perspective how much that really is. In Ugandan Perspective, it is as much as the Namugongo Museum Development Committee planned in 2016 to spend on Anglican Martyrs Shrine in Namugongo, as they would develop the museum, build a conference centre, guest house and a library.

To do another one, the value of the Age Limit bills as of today, it is about the value of two Koenigsegg CCXR Trevita, which is valued about $4.8m USD. Which is an upgrade, as in October last year, the value of the Age Limit was valued to one single Aston Martin. Which is fine itself, but a bit low, considering the value of the Presidency and its perks. The Presidency should cost more and be more expensive. This is still cheap, even if two Koenigsegg is a costly affair.

We should expect more, as we know how the prices on good players are in the Premier League, they are through the roof and a slot of the Presidency shouldn’t be sold for cheap, it should be some Gareth Bale, Christiano Ronaldo, Kylian Mbappé or Neymar. The Ugandan President cost as much as the transfer of Nottingham Forrest Michael Antonio to West Ham in 2016, which in the schemes of things. Is nothing in comparison to the trade of Age Limit. The gift of extension of Presidency and being the Head of State, the Commander-in-Chief and so-on. That should be valued more.

Two fantastic Koeningsegg or a Championship transfer to the Premier League isn’t capturing the seriousness in the trade. To get the opportunity of becoming President for Life, should cost more. We all should agree on that. Peace.

Reference:

Gyagenda Kabuubi – ’Cash bonanza in Parliament as MPs get paid age limit balance’ 09.01.2019, link: https://intelpostug.com/2019/01/09/cash-bonanza-in-parliament-as-mps-get-paid-age-limit-balance/

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