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.

Uganda Bankers’ Association: Position of Financial Institutions under the UBA Umbrella Notices Recieved from URA to Obtain Information of all Account Holders (08.04.2018)

Hon. Nankabirwa continues her cult-like praise of Museveni!

I would like to assure you that Museveni is here to stay. He has the power, the money and other resources that are necessary to push this country to greatness,” Nankabirwa said” (…) “Those who opposed the move to amend the presidential age limit are now living cowardly. They feel ashamed of the fact that their efforts proved them wrong at the end of the day. For us in NRM we proudly say that our stand was the best for Uganda,” she said” (Namanya, 2018).

Ruth Nankabirwa, the government chief whip continues her praise and being a loyal subject of the President. President Yoweri Kaguta Museveni must be giddy to have someone praising him in this manner. She is now a useful mouthpiece, she is praising him and heavier, than Beti Kamya, which in itself is special. In the championship of praising Museveni in the current day, Nankabirwa is in the pole position, even in front of Lewis Hamilton.

She is now praising him and allying herself with him, in a way, where her fate is bound by what happens with Museveni. There isn’t anything of policies or political belief. It is just bound by her alliance with Museveni.

This here is just an act to solidify her position and show that she is loyal to the President. That is why she is even proud of the abolishing the Age Limit in the Constitution. Just to give more time and ability for the President to continue to rule. When the NRM speaks for the best, it is the best for the President and then the Republic. Because the President always comes first. Last mentioned was Uganda. That is because, Uganda has been blessed with Museveni in their eyes. He can do nothing wrong and if he does it you too blame.

That is why the President is quick to blame his cronies and his own people, there is never his fault. But he expects that people like Nankabirwa praises him and gives him the fountain of honor. Not that a man of his stature do wrong or doesn’t listen to advice. Even fellow peers at the time of the makings of the Constitution, warned him about term limits. That he didn’t want to hear, but had to revise when he had spent that time in office and didn’t want leave. The same appeared again, as his age was closing in on him.

Now, the President needs his fellow MPs and Cronies to praise him, even if it is wrong. The people who was against abolishing the age limit isn’t cowards, but they have just seen the Republic and the Parliament, mostly sold to the President. They are not representatives anymore of the people, but of the President. There are few who are real and who try within the system to represent the people. However, there is very few and those who does, like even within the NRM would be fined and sanctioned by the Party. The NRM Rebel MPs was even talks of sanctioning them.

Nankabirwa, we know your loyal, but your words are still not true. Museveni isn’t a visionary anymore, and your just trying to catch your next paycheck. We understand, we do and we are not blind sheep following without thinking straight. It is hard to believe that Museveni will bring the republic to greatness now.

Museveni has had 32 years and there is still very little progress made and the achievements of the past is now getting tarnished with time. Also, the lack taxation, the added debt and the cronyism that is destroying the state. If that is greatness in Nankabirwa eyes, than I am sorry, but I beg to differ. It isn’t greatness, its self-inflicted destruction of the state in favor of one man and his cronies. That is not development, but using the state as a racket. It has been done now for over 30 years. However, that is just me. Peace.

Reference:

Namanya, Job – ‘Museveni is unchallengeable, says Nankabirwa’ (07.04.2018) link: https://www.newvision.co.ug/new_vision/news/1475062/museveni-unchallengeable-nankabirwa

Opinion: Todwong is right on the money!

There been many voices saying the same thing as Deputy Secretary of National Resistance Movement Richard Todwong. Not that they have been listen to or neither acted upon. Because the state sanction the nepotism, the family affairs of Museveni and his elite. That Todwong is still a part of, as he is a crony within the system. It is splendid that he says these things, but that the NRM and Museveni is most unlikely, the rampant corruption and ghosts, are evident even with the refugees and the other beneficiary structures surrounding this administration. Therefore, it is nice to hear in the ears, but has a hard time believe that the NRM will change, when Museveni is still the Kingpin on top!

“However, Todwong shocked the house when he turned guns on his own party, lamenting that they are responsible for a litany of issues that have gone wrong. “We also need to manage greed, during the debate of a transition, those in leadership position may want to collect as much as possible because they don’t see themselves coming back to power. That kind of greed, insensitivity to national issues makes people disgusted to those in government,” Todwong commenced his speech. “Corruption, greed nepotism are things that are making Ugandans more disgusted in the leadership of our party in government. I have to be honest because my church told me to, I have told this to the president,” he added” (…) “The former member of parliament lashed out at government officials for what he termed as “theft with impunity” and misuse of public resources, saying they are the reason the NRM will soon be pushed out to the streets. “If we can’t restrain or control our greed in how we use public resource, how we steal with impunity, then Ugandans will push us out of power. The hills of Kampala are expanding with buildings but schools and hospitals are shrinking, so where do people get this money from?” Toswong posed. “And the owners of these structures are commissioners, permanent secretaries, ministers and directors, people are disgusted,” he added” (Nelson Bwire Kapo – ‘We are stealing the country’s resources with impunity, people are disgusted- NRM’s Todwong’ 06.04.2018, NilePost.Co.Ug).

It is refreshing to hear it, but the state has made their ways, but they are not significant. Whatever regulations the Ministry of Finance, Planning and Economic Development (MoFPED), Bank of Uganda (BoU), Attorney General (AG), Inspectorate General of Government (IGG) and The Public Procurement and Disposal of Public Assets Authority (PPDA) is clearly not sufficient. They are still able to get away with murder and see the paychecks go into thin air. Therefore, when you have all of these and nothing happens. You can wonder why they are going to work everyday and if they are really doing anything.

There are so many busy bodies and such, that the rampant corruption should be impossible, as well as the Uganda Police Force and the Courts, should sanction investigations and have cases that logs the corruption cases in the state. However, that seems like a far-fetched scenario where the beneficiary are the ones on top. While all the institutions and the government bodies are fleeing their responsibilities, because if they act upon their mandate. They will naturally hurt allies and friendly cronies of the Kingpin. Because a state with that many different bodies involved, should have capacity to stop. Unless they are all there to collect salaries, smile and move-on.

The Presidential Handshake and the tokens of gifts for the vote to abolish the Age Limit, shows how open the corruption is and how little it matters. Since the big-men are eating and the President wants it this way. Therefore, a nice gathering of thoughts of Todwong, but will the NRM act upon it? Nah, they have already dozens of institutions and mandates to hunt them down. Nevertheless, they don’t, because that might implicate the Kingpin and they don’t want to do that! Peace.

Burundi: Communique du Gouvernement sur le Refoulement des Refugies Burundais par le Rwanda (04.04.2018)

Prof. Tumusiime-Mutebile: Bank of Uganda is Soundly Managed (05.04.2018)

La Diaspora Burundaise lettre du Pierre Nkurunziza & Conseil de Securite des Nations Unies (29.03.2018)

Trump’s Trade-War is now hitting East Africa: Because of possible lost trade with Second-Hand Clothes!

Museveni buying shoes in Wandegeya, 02.06.2017.

United States of America is really just cherry-picking the world right now, they are evolving into a beast and not an Uncle Sam. President Donald J. Trump don’t like to have friends, unless they are related or Roger Stone. That is now seen with his recent activity, not that he knows of these countries or these market. That I say, because he has no hotel or haven’t laundered money from there. The countries being hurt by his new policies are Rwanda, Uganda and Tanzania. Places he would never travel to or have consideration about. That is because in his mind, they are shitholes, but as long as they serve as vassal states for the United States. Everything is fine and dandy.

What we are talking about is this:

(A) THE PRESIDENT IS AUTHORIZED TO DESIGNATE A SUB-SAHARAN AFRICAN COUNTRY AS AN ELIGIBLE SUB-SAHARAN AFRICAN COUNTRY IF THE PRESIDENT DETERMINES THAT THE COUNTRY (SEE NOTE*)

(1) (A country that) has established, or is making continual progress toward establishing–

(A) a market-based economy that protects private property rights, incorporates an open rules-based trading system, and minimises government interference in the economy through measures such as price controls, subsidies, and government ownership of economic assets” (AGOA – ‘AGOA Country Eligibility’).

It is special that the US President is using this against these three states on the imports of used-clothes and shoes. That these three republics trying to develop their own textile and clothes industry, to create work and also revamp the economies. That would mean, that people would also earn more money and spend more money. In the end buying foreign produced clothes on the fashion-lines, that usually are branding American and European brands. Therefore, I don’t understand why Trump suddenly acts like this, when Rwanda, Uganda and Tanzania wants to secure their industries.

Because, it is not many days ago, since the President himself used rules and provisions to secure the Steel and Aluminum industry on his own soil. So, that the giant United States can control it, but their trading with other can be spoiled, because it doesn’t favor the President. Seems like double-standard to be. It is easy to muffle the poor and the ones with lack budgets, that are in need of donors. They need to stifle the demands of the powerful, but the ones with power can just use the same means themselves. Still, that doesn’t make it right.

That the United States are trying to force their used-clothes on Rwanda. Like they don’t deserve their own clothes industry and to secure better products, local designs and local textiles is insane. Why shouldn’t they strive for that? Why shouldn’t Uganda strive for their own Bata’s? What is wrong with Tanzanian made shoes? Nothing really, that should be supported, especially if the United States wants to think long-term and create better exports. They would earn even more on ordinary trade of clothes, not second-hand that sold bulk and through other channels. But I am sure that Trump has no knowledge of this or even could imagine it.

This is clearly a step of imperialism from United States, since they cannot stomach, that the partners and the ones getting donations through USAID. Isn’t accepting to be a bazaar for their used stuff. The products that is B-Level and already had their day in the sunshine.

Knowingly, how he is America First, the man himself should understand how others wants to build to their own industries, but thinking Trump has that capacity of thinking is overstepping and thinking that he could actually calculate, that others are sovereign too and not only his state. The East African Republic’s shouldn’t be punished for acting in their own interests over second-hand clothes. Neither second hand shoes. That is insulting and infuriating. If it was just charity and done out direct needs. It would make sense, but if your forcing bad products, because of own will for quick-profits and at the same time destroying local industries. I understand why Rwanda, Tanzania and Uganda is trying to ban it and stop it. I respect that and stand behind it. Who wants a old T-Shirt, when you can buy a local-made?

If you buy a local-made, it would create a job for the one making it, the one designing it and the one selling, plus the distribution within the state. That is good business and create lots of job. These jobs create other jobs and funnel money in the system. So some of them will buy foreign design and clothes, that might even be American. That is how the United States should think, if they cared about a free-market narrative, but they are now planning to punish Rwanda and others, because they want to build-up own industry.

Trump is creating a trade-war over Second Hand Clothes.

Second Hand Clothes to East Africa!

Washington, DC – The President determined today the eligibility of Rwanda, Tanzania, and Uganda for trade preference benefits under the African Growth and Opportunity Act (AGOA). In response to a petition filed by the U.S. used clothing industry in March 2017, the Administration initiated an out-of-cycle review of Rwanda, Tanzania, and Uganda’s AGOA eligibility regarding their decisions to phase in a ban on imports of used clothing and footwear. The review found that this import ban harms the U.S. used clothing industry and is inconsistent with AGOA beneficiary criteria for countries to eliminate barriers to U.S. trade and investment. Based on the results of the review, the President determined that Rwanda is not making sufficient progress toward the elimination of barriers to U.S. trade and investment, and therefore is out of compliance with eligibility requirements of AGOA. Consequently, the President notified Congress and the Government of Rwanda of his intent to suspend duty-free treatment for all AGOA-eligible apparel products from Rwanda in 60 days” (AGOA – ‘ President Trump Determines Trade Preference Program Eligibility For Rwanda, Tanzania, And Uganda’ 30.03.2018).

This is infuriating and not cool. AGOA should be used as a method to not destroy industry in the developing countries, but add revenue both ways. Now the United States is just using imperialism. Trade-War with East African Countries.

Trump is foolish and also, this is not gaining sympathy and the reasons for this. This isn’t adding and just show how belittling and narrow-minded he is. But that we knew, we just have to see who spanks him. Peace.

Yumbe Riot: Conflicting reports, but seemingly authorities created the havoc and it got public reactions!

What can we can conclude is that the Police Force in Yumbe District has arrested about 60 people and two individuals seriously injured (some reports dead) after bullets hit the scene. The Police Force statements and the Uganda Revenue Authority statements doesn’t add-up. While the Police are saying the URA had an enforcement operation there, the URA counter-claim it and says there was none.

However, there has imports of illegal rice in this case, that created the havoc seen today in Yumbe, as both statements refers to it. The URA legal team, who encountered the boda-bodas with it, who was stoned for interfering with it. While the Police Force are not addressing directly the illegal rice, but that URA was looking at the number plates and lack of tax on the motorcycles.

Before the crowd and masses of people rioted, burning both motorcycles and a car belonging to the Danish Aid in the town. The end of the statement clarifies that the URA was there to collect taxes on the imported rice, and that the motorcycle drivers has to pay the state. Also that URA will continue this operations in the West Nile region.

The Police has said they will engage with the Boda Boda Industry and community, as of this incident. What is special, is one saying it was not paid for the motorcycle, the URA saying it was because of the lack of taxes on imports on the motorcycle. It is a small difference, but still one. We can wonder what was the truth.

What we do know, is that the Police has arrested a dozen of people and two killed, some say they were just hurt. Hard to know what is the fact. 103.2 Open Gate FM reported this earlier in the day: “Two people are reported dead in Yumbe District following a protest by youth in the area against operations of the Uganda Revenue Authority-URA. The protests were sparked by a URA operation against unregistered bodas bodas, in the event apprehending residents in the business. The operation became sour when the URA vehicle knocked down a bodaboda cyclist, making bodabodas to become rowdy by burning several vehicles prompting police to fire bullets. URA Manager Public and Corporate Affairs, Ian Rumanyika said the Authority was cracking down on unregistered boa bodas as well as those smuggles from South Sudan without reverting tax” (103.2 Open Gate FM, 28.03.2018).

So it wasn’t a peaceful initiating, as the URA Management followed and tracked the Boda Boda down. Knocked it and the Police intervened in the operation. The report of Open Gate, also say the URA was doing both, not just stopping the smuggling from South Sudan, but also look into the tags, which hadn’t paid tax. Secondly, they are saying that the URA team drove after the Boda Boda and actually knocked one down. That isn’t just fining and taking the tags, not only checking the products or rice, but actually nearly impounding it. This has been done without forewarning or local knowledge. If not this wouldn’t have happen.

So the URA are now combating illegal imports and also unregistered boda boda’s. Clearly, there have to be better methods, since this became violent, and the following after and knocking down. Was a final spark, since the URA Management created havoc on the way and than the Police intervened with guns, as the youth was throwing stones. When the violent activity transpired they addressed it with throwing stones and also burning cars.

Whatever it was, it shows the lack of oversight and the lack of basic understanding. It is natural for a state to tax imports, also serve taxes on plates, yearly pay for being able to drive on the roads. Both actions are normal, but if the URA Management did the right thing, if the Police Force did the same. Can be questioned and should be.

What should also be asked, would there be a better way to collect the missed tax and also secure the porous border points, so the Boda Boda can pay the levies when entering into Uganda again. Secondly, the URA should be able to notify the drivers of their missing payments and not knock them down for doing so.

We will see with time, if the stories are changing or if they will stay the same. However, this is worrying sight of the state of affairs. When collecting taxes becomes a stand-off, you know something is wrong. Peace.

URA: Clarification on Riot in Yumbe (28.03.2018)