
Correction of factual Inaccuracies by The Observer News Paper concerning Ernst & Young (EY) as the auditors of Crane Bank (17.07.2017)




The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!
Petroleum Fund:
“For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).
“It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).
“During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).
Petroleum Data:
“The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).
This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).
The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.
Reference:
Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga
Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

Today Radio Tumazuj, Upper Nile Times, Nyamilepedia and Sudan Tribune has been blocked by Internet Service Providers in South Sudan. This has been done with provisions done by the South Sudan National Communication Authority. Also the director of South Sudan Broadcasting Company (SSBC) Adil Faris Mayat have been arrested for not properly broadcasting his speech earlier in the month. Clearly, the civil war between rebels and government has gone to a level where the reporting are taken as hostages and under threat. If they don’t comply with the government orders and message.
Certainly, the government cannot handle the reporting of the battles in the different provinces, the different comments and statements made by former SPLM/A personnel, who has fled to opposition forces. Secondly, the current famine and fleeing citizens show’s the lacking governance. Where even reported that villages flee when they hear the government army are coming. Instead, of fleeing when the rebels are coming and they are giving food to rebels. This show’s the concerning state of fights in different parts of South Sudan.
That President Salva Kiir Mayardiit and First Vice-President Gen. Taban Deng-Gai feels more alone, most been seen with the attempt to silence media reporting from the battle-lines. Foreign reports has also been banished and been taken out of service in the recent months for their expression of the current conflict. Clearly, the President and the regime cannot manage reporting on the situation. The lack of control from the Central Government and the problems of their conduct. Must be the reason for doing this. Since they want the message that are made correctly for the vision of the President.
All of the media has now to be gagged and silenced, this is worrying. That they can suspend the Internet Service Providers to see certain media houses and newspapers. Also, can arrest journalists and editors. Like it has done in the past. The SPLM/A has to man-up for their crimes and the violence that has been created, they have done lots of it and the same has the rebels. That is why the National Dialogue is currently useless as SPLM/A-IO under Dr. Riek Machar is not participating, which is run by Ugandan President Yoweri Kaguta Museveni. He is the weapon brother of the South Sudanese President. So surely, that must be reason why SPLM/A-IO and Machar doesn’t trust it.
The same shows the media, who the is there to report on injustice and on the violence, who is not allowed or trusted to do so. Are now gagged and silenced by many. The ISP are directed by the SSBC to not show their content in South Sudan, because of their reverse propaganda against the state. This shows that the state cannot handle reporting or articles critical to their agenda. The civil war is taking a toll on their moral and the need for freedom of expression in South Sudan. Peace.




Number of people needing humanitarian assistance on the rise.
ROME, Italy, July 14, 2017 – Poor rains across East Africa have worsened hunger and left crops scorched, pastures dry and thousands of livestock dead – according to an alert released today by the UN Food and Agriculture Organization (FAO).
The most affected areas, which received less than half of their normal seasonal rainfall, are central and southern Somalia, southeastern Ethiopia, northern and eastern Kenya, northern Tanzania and northeastern and southwestern Uganda.
The alert issued by FAO’s Global Information and Early Warning System (GIEWS) warns that the third consecutive failed rainy season has seriously eroded families’ resilience, and urgent and effective livelihood support is required.
“This is the third season in a row that families have had to endure failed rains – they are simply running out of ways to cope,” said FAO’s Director of Emergencies Dominique Burgeon. “Support is needed now before the situation rapidly deteriorates further.”
Increasing humanitarian need
The number of people in need of humanitarian assistance in the five aforementioned countries, currently estimated at about 16 million, has increased by about 30 percent since late 2016. In Somalia, almost half of the total population is food insecure. Timely humanitarian assistance has averted famine so far but must be sustained. Conditions across the region are expected to further deteriorate in the coming months with the onset of the dry season and an anticipated early start of the lean season.
The food security situation for pastoralists is of particular concern, in Ethiopia, Kenya and Somalia, where animal mortality rates are high and milk production from the surviving animals has declined sharply with negative consequences on food security and nutrition.
“When we know how critical milk is for the healthy development of children aged under five, and the irreversible damage its lack can create, it is evident that supporting pastoralists going through this drought is essential,” said Burgeon.
Livestock prices have plummeted because of poor animal body conditions and this, coupled with soaring cereal prices, has severely constrained pastoralists’ access to food. Rangeland and livestock conditions are expected to further deteriorate at least until the next rainy season starts in October.
Poor crop prospects
In several cropping areas across the region, poor rains have caused sharp reductions in planting, and wilting of crops currently being harvested. Despite some late rainfall in May, damage to crops is irreversible.
In addition, fall armyworm, which has caused extensive damage to maize crops in southern Africa, has spread to the east and has worsened the situation. In Kenya, the pest has so far affected about 200 000 hectares of crops, and in Uganda more than half the country’s 111 districts are affected.
In Somalia there are unfavourable prospects for this year’s main gu crops, after the gu rains were late with poor rainfall and erratic distribution over most areas of the country. In the Lower Shabelle region, the main maize producing area, seasonal rainfall was about 50 percent below- average and drought conditions are currently affecting up to 85 percent of the cropland.
In Ethiopia, unfavourable belg rains in southern cropping areas are likely to result in localized cereal production shortfalls. Drought is also affecting yields in Kenya’s central, southeastern and coastal areas. In Tanzania, unfavourable rains are likely to result in localized cereal production shortfalls in northern and central areas, while in Uganda there are unfavourable production prospects are unfavourable for first season crops in the southwestern and northern districts.
Cereal prices are surging, driven by reduced supplies and concerns over the performance of current-season crops. Prices in May were at record to near-record levels in most markets and up to double their year-earlier levels.

“When a man is denied the right to live the life he believes in, he has no choice but to become an outlaw.” – Nelson Mandela
“Age limit debate is strictly in parliament, but not in schools or villages. It is supposed to be debated in parliament and should be among MPs,” he said” (…) “Kayihura instructed security personnel to work closely with the leadership of universities and students to keep law and order in and out of the campuses. “It was an embarrassment to security to see students carrying the coffin with the picture of the president in Mbarara. It showed there is no intelligence network in Mbarara,” Kayihura reportedly said during the meeting. The police chief also told police commanders to work closely with crime preventers. “You must work with crime preventers in your areas to make sure that you block local leaders from discussing the age limit bill with residents because the bill has not been tabled in parliament,” another source quoted Kayihura as saying” (Taremwa, 2017).
Clearly, if even a small mind like Gen. Kale Kayihura can understand the powers of his words. That only the elite and the selected people of the Parliament can talk about laws and extent of the powers within it. The constitution that binds the Republic and set the standard of all laws in the Republic. Are now under order by him to allow simply put talking about it or debated in villages, schools, surely in canteens unless an MP are present.
The IGP Kayihura is clearly showing arrogance and lack of understanding of the value of freedom of expression. He knows his intent and the extent of his powers. When he can take one of the most controversial and flamboyant changes of the constitution and push only to one venue. Like the bribed and subdued MPs would stand their ground and all defend the just cause. When their master, the same master that the IGP orders them to vote for his life Presidency.
This is supposed to happen in silence, not allowed to talk about and not debated is insane. It is beneath all common decency and what is seen as just. Certainly, age limit is a touchy subject, because with time Museveni will need as foreign health care treatment for his illnesses as President Mugabe. Therefore, the steady new Presidential Jets will come in handy and not only for showing off to his other totalitarian mates.
That the Police Force and their security organizations plans to block debates and talks in public about it is just bonkers. There are not anything sane about such a move and proves the volatile state of the National Resistance Movement, when it knows the people’s concern about this sort of provision and law. That only benefit President Museveni and the ones who gets paid to vote for it. This will only make more people outlaws, as the laws are more for the subject of President Museveni, than for the common good of the state.
This sort of measure only provides the totalitarian effort to pass a law for the sake of keeping the skeleton of NRM alive. Not providing more development or concern for service delivery. Since the delivery of this sort of constitutional amendment is only for the life of President Musveni. As it was when the Constitution it was amended to abolish term limits for the President.
Now if you become a group standing up against it, even if you’re a NRM Youth member or anything else. The Police will detain you and if you speak against the age limit, and they will hurt you. Since speaking against the age limit is speaking against the patriotic movement and the President. Who has all rights and reasons to stay in charge until his last breathe?
That is the message the Police sends. That the Police can within their means and functions to silence opposition towards a coming law. A law that is only for ONE man out of the millions living in Uganda. The Republic with this amendment only serves one purpose and one cause, the cause being Museveni and his lifelong Presidency. No succession or no change of Executive. Only him. Only him and no one else. Apparently, that is what the Police believes as well.
Since the MPs and Plenary, those sorts of debates is the only one allowed by the Police. The citizens has to silent and not talk, the debates at schools and in village councils are not allowed, this measure is supposed to stop the controversy and let it go away. Instead, this sort of act shows the lack of morals, common sense and even core freedoms that are now swept away, because the President needs it to be so. With the help of Police Force who enforce his rule.
The IGP Kayihura have tried in the past to lecture media how to work, opposition parties how to conduct their party functions, and the newest steer public agenda. The Old Man with the Hat is clearly ordering him to do so. So now the talk of this will not be in the open, but behind closed doors in people’s homes. If people get the wind of it in church or in a pub, it might get rumors that spreads to a Crime Preventer or a Police Officer, who will detain the fellow who did the forbidden: “speaking about the old man and his will to rule forever”. This are our days and times. That is the price of oppressive regime of the NRM and President Museveni. Who has no issues with silencing the people for his own gain! Peace.
Reference:
Taremwa, Johnson – ‘Kayihura ‘bans’ age limit debate in universities’ (14.07.2017) link: http://observer.ug/news/headlines/53841-kayihura-bans-age-limit-debate-in-universities.html

Reports from the UN International Organization on Migration (IOM) “suggest that Government forces are now approaching the town of Maiwut, 25 kilometres north-west of Pagak”.
WASHINGTON D.C., United States of America, July 13, 2017 – Thousands of South Sudanese civilians are fleeing to neighbouring Ethiopia as Government troops advance on a rebel stronghold in the Upper Nile region, a senior United Nations official today said, expressing grave concern about what is already the world’s fastest growing refugee crisis.
Reports from the UN International Organization on Migration (IOM) “suggest that Government forces are now approaching the town of Maiwut, 25 kilometres north-west of Pagak. I’m gravely concerned by this ongoing situation,” the Special Representative of the Secretary-General in South Sudan, David Shearer, told reporters from Juba, the capital.
He added that while it is unclear which side began the fighting, the military advance by the South Sudan forces “is not in the spirit of the unilateral ceasefire” declared by the Government in May.
Mr. Shearer said there has been “active military engagement” over the past week north of Pagak, and at least 25 aid workers have relocated in the area as a result of the insecurity.
The senior UN official, who is also the head of the UN Mission in the country, or UNMISS, also voiced great concern about an orphanage near Torit, south of Juba, surrounded by Government and rebel fighters who are preparing to fight.
“It’s unacceptable that 250 innocent children, and the people who care for them, find themselves in no-man’s land between the warring parties,” Mr. Shearer stressed.
Requests by UNMISS to access the Hope for South Sudan Orphanage have been denied “locally, on the ground.”
The Government forces central command in Juba yesterday gave UNMISS “the go-ahead to send peacekeepers to the orphanage. I’m hopeful that will happen today,” he added.
Mr. Shearer urged both sides to reflect on President Salva Kiir’s Independence Day message of peace and withdraw from the facility.
In addition to accessing the orphanage, a group of Nepalese peacekeepers have been sent to protect civilians and the UN base in Torit.
“The number of patrols we can undertake in the town will increase with the additional peacekeepers. In turn, that should provide more security and boost confidence,” said Mr. Shearer.
He noted that his deputy, Moustapha Soumaré, is travelling to Torit tomorrow and will report back.
