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Archive for the tag “Matia Kasaija”

The UTL Saga: The Walking Dead run by Ghosts!

Ever since the Libyan ownership of Uganda Telecom Limited went away, the company has been in the hands of the government. The company have lacked funds and investments, therefore, lacking the structure to even compete with Airtel and MTN Uganda.

Still, with this the in mind, earlier in the year of 2019. The UTL was searching for new private ownership, but without any luck. This company has been overtaken by the state in early 2017 and has never recovered.

So, too top it off, yesterday, State Minister for Investment Evelyn Anite claims the state has lost control of the company and that ghosts ran the UTL from Mauritius. Non-Existing Ghosts from the Island Paradise, whom run the company and been in charge. This as the company have been for two years under the control of the state, but apparently only on paper and not in real life.

The UTL is already a shipwreck; the boat is sinking and doing so, steadily for years. Ever since 2016 and the fall of Libyan investments has silently killed the company. Even if the state wants to save MANGO. It surely isn’t doing it properly and someone is scheming behind the scenes. Because, the company is still operating and able to keep services to the public. Even if they are weaker and older functions, than what Airtel and MTN provides now.

That the state is in such a disarray, that the company it has tried to get investors into investing in. Has executives, which is non-existing, that the Auditor General is not allowed to investigate and the Courts has to decide if a probe is possible. That the Speaker Kadaga have asked for a Parliament study of it. Shows what sort of altitude of nonsense that is operating.

Therefore, we are now in 21 June 2018, a company been run by the state since about 1st March 2017 and was in limbo already in late 2016. Nevertheless, the state should have gotten things fixed and have had the time to adjust the company for re-sell, if it was working on that. Alas, that seems not like it, as it is just another buy-bust and quick fix scheme. That is why the Ministry of Finance, the Auditor General or others cannot asses the financial aspects or documents from the UTL. Because, the UTL want to hide their blessers and who they are blessing.

We could laugh and smile about it, but this is a wastage of state funds, of state resources and of due diligence by the state. A state, whose main bank also shown signs of lacking protocol, so this is in a long line of lax security and lacking incentive to do proper work. The state could have salvaged something in late 2016 or early 2017. When the Libyans pulled out and the state took over. However, the state wasn’t prepared nor having the funds to make a swift delivery of the company to new ownership. Therefore, they have hold on to a company, which they clearly cannot control or have access too. Still, they are forking up needed funds when it asks. Since it is now a State Owned Enterprise.

UTL saga is sign of disgraceful, distasteful and disregard for the state, by state actors and state operators, whose taking the state and the public for fools. Instead of solving a problem, getting proper investors or even trying to make a company viable again. It is pumping blood to a dying corpse. Hoping no one is catching an eye and seeing the walking dead. Peace.

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Bank of Uganda Scandal: Printing lies and printing money!

Well, we are at this point and time, where the printing company have back dropped their information to the public. As well, as the ones in charge of spin control in the state, this being Uganda Media Centre, as well, as the Police Force itself plus internal statements from the Bank of Uganda.

While the Directors are under scrutiny, the spin is out of bound and showing that they are trying to deceive. That the Bank of Uganda had a scheme going on with the shipment of bank-notes, where the high ranking officials could eat of the spoils, but somewhere, somebody tipped the authorities off. Because someone didn’t get their cut.

That is why the state and Bank of Uganda is trying to back peddle it, while the State House, CMI and others are investigating the efforts of transporting the extra consignment of notes. The billions upon billions of extra funds.

We know there was a scheme and that it wasn’t supposed to get to the headlines, that they wasn’t supposed to fight over notes in mattresses, neither fight over blame either. The Bank was supposed to get these, share the spoils and move along like nothing. That is why the spokesperson for the government pins blame on police, while the Bank says its nothing and the Police says its investigating it. While the new Unit in State House confirms the raid on the bank. Surely, it is all a mess, as the institution and the state itself cannot configure the story, nor the procurement of the extra consigned notes. It is like a gift that keeps giving.

We know now that someone ordered extra notes from Europe. Someone had arranged it to happen, the planes with the notes was scheduled and the transfer was already made by the officials in the bank. The State let it happen and let it even come through customs. The state let the BoU do this and didn’t stop it. Until someone tipped off State House, as off they weren’t properly informed or getting their cut. Therefore, they had to cut it off and send a sign, that they are supposed to be informed of this and get their piece of the action.

That is why the Bank was early stating it was negotiating with the authorities, that it wasn’t a raid, even if the State House, CMI and others claimed it was. We can surely see where this is going. This a badly written novel, even a badly written scheme of soldiers of fortune, of financial mercenaries who couldn’t even pocket the funds without ghosting the procurement. They had to leave breadcrumbs and leave traces of deception.

That is why the Bank, the Police and the Uganda Media Centre, all look like fools. The directors, the consignments and the delivery is all there. The ones who was supposed to earn on this was there too. The whole operation was in session and the class was about to start. But was pre-emptively stopped by the authorities and since then, the people looking at it cannot keep their stories straight.

Time will tell, but this is looking like a heist, smelling like a heist and acting like a heist. Even if they are trying to conceal it. Someone got hurt that they didn’t get their pieces of silver and had to blow the whistle. Now, the ugly truth of the operation is peeled off, layer by layer. Peace.

Another day, another Bank of Uganda Scandal!

The Bank of Uganda has had their magical pens, they have had their crazy foreclosure of Commerical Banks and now they are procuring and producing banknotes without proper function of the state. This is inside trading and kleptocracy to another level.

The Bank of Uganda is already showing their acts, as they didn’t minutes to closure of a bank and not even following protocol doing that. In the same regard, surely there was no minutes written when the high ranking officials fixed and gotten specialized transport plane filled with billions of Ugandan shillings in freshly minted banknotes.

We know this is a game been missing and sudden death is coming quickly. Because this is a rotten institution to the core. There been proof over a long time, but with every scandal, there are meat to the bone. It is ready for a stew or barbecue.

This bank has been like this under the Presidency, ever since the cross-over of the double digits in 1987 and cut of 30% for the clients using it. This is how they do. The Bank of Uganda is the reserves and the securities for the regime. They do not care how they clear their tab, but the bank will fix it.

If the public cannot trust the inner-circle of the Bank. Who can trust it? Since the BoU is supposed to be the institution that ensures the currency and the economy together with the Ministry of Finance, Planning and Economic Development (MoFPED). They are supposed to deliver what the state needs and secure the economy together. These two institutions are supposed to be the bricks to secure the foundation. Instead, we are questioning one, that breaks down the bridge of trust. So, there is no possibility of crossing that river.

The Bank of Uganda has again come into trouble. Not that its shocking, been a minute where the bank was off the hook. But now the state is trying to fix it without arresting the ones doing the illegal deeds. Surely, these people will be off the hook and off the books, just like their mission was supposed to be. For some reason, the state want to reveal it and surely to embarrass someone behind it. Don’t expect them to spend time behind bars, because these people are connected with the kitchen cabinet and the high above. Since, if the BoU was really in trouble, they wouldn’t have gotten away with their previously done deeds. Therefore, there is more behind closed doors, than what we know.

The Bank of Uganda is in another scandal. It is not strange. Its anticipated, this bank is made to the fortunate and the ones in the inner-circle. The rest just got to beg for mercy. As long as this regime is in power. This will not change, because this not profitable. But as long as it is… it will keep up and the leadership will continue. Since, the President trust them and knows they are carrying water for him. They are getting a cut for doing it too, as long as they are not telling the public.

That is why this latest is a leaked story to get rid of a inner-circle dude, who the leadership doesn’t like or trust. They feel he cannot be one of them and need him to humiliated. The President knows this, the Speaker knows this and the Parliament knows this too. However, they will not say it.

The Bank of Uganda is rocked by another scandal and its not shocking. What it was that it wasn’t bigger and more people getting a cut. It should have been more of the big-men connected with a piece of the trade-off. Because, they didn’t get it. They had to blow the whistle, then it wasn’t acceptable. Peace.

BoU Scandal: Speaker Rebecca Kadaga letter to PAC-Cosase Chairman on “Re: Re-opening the Investigation into the Bank of Uganda Closure of Commercial Banks by the Committee on Commissions State Authorities and State Enterprises” (10.06.2019)

Deficit Financing: The art of fresh loans for the FY2019/20!

Deficit financing, however, may also result from government inefficiency, reflecting widespread tax evasion or wasteful spending rather than the operation of a planned countercyclical policy. Where capital markets are undeveloped, deficit financing may place the government in debt to foreign creditors. In addition, in many less-developed countries, budget surpluses may be desirable in themselves as a way of encouraging private saving” (Encyclopaedia Britannica – ‘Deficit financing’ (25.08.2015).

Just as it is soon a new Financial Year and also another budget. This time its for the FY 2019/20, the last one before campaigning. Therefore, the added strain on the economy will come, as the state funds are used for campaigns for the ruling regime. This is a steady act of the National Resistance Movement (NRM) and President Yoweri Kaguta Museveni. We can expect more of it. That is the reason why the lack of fiscal responsibility is evident. As the state is within a year going from spending 32 trillion shilling into 40 trillion shillings. This without substantial rate or even more revenue to cover the added expenses. That means the state is more addicted to loans and grants.

Surely, the people should be aware, as the state has already gotten more loans and has to pay more in interests than before. With the new infrastructure loans and other development projects will hit the costs in future budgets. Even with Petro-Dollar, the state still has a lot of old debt to get revenue to cover. Especially, in the short-term window, as the grace periods of old loans will hit the budgets too. It seems like the state is only considering the debt-rate, but not the actual cost of the loans in itself.

That is why I will take one quote from the IMF, before showing what reports there was from Parliament, As they have voted for a new budget, which has escalating spending further without the revenue. That should be a worry. Take a look!

IMF May 2019:

Rising debt puts more strain on the budget as more resources need to be allocated for interest payments. One shilling paid for debt service is one shilling less going to a school or a health clinic. The current ratio of interest payments to revenue is comparable to what countries with high risk or in debt distress typically face” (IMF – ‘Uganda’s Economic Outlook in Six Charts’ 09.05.2019).

Rising debt:

The Committee noted that , the total public debt stock increased by 12.5 percent to USD 11.52 billion as at end December 2018 from USD 10.24 billion as at end December, 2Ol7 out of which domestic and external debt accounted for 33.5 percent (USD 3.86 billion) and 66.5 percent (USD 7.66 billion) respectively. The external debt stock increased by USD 0.78 billion to USD 7.66 billion by end December 2018 from USD 6.88 billion at end December 2017. The increase was mainly from China (25 percent) and World Bank (40 percent)” (REPORT OF THE BUDGET COMMITTEE ON THE ANNUAL BUDGET ESTIMATES FOR FY 2O19/20, P: 7, 2019).

Minority report on growing debt:

Worrying to note is the fact that huge portion of the budget resource is to be financed through borrowing. Out of the projected by domestic revenue of UGX 20.59 trillion (51%) while the budget of UGX 40.48 trillion, 9.44 trillion (48%) will be sourced from both domestic or external borrowing” (…) “It should be noted with concern that projected are almost debt expenditures in FY2019/20 equal to tax revenue (URA tax collection) of UGX 20.59 trillion” (A MINORITY REPORT ON ANNUAL BUDGET ESTIMATES TY 2019/20, P: 4-5, 2019).

It should be worrying how easily this budget was passed. How between last FY 2018/19 to FY 2019/20 the state could add 8 trillion shillings on the budgets. This without counting or even having the added revenue needed. This meaning the state has a giant deficit, which is about half of the budget. Where they have to get funding from outside sources, either by loans or grants. Lots will be loaned for and has to be paid for later with interests.

Certainly, this is a way of ensuring that for every shilling paid in loans, the state could have delivered state services to the public. That is even something the IMF was pointing out. This should be a worry for Ugandans, as the state is misusing the funds, loaning and borrowing on their future, without certainty of being able to repay these loans. That is what is shocking as the oil revenue has been postponed again and the lack of progression on the matter. This means the state is not hitting its targets, while taking up more loans on future revenue. Anyone should be worried about this, because who knows tomorrow and what if the economy totally tanks before the industry takes off. They are clearly living large on Deficits Financing and hoping the golden goose soon lays eggs. Since, they are continuing to fund their operations and the state with loans.

Than, the oil will be sold wholesale, as the state cannot manage to gain revenue and has to trade off everything. The risks it is taking is reckless. The spending is bonkers. That the state is initially a year before an Election Year is creating this huge deficit. Isn’t a sign of strength, but of weakness. As well, as having a blind faith, hoping for a narrow escape in the realm of Deficit financing. Peace.

Uganda National Oil Company: Press Release (14.05.2019)

Uganda National Oil Company (UNOC): Dr. Josephine Wapakabulo resignation letter as Chief Executive Officer (13.05.2019)

Uganda Telecom Limited (UTL): New owner, clearly disconnected

Since March 2017, the Uganda Telecom Limited (UTL) have been struggling, it started even before then, but at that time. The state started to intervene, by the next month in April 2017. The state had already put the company under provincial ownership. Meaning, that the state took it over and has tried to find new ownership of this company. Something it hasn’t succeeded in. This all happened because of the Libyan crisis in 2011 and the frozen accounts of Libya Post Telecommunications & IT Company (LPTIC), which had a majority ownership in the UTL until that point. However, they didn’t get all out before March 2017. Even as there was a set-up a new board in the Company in fall of 2016. Even, with all of this, the UTL continues to live, but by mere state injections and not because it is viable for business.

Even after a year in May 2018, the Cabinet announced that they were looking for new owners, alas, meaning that the state wouldn’t have the major stake in the company. Why I am saying all this? Well, the news this week that Minister Evelyn Anite and government sources states this:

The source added that the government had created incentives to make the company more attractive. They include managing the backbone, wiping all the liabilities off the balance sheet, and that the government would take responsibility for the pension liability of more than Shs 30 billion to former UTL employees. Other liabilities that the government would take care of include the regulator’s fees and taxes. “All these wipe off the balance sheet and handed it [UTL] to you, clearly you can start from a clean slate.” the source said” (URN – ‘Gov’t offers to pay Shs 500bn UTL liabilities’ 20.04.2019, link: https://observer.ug/news/headlines/60467-gov-t-offers-to-pay-shs-500bn-utl-liabilities).

With this in mind, the state would clean the slate of the company, an embattled one who is fighting in a competitive market. Where it is directly competing against the mighty MTN and Airtel. Therefore, the UTL needs an decent upgrade, as it has been in a stalemate for years now. Where the lack of investment in the company and the debt it have already.

We can clearly see that the company is not so viable. The lack of interest and value is shown as the President even needed to direct the state ministries to use the UTL Internet Services and mobile phone services by a letter in January 2018. That is why, a year after that, the government sources are trying to connect it even more and juice it up. Even if it has little to offer.

The UTL doesn’t look solid or offering something of strong value for a buyer. As it has a strong competition and they are on point when concerning the telecom infrastructure, which the UTL haven’t the ability to afford to do or invest in. Therefore, the next owner has to pick up, where the Libyan owners left off. Since, the state haven’t done anything else, than keeping it alive. Peace.

Uganda: Anti-Corruption Unit – Request for Your Intervention in the Delayed Confirmation of Officers in Acting Capacity and Irregular Recruitment of Inspectorate Officers into the Inspectorate of Government (20.03.2019)

BoU Scandal: AG Muwanga letter to Deputy Governor of BoU – “Special Audit on the UGX 479bn Injected into Crane Bank Limited by BoU” (04.04.2019)

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