MinBane

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Archive for the tag “Matia Kasaija”

Bank of Uganda: Monetary Policy Statement for February 2020 (13.02.2020)

Opinion: Apparently, a bribe isn’t a bribe according to High Court Justice Bashaija

Presidential Handshake: “A letter from the President that designate unsolicited funds to civil servants as areward” or as a “handshake”, which by some is deemed as an “error of judgement”, but not defined as a bribe. Even if it looks like a bribe and smells like a bribe” (Minbane – ‘Presidential Handshake’ Definition, 2020).

I don’t know what goes through some people’s mind, I don’t if Kampala High Court Justice Andrew Bashaija is trying to be the devils advocate or something. But the news in the Independent Magazine on the Saturday 15th February 2020 titled: “Court clears ‘presidential handshake’ beneficiaries”. Where the article states this about the judgement made on the Friday 14th February 2020: “Justice Andrew Basahaija ruled on Friday that the recommendations of the committee were illegal and said the orders of the committee “be removed from public orders and should not be implemented.” He said he didn’t find anything wrong with the officials who received the money” (Independent Magazine, 16.02.2020).

We can really see that a Justice, a man who judges on the basis of the law are able to make it legal to steal, thieving and directly eat out of the state coffers without any consequence. Instead throwing the book at the ones doing oversight of the state, the MPs and the COSASE Committee who worked on the case and looked into the shady 6 billion shillings “Presidential Handshake”. Clearly, the state has its benefactors, maybe even the Justice is awaiting his handshake in the future. Because something is up, when your making these sort of deals legal.

It’s like this part of the COSASE report was dismissed without merit:

As a follow up to the H.E. the President’s letter of 16th November, 2015, the Commissioner General of URA wrote to the Permanent Secretary/Secretary to Treasury (PS/TS) in a letter dated 11th December, 2015 (App. B6) requesting him to formally designate her as accounting Officer through whom the reward would be paid and to formally requisition for the UGX 6,000,000,000 (Uganda Shillings Six Billions Only)” (…) “The Commissioner General, as advised and in a letter dated 5th May 2016 (App. B8) sought authority from the Hon. Ministry of Finance, Planning and Economic Development to reallocate UGX. 6 Billion (Uganda Shillings Six Billion Only) from URA Tax Refund Account to URA Expenditure Account so that the 42 Public Officers could be paid and suggested that a supplementary to URA for that amount to be considered and handled by the Hon. Minister of Finance, Planning and Economic Development. The Hon. Minister of Finance, Planning and Economic Development did not grant this authority. However, by letter dated 19th October, 2016 (App. B10) he requested the Auditor General to issue an audit warrant for UGX 6 Billion” (COSASE, P: 10-11, 2017).

It’s like the whole deal is left in the wind by the Justice himself. That this sought of transaction is okay, as long as the President write letters directing it. Even if it was never budgeted from, never was part of state functions and this was an direct pay-off, as the Public Officers was a part of tax battle with Tullow Oil. This case amounted in a tax victory for the state, but not for the civil servants. That’s why this “Presidential Handshake” is a bribe and envelopes given without protocol.

Like the Justice is saying COSASE report and recommendations should be implemented. With saying that it wasn’t legal what the culprits at Uganda Revenue Authority was doing, neither the President, but instead putting the blame on the people writing the report. Which is again fun-fan fiction of political science and governance. As you are again targeting the messengers and not the ones actually talking. Your aiming your guns at the ones reporting the ordeal, not the ones actually doing it. That is what the Justice is in this point is doing.

So, the state can live in denial, because the old man with the hat is directing it. That doesn’t make it illegal. But surely, if a small local councillor did this to his fellow employees. He would be meeting the State House – Anti Corruption Unit in a hot minute. But he didn’t have the blessing of the “high above” from the same State House. That is the pin-point, that makes a difference between what is legal and what is illegal.

If the King did the decree or not. If he hasn’t signed off on it, its illegal and if he does sign-off on it; then it’s legal. That is the golden rule in the Republic or the legal term of a “Presidential Handshake”.

When the state can make internal thieving legal, what else could they do with their power? I don’t want to know, but I am sure its more sinister than a 6bn shillings handshake. Peace.

A snap-shot into the Budget Framework Paper for 2020/21

It is budget season, this is out-takes from the Budget Framework Paper for the Financial Year of 2020/21. The Financial Year, which the General Election will be held during the early start of 2021. Therefore, the budget will be hit by this.

The Budget is estimated to be a total of 39 trillion Uganda Shillings. External loans to cover the budget is projected to be about 7 trillion shillings.

While the debt repayment is growing too. That is why in this budget year, the estimated interests payment is 1.2 trillion shillings.

In special usage, the Office of the President plans to spend 101,9 billion shillings under Public Administration. We got to address the needed Shs. 1,8 billion spent on medals, so that the President will not be embarrassed.

While the State House has the expenditure of 407 billion. From that one, I have a few snap-shots of the expenditure. First, the Procurement and maintenance of transport and specialized equipment including the Presidential Jet and Helicopter at Shs. 31.172bn. Which was put under the vote of the Public Administration. Shs. 34 billions on the ageing fleet of Cars at the State House. Also, Shs. 10 billion to refurbish the State House.

The Office of the Prime Minister set to Shs. 498,531bn.

In election costs, the total budgeted expenditure. The election will cost 1 trillion, 800 billion in security and another 200 billion shillings on the Elections Road Map. The Electoral Commission is budgeted to spend about 318 billion shillings on the management of the elections.

What the NAADs plans to do:

– 130 tractors and matching implements

– 1,000,000 hand hoes

Let see if the NAADs will keep their old promise, which was a big deal before the previous election. Even if you cannot find a budget post where the hoes are fitted in. Surely, they are hidden somewhere, but not somewhere obvious to the naked eye.

These was the most fitting things I found so far. Surely, there are plenty more juicy things. There wasn’t any water bills or explaining to do. The Budget Framework Paper is very straight forward. However, usually something daft get passed through. We really will see more.

But these are few tit-bits of it all. Peace.

Opinion: Spending the future, today and yesterday…

Well, those where the days before the previous election. When the state and the Parliament wanted show some promise of some sort of laws, which would contain and actually save some of proceeds from the Petroleum Industry. However, we are now in 2020 and the news is out. The UGX 700 billion shillings that the Petroleum Fund had has been used over 3 budgets year.

That with:

2017/18 they spent 125bn

2018/19 they spent 200bn

2019/20 they spent 445bn

Which is in total: 765bn.

What is really more beautiful with this, is the PFMA restrictions and means that both the Bank of Uganda (BoU), the Ministry of Finance, Planning and Economic Development (MoFPED) and the Investment Advisory Committee. All of these had an oversight, plus the Auditor General was supposed to write semi-yearly reports on the status of the Petroleum Fund. So, how come they have run empty. That’s because certainly nobody cared that it was used to contain the shortfall in the growing budgets, instead of what the laws said. Like the part 74 of the PFMA of 2015, which says this.

74. Prohibition on encumbrance of the Petroleum Fund.

(1) The financial assets of the Petroleum Fund including presentor future financial assets shall not be earmarked, pledged, committed,loaned out, or otherwise encumbered by any person or entity.

(2) In this section, “earmarked, pledged, committed, loaned out,or otherwise encumbered by any person or entity” means—

(a) using the financial assets of the Petroleum Fund—

(i)to provide credit to Government, or any other person or entity;

(ii)as collateral for debts, guarantees, commitments or other liabilities of any person or entity; or

(b) borrowing from the reserves of the Petroleum Fund.

(3) Government shall not—

(a) borrow money from the Petroleum Fund; or (b)hold a financial instrument that places or may place aliability or a contingent liability on the Petroleum Fund” (Public Finance Management Act of 2015).

We can see that the government itself used the Petroleum Fund for credit and not what they intended the fund for. Which is a misuse of the own fund it created. Instead of making these instruments and such. They should have just put it straight in the consolidation fund and spent it like drunk seamen. Because, this sort of charade doesn’t make sense.

Why make these sort of laws and don’t follow it? Why try to make a petroleum fund and empty it mere years after making it a thing?

Seems like a fools errand or like a big heist. Instead, the Auditor General, the Bank of Uganda and Minister of Finance all looks like idiots. This is a mess, a self-created mess. Just like the Presidential Handshake. This is a smaller thieving, but thieving never the less. Especially, if the fund should have any meaning.

However, I am not surprised, the state needed to fill their shortfall of revenue and why not do it with the monies already in “one” of your accounts. Because, that is what they did and they did it step by step. Until this year, when they went totally overboard and scraped the whole treasure-chest. Peace.

Press Release by the Secretary to the Authority National Drug Authority: Clarification on Drugs Recalled by National Drug Authority (13.12.2019)

Bank of Uganda: Monetary Policy Statement for December 2019 (09.12.2019)

Opinion: Mr. President your late to the party…

I have a hard time believing that President Yoweri Kaguta Museveni and the National Resistance Movement (NRM) will stop creating districts, sub-counties and whatever local government administrations in the Republic. They will never really cease doing so, because they constantly carved the Republic into tiny pieces. So, that every single Sub-County today can become a district in the near future. It should be a joke, but looking at history, than it isn’t far-fetched at all.

By seeing this one piece from the New Vision:

In 1986 when NRM took power, Uganda had 33 districts which increased to 81 districts by 2008. The districts increased to 112 by 2011, but reduced to 111 after the Capital city ceased to be a district” (John Odyek, Mary Karugaba and Moses Walubiri – ‘25 more districts created’ 19.07.2012, New Vision).

Than my own calculation from November 2019:

The State has continued to create the districts and sub-counties. In 2016 there was 112 districts and by 2021, there will be 135 districts. As well as there was 1,403 sub-counties in 2016, while in 2021 there will be 2057 sub-counties.

With knowing this and the knowledge of the mushrooming state. There is bit a late to cry foul over more town councils and the affordability. When during your time the state has gone from having 33 districts to 135 districts in 2021.

Therefore, this warning seems a bit late:

They are going to be too many and not affordable. Let the little money we have be concentrated first in maintaining security, building infrastructure(roads, railway, electricity, schools, and health centres) and not expanding administrative costs,”Museveni warned in November 28 letter to Butime. The warning by the president comes at a time when government recently announced the creation of 162 new town council that started being operational this year, whereas others will be operational by July 1, 2020” (Kenneth Kazibwe – ‘Museveni warns against creation of new municipalities’ 08.12.2019).

Because of this, I don’t believe the man. I really don’t believe the President and his motives here. It is weird that he has issues, when his made so many districts and sub-counties already. That creating further town councils only follows the modus operandi of the state.

Not like its a revolutionary idea from the state to make more. It would be more shocking if he started to merge sub-counties and districts. So, that it would be less districts and sub-counties in the Republic. In this current stage and time, that would have been positive and plans for actual change. However, than the devolution and the years of curving the districts. It would show the public that it was only political motivated and not really making government better.

That he warns about this in 2019 after 33 years in power and been so hyper-active with creating smaller entities. His surely the wrong man to signal the red-flag. Yes, the state cannot afford more town-councils and such. But that is because the state has already to many districts and sub-counties to pay for.

The state is already deficit financing, the mushroomed state, which the President and his men has created over the years. That is why, writing a letter this year isn’t solving anything or making a difference on the negative and expensive spiral, the President has started. The President knows this, but thinks this make him look smart. When it doesn’t, since his in charge of all these small entities and that will part of his legacy. He can cry now, but his crocodile tears are coming late.

He should have stopped before he created a 100 districts more in his time. Who knows how many sub-counties his created, but surely a 1000 by now. Than count the Municipalities and Town Councils, than you get humongous number. That is what bloated numbers sound like. Therefore, sending out warnings now is late from the old man, he should have done it long time ago, but he didn’t care. Peace.

Deficit Financing: MoFPED propose to borrow 2 trillion shillings to cover the budget shortfall!

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).

In the original budget for 2019/20, the estimated domestic revenue of the state was about Shs. 20 trillion shillings, while the rest would be covered by close to Shs 10 trillion shillings in this manner the budget would cover the 40 trillion shillings. Today in Parliament, the debt trap, which was forecasted by several of Civil Society Organizations and others was proven.

Not only with the recent stipulation of the first Supplementary Schedule to the Budget Year of 2019/20, but also the lack of domestic revenue. This again proves the trouble with generating even half of the budget. As the Parliament are this week, either accepting borrowing 2 trillions domestically to boost the lack of domestic revenue. That means the Uganda Revenue Authority (URA) and the state haven’t delivered on the promise. As the state was spending more and more, but not having the funds to do so.

Therefore, if the state does this. Than, Shs. 2 trillions are loaned to cover for the lack of delivery, the lack of preparations from the government and the added costs of the local government units created. The government knows this, but acts surprised that state have to invest in it. That’s why they have a supplementary budget for it and surely there will be more schedules before the end of the financial year.

Just look at this:

To address the projected revenue shortfall presented in paragraph 3 and the additional expenditure pressures presented under paragraph 9, Government requires a total amount of Euro 600 million equivalent to UGX 2,439 bn (Two Thousand Four hundred and Thirty-nine Billion) to finance part of the budget deficit” (Ministry of Finance, Planning and Economic Development (MoFPED) – ‘THE PROPOSAL TO BORROW UP TO EURO 300 MILLION (EURO THREE HUNDRED MILLION) FROM STANBIC BANK (U) LTD AND EURO 3OO MILLION (EURO THREE HUNDRED MILLION) FROM TRADE DEVELOPMENT BANK TO FINANCE THE BUDGET DEFICIT FOR FY 2019/20, December 2019).

Given the revenue performance in the first two quarters of the FY 2019/20, the projected revenue turnout for FY 2019/20 is Shs 181575.18 billion, against the target of Shs 20,448.73 billion. This

reflects a projected shortfall of Shs 1,873.55 billion” (MoFPED, 2019).

In line with the above Section of the PFMA 2015, Ushs 437.631 billion representing 1.08% of the Approved Budget for FY 2019/20 has been authorized by the Minister of Finance, Planning and Economic Development as Supplementary funding. The purpose of this letter therefore, is to submit Supplementary Schedule 1 FY 2019/20 for consideration by Parliament. Please make arrangements for the Minister of Finance, Planning and Economic Development to lay the schedule before Parliament” (Keith Muhakanizi – ‘SUPPLEMENTARY SCHEDULE 1 FY 20I9/20’, 21.09.2019).

Rt. Hon. Speaker, in line with Section 25 (1) of the Public Finance Management Act, 2015 (as amended), I authorized and have accordingly submitted to Parliament Supplementary Schedule 1 amounting to Ushs. 437.6 billion for this FY” (MoFPED, 2019).

In line with the above, the budget for FY 20Lgl20 is facing the following constraints:

– URA shortfall in revenue of Shs 1,873.55 billion;

– Additional expenditure pressures of Shs. L,432.2bn

– Non-receipt of World Bank budget support funds of Shs. 375 bn

and

– Non-receipt of capital gains tax of Shs. 225 billion (USD 60

million);

10. The total revenue resource shortfall in the FY 2019/20 therefore amounts to Shs. 2,473.55 billion” (MoFPED, 2019).

We know this is serious, when the budget of the FY 2019/20 was 40 trillion. When 2,4 trillion of these have to get borrowed domestically. Even if 437bn of these are supplementary budget and wasn’t in the original budget of the FY. Still, the 2 trillion are a big slice to borrow and gain more loans. This is a debt trap, trapped by even more trap. As the tax-base isn’t growing as forecasted or as possible. By this estimation of the original budget, the domestic borrowing in this financial year would go up from about shs. 10 trillion shillings to about shs. 12 trillion shillings.

Because, with to much taxation, the funds are taken out of the circulation and isn’t spread as much. Not having the ability to generate more earnings for the citizens. They cannot spend, because they are actually paying taxes. That’s why you need sustainable taxes, which makes sense.

That’s why these loans are coming, because the state defaults on taxes, lacks the tax-base and doesn’t have the opportunity to gain the needed revenue. This the reality of the state. They will ask for the loans and add more debt. However, the government will not take responsibility for the acts done. The state are deficit financing and not generating revenue. That is why they are loaning even more debt. At a rate, which should worry anyone following it. Peace.

Opinion: Parasites and lies, a walk against himself…

“I have never stolen anything from anybody. And I am also not a poor man”Yoweri Kaguta Museveni at the Walk Against Corruption on the 4th December 2019

Today, was the official walk against Corruption in Kampala, as the President, the Anti-Corruption Unit at the State House and all other governing parties involved muster up a decent crowd of paid participants, staff and whatnot, security guards and whoever they could find. To walk a distance in the midst of Kampala.

At one point, the guards and security told pieces of the march to slow down, because it couldn’t walk faster than the President. Even as he went to Kololo, he still went at a rate, that was to slow too many. This walk will not change anything. It is a PR Stunt, which will not gain anything fruitful. It is more public wastage in order of looking sincere, which it is not and will never, be.

“It is a moral problem because you make yourself a parasite. Corrupt people are parasites because they get wealth which they did not earn, because they think that God does not see the bad things they do. In the last 60 years, I have been watching and I have not seen these corrupt people being successful sustainably”Yoweri Kaguta Museveni at the Walk Against Corruption on the 4th December 2019

With this in mind, the President is truthfully telling the world that his rich. His vastly rich, Ritchie Rich, rich actually. However, the President doesn’t tell how he got there. It was not like he had wealth and assets going into the role of the Presidency. Not like he had estates, businesses and ranches going in. No, he was an impoverished former Minister, who had gotten grants by mercy of Nyerere and who was hired by Obote II. That is who he was until 1986. Therefore, his wealth has come with power and with incentives given to him over time, also boosting his accounts and also his cronies.

Secondly, if it is a moral problem, then its engraved into this administration. If corrupt people are insects and parasites, there is surely a lot of them in his cabinet, in his offices and around his closest associates. Himself is a parasite then. Because, he haven’t gained wealth on innovation, marketing or basic business models, but by being in-office and getting bargain by kickbacks and inside deals.

Last, but not last. We can say you Mr. President has been successful, gaining more and more power, more and more money and depleting the state, little by little. To a point, where nothing isn’t up for grabs, where secret deals inside the State House decides, if they are staying or going. The Presidential Handshakes and whatnot is the ones crediting to you. That is why walking today is obnoxious and outrageous. Only naïve and dumbfounded people believes this PR Stunt.

The man cannot fight himself. He will not tarnish his own creation and destroy what he keeps him there. Therefore, this is charade, packed as a rally and a march against something. But in the end, it will only further show the rot, the plight and the suffering the actions made by this cause. Peace.

Follow the Code: A secret walk against corruption

On 4th December, 2019, H.E the President of the Republic of Uganda will lead the walk code named Anti- corruption walk. The walk is aimed at intensifying the fight against corruption. The walk will start from Constitutional Square to Kololo and a number of people are expected to participate in this walk” (Uganda Police Force – ‘TRAFFIC MANAGEMENT PLAN FOR ANTI-CORRUPTION WALK ON 4/12/2019’ 03.12.2019).

Merriam Webster states that a code name means: “a designation having a coded and usually secret meaning” (“Code name.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/code%20name). With this in mind, I never believed that His Excellency or the President is serious about this.

This is the President whose have had issues with demonstrations, protests and rebellion. Therefore, his not the man whose walking against anything. He was a rebel at one point, but that was for his own cause. That is why his stayed in power since 1986 and never left.

With that in mind, the man whose known for having someone close to his office or cabinet connected in some corruption every single year. It is seemingly happening, there are like those proverbs in the papers saying: “Missing Funds”, “Unaccounted Donor Grants”, “Fake Corporations/Products”, “Ghost Employees” and so-on. Even knowledge of kickbacks, secret agreements between the President and Foreign Investors. That is just happens on the regular.

That’s why the President has created dozens of agencies supposed to have the ability to monitor the state organizations, businesses and tenders. This being the Inspector General of Government (IGG), Office of the Auditor General (OAG), Public Procurement and Disposal of Public Assets Authority(PPDA), Anti-Corruption Unit – State House or even the Financial Intelligence Agency (FIA). All of these are supposed to combat the ill called corruption. Still, these are not able to do so, neither are the Judiciary nor the Law Enforcement they are working in tandem with.

That is why the walk is even more ridiculous, as if it’s not the man whose the V.I.P or the Fountain of Honour, whose often involved or accepts the corruption. That being some road-scandal, illegal tender nor the Presidential Handshake. Neither some procurement for some government agency played around with to ensure someone got greased.

So, this walk against corruption. The man whose behind the grand-corruption and his party is usually connected directly in these operations. That is why tomorrows walk is walking against itself. This is like the man who makes everyone sick, suddenly will drop the cure. The man who drops bombs over a nation, suddenly calls and walks for peace. It doesn’t work. That isn’t real!

Unless, the old man with the hat starts to shadow boxing himself, knock himself out and suddenly understand that his the problem. Not that it will happen. This is a PR stunt and nothing else. The NRM MPs, the ones who wants to show loyalty will show up. But everyone knows the state who does this on the regular. Will not stop doing it. That is why Total had secret talks in the State House with the President just this week.

We cannot expect anyone than the small-fry gets charged and taken into custody. The ones who are the big-fish will not touched, unless they have fallen out with Jajja. Peace.

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