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Archive for the tag “MoFED”

Bank of Uganda: Monetary Policy Statement for April 2019 (01.04.2019)

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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

President Museveni letter to Hon Matia Kasaija: “Re: Massive Tax Evasion and Concealment of Rental Tax” (23.11.2018)

Possible outcome of the revised Investment Code of 2017!

Yesterday at the Plenary in the Parliament, discussed the revised Investment code of 2017. Which in its self isn’t the most exiting thing. Nevertheless, the reality is that this is now in Parliament shows a push from the Members of Parliament and the Committee of Ministry of Finance, Planning and Economic Development (MoFPED). That they are up to something. They are trying to forge something ahead. However, as the President has claimed the bureaucrats for being lazy, this shows another attempt. However, if this parts of the laws are enacted. Will ensure that it takes longer and the quality of the Foreign Investor to hold onto the new demands of the state. This will also give more power to the Uganda Investment Authority (UIA).

As the September report on the bill states. They will register all investments and all incentives inventory, as off who is doing what and licensed to do. As the Foreign Investor has to comply too a more rigid laws to be able to in the first place now.

Because the change of laws is that an exports of a minimum of 70% of the production in the given incentive, hire at least up to 60% Ugandan citizens and accept to monitored by the authorities and the statutes within the law. This being the UIA, which has the oversight.

The Incentive before launching has to verified and certified by the UIA. The same authority that has oversight and register the incentives. The Foreign Investor has to notify the UIA if they are complying with their inventory to the UIA as per law.

As to make it more hectic for anyone to invest is not allowed to directly to be investing in farming, as production of agricultural output. They cannot do that, but they can be able and allowed to own factories and businesses that helps the farmers to get better crops or bigger livestock.

The law states further the priorities for a Foreign Investor, as per law: “1. agro processlng; 2. food processing; 3. medical appliances; 4. building materials; 5. light industry; 6. automobile manufacturing and assembly; 7. household appliances; 8. furniture; 9. logistics and ware-housing; 10. information technology; or ll. commercial farming”.

This really put the parameter for what they can and cannot do. They are specific as to who allows, what sort of investment, who certifies and who monitors. Therefore, a foreign investor, by law has to comply a lot more and has to have more paperwork to prove his business-plan, prove his investment, his hires and his initial plan for getting exports of the giving products. This will clearly hamper investments and create a longer time-table for them. As the Foreign Investor cannot focus on local market, but on international market, because that is how it is by law. In addition, when you invest in something, you don’t want to loose your certification or your rights to produce or export given products.

Also, the same investor needs to incorporate the business with the Registrar General, a certified of remittance by the Bank of Uganda, the second, the certified of remittance to lodge an application to the Department of Immigration and this department have to give the Foreign Investor a permit to do stay and do business in Uganda. Therefore, before engaging with the new criteria of the UIA and MoFPED, the investor has to get the BoU in check and get the Department of Immigration. If all of these factors doesn’t slow down a process, nothing does. This is clearly a way of securing jobs for bureaucrats and lesser the burden of the foreign exchange and remittance in general.

  1. Get UIA Approval and Certification of Business
  2. Get BoU Certification of Remittance
  3. Get Department of Immigration – Permit and Application of Remittance
  4. Getting monitored by the UIA to see you comply with the codes.

If that sounds like an easier way in, it doesn’t, more offices and paperwork, before even spending money. This code will clearly hamper more foreign investors from coming, unless they are giving Presidential Handshakes to the President. I am sure he then lets them in. Peace.

Bosco was warned in 2016 about printing own currency, but in 2018: Goes ahead with it anyway!

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” Ernest Hemingway

There are someone who doesn’t listen to advise, even when it is well written and with shown data to President Yoweri Kaguta Museveni in October 2016, as there was reports and even made deals at the State House on the 7th October 2016. As the meetings was already ensuring and securing the deals between the Government and the printing company Veridos GmBh. By that time the Veridos company had delivered their commitments to print currency in Uganda. Also a comprehensive business plan that envisioned the proposed joint venture between Veridos and the government.

Now it is the 10th October 2018. Surely for many or plenty, this sort of an agreement is forgotten. Again, today at Entebbe State House, the deals was sealed.

As the Chimps Reports stated: “In the meeting that took place at State House Entebbe on Thursday afternoon, President Museveni noted that this new venture would save Uganda a lot of money that it has been spending on printing documents from abroad. “There was hemorrhage of resources that was unjustified. Money was going out to print currency notes for a long time. About US$25 million was spent each year to create Ugandan currency,” he said” (Kyatusiimire, 2018).

He is saying this without saying the cost of what sort of agreement the government has with company they are already using. As the lack of openness is shown from the state. That is why in 2016, the documents leaked and today, they just came on a government friendly web-paper.

To long:

Interestingly, Mr Museveni, who thanked the German company for its joint cooperation, criticized government officials for “taking too long” to act on such “crucial matters that affect the country.” He added that licensing bodies must not “over price working licenses for investors because it cripples investment and discourages potential investors. “These things of taking two years to deliberate on such matters must stop. Why did you spend two years discussing something that was so obvious?” he wondered” (Kyatusiimire, 2018).

That wasn’t obvious to the Governor of Bank of Uganda Prof. Emmanuel Tumusiime-Mutebile or the Minister for the Ministry of Finance, Planning Economic Development Matia Kasaija, who both was skeptical, not only because isn’t a company who is known for producing currency, secondly the costs are likely to be more, than what they have today and last the possibility for more forgery. All of this data was scrapped, as Bosco had decided himself.

So for some weird reason, Bosco want to take a bad deal, which his experts has said is a bad deal. He complains that his experts has made it takes this, because they didn’t have faith in the project. All been done at the State House, as it was started in 2016 and rewinds again in 2018. What value has the Governor of the BoU and Finance Minister, when their words are meaningless towards Bosco?

Someone please tell me, because I got nothing. Peace.

Reference:

Sharon Kyatusiimire – ‘BREAKING: Uganda to Print its Own Money Locally’ 04.10.2018 link: https://chimpreports.com/breaking-uganda-to-print-its-own-money-locally/

Resident District Commanders Re-Shuffle: A list of Honourable Mentions! (October Edition) Part II

I just had to go over the list of one more time, as there are plenty of names and figures in it. The Residential District Commanders are the ones whose supposed to implement the government agenda. That is why they are there as appointed officials, which the President directly put forward their agenda for their work and also oversee the elected officials and civil service there. That is why the manner and the acts of the RDCs could be important, as they are the ones reporting to the President.

For instance the former Kitgum RDC Captain Okot Santos Lapolo are re-appointed for the Gulu District, which has been a career RDC first for over 12 years in Kitgum, before he has now been in Gulu since 2016. In early February 2018, he closed Radio Mara as he ordered the arrest of Choice FM editor there.

The Fred Bamwine, the former RDC of Nakawa, Rubaga, Bukiwe, Butambala and Ntungamo has now been appointed as the RDC of Mukono. He has addressed the amount of Ghost Workers in Ntungamo District in 2014. He is a career RDC, whose been often moved and not worked long. As shown by all the districts he has worked in, in 2017 he said: “What happens to districts that don’t get certificates of compliance so that they don’t do the same things,” (CSBAG – ‘Poor infrastructure, weak accountability hurting Local gov’t service delivery’ – CSOs, 18.09.2017).

The Former FDC Deputy Speaker of Kumi, Ambrose Oronia, gone from being a Deputy RDC of Amuria and is appointed to be RDC of Ngora district. She went from the FDC to NRM because she “wanted to serve the people”. That was back in 2008.

The newly appointed Rukungiri RDC Dan Kaguta is the former Wakiso District RDC. Kaguta has been called the brain behind the NSSF Bribe case of the IGG in the 2014, where he was an accomplice with Jane Mpeirwe. Back in 2012, he was involved in possible extortion of the KCCA. So this man has a record himself and been steady in questionable cases, however, that doesn’t stop the President from not appointing him.

Then there was Wilberforce Tukei, who lost the NRM Primaries in 2015 to become the NRM MP Flagbearer for the Bukedea district. He is now appointed as the RDC of Soroti District. He is the former LCV Chairman of Bukedea. Wilberforce has also fallen out with Rose Akol in 2015.

Richard Andama Ferua has been taken with forged academic papers (2006), jailed over rental arrears (2011) and jailed for debt in 2016. The former Arua LCV Chairman are now appointed to become the RDC of Yumbe District.

Then you have Maj. Ret. David Matovu, who is the former RDC of Mukono and Masindi. Before that he has been appointed as early as in 2008 by the President to be Chairman of the University Council at Makerere University.

In 2006 was the former Adjumani District Chairman Nixon Owole freed after being jailed for defilement. He has also been the LCV Chairman of the same district since. He is now appointed the RDC of Tororo.

This was just 8 more persons on the long list of appointed RDCs. Therefore, hope more people scan through and shows the past of the people, that Bosco put his trust in. Peace.

Resident District Commanders Re-Shuffle: A list of Honourable Mentions! (October Edition)

Again, there is shuffles within the Residential District Commanders, which not to long ago, he bitched about their uselessness, however, with that in mind. He still uses them and has them in his upkeep of his growing state apparatus, which he controls with an iron fist. Today, the list of the shuffles was released to the public. This changes was sanctioned by Bosco on the 30th September 2018, but is public now on the 3rd October 2018.

Former Tororo RDC Martin Oroch is moved from there to Budaka district, he is famous for saying this in July 2016: “He stressed that some of the students are in advanced stages of HIV/Aids so parents should not “waste their resources” on them. “I have heard about situations where parents have wasted resources to raise tuition and before completing university education, they [students] die. Parents should be aware of their children’ status before undertaking risks,” Mr Oroch said amid boos from parents and students” (Joseph Omollo – ‘Don’t take HIV-positive children to university – RDC’ 10.07.2016, Daily Monitor).

The Former Flying Squad Commandant Herbert Muhangi is now assigned as the RDC of Isingiro. Darius Nandinda continues as the RDC in Kabale, where his bodyguard earlier this year shot a civilian. Because of his loyal contribution through the election period, where his orders was to seal of a local radio station in 2015 and arrest panellist who differs from the stance of the government.

Lt. Joe Walusimbi is moved from Masaka and reassigned to Kasese district, one of the things done while his tenure in Masaka, was to close down the Mutesa 1 University after student riots in 2017. There has also been Taxi Strikes in 2017, as the local authorities has issued an illegal tax on them. Therefore, it is interesting times ahead for Kasese.

The former deputy RDC of Kasese Aminadabu Muhindo has been reassigned to Kiruhura district. This man is famous and infamous for working directly for the NRM Program, to an extent where he has warned radio presenters, parents to keep their properly for schools and engaging the army for the Kasese attacks on the Rwenzururu Kingdom. Therefore, this man will do whatever it takes to please the government. He is also a director and a board member for the Kilembe Investments Limited (K.I.L).

The former RDC of Kasese Maj. James Mwesigye have also gotten reassigned to Mbarara district. So the ones overseeing the Kasese skirmishes and clashes have been moved without any injury.

This are just a few on the massive list, but how easy it was to find weird and special events concerning this promoted individuals or re-assigned, is if the crimes or questionable behaviour would have demoted someone had been natural. Not be re-assigned to another district. Peace.

Bosco warns bureaucrats of sacking: They are his scapegoats for the lack of foreign investors!

President Yoweri Kaguta Musveni does not miss a beat; he skips on every track and sings his tune. He is never to blame and his patronage or his growing bureaucracy to blame. No, it is the ones that is hired to do the work, not the legislation, he passes through the Parliament, or from the State House even; no, it is the bad-boys in the offices, which are enforcing them. The big problem are the ones following the guidelines and following the rules, which the President has put up over time. Clearly, Bosco have forgotten that memo or these laws for that matter. It is his own words, and actions that tends to end up in scriptures that people has to follow. Not like they are blindly swallowing air at the offices, they are following the protocols and the rules of the day. Which have been implemented over the 32 years the President has resided over the main post of the nation.

“President Museveni warned lazy and bribe-taking bureaucrats to resign or risk being sacked. “We still have these lazy armchair officers at the different offices who continue to disturb our people; the investors. I will chase all these saboteurs,” he said. Investors must be facilitated to bring in expert skills, Mr Museveni said, instead of being frustrated through increased work permit rates and other bureaucratic procedure” (Dan Wandera – ‘Chinese are doers not talkers, says Museveni’ 01.10.2018, link: http://mobile.monitor.co.ug/News/Chinese-Museveni-Tiles-Nakaseke-Kyambadde-bureaucrats/2466686-4785104-format-xhtml-y40t4fz/index.html).

Therefore, Mr. President. You should look into the rules, the regulations and the laws that you have enacted, as the bureaucrats are following them and abiding them. They are making it slow, because the process you have built for them. If it was slim and easy laws to process and security check the investors, then the bureaucrats would do that, however, the NRM and you Mr. President has made it this way. They are most likely also giving you a Presidential Handshake to able to spend fortunes in the nation too. You know this and the state organizations knows too.

Instead of sending warnings of firing and calling them saboteurs, maybe, you should look into the laws, the regulations and use your NRM Caucus to implement changes that opens the gates for investors and also financial transactions in the country, as rigid it is today. That is why people are tending not to remit or sending funds, as the expenses for doing so is bananas. That is why you should use your powers for something good and not just order the army to solve crisis. But before you do that, maybe, just maybe, look into the plenty of laws that is enacted and active. Which are hampering foreign investors. That is if, you really care.

At this moment, you are just using the patronage, the cronyism you have created as a scapegoat. Not to make the state better or the financial climate either. Peace.

Opinion: If Bosco and NRM have a problem with foreign interference, than stop taking their money!

Charity … is the opium of the privileged; from the good citizen who habitually drops ten kobo from his loose change and from a safe height above the bowl of the leper outside the supermarket; to the group of good citizens (like youselfs) who donate water so that some Lazarus in the slums can have a syringe boiled clean as a whistle for his jab and his sores dressed more hygienically than the rest of him; to the Band Aid stars that lit up so dramatically the dark Christmas skies of Ethiopia. While we do our good works let us not forget that the real solution lies in a world in which charity will have become unnecessary.”Chinua Achebe

At this days, the National Resistance Movement (NRM), the peddlers of information and defense of the ill-advised activities of the Ugandan Government are now attack the Foreign Donors for interfering in internal affairs in the Republic. However, what would President Yoweri Kaguta Museveni and the NRM do without the donor funds and direct government support?

As every time there is a launch of government programs and development projects, it is mostly based on foreign currency and funds, which secure the needed services of the government. That is why if a road is built, if a bridge is fixed or even possible investments into oil industry. It all defines by the need of foreign investment and donations. As without these, the government wouldn’t be able to carry it, as they are drowning in debt and lack of fiscal financial funds to actually do it. That is why either United States, European Union or China is behind the support of various development projects and direct government funds.

However, if the Republic has an issue with the criticism from the EU after the Arua By-Election. Then first do yourself a favor. Stop taking their money and their government support. As they are the ones pledging these funds and therefore, they are not wanting to help a government that hurts and kills own citizens to stay in power. That is why the EU is reacting to the open-bazaar torturing and oppressive behavior of the NRM regime. Bosco and his henchmen might be mad that this is leaking and that this hurting their pride. Nevertheless, if they have an issue with the EU, take it in the diplomatic channels and also address it as political operatives. Instead, they are attacking the EU. They should be lucky that the EU isn’t suspending their funds and stops direct support. Because we have seen what that did to Uganda, when the World Bank suspended funds to Uganda National Roads Authority and stopped building roads for a while.

Therefore, if the Ugandan Government don’t want to be transparent or questioned for their behaviors by donors or even foreign powers. Stop taking their money and use their funds for needed government services. Stop taking the donations and loans, the fiscal supply from abroad and forget that there is no free money. There will be strings with taking the money from either Multi-National Organizations, the Breton-Woods Organizations and the other Aid Agencies. All of them have a mission and policies to follow, just like the state. So if the state they operate in breaches this, they have the rights to voice it out. As this is their money and they are using them in Kampala, instead of Mogadishu or Kathmandu.

That is why the NRM and Bosco has to get real, they are not donor darlings anymore, because the reality of the acts of this government is shown to the world. Not because of Bobi Wine, but because of what the NRM does. Their acts are shown and repeated, beating civilians, not taking care of their ill bodies or even making sure their rights as citizens are respected. Especially if they question the President and his party. That is a no-go.

Therefore, the NRM and Bosco have to decide, do they want to only take loans without any interference from China or do they want funds with strings from EU/USA? Does the NRM and Bosco want to make sure that they can pay-back the loans and interests to the Chinese? As they are not as forgiving as the Western Powers, as they did write-off loans in 1980s and early 1990s to Uganda. That should be remembered, but Museveni have become forgetful, unless it fits his continued existence and rule.

That is why the defenders of the government and party, should ask themselves, if it is so critical and important to be independent and sovereign, why take foreigners money anyway? Can you not operate without it? Then you are totally free and they can shut-up, as they are not contributing anyways. They can just be naysayers from abroad and their input will not have any force behind them. However, now, the Ugandan government should ask themselves?

Can you stop the donations, the loans and funding from all the stakeholders and be truly sovereign?

If so, than the power of the donors will be depleted and their reach will be less. However, as long as they are letting donors be key part of government programs and development projects, they are obliged to listen and follow some of the strings attached. Peace.

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