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Archive for the tag “MOU”

DP World reiterates Validity of Doraleh Container Terminal Concession and Exclusivity Rights (12.07.2018)

Global trade enabler warns against violation or face legal action.

DUBAI, United Arab Emirates, July 12, 2018 –  DP World (web.DPWorld.com), reiterated today that its concession agreement for the Doraleh Container Terminal (DTC) remains in force, warning that the government’s illegal seizure of the facility doesn’t give the right to any third party to violate the terms of the concession agreement.

DP World statement came in the wake of news reports on the opening of the first phase of the Chinese-built International Free Trade Zone, in violation of DP World’s exclusive management rights.

A DP World Spokesperson said:“This is yet another clear example by the Djiboutian Government of violating its contractual obligations and the rights of foreign investors.”

The spokesperson warns that DP World reserves the right to take all available legal actions, including claims for damages against any third parties that interfere or otherwise violate its contractual rights.

On 22 February 2018, the Government of Djibouti unlawfully seized control of the Terminal, forced DP World employees to leave the country and purported to terminate the Concession Agreement. DP World has commenced an arbitration against the Government of Djibouti before the London Court of International Arbitration and is awaiting the outcome of this process

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Aid Ironies and Djibouti’s “Invisible Undercitizens” (07.06.2018)

The government of Djibouti had borrowed substantially from the World Bank to create a Center of Excellence facility, intended to address the problem of child malnourishment.

WASHINGTON D.C., United States of America, June 7, 2018 –  This is a guest post by Jim Sanders, a career, now retired, West Africa watcher for various federal agencies. The views expressed below are his personal views and do not reflect those of his former employers.

Returning from an early autumn vacation in Acadia National Park last year, we exited I-95 near Waterville, Maine to grab a Starbucks coffee at a nearby mall. Seeking a second opinion on my theory that the Subaru station-wagon was the state car of Maine, I approached a total stranger who was climbing out of his Toyota Prius. After affirming that, in fact, he had owned one himself, the man identified himself as Dr. David Austin, a local physician. He also mentioned his upcoming tour in Djibouti, as a Doctors Without Borders (Medecins Sans Frontiers, or MSF) physician, and explained that he had previously served in Sudan (Darfur) and Congo.

Having recently returned from the four-month tour with MSF in Djibouti, Dr. Austin was eager to speak about his experiences there. He worked in a tent hospital in the capital, which focused on treating malnourished children. Mortality is particularly high in that segment of the population. (In Djibouti, MSF expected a large refugee influx, but the flow of refugees into Djibouti failed to materialize, and so it developed a program specifically for malnourished children.)

The government of Djibouti had borrowed substantially from the World Bank to create a Center of Excellence facility, intended to address the problem of child malnourishment, but while the structure was built, it did not become operational. MSF, whose mission centers on providing aid in emergencies, eventually began to close down their tent hospital. A handover to another institution never occurred, yet every month, Dr. Austin said, more kids appeared needing treatment. “On paper,” he said, “the government treats malnourished children, but in reality many children do not get treated.”

Yet, as in his other African assignments, Dr. Austin felt buoyed by the people themselves, having previously remarked that, “There is a strong spirit of joyfulness in many Africans that I consider priceless.” Djibouti’s slums are worse than India’s, he explained, where the poor hammer out tin cans and make nice shacks, and sweep the areas around them to keep them clean. In Djibouti, in contrast, the poor live in rag tents, amidst a sea of garbage. “If your child dies, MSF will provide you a ride home, with your dead child,” Austin explained. “I went with one family [to take their deceased child home], driving forever through slums, until we reached a shack in the middle of nowhere.”

But despite their circumstances, the people are “lovely, eager to talk, and full of energy.” “There’s a lot going on,” he noted. Not least, a mini-Arab Spring, which has prompted a heavy-handed government reaction.

Hon. Otto Odonga: Notice of Motion to Censure Betty Amongin over abuse of Office (23.05.2018)

The NRM Way is Corruption, so please don’t be shocked when they do it!

You should never be shocked if a National Resistance Movement (NRM) Members of Parliament (MP) or Historicals are caught eating of the public plate. No matter who it is, they are acting as they are entitled to this. They are entitled not pay rent, they are entitled to grab land and entitled to get kickbacks on government contracts. This is the system the NRM has built. To say otherwise is naive. This is the continuation of the “pay-to-play” system that Amama Mbabazi was known for. How do you think him and Gilbert Bukenya made their wealth?

They did not sell Nile Brew on the streets of Kampala, no these two used their positions to eat and therefore was synonymous with the word corruption, at one point they could have their face in the dictionary as they we’re always connected with some sham transaction. The same can be said the Foreign Affairs Minister Sam Kuteesa, who always has some shady business deal or arrangement to make sure his pockets are fat. When the new generation of NRM MPs see how the old-guard did it. They want to be in on it. That is natural.

So when Betty Amongi does what she does, she has learned from her peers. Not that is right or by law, but by the activity of the party. The same can be said by Evelyn Anite, whose also has some shady deals now. Both of these are just the newest crop, in addition to the ones who has already played these games. I am just waiting for Frank Tumwebaze to have some sort deal with the Telecoms, so that he could earn something on the side with this Sim-Card Saga of his. That would have made sense and also within reason.

And we know the likes Jim Muhwezi and others has made enough fortunes, big enough homes, that is why the house of Gen. Elly Tumwine, whose trying to outshine the Gbadolite, the house of former Dictator Mobutu Sese Seko. Therefore, the NRM elite has money, while the government lacks it and borrows to keep the cash flow going. If not, they are begging for handouts to secure government projects. This is happening while the elite is finding all kinds of tricks to find new money.

These are MPs with a lavish pay, secured pay for cars and housing, these are MPs whose already getting well-fed on the government tab. So they shouldn’t need to do shady backroom deals, but still they do, because the ones with much, always wants a little bit more. The rich wants to get richer. That is also natural, but they are feeding themselves on a rotten root and hoping the tree will bear fruits next season. Which is impossible, as they are killing off the tree, instead of nurturing it and making sure it can last.

The NRM eating like there is no tomorrow, it isn’t only the President. The State House and the PM. They are the main beneficiaries, but the MPs want their part of the pot of gold. That is why we see Presidential Handshakes, bribes, kickbacks, graft, land-grabs and whatnot. They all want their slice, because they want to be like the previous NRM ministers who did the same. They are NRM and therefore entitled to eat. That is the system. Not a beautiful masterpiece, but when the predecessors did it, why can’t they?

I am not saying it is justified, but I understand why it happens, why they are acting like this. Because they want their loot and their fortunes. If not they wouldn’t run as MPs or part of the elites. This is the way to get it. Not by hard work or dedication, no by association and by office. That is how this system work. This is 32 years down the road, and nothing has changed…

So please don’t be shocked, its put into play long time ago. That is why even Mwenda was bitching about this a decade ago, before his “independent” magazine launch. Peace.

Public Notice to those Considering Building, Managing, or Operating a Port in Djibouti of the Validity of the Concession Agreement for the Doraleh Container Terminal in Djibouti (09.04.2018)

On 22 February 2018, the Government of Djibouti unlawfully seized control of the Terminal, forced DP World employees to leave the country and purported to terminate the Concession Agreement.

DUBAI, United Arab Emirates, April 9, 2018 – DP World Ltd. (web.DPWorld.com) hereby gives notice that the Concession Agreement to operate the Doraleh Container Terminal in Djibouti, which was awarded by the Government of Djibouti to Doraleh Container Terminal S.A., or DCT, a joint venture controlled by DP World, remains in full force and effect.  That Agreement conferred on DCT the right to operate the port, which it designed and built, and in turn DP World was mandated to manage the port. The Agreement also gave DCT and DP World exclusive rights to build and operate any other container ports and free zones in Djibouti.

The Concession Agreement was recently upheld as a valid and binding contract under English law by a distinguished tribunal of arbitrators (one a former member of the United Kingdom Supreme Court, another a member of the English Court of Appeal, and the third a leading Queens Counsel and independent arbitrator) under the auspices of the London Court of International Arbitration or LCIA, which rejected the Government of Djibouti’s attempt to rescind the Concession Agreement based on false allegations of corruption.  In a related proceeding an English High Court Justice agreed that the Concession Agreement had been a great financial success for Djibouti.

Nevertheless, on 22 February 2018, the Government of Djibouti unlawfully seized control of the Terminal, forced DP World employees to leave the country and purported to terminate the Concession Agreement.  The claimed termination is invalid under English law, and thus the Agreement remains in full force and effect.

DP World and DCT have commenced a new LCIA arbitration against the Government of Djibouti due to this unlawful seizure and purported termination.

There have been reports that the Government of Djibouti is contracting with other companies to build and operate other port facilities in Djibouti in violation of DP World and DCT’s exclusivity rights.

TAKE NOTICE THAT DP World and DCT are the lawful holders of rights in respect of the ownership and operation of the container shipping terminal at Doraleh, Djibouti, and will pursue all available legal recourse, including claims for damages, against any other entities that tortiously interfere or otherwise violate their rights with respect to the Concession Agreement.

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.

Djibouti: Government adress the reasons for the DP World termination to the US (09.03.2018)

Opinion: Mzee don’t want to bother foreign investors with taxes, just give him a Presidential Handshakes!

Well, I am biased, as the President are visiting Dubai for 4th Global Business Forum on Africa on the 2nd November 2017. President Yoweri Kaguta Museveni is trying to cater to foreign investors. People who he usually cater to at the State House, so he can get favors and Presidential Handshakes. That is why he isn’t bothered with taxes, because the tax-holidays and possible offerings will be huge for the investors who comes in. That is what the National Resistance Movement (NRM) are doing, especially if it is for instance a nations offering the state loan, than the same state can come with state-companies to build infrastructure like Chinese companies coming in after offering loans to the same NRM government. Therefore, just look at what he was saying yesterday, which is weird, but fit a pattern.

Since you are business people, we must be talking about profits. When you talk of Uganda and Africa, you are talking about peace as an enabling environment; which we have. We have raw materials, and have a population of 40 million people that’s’ a market. And if we talk of integration we have a four tear market” (…) “In Africa, the demand is there and growing because we have been under-consuming while the rest of the world the demand is falling because they have been over consuming” (…) “There are plenty of raw materials, minerals, tourism and so on so when you invest there you have access to all these” (…) “I don’t have to bother investors with taxes, what I want is for them to invest, use our raw materials, create jobs, add value and promote exports” (State House Uganda, 2017).

Well, so the President trying to say to foreign investors, you don’t need to pay taxes for your output, just cater to me. The state you don’t have to bother about, just bother about catering to the State House and me. We will add value and promote exports, we will agreements and make sure you get the value on our resources and low-payed workers.

We know who is the biggest taxpayers in the republic, because of Uganda Revenue Authority own statement in the media on the 31st October 2017, which stated names like Mr. Alnasir Virani Gulam Hussein Habib, Dr. Sudhir Ruparelia, Mohammed Hussain, Nakayima Janat, Karia Minex, Karia Kunnal, Alykhan Hudani and Dayalijil Karan. Who are sounding like foreign investors and they are on the top 25 biggest taxpayers in Uganda. So the state has already connected families from abroad to invest there in various businesses. This shows there are already people who is not worried about taxes, but about the output of their companies.

Some of these investors has made big names, while others have worked more in silence. Still, this shows that the top earners even promoted by URA and Doris Akol. Proves how they are working, as there wasn’t that many own citizens on the list. That shows that the foreign investors must get a special advantage and special agreements at the state house for their dealings. Especially, considering how it has been done, just for tearing down markets in Kampala for own investors and financial agreements. This has been done and arranged from the State House without consultation with locals, neither KCCA or the renters of these markets. That is how the NRM and Museveni do deals in favor of him and if he get ill-gained funds, he will support the “development”. It is in similar fashion he exposes his intent in Dubai.

That the State doesn’t need taxes or need structures to facilitate for foreign investors, they just needs agreements with State House and then it is all fair-game. It is insane, but fits the Modus Operandi of the Musevenism and NRM regime. Give him a Presidential Handshake and you can operate as you want in the Republic. Peace.

Reference:

State House Uganda – ‘President Museveni woos Arab investors to Uganda “We have the raw materials, human resource and market”’ (02.11.2017) link: https://www.africa-newsroom.com/press/president-museveni-woos-arab-investors-to-uganda-we-have-the-raw-materials-human-resource-and-market?lang=en

Opinion: It’s ironic that President Museveni is talking about disciplining the government!

The three arms of government and their sub-branches must have discipline. For example I have been involved in disciplining the army. We should do the same for other sub-branches of government. If the Judiciary is also disciplined in fighting corruption, citizens will lead a good life. – Yoweri Kaguta Museveni on the 1st October 2017, State House Entebbe.

Its just one of these days that hearing the news and seeing the tweets of the President, makes me laugh and wonder if he listen to himself. He knows his system and has made his garden. The way the government steers and govern is because of his policies, his regulations and his support. It is not like there been other ruling for last 30 years in Uganda. The Republic has been under the control of Museveni and his National Resistance Movement (NRM).

The NRM has suffocated all other free-will and control. Therefore, Ministers, Members of Parliament and others seek guidance and funds directly at the State House in Entebbe. Even foreign investors meet there to make agreements. Everything is nearly sanctioned out there. The Discipline now is more on the narrow-minded government that is run from there. The institutions and the procedures are not so important. Since most things happening is with the words from “above”, meaning the President and his close advisers.

It is not rocket science to know where the benefactor or the reason for lacking structures. That is because government waits for their go sign by the State House, they are waiting for funding of the projects and institutions from the State House. The projects and the works of the State House and under the Prime Ministers Offices are the key organizations within this government. They might say all of the massive cabinet has part to play, but that is the facade.

Therefore, it is ironic for a man so controlling and so disorganized that it gives sometimes way to the unthinkable. Just like the Presidential Handshake, that was sanctioned by the State House, but taken form the wrong account. That was the problem for the President, not that the corrupt behavior was occurring on his watch. Its like he talks against himself. Because he has no problem speaking anti-corruption, but if corruption benefit his cronies – its fine and dandy!

I am not surprised by him at this point of time, its fit his narrative. He says what he expects and wants out of others, but the next day he finds a way to benefit or use the loyalty of his cronies. Not like he would have excepted the UCC not to listen and stop the suspended MPs to hit the airways and be broadcast on TV. He rather being himself on radio and in the spotlight, but will accept anyone else sharing the same space.

President Museveni is the proof of someone saying something noble, but doing opposite. He might say something insane, but act rational. Therefore, you never know where you have him. I will never believe him actually disciplining the government, if doing so. It means they are all blindfolded and following his guidelines. It does not mean building proper governance and protocol, neither is institutionalize the departments and ministries, it is all about his will and his stature.

When it comes to Museveni, discipline is about following him. Not building transparent and proper government institutions. Peace.

Opinion: President Museveni praises Equatorial Guinea for it’s rampant Oil-Corruption; wants to learn his tricks!

In these days the President Yoweri Kaguta Museveni of the Republic of Uganda are on a state visit in Malabo, visiting and learning tricks from the Equatorial Guinean President Teodoro Nguema Obiang, who has used the oil to enrich himself and his loyal subjects. Not build a welfare state, but make sure the family of Obiang get wealthy. Certainly, Uganda is preparing for their own oil production in the Lake Albertine basin, as the pipeline building from the production to the Port Tanga in Tanzania.

This is why President Museveni are visiting Equatorial Guinea to learn the tricks of the trade, as the state of Uganda are still in the dark of the oil-deals between the international companies and the state. We can wonder how the funds will be spoiled and how Museveni plans to use the oil funds for personal gains. If so, he wouldn’t praise President Obiang, who has his whole career to spend the oil profits from his republic. This is what Museveni wants to learn, since his career has been tricking out all sorts of play from Ugandan republic. The petroleum profits can be misspent and hidden just like in the republic of Obiang. Take a look!

President Museveni’s praise:

We are therefore in Equatorial Guinea for two things: looking at how to support prosperity of one another and how to push for our strategic security. I also congratulate Equatorial Guinea for using it’s oil and gas very well. When I was last here for the AU Summit, I noticed gaps between the airport and the city centre. Today, all these gaps were gone. In their place are new, well-planned buildings. And I see the city is refurbished. Some people say oil is a curse but in Equatorial Guinea it is a blessing” (Yoweri Kaguta Museveni, 26.08.2017)

Business in Equatorial Guinea:

Since the discovery of the offshore oil deposits, many investors have shown great interest in the country. Foreign direct investment inflows into the country had thus been consistently high for the past years. Nevertheless, in 2016 the FDI inflow amounted to USD 54 million, a sharp decrease from USD 233 million recorded the previous year (and the historical peak of USD 2.73 billion in 2010) . The total stock of FDI in the country is currently at USD 13.4 billion” (…) “Corruption in particular is problematic. In addition, the business climate of the country remains rather unfavourable for investment. Cumbersome procedures and high compliance costs slow licensing and make starting a business more difficult. Weak regulatory and judicial systems may discourage foreign investment as well, along with high credit costs and limited access to financing. The government controls long-term lending through the state-owned development bank. Equatorial Guinea ranked 178th out of 190 countries in the 2017 Doing Business report published by the World Bank, losing three spots compared to the previous year” (Santander Trade, 2017).

Son of the President on trial:

The corruption trial of Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, ended in Paris on 6 July with the prosecution calling for a three-year jail term, a €30 million (US$34 million) fine and the confiscation of assets. The Tribunal will return a verdict on 27 October. The 48-year-old vice-president of Equatorial Guinea was not in court to hear the prosecution’s claim that he used money stolen from his country’s treasury and laundered through a shell company to fund a lavish lifestyle in France” (Transparency International, 2017).

This was what that is well-known of the Equatorial Guinea corruption and the son of President has also had challenging cases in the United States. Now the son is also having alleged fraud and criminal charges in France. Clearly, the Ugandan President has already known for corruption behavior. Therefore, even a state agency of PPDA has some words, that the government needs strict regulations before procurement and infrastructure development. This will be clearly important when it comes to petroleum industry. Take a look!

PPDA strict regulation on public procurement:

Public procurement is a key pillar of the public financial management system. The country’s budget and plans are translated into actual services to our people through the public procurement system. It is also the link between the public sector and the private sector as it is the medium through which the private sector does business with Government. Public procurement therefore involves large sums of money and as our budget grows with the priorities of Government remaining infrastructure development, the proportion of the budget earmarked for public procurement remains significant and therefore calls for strict regulation” (PPDA, 2017).

Audits and investigations by the Public Procurement and Disposal of Assets indicate that corruption in the procurement process manifests more in the evaluation of bids, reported to be at 58%. PPDA’s Manager Capacity Building Ronald Tumuhairwe says such corrupt practices lead to awarding of contracts to incompetent individuals hence shoddy works in several government projects” (…) “He adds that the second process where corruption manifests is awarding of contracts at 12.5%, followed by receipt and opening of bids, reviewing evaluation of bids, advertising and signing of contracts” (Sebunya, 2017).

President Museveni clearly has own agencies saying it is important with strict regulations on procurement and infrastructure developments like the ones needed for oil industry in the republic. The regulation of oil industry is lax, to make sure the state isn’t transparent with its profits and taxation of the industry. This is what Museveni wants, that the state and the public doesn’t know the contracts or the agreements between the parties involved. That is something President Obiang surely have the capacity to teach Museveni. And how to make sure his family is earning from the state resource, instead of the public and the state itself. Peace.

Reference:

Transparency International – ‘ON TRIAL FOR CORRUPTION: FRENCH PROSECUTORS DEMAND JAIL TERM AND €30 MILLION FINE FOR OBIANG’ (11.07.2017) link: https://www.transparency.org/news/feature/on_trial_for_corruption_french_prosecutors_demand_jail_term_and_30_million

Santander Trade – ‘EQUATORIAL GUINEA: FOREIGN INVESTMENT’ (August 2017) link: https://en.portal.santandertrade.com/establish-overseas/equatorial-guinea/investing-3

Sebunya, Wycliffe – ‘Corruption manifests most in the procurement process – IG’ (25.08.2017) link:http://radioonefm90.com/corruption-manifests-most-in-the-procurement-process-ig/

PPDA – ‘EVALUATING INNOVATIVE ANTI CORRUPTION POLICIES IN PUBLIC PROCUREMENT IN UGANDA’ (02.08.2017) link: https://www.ppda.go.ug/evaluating-innovative-anti-corruption-policies-in-public-procurement-in-uganda/

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