“Everybody (yeah), everybody (yeah), just get into it (yeah), get stupid (come on)
Get it started, (come on) get it started (yeah), get it started” – The Black Eyed Peas, ‘Let’s Get It Started’ 2003
Well, this week has been revealing in concerning the supposed newly minted airlines in Uganda. Where the state incorporated Uganda National Airlines Limited in January 2018. However, the supposed registration and certification happen this week. The documentation now shows, that the Ministers are owners of the Airline and it’s registered on the 26th March 2019 and certified on the 27th March 2019.
Alas, the state has already spent close to $30m USD on it, as they have procured several of planes for the operations and the first are supposed to arrive on the 31st March 2019. Therefore, the whole ownership and usage of state funds comes into question. As the Report to Parliament confessed that the state and the two ministries only owned 2 shares out of 2 million, until yesterday, when suddenly the Ministers of Works and Transport and Ministry of Finance, Economic Planning and Development suddenly had 1 million shares each, a 50 50 split.
This all seems suspicious and within reason. Because, it has been done in wrong order and ensured to not follow procedures or anything of that fashion. As the State for the second time are infringed to deliver new funds to State Owned Enterprise, even as the ghosts of owners and registration suddenly appears. You can wonder, if they would have done this, if it didn’t get public scrutiny. Because, the scribbling document of ownership only appeared, when the Observer and other media houses questioned it.
This shows that there was something lurking and weird about it all. Where the insiders and the ones operating it, maybe, had shell-companies and significant portfolios, where they could earn the profits of this state owned enterprise. That would not be shocking, even if all the investments, all the funding and procurement have happen directly from the Ministries and with the blessings from above high.
With all of this in the open. It seriously question the operation, the ownership and who really controls the company as whole, because its hard to believe the two ministries does it. As it was incorporated in January 2018, but was registered shareholders yesterday, a year and two months after. Which is suspicious at best, if not revealing of how the state operates in this matters.
We can play along and act a fool, but that doesn’t change the remaining questions, the lack of trust and also the lack of protocol. As the state have toyed around spent fortunes on establishing, procuring and investing in the company, while it has been a ghost and non existing entity, which could be someone’s secret bank-account.
Certainly, this is not over and will leave a giant paper-trail that somehow will be resolved in the State House and by whoever the benefactor whose project this is. Because, that is the rule of the day and how these things are under this Presidency. It is common knowledge, but never really said or revealed, unless, family members of the President owns it or runs it. Peace.
“Hold fast to dreams,
For if dreams die
Life is a broken-winged bird,
That cannot fly.” – Langston Hughes
Today, there was tabled a report on the 26th March 2019, reported titled: “Report on the Budget Committee on the Supplementary Expenditure 2 for FY 2018/19” especially the vote – “Vote 016 MOWT – USHS 280.046 For Financing Costs of Uganda National Airline”. In this report there are vital information coming up. That I will address, but also show, as it proves how the state plans to invest the taxpayers money on the airline, but also what sort of finance it has already.
The government clearly have already invested money into it, but doesn’t have ownership in it. That is what the report says. It shows intent of investing more in it, but not actual ownership of it. However, not claiming it, which is weird, but that is what they do. They are buying planes for it and investing in it, but not owning it. That is what they are initially saying. This is really rare and weird.
Here is the quotes from the report that matters in my sense:
“The Government of Uganda has injected approximately 29.9 USD million into this company but has only 2 shares allocated to it”
“Ministry of Works and Transport has requested for on additional Ushs 280,046,77 6,933 to cater for investment costs of the Uganda National Airline”
“The Ministry of Finance, Planning ond Economic Development indicated that it was to use proceeds from MTN licence amounting to USD 60 million (approximately UGX 222 billion) to portly finance Uganda National Airlines”
“The shore capital of Uganda National Airlines Company Limited is 200 million divided into 2 million shores of UGX 100. Of the 2 million shares only 2 shares worth UGX 200 to Minister of Works and Transport as well as Ministry of Finance, Planning and Economic Development. This makes both ministries to be minority shareholders holding only 0.0001% of the shores. At the moment the owners of the 99.97 shares are unknown. The owners will only be determined when the Directors decide to allocate the shares. It was asserted that the minority shares will be floated to the public. However contention arose as to whether the minority shareholders can float what they do not own. lt was however asserted that this move was undertaken to limit the liability of government. Hence a concern pertaining intension of government to establish o company that it already roles 10 be huge liability from the onset”
As you see, the $30m been invested in the Airline already. The Government and Ministry of Works and Transport, that they need more funds. Also, telling their lack of the shares in the company, while also planning to use licencing funds from MTN to cover the spending on the Company. Which later, in the Report states they will not, but I added to prove how the state spend the revenue it is getting.
The Uganda National Airlines is clearly not well-managed or well prepared, as it is a pile of expenditure, but not allocated what it needed. Since, the state is in need of more after spending millions already. As the first planes are coming in the coming week. Therefore, the National Resistance Movement and the ones behind it is clearly playing games.
They are spending public funds on a possible Uganda National Airline Company Limited, when they arrive. Since the report turned public the GCIC have claimed this in response to the report delivered. Which clearly shows the significant stature of the ownership in question.
They are claiming this:
“ CLARIFICATION: There has been misleading information regarding shareholding of Uganda Airlines Company LTD. The company was incorporated on 30th Jan, 2018. The company has 2 million shares. Minister for Works was allotted 1 million shares & Minister for Finance, 1 million shares. 3/3: In July, 2018, the management of the company allotted the entire shares of the company as follows:
1. Minister of Works & Transport (represented by Hon. Monica Azuba Ntenge)- 1 million shares.
2. Minister of Finance (represented by Hon. Matia Kasaija) – 1 million shares” (GCIC, 27.03.2019).
This is countering the facts in the report, that even before the ink is dry. Before the time and test of the knowledge given by the Ministry and the Government itself. So why does the GCIC have other indications and facts, than the report. You can wonder who gave them and where it is from? Why wasn’t this given as facts to Parliament and signed of by the Members of Parliament then?
Well, this will be played out in real-time. This is not a fan-fiction, West-Wing drama, no this is real live events of the operations and investing in the resurfaced Airline Company. This shouldn’t be that tricky or played out like this, but it is because the state and the ones involved in it. Because, there must be some loose ends, which is not yet caught. It will eventually. Peace.
“Ministry of Works officials reveal to PAC that UGX47m budgeted for the roads fund was used to print NRM manifesto last year” (NBS TV Uganda, 01.03.2017).
The Yellow Movement have no nerve; they have Presidential Handshakes, buying jet-planes for the President, but not money for maintenance. They want to buy helicopters to the Speakers of the Parliament this year. But last year they impressed as well!
Hon. Monica Azuba Ntege, the Minister of the Ministry must feel stupid, as she knows perfectly well that the funds should go to transport or to roads, even gone to the Standard Gauge Railway (SGR) development, even to build ports like Bukasa Port on the Lake Victoria.
That this proves something that we all have feared all along, is that the National Resistance Movement are eating of the plate of the public funds when they need. This is if the NRM needs money for gasoline or hiring buses during the campaigns they just take the unallocated salaries for teachers to that. If President Museveni needs more funds to pay musicians for campaigning for him, than going to the function where the allocated taxpayers monies we’re supposed to go.
This shows the lack of transparency and respect of the government funds when the ruling regime and ruling party uses state funds to inner-party campaigning. That NRM and their party organization used Ministry of Works funds to print NRM Manifestos for the General Election of 2016, show lack of governance and allocation procedures. We can question the oversight of the allocation of state funds that is diverted to party work.
The NRM regime is now openly telling to the world that they are misusing the funds and doing in broad daylight, during the plenary sessions on the audit of funds from former financial year of 2015/2016. The world would not be surprised if the NRM used more funds from other ministries to campaign in the recent campaign. Especially knowing that NRM and President Museveni doesn’t seem to have any care with the scrutiny or good-governance. Good governance is apparently a giant issue that will continue be hurt one for regime, because they don’t have the ability or wish to change. Since President Museveni are only focused on his own riches and own wealth, as he is not a civil servant, but his own master who controls the Republic. Peace.
Here I will Travers through the report of Auditor General of Uganda’s Annual Report for the year ended 30th June 2015. This is on: “CENTRAL GOVERNMENT AND STATUTORY CORPORATIONS”. I will take the quotes and stories that seem to show parts of how the Government of Uganda works and what the Auditor General have cared about addressing in this specific report. Take a look! This here is Part two!
Ministry of Works and Transport Sector:
Certain information from the ministry:
“management used the services of a local company to print Ministry materials at a cost of UGX.48,000,000 without following procurement guidelines” (…)”expenditure totalling to UGX.157,861,512 was inappropriately charged on budget lines to fund activities that were not planned for without authority” (…)”management explained that this was caused by UGX3,367,986,442 that was held on the Stanbic Bank Collection account as the funds were earmarked to replace worn out equipment and plant and MELTC, yet management does not spend these funds at source; and UGX.819,209,847 mainly consisted of funds earmarked or Lake Bisina Ferry landing sites and DRRU. MELTC will be required to return all the unspent operational funds when the Rural Transport Infrastructure (RTI)/U-growth project ends on 30th June 2016” (P:116 – 121). Comment: This here prove how the have chared funds without authority. The Ministry also has to release funds back to the RTI U as they have not done their work on the Ferry Landing Site.
Non-payment of UGX.490m to Mukono District Council:
“Management explained that the long standing dispute between the Ministry and Mukono District affected the progress of the ICD project and an understanding had been reached between the two parties. However in December 2014, the Ministry sought legal advice from the Solicitor General on the pending compensation of UGX.490m to Mukono District and the Solicitor General advised that there was no justification for the compensation since the District could not prove that it owned the structures” (P: 132). Comment: This here proves mismanagement for Local Government Council and the Ministry, that the monies does not leave either party or to the party that deserve the money. Not well played by either ones.
Construction of Nwoya Community Justice House – Abandoned construction works:
“Nwoya Community Justice Centre was constructed by a local company at UGX.1,516,916,000. The contract commenced on 11th July 2014. Audit inspection carried out at the site on 19th September, 2015 revealed that the contractor abandoned the work. There was no construction work in progress” (P: 158). Comment: Here is mismanagement locally and also with the ministry therefore it is a building without a contractor who left the premises. The OAG and the Ministry should probe the contractors and also the Local Government Council for the little check on the work in their district. Or doesn’t it matter that the work and used monies on a court building left unfinished?
Directorate of Citizenship and Immigration Control (DCIC):
Construction of Border Posts:
“Construct Sebagolo model border post with staff quarters), Kikagati mini border post and Ishasha mini border post” (…)”Was allocated UGX 200m and none used funds or absorbed” (…)”Sebagolo; procurement abandoned. No land title” (…)”Ishasha; procurement abandoned due to lack of structural drawings, border post building design and BoQs” (…)”Kikagati; procurement; abandoned due to lack proof of ownership of land” (P: 161).
Ministry of Affairs:
DGAL-Gulu – Delayed completion of the construction of a Regional Laboratory in Gulu:
“The construction of the Regional Laboratory started on 28th January 2008 at a contract sum UGX.436,445,468 and was to be completed by 28th July, 2008 (after 22 calendar weeks)” (…)”at the time of writing this report, the construction had not been completed (after 7 years) and the site appears to have been abandoned. A total of UGX.236,330,768 (54,15%) was paid to the contractor and the building had been roofed, plastered and fitted with exterior doors and window burglars” (P: 177). Commented: They proved too been a breach of contract between the Ministry, Local Government Council and the contractors who was building on the site. These institutions should probe the contractor for delays and not finishing the building, while the government should check the history of the allocations and see why they haven’t done the work and delivered as budgeted in the past.
Uganda Police Force:
“The Force had 291 and 970 uneconomical and grounded motor vehicles and motorcycles representing 27% and 28% respectively of the available fleet of 1091 motor vehicles and 3452 motor cycles” (P: 183). Comment: That such a giant part of their fleet is standing still and can’t be used for their entitled work. So it is a waste of funds and also equipment.
“The budget of UGX.120m was again provided for the financial year 2014/2015, however, this was not enough to carry out the activity. This financial year (2014/15), UGX.3.7bn had been estimated to cover the surveying, titling, boundary opening, land purchase, land planning and design, compensation and inspection, however only UGX.120m was provided in the budget” (P: 185). Comment: This here prove how little the state care for police when they can’t secure funding for land in and titles for the Police Stations. Another proof of weak governance when they doesn’t care for their own civil servants.
“Police has over 40 vessels including long distance patrol boats, firefighting boats, fiber glass boats and inflatable boats deployed in the detach units on all major water bodies of Lakes Victoria, Kyoga, Albert, Edward and George. However, the Force lacks a marina at Kigo marine headquarters for safe docking and parking of major boats. As a result, some big boats are docked/parked at Lake Victoria Serena Hotel for safety purposes, while others are dry docked (parked on land) at Kigo headquarters” (P: 186). Comment: We can see that the Police don’t have funding for the boats and to keep the upkeep of them. That proves that the Government doesn’t value the boats, since they don’t keep them in great areas.
Police Mariners staff, Post Mariners Post-Education and Fuel issues:
“Marines unit has a workforce of 197 staff with over 40 vessels. A review of the unit nominal roll revealed that only 10 staff have mechanical/technical related qualifications while 6 have qualifications in fisheries” (…)”The Accounting Officer further explained that some training is already underway both within and outside the country, and that in the current financial year, 45 staff are undergoing marine training by Korean instructors” (…)”The unit detaches are provided with 200 liters of fuel for operations per month (6.4 liters per day) and yet the fiber boats at each unit consume 20 liters per hour. According to the in-charge, each unit detach requires at least 60 liters a day which puts the fuel requirement per month to 1,800 liters for the units to effectively monitor the waters” (P: 188-191). Comment: That there are 40 vessels and only 6 have seamen education. 10 mechanical people who can fix the technical problems with the boats that the police have. Yet again, the training has to happen by donors or foreign because the government can’t be able to finance their own personnel training. That should be worrying. The last issues that the boats can be used as much they can because of the use of 20 liter per hour. They miss the 1600 liters they need to function, because they are only allocated 200 liters. Show’s a mismatch of the use of funds for this part of the UPF.
Uganda Prison Service:
“By June 2015, the population of prisoners stood at 45,092, exceeding the available capacity by 28,575 inmates (occupancy level is 273%). Some prisons are overcrowded, housing up to 3 times their designed holding capacities” (P: 197). Comment: The government might not be expected to deliver at hotel to the inmates in prison. But to congestion them like cattle or having housing for them that creates diseases and poor hygiene; shows that the punished people in prisons get not only time to serve as convicts, but also get conditions that makes their stay a health hazard.
Funds of Consolidated Funds:
“UGX.2,808,413,252 was reported in the statement of financial position as cash and cash equivalent at the end of the financial year. The unspent funds should have been transferred to the consolidated fund by close of the year however, UPS did not remit the funds to the condolidated fund” (P: 195). Comment: This here proves that this government outfit doesn’t have the properly functioning accounting practices since they don’t follow the laws for unused allocated funds.
Office of the Auditor General – The Annual Report for the Year Ended 30th June 2015 – Central Government and Statutory Corporations 30th June 2015.
Background introduction to why FDC couldn’t cross the bridge. It was procured for in 2009 and 2012, but in 2014 some reports said 50% and another said 72% while in the Kumi District there is nothing. The Bridge is not there and the reports tell that the company did not deliver. Okokor Bridge is a project and not finished product a typical NRM business and money spent on nothing instead of delivering steady progress. Let’s take a look!
PPDA reported this on the report of set contracts on the matter in 2010:
“The Tender for the construction of the Okokor Bridge in Kumi District, cost for the open bidding UGX: 400,037,000. The date awarded the company was on the 9th December 2009. To the company called Ms. MML Road Construction Company Co. Ltd. And the construction by that is on-going” (PPDA, 2010).
“For Okokor bridge Work the contractor has been served with a vacation notice and MoWT will take possession of
the site” (MoWT, June 2014)
Construction of Okokor Bridge in Kumi District:
“This project was intended to connect Nyero and Mukongoro sub-counties in Kumi district. The contract was awarded in October 2011 to M/s MML Road Construction Co. Ltd at a contract price of Ug shs 400,037,000 and a contract period of four months. The works which had progressed up to the deck level in June 2011 were discovered not to be to the desired quality.This contract expired on the 27th September 2010. In the FY 2013/14, the MoWT took over the site since it was abandoned by the contractor. At the time of monitoring in July 2014, the Ministry was in the initial stages of procuring another contractor to complete the works. No works had been carried out since the last time the site was monitored in December 2012″ (MoFED, October 2014).
“On going Projects:” (…)”Okokor (Kumi) – 72%” (MoFED, March 2015).
(MoFED, March 2015)
“Details of Off-Budget Activities carried out by NGOs, Central Government, the Private Sector and Donors: Construction of Okokor Bridge along Kabukol-Kamenya-Nyero district road under Ministry of Works & Transport.
The three biggest challenges faced by the department in improving local government services:
There are issues here and money that are missing while the bridge is certainly not 72% done or 50% ready. So there is a reasons why FDC couldn’t pass the river today. Though I am not in the level that the FDC dropped of 4 Billion shillings wasted on nothing. Still the sums here are high enough and I don’t know if there are older projects of the same bridge that has been unfruitful in Kumi District. Peace.
Local Government Budget Framework Paper –‘Vote: 529 Kumi District’ (Written by Ismael Orot) . Financial Year for Paper budget: 2016/2017
Ministry of Finance, Planning and Economic Development- ‘Roads Sector Annual Monitoring Report Financial Year 2013/14’ (October, 2014)
Ministry of Finance, Planning and Economic Development – ‘NATIONAL BUDGET FRAMEWORK PAPER FY 2015/16’ (March 2015).
Ministry of Works and Transport – Ministrial Budget Policy Statement (June 2014)
The Public Procurement Disposal of Public Assets Authority – ‘REPORT ON CONTRACTS AWARDED IN EXCESS OF US$ 100,000 FOR THE PERIOD JULY 2009 TO JUNE 2010’