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Opinion: Why is there so little sanction on Corrupt behaviour and why don’t the donors stop the funds?

corruption-1

We should question the ability of certain leaders to be able to squander away government funds, donor-funding while keeping their citizens in poverty and neglect the civil service, the state functions and keeping the state fragile; so that the Executive can brown envelope the Members of Parliament and that other civil servants to get paid, instead of government salaries depend on being paid under table for government delivery.

This is not one nation problem, this is not a one continent problem, and this is a worldwide problem. Not only government acts like this organizations, multi-lateral organizations and businesses. Corporations and other LLCs are also misusing their fortunes and ability to generate wealth for their stakeholders through intricate and complex banking structure that fixes the profits away from the countries we’re they earn high profits; while squandering away the profits so that the owners and stakeholders gain massive funds and leave the consumers, workers and the nations as they keep the funds away from the State of real business.

Tax Avoidance

Why can I address the neglect of government in the same regard as tax-avoidance in modern business, because the same ethics and norms are made and regulated by the Parliaments, Executive Power and by the interests of politicians; that needs funds and create business in their constituency as they earn currency on opening business there. So with that in mind, the way the business is set-up and regulated are by admission from the political framework and laws, not to talk about tax-regulations together with multi-lateral agreements that either opens or closes doors for tax-fugitives from the profitable country.

The Government are the Sovereign Power, the ones that represent and distribute the resources and funds to their citizens through departments, ministries, institutions and programs that are sufficient to make sure of education, security and development of the country. That happens as they can either use their taxes, aid and loans to fund the government work. Well, they could if they wanted to represent the people who paid the tax and elected them.

One key reason for the maladministration and mismanagement from the government are that they are responsible for sham elections and rigging themselves in power; worst case scenario the government and executive took the power with the gun; so the responsibility is more on the ammunition instead of the transparency and accountability towards the citizens. The citizens are supposed to have safe-guards from corrupt behaviour and alleged graft; as the Auditor General and Ombudsman are supposed see through the files and budgets, together with registered procurements, so that the actual facts are the same as the planned efforts from the State.

That is why the breaking figures and knowledge of squandered monies from the funds. Something that shouldn’t be that easy to do or get away with; as so many leaders and executives have saved giant bank-accounts in Swiss Banks and in Tax-Havens. So the humble men from villages all of sudden own 30 luxury cars, 4 mansions and have a wife who spends a ministries months salaries on exclusive clothing and shoes in Paris and London. While the taxpayer are struggling to eat and feed their families, which is an issue that shouldn’t be there when the Executive and wife can have a cortege of 25 cars driving from their State House to their Ranch without any consideration.

Obama Stockholm

The worrying sign is that the International Monetary Fund, World Bank and other Multi-lateral organizations don’t sufficiently sanction this kind of activities or even punish the countries with this behaviour; except when the nations are on their back hunting wild goose. The United Nations and European Union, other Pacts doesn’t even sanction much either. The diplomatic tensions and the wish for resources sometimes stop the knowledge of the thievery, if not to save face of both parties as they doesn’t want the public of the nation importing to know about the maladministration.

What I am wondering with all the corruption scandals, with the rich executives and the haemorrhaging of monies from the state and businesses; It happens daily while the begging for funds from international community and also getting investors from the exterior to invest in business. These businessmen are set in function with civil servant and government officials that are corrupting the state; something that the world knows… and still keeps it going around.

Certainly the knowledge of this isn’t something in the shadow, some places all of this is in the spotlight and expected by the officials, as a second way of getting add-ons on their meagre salaries as the government doesn’t pay enough or on time for the Police Officers and Teachers to secure pay to pay for food and even rent. Therefore the system generate where the Government can’t even supplement funds for their own, while their leaders eat the most delicious stakes. This should be a warning, but the world moves on.

quote-the-givers-of-most-of-the-corruption-in-africa-are-from-outside-africa-olusegun-obasanjo-88-15-33

What worries me… is how this keep on happening with different names, different places and with different funds, while the sanctions and the stopping of funding from the communities doesn’t stop; while the massive overload of stolen monies are hidden and the ability to use this banked currency in developing the state and nation, instead lost in trail of lies and deceit where the accountability got dropped in the ocean.

We should question these transactions and not accept these facts of life, this is the ones that steal the development and progress, steal foreign taxpayer’s monies into personal bank-accounts and private business of elites instead of the public functions as they we’re supposed to go.

I am just writing in frustration… and tired of seeing and hearing about the scandal after scandal… While the ones dishing it out are silent, while the punishment is not happening and the characters who are behind the thieving is walking like kings and queens in main-streets of capitals all around the world. That is what is bugging me. It shouldn’t be like this and the behaviour should be tormented, questioned and also charged for their stolen cash. This cash we’re not automatically made for and created for the Executive’s and their Elites; which isn’t justified. So why does it seem that some people are allowed to steal a country, steal a national treasury and the foreign exchange funds are walking scotch-free while hanging around the mayors and government-officials; but when a pocket-thief or a man stealing a goat, gets detained and not hired again.

The rules for this is provable not equal, not for all men are equal under god, except if you like shrimp. Well, that is not the case in this matter, there are too set of standards, the Executives and their Elites; while the citizens and public are a disgrace and can be disregarded easily, but the rich can get-a-way-jail-free-card! Peace.   

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Statement By H.E. Yoweri Kaguta Museveni President of Uganda as the Co-Chair of the Summit for the Adoption of the Post-2015 Development Agenda at the U.N. (25.09.2015)

Museveni UN 25092015 P1

At UN Summit for the Adoption of the Post-2015 Development Agenda

New York 25 September, 2015

Your Excellencies Heads of State and Government,
Your Excellency Lars Løkke Rasmussen, Prime Minister of Denmark and co-chair of the Summit,
Mr. Secretary-General,
President of the General Assembly,
Honourable Ministers,
Distinguished participants,
Ladies and Gentlemen,

I am pleased to co-chair this important Summit as we gather as a community of nations to adopt a new development agenda that will guide our development efforts for the next 15 years.

This historic Summit is the culmination of months of tireless efforts and unprecedented commitment by Member States and stakeholders to formulate a universal, inclusive and transformative development agenda.

I would like to pay tribute to H.E. Sam Kutesa for his leadership and accomplishments as President of the 69th Session of the General Assembly and thank all of you for supporting Uganda in that responsibility.
I also congratulate and convey appreciation to the President of the 70th Session, H.E. Mogens Lykketoft and the Secretary-General, H.E. Ban Ki-moon for their leadership.
Today heralds the dawn of a new era in our collective efforts towards eradicating poverty, improving livelihoods of people everywhere, transforming economies and protecting our planet.

Together, we are sending a powerful message to people in every village, every city and every nation worldwide ─ that we are committed to taking bold steps to change their lives, for the better.

The 2030 Agenda for Sustainable Development, which we will adopt today, is ambitious in its scope and breadth. In the 17 Sustainable Development Goals (SDGs), the social, economic and environmental dimensions of sustainable development are addressed in an integrated way. The agenda also carries forward the unfinished business of the Millennium Development Goals (MDGs).

Over the last fifteen years, we have attained significant achievements through implementing the MDGs. Globally, more than one billion people have been lifted from extreme poverty and improvements have been made in access to education, health, water and sanitation, advancing gender equality and women’s empowerment.

In Uganda, we have been able to reduce the percentage of people living in extreme poverty from 56% in 2000 to 19% currently. We have also attained universal primary education, promoted gender equality and empowerment of women and continue to reduce child and maternal mortality. From our experience, it has been clear that to sustainably achieve the MDGs we must have socio-economic transformation.

It is, therefore, refreshing that in the successor framework, the SDGs, key drivers of economic growth, have been duly prioritized. These include infrastructure development especially energy, transport and ICT; industrialization and value-addition; human resource development; improving market access and greater participation of the private sector.

While the SDGs will be universally applicable, we also recognize national circumstances, different levels of development and the needs of countries in special situations, particularly the Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs), Small Island Developing States (SIDS) and African countries.

Taking urgent action to combat climate change and its severe impacts is also prioritised in the new agenda. We should redouble efforts towards reaching an ambitious legally-binding agreement on climate change in Paris in December that promotes the achievement of sustainable development, while protecting the planet.

The new agenda also rightly underscores the important linkages between development, peace and security and human rights. We have to intensify efforts to combat transnational crime, terrorism and the rise of radicalization and violent extremism around the world.

We should reject pseudo ─ ideologies that manipulate identity (by promoting sectarianism of religion and communities) and eclipse the legitimate interests of peoples through investment and trade. Where identity issues are legitimate, they should be expeditiously handled.

Museveni UN 25092015 P2

Excellencies,

We should all be proud of what has been accomplished so far as we usher in this new development agenda. However, the critical next step will be to ensure its successful implementation on the ground.

In this context, integrating the SDGs into our respective national and regional development plans, mobilizing adequate financial resources, technology development and transfer as well as capacity building will be critical.

We have to ensure full implementation of the comprehensive framework for financing sustainable development, which we adopted in the Addis Ababa Action Agenda to support achievement of the goals and targets of Agenda 2030.
One of the major challenges many developing countries continue to face is accessing affordable long-term financing for critical infrastructure projects.

In this regard, it will be vital to promptly establish and operationalize the proposed new forum to bridge the infrastructure gap and complement existing initiatives and multilateral mechanisms to facilitate access to long-term financing at concessional and affordable rates.

The efforts of developing countries to improve domestic resource mobilization, boost economic growth and address major challenges such as unemployment should be supported by development partners as well as international financial institutions and regional development banks. We also need to do more to promote Micro, Small and Medium Enterprises (MSMEs), support entrepreneurship especially for women and youth and enhance the contribution of the private sector and other stakeholders to sustainable development. Through prioritization, the Least Developed Countries (LDCs) themselves can also contribute to their own infrastructure development.

In order to build effective, inclusive and accountable institutions at all levels, we have to ensure that the voices of developing countries and regions are heard and that they are treated as equal partners in multilateral decision-making. At the international level, we need urgent reform of the United Nations ─ particularly the Security Council ─ and other multilateral institutions to reflect the current geo-political realities.

We need a renewed global partnership for development in which all the commitments made, including on Overseas Development Assistance (ODA), trade and investment are fulfilled.

While the Agenda represents the collective aspirations of all peoples, its success will hinge on its ability to reduce inequalities and improve the lives of the most vulnerable among us, including women, children, the elderly and persons with disabilities.

After months of intense negotiations and steadfast commitment, we have before us an Agenda that represents our best opportunity to transform our world.

We have heard the voices of people spanning the globe; from eager children asking for access to a quality education to young women seeking better maternal health; from rural villagers whose farmlands have been ravaged by droughts to the coastal fishermen on Small Island States who fear their entire existence will soon be swallowed up by rising sea levels.

We continue to witness the influx of refugees and migrants into Europe from Africa and the Middle East, which is partly caused by conflict and lack of economic opportunities.

These voices may speak many language and dialects, but in the end their message is the same ─ please help us to live happier, more prosperous lives, while also protecting the planet for our children and grandchildren.

After adoption of this Agenda, it is incumbent upon us all to take the development aspirations laid out in this document and turn them into reality on the ground; for our people, our communities and our nations. This agenda will create global prosperity different from the past arrangements of prosperity for some through parasitism and misery and under-development for others.

I thank you for your attention.

Uganda – The Annual Report Audit General for FY ended 2014 – Value for Money Audit Volum 5: Quotes and Outtakes from this.

This blog here will be focused on the ‘Office of the Auditor General’ who released ‘Annual report of the Auditor General for the Financial Year ended 30th June 2014 – Volume 5 Value for Money Audit’. What you will read is actual quotes from the paper or report. Here you get a vivid picture of how the financial year (FY 2013-2014) was in reality.

I haven’t taken everything from the piece. It would be too long and you might end up bored. Here is what should get your mind boggling and wonder. How could this be this way? Why is it like this? How did it end up like this? What does this tell me about the economic practices in Uganda? And so on. If you start to think like that, then it was worth using my time. Enjoy the quotes from the report. Hope you catch some wisdom.

When it comes to managing Public Debt:

Public debt is incurred primarily for financing budget deficits, development of domestic financial markets, supporting the country’s Balance of Payment (BOP) position/foreign reserves and monetary policy objectives. In Uganda, public debt is managed by the Ministry of Finance, Planning and Economic Development (MoFPED) in liaison with Bank of Uganda (BoU). Government borrows internally from domestic markets through issuance of Treasury bills and Bonds by the BoU and externally through Bilateral and multilateral borrowings. Currently, over 60% of the public debt is external debt and 40% is domestic debt. GoU borrowing has been rising over the years from USD 5.7 billion in Financial Year (FY) 2011/12 to USD 7 billion in FY 2013/14. The growing National debt, if not properly managed, could revert to unsustainable levels as was the case in the past”.

“Interest rates on domestic debt have overall stabilised in recent years relative to their peak in 2011/12. However, they remain a cause for concern due to their high contribution to overall debt service costs and the relatively high yields which they attract stand in stark contrast to those achieved by comparator nations with similar credit ratings”.

When it comes to roads:

“The Uganda Road Fund invested a total of UGX 914 billion in road maintenance activities during the three years under review (2011/2012, 2012/2013 and 2013/2014),4 with a total of 4,565km of roads maintained. Despite the increasing investment, there are reports and persistent public outcry about the poor state of roads and the deteriorating quality of works being executed. The physical and financial performance reports of designated agencies in FY 2011/12 revealed the following issues: budget indiscipline, poor absorption of road maintenance funds, inaccuracies in reporting, lethargy of Designated Agencies (DAs) in complying with reporting requirements, widely varying unit costs, risk of loss of funds through end of year procedures, and grave underperformance of periodic maintenance works” (…) ”The road maintenance needs in Uganda cannot be met due to limited resources, for example for FY 2011/2012, the total maintenance needs from the agencies was UGX 413.95bn, and the budget provided by the Ministry of Finance, Planning and Economic Development (MoFPED) was UGX 280.95bn, indicating a 32% deficit” (…) “The road maintenance equipment inventory maintained by the URF is incomplete; the inventory is only for 12 (55%) of the municipalities and it is outdated as it was submitted in January 2011”.

When it comes to Gas and Oil:

“Through a review of reports on procurement submitted by the oil companies to PEPD, it was noted that from 2010-2013, the oil companies spent a total of USD 1,171.8 million on purchase of goods and services. Of this, USD 329.9 million was paid to Ugandan service providers, representing 28% of the total spend for all the companies in the period under review” (…) “The Ugandan service providers comprised about 73% of the approved suppliers which implies that the total value of the procurements from them was less than their relative number” (…) “Ugandans employed in the oil and gas sector by the oil companies overall rose from 69% in 2012 to 80% in 2014, absolute numbers of employees decreased from 546 to 432 between 2013 and 2014; in particular, the nationals dropped from 370 to 347 over the same period” (…) “For all the 27 jobs advertised in the newspapers, attracting over 700 local applicants, none was appointed, citing lack of experience in the oil and gas sector. Instead, the recruitment report submitted by the CNOOC to PEPD recommended recruitment of expatriates” (…) “According to the Industrial baseline survey done by the Joint Venture partners (CNOOC, TEP and TUOP), 60% of the workforce required for the next phases will be technicians and craftsmen, which translates to a demand of 7,800 and 1,800 technicians and craftsmen at the peak and plateau phases, respectively, of development and production. With the current total of only 86 UPIK graduates, there is doubt that the projected demand will be met by the time production starts (2018)” (…) “There are still several areas with clear potential for enhancing national content, such as: establishment of a clear regulatory framework, performance targets and indicators for national content; determining the level of state participation; local supplier development; employment and training of Nationals by the oil companies and government; ensuring gender parity and involving host communities”.

When it comes to the Healthcare:

“The Uganda Health Systems Strengthening Project (UHSSP) is a project administered under the Ministry of Health (MoH)” (…) “UHSSP, is a five year project, which was established in 2010, commenced operations in February 2011 and is due to end on 31st July 2015. The UHSSP project is jointly funded by the Government of Uganda (GoU) and the World Bank to a tune of USD 14.31 million and USD 130 million, respectively” (…) “UHSSP was set up to bridge the existing gap of supply and maintenance of medical equipment in 46 selected health facilities in order to improve the quality of health care delivered to patients. The project has spent USD 24 million (UGX 60.480 billion) on procurement and supply of these medical equipment, yet some of the equipment remains unused in the facilities where it was supplied” (…) “For instance, at the time of audit field visit in September 2014, the project had supplied anesthetics machines to 165 HCIVs at a cost of USD 2,063,085.75, however, all the HCIVs visited were not utilising this equipment because they lacked the technical expertise to effectively utilise the equipment. In a related instance, 2 auto strainers valued at USD 25,345.68, which were issued to Mubende and Moroto Regional Referral Hospitals, are not operational because of lack of qualified staff” (…) “observations conducted during field visits to the seventeen selected beneficiary health facilities, it was noted that some of the equipment supplied, worth Euros 3,954.67 and USD 1,209,879.09, was not being used at all while other equipment was not optimally utilized” (…) “Through field inspections, it was observed that health facilities namely Mwizi had no power supply while others such as: Moyo, Aduku, Aboke Pakwach had unreliable solar power supply, and therefore, were not providing emergency obstetric care services when needed” (…) “that various equipment supplied by the project, worth USD 319,676.35 and Euros 347.24, required additional logistical supplies to be effectively put to use. Such equipment included anesthesia units which required regulators, oxygen cylinders and other reagents while incubator cultures, incubator baby, defribrators, counting chamber, colorimeter required Medias, distilled water, thermometers, tubes and batteries”.

When it comes to handling Public Debt Part 2:

“Uganda benefited from the various Debt relief initiatives like the Heavily Indebted Poor Country (HIPC) Initiative in 1998, the Enhanced HIPC in 2000 and the Multilateral Debt Relief Initiative (MDRI) in 2006. Despite these initiatives, GoU borrowing has been rising over the years from USD 5.7 billion in Financial Year (FY) 2011/12 to USD 7 billion in FY 2013/14. The growing National debt, if not properly managed, could revert to unsustainable levels as was the case in the past” (…) “In the FY 2013/14 Public debt increased to USD 7 billion up from USD 6.4 billion in F/Y 2012/13, reflecting a 9.38% increment in one year alone, the increment was way above the GDP growth of 6.2% in the FY 2013/14. Domestic debt accounted for 9.55% (UGX 1,437 billion) of the National budget, 2014/15 an increase of 1.65% (UGX 397 billion) from 7.9% (UGX 1,040 billion) in financialyear 2013/14. External financing on the other hand increased from UGX 2,660 billion in F/Y 2013/14 to UGX 2,733 billion of the National budget, 2014/15 an increase of UGX 73 billion. As non-concessional borrowing increases, the need for proper debt management becomes even much greater” (…) “On average, 60% of public debt is external loans of which Multilateral loans constitute over 80%. The domestic debt is largely derived from the sale of bonds which constituted an average of about 60% over the period FY2011/12 – 2013/14 “ (…) “In evaluating whether the debt, acquisition process facilitates debt sustainability, the audit mainly focussed on the acquisition of external debt since it constitutes over 60% of the National debt portfolio” (…) “The 2012 corruption scandal involving the Prime Minister’s office resulted in a changed relationship between multilateral lenders to the Ugandan government and a consequent reduction in the amount of aid in the form of direct budget support. Budget support in 2011/12 amounted to 168m USD, but reduced to 24.1m USD in 2013/14. The shortfall has in part been filled through domestic financing” (…) “The lack of coordination between debt and cash management functions contributed to inaccurate forecasting of cash needs. This exacerbated the problem of unplanned cuts to government programmes and led to the needless issuance of short-term debt, with the associated debt service costs” (…) “it was noted that local government authorities still held significant cash balances accrued from non-tax revenues and unutilised balances which were not remitted to the Consolidated Fund regularly, and that some accounts containing cash lay dormant, risking embezzlement” (…) “the current economic conditions characterised by reduced exports and a depreciating Ugandan Shilling against the dollar (30% for the last 4 months) there is a risk of stress which can affect future sustainability. Interest rates on domestic debt remain a cause for concern due to their high contribution to overall debt service costs (78%)”

When it comes to Health Care Part 2:

“Over the past three financial years 2011/12, 2012/13 and 2013/14, there has been an 18% increment in the funding of RRHs from UGX 53.86 billion to UGX 63.56 billion” (…) “Jinja nd Lira RRHs revealed that Jinja RRH which ran a 13-bed Intensive Care unit only used 6 of the beds, leaving 7 beds idle in the unit while Lira RRH had not utilized its 16-bed ICU since FY 2012/13. The Hospital Directors of Jinja and Lira RRHs explained that more nurses wouldhave to be deployed as each bed required at least 2 full time nurses to the unit to ensure full utilisation of the unit without compromising the quality of care. The unit would also require full time doctors and an anaesthesiologist. In Lira RRH, management explained that the ICU had not been commissioned and that its underutilisation was also due to the absence of an oxygen plant” (…) “With the current ICU bed capacity in Uganda of 61 in all public and private hospitals, 23 unutilized ICU beds in Jinja and Lira represents a wasted resource. It is estimated that about 10 critically ill patients were deprived of ICU admission daily and as a result succumbed to their illnesses” (…) “Hospital managers in response attributed this to the lack of bio medical engineers and high costs of repairing the equipment, for instance, according to Jinja RRH, the maintenance of the En-Visor ultra sound machine and the repairs of the Duo-Diagnostic big x-ray machine requires not less than UGX 15 million, and without a medical equipment maintenance fund, it is a challenge to maintain and repair the radiology and imaging machines. Management of Fort Portal RRH attributed the low usage of the x-ray and ultrasound machines to stock-outs of the supplies, such as reagents and films required for the operation of this diagnostic equipment” (…) “The average doctor-patient ratio per year in RRHs was 12440:1 implying one doctor for 34 patients per day while clinician- patient ratio was 10652:1 annually implying one clinician for 29 patients” (…) “For example; Kabale, Fort Portal, Masaka and Mbale Regional Hospitals referred some special cases to Mbarara RRH for services like CT scan, renal dialysis, neurosurgeon, paediatric surgery. In addition, lack of adequate staff has led to referrals to the National Referral Hospital and this has further resulted in the congestion and handling of cases at National Referral Hospital which cases could be handled by the RRHs. The process of referrals is costly and in some cases patients lose their lives in the process of reaching the health facility to which they have been referred”.

 When it comes to Management of Sewage in Urban areas:

“Poor sanitation costs Uganda 389 billion shillings annually, equivalent to 1.1% of the national GDP” (…) “Fifty six percent (56%) of the pipes in Kampala were built in the 1940s and 86% of these have been operational for 35 years or more” (…) “National Water and Sewerage Corporation (NWSC)” (…) “NWSC had spent UGX 10.9billion towards sewage management activities in the areas under its jurisdiction over the last three years” (…) “the volume of sewage generated in the different towns and the volume of sewage collected and treated by NWSC, a study conducted by Mott Macdonald on behalf of NWSC in December 2012 estimated that by 2014, a total of 238.9 ML of wastewater would be generated of which, only 8.38ML would be collected and treated. This leaves approximately 230.52 ML of generated sewage uncollected and therefore not treated”.

Short ending:

I hope this was worth your time and also giving you an indication on the matters on the ground. This is just a fragment on the matters and what got told in the report. This just comes as gift to you. Especially to all of you who don’t use time reading the report on your free will or are lucky enough to get the report in your mailbox. Never the less, hope you got enlighten and also got a picture on how the monies is spent in last FY. Peace.

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