Nakumatt Applied to the High Court to go into Administration (30.10.2017)
I write what I like.
“We are struggling, the situation is not as easy, but we are not desperate and the situation is under control. For us [government] we are ready to listen and to learn” (…) “The economy is not receding, the disposable income for drinking may not be there but we are not in recession” (…) “To avoid having arrears, we have to budget appropriately and the money budgeted for has to be absorbed” said Finance Minister Matia Kasajja earlier today (Oketch, 2016).
Nakumatt Holdings is apparently struggling as evident today of their Corporate Statement, that they have to even state it to the Nation, even after the takeover of Shoprite Supermarket Limited; they are still not financial stable. This news is coming days after the Crane Bank got into Administration by the Bank of Uganda (BoU). That after the bank tried to subdue the public together with the BoU in September, telling that the Bank we’re not looking for new owners. This is happening while the troubling times for Cairo International Bank and United Bank of Africa (UBA) Uganda… this is known as the Prof. Emmanuel Tumusiime-Mutebile of BoU said they we’re under notice.
Just as this is known in March 2016 the Exim Bank Uganda, that is a subsidiary of the Exim Bank of Tanzania. That bank took over Imperial Bank of Uganda and also Imperial Bank of Kenya. This is banks licenced by the BoU. So there have already been issues for the banks in Uganda, just more silent movement as the Investors of Exim Bank wanted it to die down.
Cancelled funding from Exim Bank:
“The major funder of Karuma and Isimba dams has withheld money for the country’s two biggest hydro-power projects until the legal disputes in Ugandan courts about the two ventures are resolved. The Export-Import Bank of China has written to Uganda’s Ministry of Finance, asking the Secretary to the Treasury, Mr Keith Muhakanizi, to explain why the ministry submitted to them documents of due diligence on the two dams and confirming the tendering process had been properly concluded yet the power projects are now a subject of litigation in court” (…) “Mr Muhakanizi was in State House yesterday for a meeting with President Museveni, but after consulting him, Ministry of finance spokesperson Jim Mugunga said: “It is true that the Export Import Bank of China like any other responsible party, expressed concern about the court case by a concerned Ugandan citizen which listed the bank among defendants. The Government of Uganda, through the Attorney General, secured a court order dismissing the case against the Exim Bank. The bank, therefore, is no longer party to the suit and the PSST Mr Keith Muhakanizi this week communicated the same to the bank.” (…) “Mr YuMeng expressed concerns that the outcome of the case in question would affect the commercial contracts related to Karuma Hydropower Dam and Associated Transmission Lines Works and Sub Stations Project, the 183MW Isimba Hydropower Project and the Isimba-Bujagali Interconnection project under Preferential Buyer Credit facility” (Mugerwa, 2016).
This is new that the Exim Bank is answering with postponing the building of the dam. Something that is the Markie and big Infrastructure projects that the Movement needs to shine a light into the dim situation of the Government. Certainly this answer from them could not be anticipated by President Museveni and his friend in the State House.
This is not the first blow this year as Uganda National Roads Authority (UNRA) has been under fire all year ever since first response from World Bank on the 8th January 2016:
“Following the cancellation on December 21, 2015 of the World Bank-supported Uganda Transport Sector Development Project, overseen by the Uganda National Roads Authority (UNRA), the World Bank has suspended the disbursement of funds for civil works in two other projects in Uganda. Those projects, overseen by the UNRA, are the North Eastern Road-Corridor Asset Management Project and the Albertine Region Sustainable Development Project which are suspended pending a review and strengthening of the capacity of UNRA to adhere to the required environmental and social standards” (World Bank, 08.01.2016).
If you though it wasn’t demeaning enough the World Bank continued later in the year with this statement: “UGANDA, September 13, 2016 –The World Bank Group took a decision to withhold new lending to Uganda effective August 22, 2016 while reviewing the country’s portfolio in consultation with the Government of Uganda. We continue to actively work with the Ugandan authorities to address the outstanding performance issues in the portfolio, including delays in project effectiveness, weaknesses in safeguards monitoring and enforcement, and low disbursement” (World Bank, 13.09.2016).
This is now evident that they used all the months from December 2015 to September 2016, that means the suspended funds for the projects been delayed for 10 months already, which is a close to year. Certainly that must hurt the UNRA and Government of Uganda really, really hard. The World Bank has because of this made the UNRA change how their work, as the Director and staff has sacked at a point. Now in October the agreement made between UNRA on behalf of GoU has been looked over and seen that some has been fraudulent and not made with due-diligence.
And your know there is issues in the finance market when even the states own National Social Security Fund (NSSF) have to explain where they invests their funds after social media spreads rumours of buying a mall in Nigeria and borrowing heavy funds from the Banking Sector of Uganda. This is happening as there 3 banks under fire and struggling already and if you forgotten they are Crane, Cairo International and United Bank of Africa. So the citizens and costumers of Uganda are already worried, they have been there before with the Greenland Bank and other who has lost confidence and gotten into receivership.
Yesterday even the IMF has answered the financial issues of the republic under the Movement:
“The mission notes the difficult environment for fiscal policy in FY15/16. While revenue collection increased as a share of GDP, it fell short of program expectations, reflecting lower than projected nominal GDP growth. At the same time, current spending was higher than anticipated. Taken together, the overall deficit target was missed by 0.4 percent of GDP, and the government partly relied on BoU advances for its financing needs. The execution of externally financed projects lagged behind target” (…) “the financial sector remains well capitalized, though non-performing loans have edged up. This has prompted a tightening of lending standards and a slowdown in credit to the private sector. The third largest domestic bank had become undercapitalized, and the BoU appropriately took over its management to protect deposits and safeguard financial sector stability. As a next step, the financial position of the bank needs to be established, and BoU will look for a strategic investor” (IMF, 2016).
If you see all of this and wonder how can this be, that one government has all of this just months after a General Election, than you know something isn’t as it supposed to be. The Government of Uganda are not running a steady ship when a bank is trailing, 3rd biggest commercial in the nation by 19th October into Administration, Cairo and UBA under the watch-list of the BoU; World Bank suspending loans for the Infrastructure Projects that is needed. While the BoU are fixing some financial stability it is not helped by the giving ways of the President Museveni and his dropping funds like a Walking ATM.
“Prof Joe Oloka Onyango said every crisis in this country is being solved by way of brown envelopes, a scenario he described as being sad and far below the rule of law in the country” (…) “In early 1980s, when this country was under the leadership of Godfrey Binaisa Lukongwa, State House was like a market place. Today, State House has been converted into an ATM,” he said amid cheers” (Wesaka & Adengo, 2016).
So for the once that do forget, the ATM Museveni is the cause of the issues that are now; this is his fiscal responsibility and Monetary Policies that made this happen. This is the reactions to the overdue and overspending of the Presidential Campaigns. These reactions should also lead to higher Inflations that it has done before after the elections. Therefore the Finance Minister Kasajja and Executive director Tumusiime-Mutebile have made some progress from previous elections in the Republic. Though the aftermath is now vivid for the citizens who are costumers at Cairo, UBA and Crane… there visible proof and the evidence are in the reaction of the Campaigning as the fraudulent and maladministration of the Banking Sector. This comes into mind as the State House had this message after February:
“As parliament’s budget committee tussled with an avalanche of supplementary budget requests late last week, which totalled Shs 1.04 trillion, some officials confessed that they emptied their initial budget allocations in order to sustain President Museveni’s campaign expenditure. State House comptroller, Lucy Nakyobe, whose office tabled a supplementary budget request of Shs 49.7 billion, told the parliamentary budget committee on April 1 that her coffers were depleted by the so many inland travels of President Museveni, who addressed four campaign rallies daily on average for the campaign period” (Namuloki & Oluka, 2016).
So the debt has to repay and taken from somewhere as the Central-Government, Banks and Multi-National Organizations are stepping off from the Ugandan Government, the Movement are running in circles taking care of their own while the citizens is now trailing and falling off. That is why businesses are giving in.
Just as people might have forgotten the paying of businesses connected to the family and General Salim Selah: “Prominent businesses in the country might soon run out of business if a decision that could see the use of Shs1.3 trillion taxpayers’ money to bailout companies in distress is not taken in their favour” (…) “Talking to Daily Monitor on condition of anonymity, a source privy to the talks revealed that “there is concern that bailing out companies without correcting the economic situation in the country will not resolve the problem.” (…) “The economy is not growing fast enough to generate activity for these companies to perform at full capacity. A bailout will not deal with the core problem. That is the argument being fronted by several government technocrats against the bailout,” the source said” (Muhumuza & Adengo, 2016).
So with this in mind, there are some sound imbalance about the bailouts months before one of the great banks put into Administration, NSSF has to answer for Social Media outbursts, two more Banks on a stroll, State House being broke months ago, UNRA projects suspended by the World Bank, IMF are seeing that infrastructure projects are lagging behind, Exim Bank suspended pay to the two dam projects and the strange bailout. There are too many evidence of lacking financial sound practises… Even Nakumatt the Supermarket are having troubles. There just more pawns on the set ready to move, but how they fall only the kings knows; because the Kings stay King. Peace.
IMF Communication Department – ‘IMF Staff Concludes Review Mission to Uganda’ (26.10.2016) link: http://www.imf.org/en/News/Articles/2016/10/26/PR16462-Uganda-IMF-Staff-Completes-Review-Mission
Mugerwa, Yasiin – ‘Chinese bank holds back Karuma funds’ (27.10.2016) link: http://www.monitor.co.ug/News/National/Chinese-bank-holds-back-Karuma-funds/688334-3431376-qxr194/index.html
Muhumuza, Keith & Adengo, Jonathan – ‘FULL LIST: 65 loan-stressed firms line up for Shs1 trillion taxpayer bailout’ (22.07.2016) link: http://www.monitor.co.ug/Business/65-loan-stressed-firms-line-up-for-Shs1-trillion-tax/688322-3305166-d6h193/index.html
Namuloki, Josephine & Oluka, Benon Herbert – ‘State House broke after spending on Museveni campaign’ (09.04.2016) link: http://www.observer.ug/news-headlines/43556-state-house-broke-after-spending-on-museveni-campaign
Oketch, Martin Luther – ‘Economy is struggling – Minister Kasaija’ (27.10.2016) link: http://www.monitor.co.ug/News/National/Economy-is-struggling—Minister-Kasaija/688334-3432534-t8dv3c/index.html
Wesaka, Anthony & Adengo, Jonathan – ‘State House turning into ATM, says Mak don’ (11.10.2016) Link: http://www.monitor.co.ug/News/National/State-House—ATM–Mak-don-/688334-3411968-1155d8t/index.html
Reports on the elections that lead to the fall of Kahinda Otafiire lost his place as an MP aspirant for the General election in 2016. So he will not be the MP for the Ruhinda South-Mitooma District. He lost to another brother on the ballot who actually is in jail! But first I will address the person and few of his previous actions and issues that he has had in recent years in his position as a government official. So that if the public known all of this it’s a miracle that he is still been staying as a MP and representing this area for that long with all this stories. So hopefully the brother who is jailed and Aspirant for Ruhinda South – Mitooma District has more clean hands then Otafiire! Take a look.
Gen. Otafiire said this this summer:
“I have been with President Museveni for more than 40 years and he has not sent me to my voters. How does he start sending you who have spent the shortest time with him?” (…)”You will be saved by your deeds because at the level of primaries, we are all equal and stopping someone from standing would send a bad signal to the people” (…)”Don’t forget that we have competitors in other political parties who are seeing whatever we are doing. Just identify your weaknesses and plan to be stronger rather than blocking other people who want to stand against you” (Zadock, 2015).
A week later he said:
“I don’t think I am stupid as I appear. With all due respect, you’re insulting my intelligence” (…)”I don’t remember writing that letter although it has a signature resembling mine” (…)”I know Kasango as an officer of court. The documents were signed by Justice John Keitirima, whom I know well. I had no reason to doubt” (Walubiri, 2015).
Some cool quotes from the brother:
“Tamale Mirundi should leave issues of the generals to the generals.” Commenting on Tamale’s verbal attack” (…)”I am 85kg, do you think I have become big because of corruption?” (…)”what was a wetland doing in the middle of a city?” questioning the Nakumatt vs Nema saga” (…)”Even Museveni knows I am fire” (…)”I don’t like this nonsense. That is my private life, it has nothing 2 do with my public life as Minister. Whether I am taking my family out or not is none of your business. You fellow can u concentrate on what concerns u and leave Otafiire’s family alone.” In response to Daily Monitor concerning his Christmas plans” (Ortega, 2013).
Nominated as one of the Most Corrupt of Ugandans in 2012 and he was awarded the spot of number 7:
“Taking advantage of his senior position in the elite network that effectively plundered diamonds, coltan, timber and Gold in eastern Congo, Otafiire set up lucrative business enterprises in the neighboring country and refused to pay taxes, as reveals the 2003 final report of the United Nations Panel of Experts on Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo:” (…)”Members of the Ugandan network are typically tax exempt. The Panel is in possession of documents showing that the network uses its control over the RCD-K/ML rebel administration to request tax exonerations for imports of high-value commodities. The granting of numerous tax exonerations to UPDF Colonel Otafiire between late 2001 and early 2002 is one of numerous cases. Not only did Colonel Otafiire benefit financially but, eventually, those exonerations forced local competitors out of markets in Bunia and Beni, leaving the petrol trade largely under the control of the network” (…)”Even in his own country, Uganda, Otafiire is routinely accused of abusing power. Fourteen years ago, he was dragged to a parliamentary probe committee for allegedly stealing copper rivets worth billions of shillings from an Asian businessman. In 2007, Kahinda Otafiire abused his office as minister of local government when he fraudulently allocated the Nakawa-Naguru estate redevelopment project to Opec Prime Properties Ltd, according to a 2008 report of the Inspector General of Government” (Sseremba, 2012).
1980s Luweero Triangle tricks:
“Obote put it more succinctly to Andrew Mwenda:” (…)”Maj. Gen. Kahinda Otafiire, for example, revealed that the National Resistance Army rebels used to wear UPC colours and then go into villages in Luwero and kill people in order to make the people think these were actions of the UPC government. Otafiire was boasting of the “tricks” NRA employed to win support in Luwero, but was also revealing the sinister side of Museveni and his insurgents… Each time there was a reported case of mistreatment of civilians by the army, we arrested those responsible and punished them severely” (Kalyegira, 2010).
Messy water of 2005:
“Maj. Gen. Kahinda Otafiire, the Minister for Water Lands and Environment, last month fixed the price of water in rural areas at Shs 10 per 20-litre jerry can” (…)”Until last month, prices varied from one area to another, depending on operational costs. Because costs differ, there is fear that a uniform tariff will jeopardise the operations of the water systems and lead to their collapse. This is because the companies can only continue running the water systems if there is a profit to make” (…)”However, Otafiire this week dismissed such fears, saying that the new water tariff aimed to make accessible it to every one. “It was a bad policy. I am the minister and I have changed it,” he said of attempts to develop a business model. “Water is not for commerce. If we can give free medicine, why not free water?” He said only two water schemes with electricity-powered systems would get government grants to subsidise their power expenses” (Kavuma, 2005).
Kenya Probe 2007:
“KENYAN police are investigating a possible link between Maj. Gen. Kahinda Otafiire to a large consignment of sugar currently impounded in Mombasa over tax evasion, but the Local Government minister has denied involvement in the racket” (…)”The huge consignment, worth about Shs 850 million was impounded at Mombasa seaport several months ago after authorities realised its destination papers had been falsified to avoid paying taxes due” (…)”If the racket succeeded, said Port CID Chief Mr John Nyanzwii, then the owners would have evaded the 100 per cent duty paid for imported sugar and the import duty due to the Uganda Revenue Authority. The sugar would have appeared to have originated from Kenya” (…)”Although police authorities in Mombasa had information that the Sugar belonged to Uganda’s local government minister, Maj. Gen. Kahinda Otafiire, he denied the allegations in a phone interview with Daily Monitor last week” (NFV Zone, 2007).
Car Crash in 2008
“THE Minister of Water, Lands and Environment, Maj. Gen. Kahinda Otafiire, crashed his car on Saturday morning and drew a gun at a journalist who came to the accident scene.The incident took place on Kinawataka Road, off the Old Portbell Road at 2:30 a.m. Daily Monitor photo-journalist Mr Mike Odongkara was put at gunpoint by an angry Otafiire and manhandled by policemen who were called to the scene to rescue the minister” (Odangkara, 2008).
Threating to leave NRM in 2010:
“I might have to join another party. I won the elections but my name is not on the list [of party flag bearers released this week]. They are chasing me away. What do you want me to do?” (…)”“If you were in my shoes, what would you do?” (…)”You cannot petition someone who does not want you” (Kiggundu, 2010).
Shell case of 2012:
“Justice and Constitutional Affairs Minister Kahinda Otafiire yesterday failed to show up in court to explain his side of the story in a case in which petroleum giant Shell (U) Ltd sued him over alleged breach of contract“ (…)”Gen. Otafiire, through Benzina (U) Ltd, allegedly negotiated a land lease deal with Shell (U) but later failed to honour it” (…)”The petroleum company now wants a Shs1.2 billion refund for refusal to deliver land to it, which it says resulted in loss of business.” (Wersaka, 2012).
In 2013 Otafiire had issues in the parliament:
“Minister for Justice and Constitutional Affairs has been thrown out of Parliament for Government’s failure to appoint substantive DPP as Cases pile up and suspects spend longer time on remand without trial” (…)”Appearing before the parliamentary budget committee to present the DPP budgetary estimates for this financial year, MPs today ordered Major Gen Kahinda Otafiire out from Parliament accusing government of delaying the appointment of the substantive Director of Public Prosecutions (DPP)” (Investigator, 2013).
Shopping in 2014:
The Minister of Justice was shopping at the Joy Supermarket in Mbuya who is a city suburb on the outskirts of Kampala. After shopping in his trolley he came to the register where he asked the price for each of the picked items in the trolley. The whole shopping spree cost the minister 160, 000 shillings. He started first buy paying it with 50,000 bills. Before picking coins from another pocket there he started to count and used time to make a jam in the star while getting enough coins to pay the balance missing of 10, 000 in small change (Ugandadrone, 2014).
Retired Maj. Gen Kahinda Otafiire storms the tally center in company of security personnel for the Ruhiinda county polls and orders everybody out; and says they must leave everything inside in the hands of one of the security boys; Kahinda Otafiire came along while saying his votes have been rigged. The people and the officials are reportedly refusing to leave the centre.
Gen. Kahinda Otafiire is seriously being given a run for his money according to the pre-liminery report. Capt. Mugabe Dononzio Kahonda is leading with the difference of 4773.Mind you Kahonda did not vote because he is in the prison on allegations that he forged academic documents. Otafiire is also reported to fall behind Hosea Muhanguzi.
Kahinda Otafiire lost to Rtd. Cap. Kahoonda in Ruhiinda County while he is still incarcerated in prison.
Reasons for the fall of Otafiire:
“Gen. Kahinda lost because of his rejection for Mitooma not become a district. This resulted into the district chairman Benon Karyaija who is very popular to part ways with him and become arch enemies. The former Mitooma district NRM chairman Tito Nsigireho, district speaker silver Tumukuratire, finance secretary Bamusiime Muhwezi have all been against Otafiire since 2010 when they defeated him and Mitoma was granted district status from Bushenyi district. Still in Mitooma district, Thomas Tayebwa won in Ruhinda North with over 80%. He was contesting against one Musinguzi. Ruhinda North is a new constituency that was curved of Ruhinda this year” (Muhwezi, 2015).
If this wasn’t interesting then I don’t know; we can see that with the fix of somebody else as flag-bearer in the district, especially since the district was split of the districts in the area. Also with losing the loyalty of patrons in the area, that cost him a lot of votes. So I am sure that Mr. Otafiire can become Minister Without Portefolio or something in the 10th Parliament. Now we have seen that the future handpicked loyalist of the Party, not because the locals in Ruhinda want him anymore. Peace.
NFVZone – ‘Kenya Police Probe Otafiire Over Sugar’ (20.11.2007) link: http://www.nfvzone.com/news/2007/11/20/3108994.htm
Kalyegira, Timothy – ‘Rwanda: How RPF and NRA perfected the human atrocities to blame it on Hutus’ (18.03.2010) link: http://rwandarwabanyarwanda.over-blog.com/article-rwanda-how-rpf-and-nra-perfected-the-human-atrocities-to-blame-it-on-hutus-46935719.html
Kavuma, Richard M – ‘Otafiire upsets water experts’ (25.08.2005) link: http://www.worldwatercouncil.org/fileadmin/wwc/Sections_for/Journalists/Water_Media_Program/wmp_resources_kavuma_25.08.05.pdf
Kiggundu, Edris – ‘Gen.Otafiire threatens to quit NRM’ (23.10.2010) link: http://www.observer.ug/component/content/article?id=10614:genotafiire-threatens-to-quit-nrm
Muhwezi, Wilber – ‘PRISONER CAPT. KAHONDA DEFEATS GEN.KAHINDA OTAFIIRE’ (27.10.2015) link: http://mknewslink.com/prisoner-capt-kahonda-defeats-gen-kahinda-otafiire/
Investigator – ‘Otafiire thrown out of parliament over DPP’s appointment’ (08.08.2013) link: http://news.ugo.ug/otafiire-thrown-out-of-parliament-over-dpps-appointment/
Odongkara, Mike – ‘Otafiire crashes car, pulls gun at journalist‘ (08.05.2008) link: http://mikeodongkara.blogspot.no/2008/05/otafiire-crashes-car-pulls-gun-at.html
Ortega, Ian – ‘Kahinda Otafiire Quotes (Compilation)’ (31.07.2013) link: http://bigeye.ug/kahinda-otafiire-quotes-compilation/
Sseremba, Yahya – ‘10 Most Corrupt Ugandans’ (19.04.2012) link: http://campusjournal.ug/index.php/special-report/investigation/471-10-most-corrupt-ugandans
Ugandadrone – ‘Kahinda Otafiire causes jam in a supermarket counting coins’ (15.12.2014) link: http://ugandadrone.com/kahinda-otafiire-causes-jam-in-a-supermarket-counting-coins/
Zadock, Amanyisa – ‘Stop deceiving voters, Otafiire tells aspirants’ (05.06.2015) link: http://www.monitor.co.ug/News/National/Stop-deceiving-voters-Otafiire-tells-aspirants/-/688334/2740506/-/ure9e3/-/index.html
Walubiri, Moses – ‘I am not as stupid as I appear – Otafiire’ (14.06.2015) link: http://www.newvision.co.ug/news/670963-i-am-not-as-stupid-as-i-appear-otafiire.html
Wersaka, Anthony – ‘Otafiire shuns Shell case mediation’ (18.05.2012) link: http://www.kigalikonnect.com/article/otafiire-shuns-shell-case-mediation.html