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Minister Kasaija are borrowing more money, because of a shortfall he say!

Uganda is your country. When you’re writing a story, ask yourself if it is going to build or destroy Uganda. Is it going to bring peace or anarchy?” (…) “I’m advising my good friends of New Vision that for the good of your country, do not publish stories that are not true. My telephone number is known by everyone, call me. If I can’t respond then wait, because I’m also a busy man but I’ll respond. Let me repeat, for the good of your country, please don’t publish false stories” – Matia Kasaija, Minster of Finance.

I know, some people get touchy when stories comes out. Out of the woodworks suddenly the questions arise and people are thinking? Why? Why does the state borrow even more funds, is it needed even? How come the State, who is already borrowing heavy sums of money from all sort of bilateral, multi-national banking institutions suddenly need to borrow money from domestic sources. That question should be asked and need to questioned. Since the reality of the matter, isn’t what it is used to, since this government cannot even explain where the PTA Loans went. It is amazing how things are going, that the State can take up loans like this after already no accountability on the previous ones. The same minister is already questioned for the loans done with PTA loans, who knows what else that has gone missing, as the GAVI and CHOGM Funds of the past suddenly vanished into thin air, hard not imagine that this could happen again.

“Yesterday, Monday 19th February 2018 the New Vision Newspaper front page lead headline stated that Government is borrowing UShs. 700 Billion to pay salaries for public servants. I would like to inform the General Public that this story was an exaggeration of the proposed borrowing that I laid before Parliament. We borrow to a large extent to finance capital development and production. In my letter dated 9th February 2018; I submitted a proposal to Parliament seeking authority from the House, in accordance with the requirements of Article 159 of the Constitution of the Republic of Uganda, to borrow additional Ushs 736 Billion from the domestic financial market to finance the Budget for FY 2017/18” (Uganda Media Centre, 2018).

This money will go to “development and production”. We can wonder where that is, if it is the bills of Gen. Salim Selah hotels as the seedlings delivered by, Operation Wealth Creation (OWC) is lack-lustre at best. Who knows where all the pooled monies for NAADS are going, but clearly not all of it is not going to micro-economic benefits for the society.

Shortfall is clearly there and the weak economy, that has been juiced up and run like a drunk seaman. That is why as the last end of bottle of beer is there and the need to go down to the bar and buy more brew on credit. That is the ordeal of the day. It is not a narration by Morgan Freeman and a beautiful tale of forgiveness and hope. No, it is a tragic day of even more debt, this time internally and used by the state. Since they are embezzling and taking away funds from the public. This will create more pressure for liquidity in the banks who borrows to the state, as this is taking from their own reserves to bailout the state. Eventually, the state has to find other funds to pay back the banks.

It doesn’t take a wise to understand, that adding more debt, while growing debt and also paying interests is a vicious cycle. They are recycling loans and adding more interests and more debt to be repaid in due time. We can just pound on that and wonder why the state hasn’t made a budget that is within the reach of the economy, but the government isn’t like that. They are spending money like there are no tomorrow. Having one beer, another one and another one. Now it’s drunk and don’t want to lose the edge, the steam and the good feeling of tipsy. The state doesn’t want to get the hangover and deal with the cure. They just want to shug more bottles and hope no one notice. Peace.

Reference:

Uganda Media Centre – ‘Statement on the proposed government borrowing of UGX 700 billion #UGCabinetResolutions’ (20.02.2018) link: https://ugandamediacentreblog.wordpress.com/2018/02/20/statement-on-the-proposed-government-borrowing-of-ugx-700-billion-ugcabinetresolutions/

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Stanbic Bank Uganda – Public Notice: “Corporate Re-Organization of Stanbic Bank Uganda Limited” (19.02.2018)

Uganda: UPDF and Guardian Primary School Authorities Standoff (13.02.2018)

PTA Bank Loan Scandal: US$200m gone missing, you don’t loose that amount money, you spend it!

The government has announced plans to borrow US$200m from the Eastern and Southern African Trade and Development Bank (known as the PTA Bank)” (…) “It will, however, do little to ease the near-term pressures. The weak currency is pushing up the cost of external debt (the new PTA Bank loan will add to the burden of US dollar-denominated debt), while high interest rates are driving up yields on domestic securities. The government originally budgeted USh172bn to service external debt in the current 2015/16 fiscal year and USh4.8trn for domestic debt, but the actual outlays will exceed this” (The Economist, 2015).

In today’s exchange rate the loaned planned would be 727,749,571,653.20 Uganda Shillings, or UGX 727bn. So that means that the Minister of Finance Matia Kasaija cannot find the documentation for a huge amount of money. This isn’t a lost pocket or recite, this is like loosing bank. However, we know the context, the loans that came from PTA came within months of the General Election and the Campaigns. Therefore, we can imagine where the money has gone. That is just speculation, but National Medical Stores (NMS) has given some signs, that the PTA Loans was not for them.

In June 2017, the Public Notice of NMS said this:

This funding facility was the PTA Bank loan, which was later approved by Parliament on 26th April 2016. The record on the Hansard clearly indicates ugx. 68billion required to avert an impending crisis at NMS as one of the primary reasons why the loan “should be urgently” approved. If NMS was therefore not meant to get the ugx. 68billion as additional funds, then the Ministry of Finance, Planning

and Economic Development misled Parliament” (…) “NMS provided the contracts by a letter

dated 13th September 2016, and waited for disbursement of the money from PTA Bank. However the said funds have to-date not been provided. This fact was brought to the Ministry of Health and the Permanent Secretary/ Secretary to the Treasury on 27th March 2017. It is important to note that the PTA Bank Loan, was approved by Parliament on the understanding that part of the Proceeds would go to NMS to cover the sh.68billion deficit” (…) “We wish to restate that if this money is not provided, over and above the Budget for FY 2017/18, all Health Centre IIs, IIIs and IVs, including those of UPDF, Uganda Police and Uganda Prisons, shall not receive Medicines in the FY 17/18 except ARVs, Vaccines, ACTs and TB medicines” (NMS, 2017).

Although documents indicate that PTA Bank released the loan basing on documents submitted by the agencies, it was never remitted to them accordance with the agreed terms of the funding. Last week while requesting for a supplementary budget for NMS, Finance State Minister David Bahati was put to task to explain why NMS lacks funds to procure medicines yet the funders released the money in November last year. MP Cecilia Ogwal (Dokolo) wondered why NMS was going through a financial crisis when Parliament approved a loan request of $200m. During the meeting yesterday, members put Bank of Uganda officials led by the Governor Tumusiime Mutebile to task to explain whether the loan was released from the funders to the respective recipients. Mutebile told the committee that between October20th 2016 and May 23, 2017; BOU received $97.9m from PTA bank and transferred all the money to the Ministry of Finance Consolidated Account as instructed by the Ministry of Finance. “How it was used, is the ministry of finance to explain,” he said” (Karugaba, 2017).

So just part of the loans that trusted to NMS never came and never was delivered. The amount of funds needed the crisis in the NMS was not given. Therefore, the lack of oversight of the funds and the loans was evident even last year. Still, PTA Loan of 2016 has not been honored. The BoU will explain what happen after the money was released. So, it means that the documentation of receiving it is there, but what happen after is now gone. The NMS are clear, the BoU, but not the Ministry of Finance, Planning and Economic Development (MoFPED).

Just to put the loan in more perspective, even the World Bank described there in January 2017:

Uncertainties related to both local and external events, including the freezing of new loans by the World Bank and the impact of the results of the Brexit referendum and the US presidential election being the most significant causes of this uncertainty. This is notwithstanding the fact that the Government has contracted balance of payments support credit from PTA Bank to provide the BoU with sufficient resources to prevent spikes in the foreign exchange market when the need arises” (World Bank, P: 11, 2017).

However something that is striking is the Letter of intent written by BoU Governor Tumusiime Mutebile and Minister of Finance, Planning and Economic Development Kasaija. Who both prepared a statement, to build trust in the economy and the loans made by the government.

Who wrote this this to IMF on 18th May 2016:

Government requested a line of credit of USD 200 million from the Eastern and Southern African Trade and Development Bank (PTA Bank). The three year revolving facility has terms that are deemed more beneficial than those prevailing in the domestic markets at the current juncture and near future, so we plan to use these resources in FY2016/17 and FY 2017/18 to finance our deficits. Therefore, these resources will replace existing, more costly domestic financing, rather than expanding the available envelope. We will not use the loan in FY2015/16” (Kasaija & Tumusiime Mutebile, P: 6-7, 2016).

While this story started after Public Accounts Committee in the Daily Monitor this:

Two of the most prominent Banyakigezi – Bank of Uganda Governor Tumusiime Mutebile, secretary to the Treasury Keith Muhakanizi and other top officials in the Finance hierarchy are set to answer questions over how Shs340 billion of Shs720b ($200m) loan meant for medicines and rural electrification was used. They are going to be quizzed by Parliament’s Public Accounts Committee (PAC) with the vice chairman Gerald Karuhanga saying that Muhakanizi, Mutebile, Auditor General John Muwanga and Mr. Lawrence Semakula, the acting Accountant General have been summoned to appear before MPs on Wednesdays to “explain the whereabouts of the money because no agency has received anything.” Mr. Muhakanizi called the probe ‘misdirected’ because ‘everything was done properly and I will prove that with documents.’ He said the money was pooled into the consolidated Fund and spent on approved expenditures” (Daily Monitor, 05.07.2017).

On the 13th June 2017, Treasury Secretary Keith Muhakanizi tried to explain where the money went:

As explained above, all the funds disbursed from the PTA Bank Loan have been fully accounted for. ii No funds has been lost as the Monitor Newspaper has alleged. iii I thank the PTA Bank for quickly providing the funds to the Uganda government when needed. iv It is, therefore, professionally unacceptable for Monitor Newspaper which has represented at the meeting of PAC in Parliament on Wednesday 7th June 2017, to have published an incorrect story in its editorial of 11th June 2017” (New Vision, 2017).

However, the story is not ended in last year. The PTA Loan continue to haunt the MoFPED and the BoU. They both have answers to give. Now a few months later. The answer from MoFPED are differently. Because the Treasury suddenly promised documents in June 2017. However, we are in February 2018 and still not there. Even his own defense that was a notice in the New Vision. Now a half year later, we see the same story and the same issue in the Parliament. That the same amount of monies are not accounted for. The same actors are trying to defend it. The whole affair smells not like Teen-Spirit, but more of State House affair. Since, they are trying to defend the misuse of funds and loans in the timeline of Campaigning. That is what it seems. Since suddenly during campaigns and such the needs for funds is there. Paying off political parties and loyal commissioners. There are so many things to buy and needs. So much material, buses, t-shirts and bribes. You have to print massive amounts of money. In a way where the State House also always needs bigger Supplementary Budgets after the General Election of 2016.

Here is the movement today:

Mr Kasaija yesterday failed to present a personal statement detailing what went wrong with the loan but maintained that no money was “stolen” as he fought to save his job.“I request that we should give an opportunity to a government authority to find out where this money went. But I want to give assurances to this House that no money was diverted or stolen,” Mr Kasaija said. With the loan approved only after the Finance ministry changed its labelling, Speaker Rebecca Kadaga last evening ruled that she will today make a decision regarding the fate of the report, with the duos fate set to be decided today. “I may not talk much but I had engagements with Ministry of Finance over that money. I had engagements to remind the ministry that that money was partially borrowed for NMS. I had meetings in my office over that money,” Ms Kadaga ruled. The loan put the Executive and Parliament at loggerheads with the Speaker at some point ordering the Rules Committee to investigate Mr Kasaija over contempt of Parliament as the fallout escalated” (Arinaitwe, 2018).

So still to this day there is no proof of where it went. Even if the trail leads to two familiar faces, the MoFPED Kasaija and Treasury Muhakanizi, who both trying to save faces. This all seems like misused funds from the Consolidated Funds for Campaigning. Since it was not used for the Rural Electrification Funds or the NMS. Who was both in dire needs, but not important enough. The NMS has lacked it anyways, and not gotten the needed medicine.

Therefore, the two financial heavy-weights has to either forge the paper-trial, since the NMS and the other agencies hasn’t received the funds. They have been spent elsewhere. Suddenly missing and that Muhakanizi uses so long time, that from June 2017 to February 2018 is unbelievable. If you use that long time proving parliament where the funds went. You know there are some shady misuse of it. It has gone to all sorts of activity, to tear-gas, paying police officers to keep Besigye under house arrest and whatnot. Because it didn’t go the place where the MoFPED and BoU promised.

This the GAVI Funds and CHOGM scandal all over again. This isn’t new, it is just PTA Bank loan gone missing. You miss a shilling, you miss a book or even some keys. But you do not loose this amount of money. They have gone to a growing patronage and securing the President’s Private Plane or something. Peace.

Reference:

Arinaitwe, Solomon – ‘MPs plot to censure Kasaija over Shs700b’ (07.02.2018) link: http://www.monitor.co.ug/News/National/MPs-plot-censure-Kasaija-over-Shs700b-/688334-4294524-r1k3ls/index.html

The Economist – Intelligence Unit – ‘ Loan secured from regional bank’ (11.12.2015) link: http://country.eiu.com/article.aspx?articleid=63762990&Country=Uganda&topic=Economy&subtopic=Forecast&subsubtopic=Fiscal+policy+outlook&u=1&pid=923837876&oid=923837876&uid=1

Karubaga, Mary – ‘Finance makes U-turn on sh150b NMS loan’ (08.07.2017) link: https://www.newvision.co.ug/new_vision/news/1455202/finance-makes-sh150b-nms-loan

Kasaija, Matia & Prof. Emmanuel Tumusiime Mutebile – ‘Uganda: Letter of Intent, Memorandum of Economic Financial Policies, and Technical Memorandum of Understanding’ (18.05.2016) link:

NMS – ‘CLARIFICATION ON FUNDS RELEASED TO NATIONAL MEDICAL STORES (NMS) FOR PROCUREMENT, STORAGE AND DISTRIBUTION OF ESSENTIAL MEDICINES AND HEALTH SUPPLIES (EMHS)’ (16.07.2017) link: https://www.nms.go.ug/jdownloads/Press/NMS%20Full%20pg%202017.pdf

New Vision – ‘Clarification on Allegations that US$200 million meant to procure medicines for health centres and implement Rural Electrification Projects Went Missing’ (17.07.2017) link: https://www.newvision.co.ug/digital_assets/fa485f48-5a96-4b7b-be1a-3969e7a45cc3/9-Min-of-finance.pdf

World Bank – ‘Uganda Economic Update 8th Edition, january 2017 – Step by step Let’s solve the finance puzzle to accelerate growth and shared prosperity’ (January 2017) link: http://documents.worldbank.org/curated/en/662191486394023103/pdf/112621-WP-P161699-PUBLIC-UEU-8TH-edition-final-for-web.pdf

Opinion: Bribes are NRM’s M.O. during elections, however EC Chairman Byabakama says its a “evil partner”.

Today I am writing about certain comments made by the guy that took over the Election Commission after Dr. Badru Kiggundu, he is legend for his ways and his math. So Dr. Kiggundu will not be forgotten, that is why I have struggled to take this fellow serious. Because Kiggundu destroyed the EC and made it look like a foolish organization filled with cronies who has a love-affair with Yoweri Kaguta Museveni. That is true and therefore, all By-Elections since the General Elections 2016 have been in favor of National Resistance Movement (NRM), except Kyadondo East, which Bobi Wine topped with his huge star-power and speeches. So that Justice Simon Byabakama hasn’t been on my radar. This because the NRM has controlled and in-certain themselves in the by-election, where the opposition parties and independents has no control. Byabakama couldn’t do anything wrong and the NRM can just do whatever. That is how it has been for various reasons, but the NRM are really not trying to have a multi-party state, that is just a piece of flesh on the bone for donor-aid, but not for reality.

So before I rant, here is the statements on the EC Boss I will discuss today:

According to Byabakama, bribery has become an evil partner with elections in Uganda. “But we are made to understand that bribery has become an evil partner with elections in this country, this undermines the quality of democracy,” he said” (…) “The law says an election result can be cancelled on grounds of bribery, despite the amount involved” (…) “Can you imagine an exercise that has cost the stakeholders, including security about sh1b being cancelled because of sh1,000 or a sachet of waragi or bar of soap? Do we really have to go to the school of economics to understand that this is not tenable in economic terms?” Byamukama wondered” (Nambogga, 2018)

Well, Byabakama have been under a rock or not followed what the party that appointed him and anointed him to become Electoral Commission Chairperson. That the Chairperson didn’t know how the ruling regime and the ruling party has acted during elections. It isn’t only misuse the army and the police as a political tool during elections. All of the state coffers and reserves are used.

Therefore, that the Chairperson Byabakama are now saying bribes are bad. He should start discussing this with the Entebbe State House. Who has sanctions the give-aways to Pastors, Residential District Commanders and others who was getting Prado’s and SUV’s within days of the Election. That is the big buys of loyalty and bribes.

The others are the voter tourism, a definition that came about because between 2015 and 2016, the NRM party and their organizers hired buses, paid t-shirts and food for villagers to bigger local rallies. They even gave smaller sums of cash to the people to listen to Museveni and the group of musicians that was also paid massively for their campaigning for the President. It is sort of hard to forget the massive amounts of shillings spent on the Campaigning of the President. Only for November 2015, the NRM Party spent massively 125bn shillings. That is something one report said and could calculate. The other months up-to February 2016. Can question the whole spending of the NRM. Every single rally before the February 2016 was biggest breaches of bribery of voters. It’s like the Chairman was blind to this or was himself in Finland while it was happening.

The evil partner of bribery is built in the system of corrupt behavior from the State House. They misuse all parts of government and all parts of society. If there isn’t loyalty, it can be shut-down. That is how Museveni works.

So my question to Byabakama: Will you ask His Excellency, if the Party has any plans of stopping to bribe the public every time there is an election?

If you do? Can you also get the New Vision to publish that too? So we can again see how to-faced Museveni is. Thanks. Peace.

Reference:

Nambogga, Jackie – ‘EC Boss warns against bribery in politics’ (04.02.2018) link: https://www.newvision.co.ug/new_vision/news/1470404/ec-boss-warns-bribery-politics

Uganda: The Medical Interns Executive Committee letter to Ministry of Health – “Re: Concern about the Payment of Allowance for January” (02.02.2018)

The weird arrest of DPC Kirumira show’s us all what is wrong within the UPF!

The case of District Police Commander Buyende Muhamad Kirumira today is a warning, since he was set for a Police Tribunal in Naguru. Still, that was of no concern to the officers and the commandos storming his home today.

What is striking is that he gets his house raided with live-bullets, without court-orders or warrants, while being a Police Commander who has resigned and awaiting Police Tribunal. Therefore, the Police couldn’t await their own instruction and following procedure, to assign his early departure from his home and evict him with force. It shows the world how ridiculous their current activities is.

It is an overall sad day for the Police Force in the Republic, that they are doing this to their own. That a man questioning the powers to be and IGP Kale Kayihura, are now hunted down like a chicken thief, when he himself has enforced the visions from the top and gotten rank. You don’t rank and titles, without following orders and doing the jobs assigned to you. That is what a DPC has done and how he became that, initially that hasn’t mattered.

That they are sending the Flying Squad or the Special Forces Command to apprehend a DPC, show’s how ill the system within the Police is. Not only that they work with Kifeesi gangs, and Boda Boda 2010, but that the rotten core is now shaking. When one of their own is questioning their methods and behavior. Therefore, because he does that, he has to suffer. Not the ones who made the system, but the ones that talks about it.

He is whistleblower, who open a lid of a can of worms. That is why the IGP and the Flying Squad came to his house. They cannot accept their dirty on public display, even if they tarnishing their reputation just a little more by doing so. That the Police and Flying Squad has acted with sound minds, is evident. Especially with the knowledge of a upcoming Police Tribunal.

There was no need of what happen today. No need and no haste, especially without any court order or warrants. They we’re loose goose hunting and hoping to catch a sitting duck. Instead, they found a raging bull, who knew his rights. Certainly, the Flying Squad should have anticipated that, instead they are treating him like a common criminal.

That is insane, but shows also the state of affairs and how little trust it can be within the force. When they can take down their own without any consideration or protocol. That is a warning. That is a sign. It is dark times and the Police is not showing brilliance, more of disappear! Peace.

Uganda Police Force – “Press Release on the Alleged Resignation by ASP Muhamad Kirumira, DPC Buyende” (31.01.2018)

UPDF Press Statement on Boda Boda 2010 (29.01.2018)

An anecdote on how Uganda isn’t a Democracy: An answer to the Liberation Day Speech of President Museveni!

For to be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.”Nelson Mandela

Today is the 32nd Liberation Day or National Resistance Army/Movement Day, the day that ended the Bush-War of the 1980s in Uganda. Where President Yoweri Kaguta Museveni made his career from being a Minister and a Rebel to become the President. A position and an executive, head of state who has shown no signs of stepping down. He was supposed to be the next generation of leadership. He was the positive force in 1990s and was golden-kid for Bill Clinton on the Continent. While that has disappeared and with time his legacy has withered. Museveni has closely become all the things he fought against, he still tries to use the language and the charisma that he had in his younger days. But its all facade, it isn’t the real deal. That I why I don’t care to drastically demolish the whole speech.

I will just take one principal and one point of it. Because it waste of time to do more at this point of time!

The fourth principle of the NRM is the democracy. Democracy is clear enough. Ugandan’s democracy, the democracy pushed by the NRM, is much richer than anything, anybody, has attempted to do in the world, other than the ancient Greeks who produced direct democracy, in the City States. We have empowered women, the youth, the workers, the disabled, the soldiers, etc. The NRM democracy must be kukyenuura-based through production of wealth and jobs creation. Kukyenuura means to solve a solvable need” (Yoweri Kaguta Museveni, 26.01.2018).

Well, I don’t know how to start. Let’s talk the steady usage of arbitrary arrests of activists, opposition party members, civilians and direct arrest of opposition leadership. Most of the opposition MPs and leaders has at some point been detained, in court and had cases going against them. The biggest opposition leaders has been charged with treason. Some has been house-arrested without warrants or court-orders for months upon end. So just by looking how the Police and Politics is intervening, you know that the democratic values of the NRM is not going skin-deep. It is more, just to have it, but not making it real.

Another point on Democratic values is to let opposition parties hold consultation meetings, even rallies during election periods and meetings in general to gain interest for their causes and pledges. Clearly, that should be natural, but the most violent and where the most police brutality appear is every time an opposition party leader has a campaign rally. There will be tear-gas, live-bullets and even civilians killed, people patching their hurt in hospitals. All this for showing up to rallies. There been brutal beatings of civilians walking around the area of an opposition rally, they could get hurt or arrested. Even if they even wasn’t involved. This is just the gist of the madness of the Police Enforcement, not even putting in the measures of interrogations, confiscating of party materials, suspensions of campaigns, court orders and even closing of Party Headquarters. All of this is done, to prove that the NRM can do what they want and opposition has to fall in line. This would never happen to the NRM or his party.

Now I just pointed out the arbitrary arrests and crashing of rallies. Haven’t even started on actually balloting and such. I could have continued on the assaults on Democracy with just quotes from the President in 2015 or 2016, even in 2017. He has enough and promised enough venom on the opposition to fill whole books of vomit for our ears and our minds. So, I don’t care for repeating that. I don’t deserve that and neither do you.

Because, the flaws of the Democracy in the Republic is to gigantic in a simple post. Museveni has made sure of that, so that he owns the Members of Parliament, he orders everything as he wants from the State House and secured Life Presidency through yet another change of the 1995 Constitution in December 2017.

So that President Museveni speaks of Democracy and having the best. He better get his mind corrected, get his vision checked and his initial understanding of democracy put under a stethoscope. Museveni has left nothing behind, but cronyism and corruption. Where he is the sole-benefactor and his family. The rest has to beg from him and they are just useful tools for his agenda.

He is the Sole-Candidate, the Sole Party and the Commander-In-Chief, he is the General and the President who doesn’t let anyone succeed him. He didn’t accept losing a rigged election 1980 to Dr. Milton Obote, he has since then fought himself into power in 1986. Since then rigged himself and used all means to stay in power. Therefore, he is not the fella to educate people in Democracy or Democratic values. He should be the last person. Peace.

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