MinBane

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Archive for the tag “North Eastern Road-Corridor Asset Management Project”

Possible outcome of the revised Investment Code of 2017!

Yesterday at the Plenary in the Parliament, discussed the revised Investment code of 2017. Which in its self isn’t the most exiting thing. Nevertheless, the reality is that this is now in Parliament shows a push from the Members of Parliament and the Committee of Ministry of Finance, Planning and Economic Development (MoFPED). That they are up to something. They are trying to forge something ahead. However, as the President has claimed the bureaucrats for being lazy, this shows another attempt. However, if this parts of the laws are enacted. Will ensure that it takes longer and the quality of the Foreign Investor to hold onto the new demands of the state. This will also give more power to the Uganda Investment Authority (UIA).

As the September report on the bill states. They will register all investments and all incentives inventory, as off who is doing what and licensed to do. As the Foreign Investor has to comply too a more rigid laws to be able to in the first place now.

Because the change of laws is that an exports of a minimum of 70% of the production in the given incentive, hire at least up to 60% Ugandan citizens and accept to monitored by the authorities and the statutes within the law. This being the UIA, which has the oversight.

The Incentive before launching has to verified and certified by the UIA. The same authority that has oversight and register the incentives. The Foreign Investor has to notify the UIA if they are complying with their inventory to the UIA as per law.

As to make it more hectic for anyone to invest is not allowed to directly to be investing in farming, as production of agricultural output. They cannot do that, but they can be able and allowed to own factories and businesses that helps the farmers to get better crops or bigger livestock.

The law states further the priorities for a Foreign Investor, as per law: “1. agro processlng; 2. food processing; 3. medical appliances; 4. building materials; 5. light industry; 6. automobile manufacturing and assembly; 7. household appliances; 8. furniture; 9. logistics and ware-housing; 10. information technology; or ll. commercial farming”.

This really put the parameter for what they can and cannot do. They are specific as to who allows, what sort of investment, who certifies and who monitors. Therefore, a foreign investor, by law has to comply a lot more and has to have more paperwork to prove his business-plan, prove his investment, his hires and his initial plan for getting exports of the giving products. This will clearly hamper investments and create a longer time-table for them. As the Foreign Investor cannot focus on local market, but on international market, because that is how it is by law. In addition, when you invest in something, you don’t want to loose your certification or your rights to produce or export given products.

Also, the same investor needs to incorporate the business with the Registrar General, a certified of remittance by the Bank of Uganda, the second, the certified of remittance to lodge an application to the Department of Immigration and this department have to give the Foreign Investor a permit to do stay and do business in Uganda. Therefore, before engaging with the new criteria of the UIA and MoFPED, the investor has to get the BoU in check and get the Department of Immigration. If all of these factors doesn’t slow down a process, nothing does. This is clearly a way of securing jobs for bureaucrats and lesser the burden of the foreign exchange and remittance in general.

  1. Get UIA Approval and Certification of Business
  2. Get BoU Certification of Remittance
  3. Get Department of Immigration – Permit and Application of Remittance
  4. Getting monitored by the UIA to see you comply with the codes.

If that sounds like an easier way in, it doesn’t, more offices and paperwork, before even spending money. This code will clearly hamper more foreign investors from coming, unless they are giving Presidential Handshakes to the President. I am sure he then lets them in. Peace.

Bosco warns bureaucrats of sacking: They are his scapegoats for the lack of foreign investors!

President Yoweri Kaguta Musveni does not miss a beat; he skips on every track and sings his tune. He is never to blame and his patronage or his growing bureaucracy to blame. No, it is the ones that is hired to do the work, not the legislation, he passes through the Parliament, or from the State House even; no, it is the bad-boys in the offices, which are enforcing them. The big problem are the ones following the guidelines and following the rules, which the President has put up over time. Clearly, Bosco have forgotten that memo or these laws for that matter. It is his own words, and actions that tends to end up in scriptures that people has to follow. Not like they are blindly swallowing air at the offices, they are following the protocols and the rules of the day. Which have been implemented over the 32 years the President has resided over the main post of the nation.

“President Museveni warned lazy and bribe-taking bureaucrats to resign or risk being sacked. “We still have these lazy armchair officers at the different offices who continue to disturb our people; the investors. I will chase all these saboteurs,” he said. Investors must be facilitated to bring in expert skills, Mr Museveni said, instead of being frustrated through increased work permit rates and other bureaucratic procedure” (Dan Wandera – ‘Chinese are doers not talkers, says Museveni’ 01.10.2018, link: http://mobile.monitor.co.ug/News/Chinese-Museveni-Tiles-Nakaseke-Kyambadde-bureaucrats/2466686-4785104-format-xhtml-y40t4fz/index.html).

Therefore, Mr. President. You should look into the rules, the regulations and the laws that you have enacted, as the bureaucrats are following them and abiding them. They are making it slow, because the process you have built for them. If it was slim and easy laws to process and security check the investors, then the bureaucrats would do that, however, the NRM and you Mr. President has made it this way. They are most likely also giving you a Presidential Handshake to able to spend fortunes in the nation too. You know this and the state organizations knows too.

Instead of sending warnings of firing and calling them saboteurs, maybe, you should look into the laws, the regulations and use your NRM Caucus to implement changes that opens the gates for investors and also financial transactions in the country, as rigid it is today. That is why people are tending not to remit or sending funds, as the expenses for doing so is bananas. That is why you should use your powers for something good and not just order the army to solve crisis. But before you do that, maybe, just maybe, look into the plenty of laws that is enacted and active. Which are hampering foreign investors. That is if, you really care.

At this moment, you are just using the patronage, the cronyism you have created as a scapegoat. Not to make the state better or the financial climate either. Peace.

UNRA: Termination of the Contract for Civil Works for Upgrading of Musita Lumino/Busia – Majanji Road (104km) From Gravel to Paved (Bituminous) Standard (12.06.2017)

Uganda: “Rejection of bids for upgrading of Rukungiri-Kihihi-Ishasha/Kanungu Road Proc Ref UNRA/Works/2016-2017/00035” (29.09.2017)

All of a sudden President Museveni wants to cater to the World Bank? I thought he didn’t’ want Foreign Interference in his Uganda!

Museveni Swears In

The World Bank has suspended their budget loans and the financial support for the Government of Uganda in this calendar year. President Museveni is seeing the ramifications of his inactions of fiscal policies and the way it’s interpreted. What the World Bank can question is the ability for the Ministries of Uganda to take loans in their own ways.

World Bank Statement on suspension of Development Funds for Roads:

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. We are continuing to work with the Government to ensure all Bank-supported projects help Ugandans improve their lives while protecting the poor and vulnerable” (World Bank, 2016).

World Bank Statement earlier in September:

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. We reiterate our commitment to doing everything possible to work closely with the Government of Uganda, as well as with other stakeholders, to support the country’s development and ensure that all World Bank-supported projects deliver tangible and long-lasting results to all Ugandans, especially the poor and vulnerable” (World Bank, 2016).

President Museveni writes to the World Bank:

“President Museveni has written to the World Bank (WB) promising that his government is addressing the structural gaps and other loopholes that compelled the bank early this month to announce withholding of more than $1.5b (Shs5 trillion) in new lending until further notice. The President’s letter to WB, also copied to senior officials in the Ministry of Finance, is part of efforts by government to salvage the loans and save many projects whose failure could have wide economic and political ramifications” (…) “The other guidelines that finance officials will table in Washington, he said, is for all projects to have a “component of benchmarking by Parliament” before the loans are approved. Previously, he explained, ministries would push to get loans whose absorption and project implementation plans are not ready. “For all loans that have not been absorbed, I have evidence where the ministers say they were ready. But by adding a component of benchmarking, they have to justify the request and also satisfy that they are ready.” (Musisi, 2016).

These two statements prove the sentiment of World Bank towards the Government of Uganda and their Parliament how they spend and allocate their monies. As the structures of the Parliament are not budget-wise or coherent enough to be trusted with foreign money! So they have suspended and shown their acts towards the government who has used the loans as they please.

Here a proof of recent legislation that gave a free pass to the Members of Parliaments and the Government of Uganda how they can act without any supervision. Just read this lines!

Uganda-parliament-2

As shown by me before in 2015:

 “(5a) In addition to subsection (5), a loan raised by the Government as a temporary advance by the Bank of Uganda, which does not extend beyond a financial year shall not require to be approved by the Parliament” (P5, 2015, PFMA).

So if President Yoweri Museveni writes with the sweetest words, this legislations is active and gives way to the Ministries to take out money without filling it in the Ministerial Policy Statement before Financial Year Budget 2015/2016 or any year else as the small term loans can be taken by ‘Ministry for Higher Education and Sports’ can borrow 1bn from Bank of Uganda (BoU) without questions if it supposed to a be short-term loan. And the best it doesn’t have to be questioned the validity in Parliament.

President Museveni forgets that part and that he has created and accepted the loopholes of the economy because the legislation has been servicing him and his cadres. Therefore he feel compelled to write to ask for it and promise to fix it. The World Bank knew he made it happen and therefore seen enough of his ruthless behaviour and his mismanagement of funds.

And if President Museveni took time to read through the reports of the Auditor General John Muwanga and the Inspectorate of Government under the Inspector Government (IGG) Irene Mulyagonja Kakooza has in the recent Financial Year 2015/2016 written staggering amount loopholes and fiscal maladministration. This being that funds that is allocated not paid out on time and also unaccounted funds, even misspent funds in many ministries of the recent budget year 2014/2015. With this in mind, the President should read some of it and make sure they have procedures and will power to create government institutions that works properly.

Instead, Mr. President you have focused more on yourself and the same with the MPs who are greedy and known for seeking their own interest instead of their citizens. In this regard that the President pleas for the bailout World Bank loans are a bit too much for me; this from a man who said this not too long ago:

“I wouldn’t ask these foreigners, but I would never accept these foreigners to give me orders about Uganda. Or about anything in the world! They got their own countries to run. Let them go and run them. Uganda is ours. Nobody gives us orders here” – President Museveni at Kololo Independence Grounds Speech while celebrating the “Double Victory” on 9th April 2016” (Minbane, 2016).

So these man pleas when needing, but acting all bold when rigging the election. As he fixed the economy this way as he has had 30 years to make it this way. This is the powers of being the Executive for so long and he has seen how the World Bank and International Monetary Fund (IMF) do their loans to the governments in the past. I am sure he knows very well as he has been a recipient all his life. That’s why it’s so strange that he accept being told how to run his business now… when they suspend and sanctions his needed loans to run his operation and his government. But when they we’re doing it he could tell them to go to hell.

uganda-wb-1980s

It is like a moment of Nostalgia when it comes to this. President Museveni pattern are just like this. He continues to counter his own argument from a few months ago. This will happen again, but I hope the World Bank continues to stifle the “Old Man with the Hat”. Because he will one minute speak his peace and offer pleasant gifts, next moment he will be on the war-path and spread venom and after that try to fix it, but usually too late.

But the recommendation from World Bank isn’t a quick fix; it is a systemic change of policy of the economic framework that is there. Something the President already knows very well, as he earns his coins on the system he has ushered in. Peace.

Reference:

Government of Uganda – Public Finance Management Act (PFMA) 2015

Minbane – ‘Don Museveni says “I would never accept these foreigners to give me orders about Uganda”; Time to cut the direct donor assistance to the government budget of Uganda and after that let Don Museveni eat alone!’ (10.04.2016) link: https://minbane.wordpress.com/2016/04/10/httpwp-mep1xtjg-20m/

Musisi, Fredrick – ‘Museveni sends delegation to plead with World Bank over loans’ (30.09.2016) link: http://www.monitor.co.ug/News/National/Museveni-appeals-World-Bank-over-loans/688334-3399642-g0djk7/index.html

World Bank Group – ‘World Bank Statement on Withholding New Lending to Uganda (13.09.2016) link: https://minbane.wordpress.com/2016/09/14/httpwp-mep1xtjg-3fl/

World Bank Group – ‘World Bank Statement on Suspension of Roads Projects in Uganda’ (08.01.2016) link: https://minbane.wordpress.com/2016/01/09/httpwp-mep1xtjg-1jx-2/

World Bank Statement on Suspension of Roads Projects in Uganda (08.01.2016)

JinjaRoad Roundabout Kampala

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. We are continuing to work with the Government to ensure all Bank-supported projects help Ugandans improve their lives while protecting the poor and vulnerable.

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