Correction of factual Inaccuracies by The Observer News Paper concerning Ernst & Young (EY) as the auditors of Crane Bank (17.07.2017)

Uganda Law Society Statement on Attacks on Lawyers in Line of Duty (18.07.2017)

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

The Importance of Mobile Money in Uganda

As the Telecommunication companies like MTN are praised the by the government, the National Resistance Movement have clearly let the economy become addicted and need of the services provided by the different Telecom’s and how the operate as village banks. The further proof of this comes when looking into a study and of the value of Mobile Money. This is done by all of the Cellphone providers in different names, but has the same outcome. Either by sending money to village funds, paying for utilities or even add airtime for a friend. The report conducted and made by Economy Policy Research Center at Makerere University we’re an interesting read. Here is the quotes worth assessing over. The historical backdrop of the vast amounts of trillions shillings in the operations. Shouldn’t surprise anyone, considering that one third of Ugandan citizens use the Mobile Money and average rate of monies sent during a month are 250,000. With the amount of people and amounts traded by Mobile Money, it is a booming business and first trying of banking. But doing it directly by the phone and not at the offices of Standard Charted or Barclays. Just take a look!

After 5 years of operation of mobile money services, the average adoption rate stands at 250,000 persons per month from inception (March 2009) to December 2015. The increase in access to formal financial services, from 28 percent in 2009 to 54 percent in 2013, was partially due to increased access to mobile money 1 See UBOS (2016), “National Population and Housing Census 2014”, Uganda Bureau of Statistics: Kampala services (EPRC 2013). Thirty-five percent of Ugandan adults have a registered mobile money account (Intermedia 2016). An additional 13 percent access services via somebody else’s account, including that of an agent. Mobile money account ownership surpasses the use of both banking and nonbanking financial institutions (Ibid)” (Makwejje & Lakuma, P: 6, 2017).

Finally, mobile money balances are sensitive to monetary policy shocks, while the mobile money values of transactions are not. These results suggest that 1) Mobile money has helped households to substitute liquid and other lumpy assets for financial assets; 2) Mobile money has modest macroeconomic impacts; 3) Mobile money has the potential to improve the effectiveness of the conduct of monetary policy. These results provide additional evidence for policy makers to continue supporting the growth of mobile money platforms. In particular, policy makers should provide the policy and regulatory framework through which mobile money balances can become interest-bearing assets. This will further strengthen the monetary policy transmission mechanism because economic agents will be able to more directly respond to changes in the policy rate” (Makwejje & Lakuma, P: 17-18, 2017).

The authorities clearly has to assess it and look over the Telecom’s Mobile Money operations, as this is important part of transactions and business operations in Uganda. When such vast amounts of people using it and benefits from it. Where their funds turn digital and get traded instead of having dozens of shillings in their pockets as for balance for their trades. Also, gives the ability to send over needed cash up-country or even to family members. Therefore, the structure and the balances of people’s lives can be monitored and shows the interest-bearing assets. The help it has provided the society and also introduce a form of banking institutions to the public. Though this study did not look into the fortunes made by this sort of transactions compared to ordinary banking practices in Uganda. Which, would be interesting expose considering difference of cost for the consumer and Ugandan doing so. Peace.

Reference:

Mawejje, Joseph & Lakuma, Paul C. – ‘MACROECONOMIC EFFECTS OF MOBILE MONEY IN UGANDA’ (June 2017) – Economic Policy Research Centre, Makerere University

Kibanda North County – NRM Primaries filled with irregularities as Tanga Odoi’s Declaration Form shows!

There is a coming by election in Kiryandongo District in the Kibanda North County. This one was contested in the General Election 2016 with a National Resistance Movement winner by the name of Taban Idi Amin. This election was challenged in court and was annulled. Therefore, it is in preparation for new By-Elections in 2017, that things gets interesting.

Because the former winner of the NRM Taban Idi Amin won the flag-bearer seat again, the NRM Primary Election must have been strange or been rigged for some reason. Because the ‘Declaration for Results’ delivered and signed by Dr. Tanga Odoi on the 14th July 2017 seems a bit out touch with reality. Let me take through it and the reason, why Sam Amooti Otada Owor has an electoral injunction at the High Court in Masindi on the same day. Where “Kiryandongo District and the status quo to be maintained is the status quo pending the determination of temporary injunction for the domain in the substantive application which is hiherto before the judge”. This is from the Order of the application put forward to the judge on the 14 July 2017 in Masindi, but the reason must be the NRM Primary Declaration form and anyone looked at it will know why it is strange.

The NRM Primary Declaration Form 14th July 2017 says that Taban Idi Amin won with 12,812 votes and had 73,6 percentage, while in second Sam Amooti Otado Owor got 2,761 votes and 15,9 percentage. In third and last George Maiteki Baitera Bigirwa got 1,472 votes and 8,5 percentage. While the total annulled votes are 367 and 2.1 percentage. Where the total votes of the whole Primary election we’re 17,412 votes and a 100 percentage.

When you look at those numbers nothing seems strange, but a giant and clear victory for Amin, which wouldn’t be surprising since he won the same race in 2015 and won again General Election in 2016. But what is weird is that the counting and what it says further on the Declaration Form: “I therefore declare Taban Idi Amin who has polled the highest number of voters (17,412) representing 73.6 percent as the duly elected NRM Flag Bearer for Kibanda North County Constituency Member of Parliament, 2017”.

If you don’t notice the words of Dr. Tanga Odoi, the whole 100 % of Primary election is 17,412 that was shared between all three candidates, but on the declaration all of them is designated to the winner Taban Idi Amin. Which is strange since by the counting the second candidate got 15,9 % and the third one got 8,5 %. Which has suddenly vanished in thin air, since the Flag Bearer Amin got them all. This seems a bit of a stretch.

That the NRM can contest someone who has already gotten the election annulled. Than, the Electoral Commission of the NRM and the whole contest get question by someone who was a part of the whole race. Even as the whole ordeal get put into legal jeopardy when the application was sent before the judge on the same day as it ends. It is worth noticing the internal Primary Declaration Form, which states an anomaly. The indication of misconduct can again put the NRM in a pickle. Where for the third time within two years has to contest for the seat. That would be three NRM Primaries in the Kibanda North County.

As the NRM write on their own page: “Kibanda North Constituency final results released last evening by the NRM Electoral Commission Vice Chairperson Hon Kigyagi put Hon Taban Amin in a landslide victory with 12,812 votes. Just minutes after the release of the results last evening, the Party Secretariat learnt of an interim court order issued on July 14, 2017 restraining us from conducting this same exercise. Its however worth noting that the applicant of this order Hon Sam Otada was until the last minute part of the entire process and attended the joint campaign meetings supervised by the party’s EC till the end. This matter has now been left to our Legal Committee to follow it up to its conclusion” (NRM, 15.07.2017).

So if you believe there is an issue with the NRM Primary election there is. Since the possible tampering has appeared. Even the own documentation isn’t right and shows flaws. The declaration of Dr. Tanga Odoi proves the flaws of this exercise. Not that I am in favor of the second candidate Sam Otada Owor over the second time winner Taban Idi Amin. But is seems strange the way the NRM EC declared it this time. Peace.

UPF: Press Release – “Alleged ‘Ban’ of Age Limit Debate in Univresities by IGP” (15.07.2017)

IGP Kayihura bans debates on “Presidential Age Limit” or the Article 102 (b) of the Constitution!

“When a man is denied the right to live the life he believes in, he has no choice but to become an outlaw.”Nelson Mandela

“Age limit debate is strictly in parliament, but not in schools or villages. It is supposed to be debated in parliament and should be among MPs,” he said” (…) “Kayihura instructed security personnel to work closely with the leadership of universities and students to keep law and order in and out of the campuses. “It was an embarrassment to security to see students carrying the coffin with the picture of the president in Mbarara. It showed there is no intelligence network in Mbarara,” Kayihura reportedly said during the meeting. The police chief also told police commanders to work closely with crime preventers. “You must work with crime preventers in your areas to make sure that you block local leaders from discussing the age limit bill with residents because the bill has not been tabled in parliament,” another source quoted Kayihura as saying” (Taremwa, 2017).

Clearly, if even a small mind like Gen. Kale Kayihura can understand the powers of his words. That only the elite and the selected people of the Parliament can talk about laws and extent of the powers within it. The constitution that binds the Republic and set the standard of all laws in the Republic. Are now under order by him to allow simply put talking about it or debated in villages, schools, surely in canteens unless an MP are present.

The IGP Kayihura is clearly showing arrogance and lack of understanding of the value of freedom of expression. He knows his intent and the extent of his powers. When he can take one of the most controversial and flamboyant changes of the constitution and push only to one venue. Like the bribed and subdued MPs would stand their ground and all defend the just cause. When their master, the same master that the IGP orders them to vote for his life Presidency.

This is supposed to happen in silence, not allowed to talk about and not debated is insane. It is beneath all common decency and what is seen as just. Certainly, age limit is a touchy subject, because with time Museveni will need as foreign health care treatment for his illnesses as President Mugabe. Therefore, the steady new Presidential Jets will come in handy and not only for showing off to his other totalitarian mates.

That the Police Force and their security organizations plans to block debates and talks in public about it is just bonkers. There are not anything sane about such a move and proves the volatile state of the National Resistance Movement, when it knows the people’s concern about this sort of provision and law. That only benefit President Museveni and the ones who gets paid to vote for it. This will only make more people outlaws, as the laws are more for the subject of President Museveni, than for the common good of the state.

This sort of measure only provides the totalitarian effort to pass a law for the sake of keeping the skeleton of NRM alive. Not providing more development or concern for service delivery. Since the delivery of this sort of constitutional amendment is only for the life of President Musveni. As it was when the Constitution it was amended to abolish term limits for the President.

Now if you become a group standing up against it, even if you’re a NRM Youth member or anything else. The Police will detain you and if you speak against the age limit, and they will hurt you. Since speaking against the age limit is speaking against the patriotic movement and the President. Who has all rights and reasons to stay in charge until his last breathe?

That is the message the Police sends. That the Police can within their means and functions to silence opposition towards a coming law. A law that is only for ONE man out of the millions living in Uganda. The Republic with this amendment only serves one purpose and one cause, the cause being Museveni and his lifelong Presidency. No succession or no change of Executive. Only him. Only him and no one else. Apparently, that is what the Police believes as well.

Since the MPs and Plenary, those sorts of debates is the only one allowed by the Police. The citizens has to silent and not talk, the debates at schools and in village councils are not allowed, this measure is supposed to stop the controversy and let it go away. Instead, this sort of act shows the lack of morals, common sense and even core freedoms that are now swept away, because the President needs it to be so. With the help of Police Force who enforce his rule.

The IGP Kayihura have tried in the past to lecture media how to work, opposition parties how to conduct their party functions, and the newest steer public agenda. The Old Man with the Hat is clearly ordering him to do so. So now the talk of this will not be in the open, but behind closed doors in people’s homes. If people get the wind of it in church or in a pub, it might get rumors that spreads to a Crime Preventer or a Police Officer, who will detain the fellow who did the forbidden: “speaking about the old man and his will to rule forever”. This are our days and times. That is the price of oppressive regime of the NRM and President Museveni. Who has no issues with silencing the people for his own gain! Peace.

Reference:

Taremwa, Johnson – ‘Kayihura ‘bans’ age limit debate in universities’ (14.07.2017) link: http://observer.ug/news/headlines/53841-kayihura-bans-age-limit-debate-in-universities.html

This is what the Constitutional Amendment Bill of 2017 do: It makes it easier for the State to grab land!

The Constitutional Amendment Bill has been criticized and created worry, since the National Resistance Movement (NRM) have worked for and to get their leader to stay in charge and executive as long as he pleases. That is the President Yoweri Kaguta Museveni. So the article 102 (b) could easily been seen as possible change to fit the life and the age of the aging President. Instead, the gazetted bill of retired Major General Kahinda Otafiire is about making it easier for the state to compensate and take land from civilians. Since they want to make more cheap and make it legal to take land. If so make it easier to settle in court. This is clearly making the road development and pipeline building cheaper, also giving the government more power. Just by looking at the text from the government. Take a look!

The purpose of the Bill is to resolve the current problem of delayed implementation of Government infrastructure and investment projects due to disputes arising out of the compulsory land acquisition process. The problem of delayed Government projects has caused significant financial loss to the Government amounting to millions of dollars in penalties paid to road contractors for redundant machinery at construction or project sites as the courts attempt to resolve the disputes, most of which relate to quantum of compensation” (Otafiire, 2017).

Original Article 26:

26. Protection from deprivation of property.

(1) Every person has a right to own property either individually or in association with others.

(2) No person shall be compulsorily deprived of property or any interest in or right over property of any description except where the following conditions are satisfied—

(a) the taking of possession or acquisition is necessary for public use or in the interest of defence, public safety, public order, public morality or public health; and

(b) the compulsory taking of possession or acquisition of property is made under a law which makes provision for—

(i) prompt payment of fair and adequate compensation, prior to the taking of possession or acquisition of the property; and

(ii) a right of access to a court of law by any person who has an interest or right over the property” (Constitution of 8th October 1995)

Amendment of Article 26:

(3) Where the owner of property or any person having any interest in or right over property objects to the compensation awarded under a law made under clause (2Xb), the Government or local government shall deposit with court for the property owner or any person having any interest in or right over the property, the compensation awarded for the property, and the Government or local government shall take possession of the property pending determination by the court of any dispute relating to the compensation” (Otafiire, 2017).

(4) The owner of property or person having any interest in or right over the property shall have a right to access the compensation deposited with the court referred to in clause (3),at any time during the determination of the dispute” (Otafiire, 2017).

(5) Parliament shall, by law, prescribe the time within which any dispute referred to in clause (3) shall be determined” (Otafiire, 2017).

So now the part of the article 2 (b) was already giving the citizens and land owners set of rights, but not telling how the procedure for compensation for possible value of the land and neither loss of possible costs of moving. The new part of article 26, is about giving the courts rights to find compensation and awards to fellow citizens property.

What is new is even as the pending award and compensation to the land owner, the government still has right to take possession of the land. Which means the government even if the land owner or the one who has the title of the land has to move before the case is settled in courts. This means that the government can cease the land and later pay the people who lives on the land. So if the state and need to build infrastructure or any other project, they can take possession of the land and pay-off the ones living there later.

The Parliament can put a time-table for the possible ending of land dispute, but the possession is already cleared by the state. Therefore, the loss of possession and pending time depends. The real issue isn’t only the dispute, but no consideration of the loss of title, livelihood or even the possible all other costs like moving to another property or housing. This should have been taken in consideration when writing new standards. This one only gives positives to the state, but the citizens and owners of land titles get the hurt.

It is easy to see the Republic/State are the ones winning with the change of article 26 in the constitution not the citizens. The changes of the law is only to benefit the state and the ones acting by orders of the state, not for the citizens. This should be itself worrying as there are no part that is positive for the citizens in the amendment. The land can be possessed and has to wait for the time-table put forward by the Parliament and within that time while the dispute happening hopefully get compensated. Clearly, this is only giving more powers to the state, while taking away the total ownership of land. Since the state can possibly take possession and pay the title-owner later. Peace.

Reference:

Otafiire, Kahinda – ‘Constitutional Amendment Bill of 2017’ – 08.06.2017 – Uganda Gazette No. 33, Volume CX, Bill Supplement No. 7

Bank of Uganda: Resolution of Crane Bank Limited (13.07.2017)

President Museveni has directed that all Government Loans needs his “Personal Approval”!

“Parliament: President Museveni has written to the Speaker Rebecca Kadaga directing that all government loans must get his “personal approval” before they are tabled in Parliament” (Arinaitwe, 2017).

Yesterday in the Daily Monitor, all government loans has to go by and get approval by the President. So now, it is not all information relating to crisis. Neither is only the matters of grants, presidential donations or presidential handshakes for that matter. It is needless to say, more and more, if there was ever enough that has to get the provisions or the sanctions by the President Yoweri Kaguta Museveni.

If there is a street in Kampala that has damaged sidewalk, soon the President has to be involved and check his budget. Since now if the government needs loans from either internal banks, state reserves or even multi-national financial institutions, his Excellency needs accept it all.

Certainly, this will hamper any development and stop all the financial inclusions and provisions, who when you look true it all had given lots of power to the Parliament and the Ministry of Finance, Planning and Economic Development (MoFPED). Therefore, the Public Finance Management Act, which gives the government a go-ahead actually to loan without the approval of parliament. Now the President orders all loans to be levied by him. That shows his need for control and his passion to cease all the cash.

We can clearly imagine the Ministers, the Members of Parliament and the Local Councilors, all have to travel to the august house of Okello in Entebbe or jointly to Nakasero to plea a deal and get vouches for their needed bills and needed funds. Especially, considering that all State Affairs are now handled by the State House. The need for the parliament and its functions are dwindling when the President are the one that decides these details.

There are clear misconceptions of power, when all the money are under control by one-man and he does the decision. The need for a director of Bank of Uganda is only for show, the fiscal policies and needed understand of the financial markets are bonkers, when the President takes it all in his hand. More and more, the values of Presidential Advisers and Ministers are just for the effort and show. Therefore, they will not turn against him, instead of actually doing the state needed function.

This I say, since even business agreement between trade-off of banks, of estate and public lands are arrangement directly in the chambers of the State House. With investors and merry-men who promises to make gold out of bulk goods and Chinese imports. So that former markets, farms and former private lands are extorted with the benefit of the President, without concern of the traders, the ones living in the houses or the general effect of these efforts. Even the destruction of the National Theater is a prime example of a short-con to gain personal wealth on former old institution in Kampala.

Transparency and good governance, budget control and fiscal responsibly only becomes words needed when begging World Bank and International Monetary Fund for steady cash relief, or even African Development Bank (AfDB). Since it is the stakeout and possible needs of the President those matters, not the general state of schools, hospitals or refugee settlements. If the President see the need and issue or if one, of his fellow cronies beg on their knees and kiss his ring. Then the offer will be settle as a token of loyalty.

Now that the PFMA is out-done and out-played, even outfoxed if you will, because of the Presidential personal approval, therefore the parliament values is close to zero. They are just leaflets of envelopes and extra personnel for him. The parliament is more a front and piece of possible “democratic” institution when needed be, but not in reality. Since the last word and the last decision of any value comes from the State House. Peace.

Reference:

Arinaitwe, Solomon – ‘Museveni takes over loan approvals, rejects 11’ (12.07.2017) link: http://www.monitor.co.ug/News/National/Museveni-takes-over-loan-approvals–rejects-11/688334-4011990-124ocj0z/index.html