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Archive for the tag “NRM Village Program”

Ugandan economy could get Oil-Shocks due to external factors, recent BoU report claims!

Surprise, surprise the Bank of Uganda (BoU) has made a working paper on the possible consequences of the oil price, the oil exports and the oil imports on the Ugandan economy. This didn’t exceed my expectation of a report or paper, but said enough to clearly anticipate changes in the economy with the coming export. Even as the BoU called the domestic oil production in embryonic stages, which means the real impact will come when it is closer petroleum production the GDP and CPI feel more impact of the oil prices and the volumes exported from the Lake Albert Basin.

That the Ugandan State and the Republic of Uganda, should know that the fresh foreign exchange and currency into the economy, as the domestic parts of petroleum is not having big impact on the economy! Still, the export can change it as the oil prices and change the consumer price index for instance. Take a look!

One such shock that is a source of major concern and risks to monetary policy-making in Uganda is the oil shock. To our knowledge, the effects of oil shocks in Uganda, to date, have not yet been analyzed. The objective of this paper therefore, is to analyze the nature and importance of oil shocks to Uganda’s economy in a dynamic framework” (Nyanzi & Bwire, P: 4, 2017).

According to the Uganda’s Ministry of Energy and Mineral Development (2012), oil provides about 10 percent of Uganda’s energy requirements – the rest is sourced from the small and underdeveloped and unreliable electricity sub-sector and the cheap biomass energy. The oil sector was also deregulated in 1994, under the broad structural reforms implemented by the Government of Uganda, which effectively eliminated oil prices subsidies. Uganda is endowed with commercially-viable oil reserves, but domestic oil production is in embryonic stages. Consequently, all of the oil-energy needs of the country are satisfied by imports” (Nyanzi & Bwire, P: 8, 2017).

The results of the variance decomposition in regard to oil shock are not entirely unexpected, given the structure of Uganda’s economy. Oil and its products constitute 8 percent of total intermediate consumption and 10 percent of energy requirements. In addition, oil is crucial to electricity supply in Uganda because hydro-electricity is unreliable and insufficient. This implies little or no substitutability of oil with hydro-electric energy in production in case of adverse oil shock, which could justify the long-run 20 percent variance in output due to oil shocks. Regarding consumer prices, the small percentage of variance in consumer prices due to oil shocks is justified by the small weight of oil in the CPI basket. Oil constitutes about 1 percent in the 2009/10 rebased CPI basket, of which 0.8 percent is oil for personal transportation and 0.2 percent a source of liquefied energy at home. These numbers are not surprising given that over 75 percent of the population live in rural areas and depend mainly on wood and charcoal as a source of energy, and that rates of car ownership are generally low. Moreover, the main source of short-run volatility in the Uganda CPI is weather-related factors affecting food prices. This leaves the bulk of fluctuations in the core consumer prices (Comprising over 80 percent) explained by demand” (Nyanzi & Bwire, P: 18, 2017).

Oil shocks are transmitted through the supply channel, as a shock that increases the international price of oil leads to opposite movements in real output and consumer prices in Uganda” (Nyanzi & Bwire, P: 19, 2017).

It is hard to say how it could impact and how the petroleum production and exports will change the economy, how the prices and the inflation, as the measure of how much the price of the crude-oil will be at the given time. That the government has secret agreements with oil companies and also agreements with other to build the crude-oil pipeline that goes to Tanzania. Therefore, the reaction in the economy is not yet known, but with the background and knowledge of the how it is now. Most likely a real output and change in consumer prices in Uganda.

That will be an oil-shock no-one can be prepared for. Unless the Government and Parliament created legislation and policies who might soften the change of the economy. Therefore, with this in mind, the National Resistance Movement, the State House and the President Museveni have work to do. That is if they consider the implication the petroleum production and exports will have on inflation, currency value and consumer prices index as well. This report should open some eyes into it, but it should not be surprising. Peace.

Reference:

Nyanzi, Sulaiman & Bwire, Thomas – ‘Working Paper No. 04/2017 – The Macroeconomic responses to Petro Shocks for Uganda’ (May, 2017)

Presidential Handshake: It’s now revealed that the President is trying to pin someone to “fall on one’s sword”!

The continued exhausting of the Presidential handshake shows the true form of the bribe. Even as the President himself, tries to clean his hands and pin-point more people. He still did sanction it directly from the Uganda Revenue Authority and onto the vast civil servants and loyal cronies, as a bribe and brown envelope of joy. Even if the stories keep coming and more people being implicated, the reality is that this shows that the whole system is rotten.

The maladministration and clearly not caring about state reserves comes to the public court. The Public know knows that the President and his State House, are only trying to find a scapegoat and a perfect victim, to save face and look good, without taking down somebody who knows to much. They know that to many people has gotten ill-earned millions in envelopes because of this Presidential Handshake. That the probe would have questions to the President was most likely, and we could anticipate that someone else would fall on their sword. If they will do it voluntarily and might do it with force from the State House.

Oxford Dictionary states about “Fall on one’s sword”:

Assume responsibility or blame on behalf of other people, especially by resigning from a position.

he heroically fell on his sword, insisting that it was his decision’ (Oxford Dictionary).

So when you read part of the piece in the Daily Monitor today, you see how the President tries to wash his hands of sin and put blame on the Ministers and others. So he will talk to the culprit and make sure that he falls on his sword for him.

Museveni pinning people down for the handshake:

Bugweri County MP Abdu Katuntu,who is leading the inquiry by the Committee on Commissions, Statutory Authorities and State Enterprises(Cosase), confirmed at a press briefing on Friday that Mr Museveni wants the Committee to ensure that the missing money is accounted for. “The President said he was not aware [that Shs5b is unaccounted for] and he was happy that we were going to follow it up. He reiterated his commitment to accountability and he said any monies spent from the public coffer should be accounted for. He encouraged us to have this money accounted for by the Justice Ministry Accounting Officer [Solicitor General],”Mr Katuntu said. Mr Katuntu revealed that the Solicitor General will be cross-examined again over the whereabouts of the Shs5b before a report is compiled mapping out his fate. During the ingoing inquiry, Mr Atoke failed to give conclusive accountability for the money. During the course of the two meetings, Mr Museveni also singled out former Energy Minister Syda Bbumba for inserting a clause in the Production Sharing Agreement that allowed Tullow a $157m tax waiver for an out of court settlement involving Tullow. The signing of a PSA to exempt Tullow from $157m was done by Ms Bbumba without the knowledge of the President, Mr Katuntu confirmed. “The President said he was not aware of that exemption. The President agreed with us that the exemption was illegal because the then Minister did not have power to exempt payment of tax. We informed the President that we are following up this matter and we will have a conversation with Syda Bbumba,”Mr Katuntu said” (Arinaitwe, 2017).

Now that Honorable Syda Bbumba is the one to blame now, not the ones applying for it or the ones who gained the ill-willed state coffer monies. Not long ago, it was revealed to come from the wrong account, directly from URA and not State House. Now it is a Minister Bbumba who acted without consistent legal procedure, nor talked with the authorities before the money went on its merry. Certainly the other part of what happen this mid-week reveals certain aspects worth noting!

Asking for favors:

According to our sources, as soon as the president ended his testimony, some MPs took turns to speak privately with him. According to multiple sources familiar with the Entebbe meeting, Katuntu effectively contained the MPs during the committee’s official business session at State House but when that ended, MPs went on rampage. “After the meeting, the president invited us for a group photo and this is when the MPs started [whispering],” said an MP who attended the meeting. This MP singled out Beatrice Anywar (Kitgum Municipality), Hood Katuramu (PWDs Western) and Vincent Woboya (Budadiri East) as some of the MPs that approached Museveni with requests for favours. This was after they saw the committee vice chairperson Anita Among whisper to Museveni. Anywar reportedly invited the president to attend her thanksgiving next month in Kitgum. “She has not been attending the committee meetings. In fact, we didn’t go with her on [Wednesday]. I think her coming on the second day was purposely to see Museveni, not [to be part of] the probe,” one MP said” (Kaaya, 2017).

So the system is rigged and he isn’t only looking for someone to take the blame for the Presidential Handshake, he also sees who are loyal to him if they get favors. Similar to the Handshake. They wants and requests favors from the President, because he has done so in the past. And most likely do it again, that is the way he keeps the cronyism alive and the Movement booming. If he stops paying and delivering brown-envelopes to political affiliates he will lose his base and his MP’s. But because of this Presidential Handshake he has to play smart and look like he cares about fighting corruption, even though his State House is thriving on it.

That this would take such long time isn’t surprising as they are trying to find one who can take the blame, without to much cost and lose of face value to the hierarchy and the State House. Nevertheless, the bribe is still a bribe, even if they try to color it differently, there isn’t a gray-area to put it into. The reality is still the same. That certain elements now this week ask for favors from the President proves the handouts and the handshakes are a systemic and institutionalized affairs at the State House.

The issue with the Presidential Handshake is more of a gimmick as the state tries to find the one who will take the charge and eat, so that the President can say: “See there my Ugandan people, I work against corruption”. But the next day, another MP will pop by Entebbe or Nakasero and ask for favor, an envelope or even a handshake. So that they can be bought into submission, which is the given state and the system that President Museveni believes in. Peace.

Reference:

Arinaitwe, Solomon – ‘Museveni pins SG Atooke over oil cash’ (01.05.2017) link:http://www.monitor.co.ug/News/National/Museveni-pins-SG-Atooke-over-oil-cash/688334-3909560-g9wigk/index.html

Kaaya, Sadab Kitatta – ‘Oil cash probe MPs beg from Museveni’ (01.05.2017) link:http://observer.ug/news/headlines/52653-oil-cash-probe-mps-beg-from-museveni.html

Oxford Dictionary – ‘fall on one’s sword’ link:https://en.oxforddictionaries.com/definition/fall_on_one’s_sword

Trick or Treat: Presidential Handshake gone wrong!

Today, is a day that doesn’t stop to startle, the day doesn’t stop giving. The reports from the Republic are a bit to much. Still, the continued probe into the 6 billion Ugandan shillings has continued. I would never believe it would amount to anything. For the first time in a while, the President has said he did a mistake, but it wasn’t I did something wrong with the State Resources and the Taxes. No I took the money from the wrong account and then gave it away to the civil servants and movement cronies. Take a look!

Shs. 6 Billion was a mistake and the President want to give a refund!

President Yoweri Museveni has told the Members of Parliament investigating the Shs 6bn Presidential Handshake that he is ready to refund the money” (…) “The president was quoted as saying his original thinking was to “say thank you to our patriotic civil servants who against all odds managed to make us get what was due to us from the known international giants.” The president added that the flouting the rules by the government officials was not his making, although he agreed to take responsibility on their behalf and make sure the money is returned from where it was picked” (…) “It was unanimously agreed during the committee session at State House that picking the presidential handshake money from the Uganda Revenue Authority was a mistake. The money should have been sourced from State House budget that caters for all expenses of the President” (…) “We realized it was wrong for the presidential handshake (Shs 6bn) to come from URA instead of State House or President’s office,” another source who attended the session said” (NTV Newsnight, 26.04.2017).

The Movement and the government leader, the executive and the President are clearly trying to clean his hands. Since it was from the wrong accounts, that the Presidential Handshake was taken from the Uganda Revenue Authority, as they we’re the receiving end of the tax-case with the Heritage and Tullow Oil Corporation. These case and probe the republic have been through and through, even Andrew Mwenda defended the handshake.

What is sad and supposed to be the saving grace for the President, that if he gave the civil servants and the ones involved in it and getting compensated for their work. The handshake was by his purpose just a fair gift for the work. As the ones in URA working copying paper and picking up the phone in the office for the state. So even if they mask the audit of the budget as of where the money came from, the civil servants still get their monies.

If the money we’re directed from the State House or from URA, it is still from the State Coffers, the only difference is the ending numbers on the slips. That it really wasn’t his making, but we have seen the letter that was accepted and the citizens seen the acts. If not they have read the lines and comments of the Handshake.

Even if the President said this should have been expenses directly from him and not from the URA. It is still uncommon and not something that should occur. That the President blames his fellow co-workers and the institutions around him. Presidential Handshake no matter where it comes from is still an act of graft, a bribe or a misuse of government funds. The gift from the President is still brown-envelopes without proper procedure, not basic salaries or natural bonuses. If it was so, then there wouldn’t have been such a probe into the handshake.

An act of corruption if it comes on a unicorn from the State House or from the blessed souls of the Uganda Revenue Authority, doesn’t sanction the act differently. If the letterhead of the bribe to the civil servants for their work, doesn’t salvage the Presidential Handshake. It just shows the disregard President Museveni has. He thinks it would be different it was directly donated from him and if he signs of the same amount to URA from the State House. Surely, that amount must come from the budgeted “confidential” State House funds, as the knowledge of how it is use are only for the President to know.

I can reassure the world that a unicorn was not flying around the Okello House this night and will not happen tomorrow morning either, a bribe is still a bribe. You can try to change the fact, but the money was still transacted without the proper procedure and without the justification. Even if the President says so, it is still misuse of the state coffers and given taxpayers funds to cronies, nothing else! Peace.

Uganda: Civil Society Position on Tax Revenue Measures for FY 2017/18 (21.04.2017)

Report from the MoFPED shows the growing Ugandan debt by June 2016!

Again, the Ministry of Finance, Planning and Economic Development (MoFPED) dropped another report on the fiscal policies and the fiscal health of the economy in Uganda. The National Resistance Movement (NRM) have created this environment as the growing debt and growing interest payment comes with their planned debt rise. Still, the PriceWaterhouseCoopers spelled gloom earlier in the year, as this report was dropped on the MoFPED web page today. Even if the Report was spelled out in December 2016. It is if like the NRM didn’t want this to spelled out early. Since the numbers aren’t compelling of an arts piece, more issues… just take a look!

The stock of total public debt grew from US$ 7.2 billion at the end of June 2015 to US$ 8.4 billion in June 2016. This represents an increase from 30.6% of GDP to 33.8% over the two periods. The increase was largely on account of external debt, which grew from US$ 4.4 billion to US$ 5.2 billion over the period. Domestic debt increased from US$ 2.8 billion to US$ 3.2 billion” (MoFPED, P:V, 2016).

That the debt are growing quick, as the public debt grew with US$ 1.2 billion, that the percentage of GDP went up with 3,2%, the external debt rose with US$ 0.8 billion and the Domestic debt went up US$ 0.4 billion. All of these numbers show the amount of monies that the Government are adding on their debt, as the UNRA and the development projects are suspended by World Bank. So the Infrastructure development can be questioned as the growing debt, as the government must have other uses of the growing and scaled up debt. Since the transparency of the economy isn’t there and that the sanctioned bills comes from the State House. Just look at the growing interest rates as well.

Interest Payment as a percentage of GDP stood at 2.2% as at end June 2016, up from 1.9% as at June 2015. The increase is largely explained by interest payments on domestic debt, which grew from Shs 1,077 billion in FY2014/15 to 1,470 billion in FY2015/16. There was a significant increase in the weighted average interest rate of Government debt; from 5.9% to 6.5% in June 2015/16. This followed increases in the weighted interest rates for both domestic and external debt, from 13.6% to 15.3% for domestic debt and from 0.9% to 1.2% external debt. As interest rates increase, so do the debt service obligations of Government” (MoFPED, P: 4, 2016).

The difference between June 2015 and June 2016 the percentage has grown with 0.3%, the domestic interest rate grew with Shs. 0.393 billion. The Interest rate alone went up by percentage 0.6%, as the weighted interest rates went up 1.7%. The key sentence that the report wrote and I repeat: “As interest rates increase, so do the debt service obligations of Government”.

That idea isn’t only on the interest payment percentages are running higher, but as the debt goes up, the interests goes up. So the Debt Service Obligations are going up for the Government. This is a natural outcome, that the obligations for the state goes up with the amount of debt it rises. So the government can try to portray this is controlled, and to one extent it is under control. Still, the growth in this regard proves that the NRM regime are pilling up debt and increasing their debt, as well as interests. In the end this will make the state worse. Especially knowing that the energy dams have been built poorly and many of the expensive roads haven been fruitful. This is development that the growing debt is being used to…

So the NRM regime and the Ugandan government isn’t believable… the rise of debt and interests show’s the current state of affairs. Even if the percentage is after plan, the government still has to take charge and make sure they can pay back both the debt and interests. Peace.

Reference:

Ministry of Finance, Planning and Economic Development (MoFPED) – ‘DEBT SUSTAINABILITY

ANALYSIS REPORT 2015/16’

Did President Museveni set-up Hon. Kabafunzaki for the three counts of corruption?

It is the responsiblity of every human to know their actions and the consequences of their actions and to ask questions and to question things when they are wrong.”Michael Moore

As it been told by the unraveling stories on the corruption scandal landing our way, is that Herbert Kabafunzaki went into a trap at the Serena Hotel, where everything was prepared, even the camera’s and the media was there at the arrival. As the Police Officers was the closely monitoring if he would eat the monies offered by the Aya Group. What makes me suspicious is two new revealed things, not the three counts but this.

Kabafunzaki charged on three counts of corruption for soliciting a Shs.15M bribe and directly accepting 5M bribe in exchange for clearing Mohammed Hamid from allegations of sexual harassment” (NTV Uganda, 11.04.2017).

So with the knowledge of the counts of corruption put on the State Minister Kabafunzaki, as he is lingering in Luzira Prison. This revelation in New Vision earlier if true, show’s that it is something missing right now: “He was allegedly arrested with an envelope containing the money by a combined team of Special Forces Command and Police at around 3pm” (…) “Hamid said President Yoweri Museveni was informed about the minister’s demand from which Police was tipped” (Lumu & Etukuri, 2017).

Three key aspects here, that should not be put under the rug. That the businessman himself, the one who needed to clear his charges of possible sexual assault tipped of the President. That means that the President himself called the Special Force Command, the group that has been run and become his Maj. Gen. Muhoozi unit inside the army and than also tipping the Police Force. This shows how little institutions and how little care there is inside the Security Organizations. That they follow the orders of the President blindly.

Secondly is that the mixed Special Force Command, army personnel are together with Police while arresting a fellow Minister and State Official. That they are there without warrants and for-warning. Thirdly, which are mysterious, that the Aya Group has the direct-line to the President. Also shows how license and business in general is operated in Uganda. That the foreign investors are directly in the loop of the President!

Counsel Kenneth Muhangi (Kabafunzaki’s lawyer) has presented three sureties as requested by court for Minister Kabafunzaki’s bail application. State prosecutor asks court for stringent bail terms including hefty amounts of money, passport & a land title. State prosecutor also wants Minister Kabafunzaki to report to court weekly if granted bail” (NBS TV Uganda, 11.04.2017).

So the Minister set for Luzira is really in a pickle and has a few hefty nuts to crack. This corruption scandal and Aya Group ordeal will be hard stain to wash off. Hon. Kabafunzaki can clearly look guilty and can be determined after the evidence to set so as well, but the idea that the President knew from Aya Group’s own Hamid, the man paying the bribe. Says something is wrong. Why would the one fixing the bribe and the payment of the Minister keep the President in the loop? Why? Secondly, why aren’t the Aya Group and Mohammed Hamid charged with trying to corrupt a fellow State Official?

His P.A. pleads guilty:

Brian Mugabo, the political assistant to Minister Herbert Kabafunzaki, pleads guilty of the charge of accepting a bribe of Shs5m from AYA brothers, on behalf of the minister and trying to make the minister escape punishment by throwing away the Brown envelop that contained the bribe” (Wesaka, Anthony – Daily Monitor, 11.04.2017).

So that the PA didn’t ask for guidance or even advice before the trial, as the Minister brought his set of lawyers, as the PA did say he was guilty of accomplice from the get-go. Makes the whole events seem stranger. Have the PA already made a plea-deal and made sure his future is set, as he did fix the set-up for the State Minister? Since the Personal Assistant usually keeps the diary and the other needed administrative tasks a Minister needs. Therefore, he knew what was happening at Serena Hotel and who he was meeting.

What still, doesn’t stop pumping in my chest, as the bets are off and the trials are really starting. Why did the Aya Group report to the President Museveni before the arrests and reveal the corrupt behavior of the Minister?

Because the counts shouldn’t only be on the State Minister and his PA, why isn’t their any case against the company who planned to alter the sexual assault case with him. Not that I want this minister free as the tapes and the revealed evidence to the public. There are many lose leads… there are many things leading one direction. But will the State House and the President say why they intervene and make arrangement for this too happen. That is how it looks and it is weird that these conclusions can come. Since a President should have better things to do, than to incriminate a fellow Parliamentarian… Peace.

Reference:

Lumu, David & Etukuri, Charles – ‘Minister Kabafunzaki arrested for soliciting bribe’ (08.04.2017) link: http://www.newvision.co.ug/new_vision/news/1450604/minister-kabafunzaki-arrested-soliciting-bribe

Opinion: “Presidential Handshake” Vs “Bribe”; Why is one legal and the other illegal?

There are something serious malfunctioning in the National Resistance Movement (NRM), their whole operation and their idea of Government. The reason why is a Minister is now caught in the mix, though strange that he is in hot-water. Why do I say that? Since this is the government that has sanctioned the Presidential Handshake, the billing of profits from the Tax Case with Tullow Oil. So for me this is weird, that this one get illegal, while the other get rubber-stamped by the same government. Like a rabbit isn’t a rabbit, that these two is two of a kind. Take a quick look!

Days after the story of this accusation went public, police on Saturday arrested and detained three people including a State Minister, for allegedly receiving a Shs30 million bribe from the businessman” (…) “The police this afternoon arrested Hon. Herbert Kabafunzaki, the state minister for labour, employment and industrial relations who is also the MP Rukiga County in Kabale district. He is arrested together with Mr Brian Mugabo, a clearing agent. He was allegedly soliciting a bribe from the proprietor of Aya Group,” Mr Kayima said in a statement” (Monitor Team, 2017).

Can someone please tell me difference between Aya Group and Tullow Oil, certainly different types of businesses and also reach. That Tullow Oil got middlemen inside the Uganda Revenue Authority and got accepted through all forms of government before the corrupt arrangement of the Presidential Handshake, but why doesn’t Hon. Kabafunzaki get off the hook, when half of the civil service and the leadership involved in the handshake gets to kiss ass. There are something unjust about the whole case.

When contacted to confirm or deny president Museveni’s involvement in the arrest of the minister, Senior Presidential Press Secretary Don Wanyama said: “When the President said this is Kisanja Hakuna Mchezo this is what he meant. The message is clear, the fight against corruption has been taken to a new high and there are no sacred cows. Once you’re involved, you’ll be arrested irrespective of position. Corrupt government officials have been put on notice.” (Monitor Team, 2017).

It is ironic and strange to see the President involved in it and taking a strong stance on it, as he government and his officials are let’s say bluntly very corrupt. His former cronies like Gen. Jim Muhwezi and Amama Mbabazi was often on the list of most corrupt men in East Africa. Therefore, these words coming from Okello House is not really trustworthy, as the big business and decisions comes from the State House before they are sanctioned. So if the grand-corruption is appearing, than the President has said “Okay” and signed the agreement.

When we see stuff like this now, we know that if there are grand corruption or corrupt behavior it is either sanctioned by the State House or not accepted by the NRM cronies. Therefore, if they are arrested it is to make the world believe that the institutions works against this sort of economic transgression in society. For people like me this is not believable, that the NRM Regime cares, as the corruption scandals and the people walking free in mansions bigger than malls. So why should we mind?

Well, as long as the Presidential Handshakes are accepted and a way of giving illegal bonuses, which is a sort of corruption and eating of the state coffers. Why should this 30m shillings be an issue? Peace.

Reference:

Monitor Team – ‘Sex scandal adds twist to Minister Kabafunzaki’s arrest’ (08.04.2017) link: http://www.monitor.co.ug/News/National/Minister-Kabafunzai-arrested-taking-30M-bribe/688334-3882728-lr2slwz/index.html

Uganda: UPC Calls for Economic Reforms (05.04.2017)

Opinion: Uganda government doesn’t need a Presidential Handshake Committee, it needs a strong IGG, PPDA and AG!

In this times and days with the Oil Cash Probe, there are talking of making more government bodies, instead of using the legal authorities and institutions that is already there. We can that as the stalwart organization that even signed a Memorandum of Understanding between Public Procurement And Disposal of Public Assets Authority (PPDA), Office of Attorney General (OAG) and the Inspectorate of Government (IGG) on the 25th January 2017 as these offices wanted to collectively investigate the corrupt and ill behaviour in government.

Justice Irene Mulyagonja Kakooza, the Inspectorate General of Government (IGG) is part of the agreement, still the mission of the IGG is this:

“The Inspectorate of Government is an independent institution charged with the responsibility of eliminating corruption, abuse of authority and of public office. The powers as enshrined in the Constitution and IG Act include to; investigate or cause investigation, arrest or cause arrest, prosecute or cause prosecution, make orders and give directions during investigations; access and search – enter and inspect premises or property or search a person or bank account or safe deposit box among others” (IGG).

So when the IGG has this mandate, should determine the procedures and the abilities to the institution and the legal authority to look into corruption inside the government organizations. Therefore it is worrying when the Ministry of Finance Planning and Economic Development (MoFPED) and the Minister Matia Kasaija who had to say this about the Presidential Handshake!

“Kasaija also proposed guidance on presidential favours and donations, saying there should be a system to ensure that the president’s directive does not break the law” (…) “We need to develop a system that can quickly tell the authoriser that one; you are authorising this money it is in accordance with the law. Being busy, and I have to sign almost 100 documents per day that could be a problem. You might find something has escaped [through unchecked]. On presidential favours and donations, I think also there should be a system when the president orders me or directs me particularly to pay, there should be a system that verifies that what the president has asked doesn’t break the law. Maybe it can be instituted on his own side before he writes to me, but I doubt if he has that kind of system. [His directives shouldn’t] break the law and that it is in order according to government policies and practices”, Kasaija said.

So with the recent financial laws there still needs amendments and need more structures as the Public Finance Bill of 2015 Act and the Public Finance Management Act (PFMA) of 2015, these bills and acts has set the financial regulation, also opened the financial systems for less accountability, therefore the idea from the Daily Monitor editor is fine idea, but shouldn’t be needed!

“Executive practice could repeat its departure from known policy and established procedure, since Uganda is teeming with vampires constantly plotting to exploit a generous ruler who is too busy to study every case in detail. Why not develop a hi-tech gadget to aid the President?

The Concept: A piece of digital hardware on which the President’s cash handouts over the last 10 years are listed, indicating those that have and have not been fulfilled.

Filed, too, are the implied (financial) numbers computed from the current national Budget.

Filed, too, is a map of the citizens’ socio-economic condition.

Filed also are a range of constitutional alarm and barrier-wall features.

Applying the latest algorithmic wizardry, installed software would rapidly survey the data and resolve whether a cash handout the President had just announced was fair, legal and viable. (Voice recognition technology is of course on board.)

Linked to State House, Parliament, Finance and the Auditor General, when the gadget clears or blocks a presidential gift (wherever he announces it), the signal is instantly fired to those destinations” (Tacca, 2017).

So the Daily Monitor wants a direct digital archive of the Presidential Handshakes and instant check-up of the funds. The Oil Cash Probe has revealed lots of inaccurate practices of payments and bonuses to civil servants. Certainly, Presidential Handshake Committee would be nice idea, but isn’t there enough institutions and enough government bodies to fill the void.

That the Inspectorate General Kakooza should have an idea and should fill her mission of the government body she has been running since 2012. There is also the PPDA and their Executive Director Cornelia.K. Sabiiti should use their mandates to stop the corrupt behaviour of government officials and civil servants. Either when it comes through the mandate of the IGG or the PPDA, they are both looking over the government institutions and their use of the public coffers. Why should it then be needed for a separate unit who looks into the handshakes at the State House, unless the President was opting for creating laws accepting the presidential bonuses at any given time for any given work for the government.

A PHC over a IGG, PPDA and Attorney General, is just confusing the mandates, the legal authorities and also, the meaning of what is actual just behaviour. MoFPED has proven they do not have the capacity or the will to show their true records, if so the IGG and other agencies of the state would have found out about the transgression and the will of doling out oil cash willy-nilly. Therefore, to create another unit to counter this specific way of misusing funds seems far-fetched, shows really the weakness of the leadership and the will to question the legality of maladministration. However, if you get even more hands into the cookie-jar, than there are less will to investigate, as the hopes that you are next up to get a free cookie. That is how this seems.

IG Kakooza, should have the focus and the mandate to investigate the Oil Cash probe, unless the Attorney General William Byaruhanga has taken the case or said his authority will investigate the ill-intent themselves, instead of the IGG. So there should be enough hands, and bodies to make sure the breaches of trust and breaking of laws should be taken through tough and just action. That shouldn’t be too hard when all of this already created to be safeguards of society and of the laws. Still, when men of the nations doesn’t trust this and needs to make specific committees for certain types of maladministration, than you know there is weakness of leadership and lack of will to fight the misuse of power. Might even be fear to question the old man with the hat. Because if you do so, you might lose your job and you might not be hired again. Peace.

Reference:

The Inspectorate of Government – ‘mandate’ link: https://www.igg.go.ug/about/mandate/

Tacca, Alan – ‘And now… a Presidential Handshake Control Unit!’ (12.03.2017) link: http://www.monitor.co.ug/OpEd/Commentary/689364-3845488-t492pv/index.html

The Observer – ‘Oil probe: MPs query double payment to US-based law firm’ (12.03.2017) link: http://observer.ug/news/headlines/51726-oil-probe-mps-query-double-payment-to-us-based-law-firm.html

Opinion: Forget the Presidential Handshake, the Oil Revenues not been remitted since 2010; so what value have the Norwegian Oil Development Programmes in this mess?

ntv-01-03-2017-oil

“Oil Cash Probe: About 2.4 trillion shillings of oil revenues received since 2010 has not been remitted to Bank of Uganda” (NTV Uganda, 01.03.2017).

President Yoweri Kaguta Museveni, the National Resistance Movement and all the other civil servants that has been working and living with the knowledge of the unaccounted funds. The 2.4 trillion shillings is above $ 663m dollars. That is massive amount funds that could be used to all sorts of government programs. However, there been programs to secure the revenue and the progress, which is done in collaboration with the Norwegian government. I address these programs and wonder if they only exist on papers to make the ugly truth look decent. Since, the revelation of the funds that gone missing without a trace.

This misdirection points to another explanation for the oil curse that is gaining favour: politics. Because oil money often flows directly from Big Oil to the Big Man, as Africa’s dictators are known, governments have little need to raise revenues through taxes. Arvind Subramanian of the IMF argues that such rulers have no incentive to develop non-oil sources of wealth, and the ruled (but untaxed) consequently have little incentive to hold their rulers accountable” (The Economist, 2005).

Norwegian Funding for transparent Oil development:

Cooperation between Uganda and Norway on capacity and institutional development has a long history through several successful Programmes. Norwegian assistance under Oil for Development in Uganda started in 2006 under the programme “Strengthening the State Administration of the Upstream Petroleum Sector in Uganda”. This programme ended in June 2009 after three and a half years of successful implementation. Total funding for this Programme was NOK 21,294,650” (…) “The Programme had three Pillars – Resource Management, Environment Management and Revenue Management Pillar, in addition to a Programme Management, and was allocated a total funding of 80,000,000 NOK for its five year duration (2009 to 2014). However, during the second and third Annual Meetings for the Programme that were held on 27th January 2011 and 31st January 2012 respectively, the need to expand several activities of the Programme and the addition of new ones due to the rapid growth of the oil and gas sector in the country, was presented and approved by the Embassy. Additional funding of 67,000,000 NOK was allocated during September 2013 and the addenda to the Programme Agreement and Institutional Corporation Contract were signed” (MoEMD, P: 7-8, 2015).

Oil Press Statement 01.03. P1Oil Press Statement 01.03. P2

Supposed Revenue Administration:

The Program supported the development of a system (the petroleum tax manual) which will be used to identify and harmonize activities in the petroleum sector for taxation purposes. This activity is in three (3) parts and has been supported by the Oil Taxation Office (OTO) in Norway. Consultative meetings were held and Part II of the manual was completed in April 2014. Parts I and III have been reviewed and will be completed in next phase of the program with support from OTO” (MoEMD, P: 16, 2015).

That means that the Ugandan Government gotten by the Norwegian Government the amount of 168,294,650 NOK, which if you convert it is the total 71,879,499,032.99 UGX or 71bn shillings. If you translate it into dollars it is above $18 million dollars. That is massive sum of donations for some common good. Therefore, it is insulting that the Oil Cash Probe is showing massive amount shillings are unattained or even can verify where the oil money is.

Therefore, that the Norwegian state continues to fund the Ugandan government with the new agreement of continued oil development on the 15th May 2015. That was in a signed agreement between Hon. Matia Kasaija of Minister of Finance, Planning and Economic Development (MoFPED) and the Norwegian ambassador Thorbjørn Gaustadsæther. This was an continued effort to as the agreement stated: “The Impact of this programme will thus contribute to achieving the goal of the Uganda National Oil and Gas Policy (2008): “To use the country’s oil resources to contribute to early achievement of poverty eradication and create lasting value to society”. “The Program that the states agreed upon for the years from 2015 was 19 million NOK, in 2016 was 18 million NOK and in 2017 supposed to be 16 million NOK. In total the Norwegian Support for these three years are 53 million NOK” (Agreement between the Norwegian Ministry of Foreign Affairs and the Government of the Republic of Uganda regarding development cooperation concerning “Strengthening the Management of the Oil and Gas Sector in Uganda – Phase II, 15th May 2015).

The Norwegian government have supported the Ugandan government over two periods with funds to secure the Oil Development for human resource, drilling technic and revenue stream. Therefore with the recent revelations shows that the works of the cooperation have been very fruitless or pointless; then even as the programs are in the works, you see the massive amount of petrodollars disappearing in thin-air. This is just to establish the amount of funds together before 2015 and after, that being the amounts of 221,294,650 NOK or 94,516,067,983.63 or 94bn Uganda Shillings. That is insulting lots of monies when the knowledge of missing 2 trillion shillings!

I start to wonder what they really did on this one and how they duped their European counterparts, as the results of the bidding is that funds dating back to 2010 is unaccounted for and not allocated in the funds their supposed to be at Bank of Uganda. This is a dozens loads of handshakes and giant robbery of the reserves.

presidential-handshake-2015

So now I am not so concerned with the “Presidential Handshake” worth 6bn shillings, which is bad enough that the NRM regime has been doling away to all civil servants and other loyal subjects after the “historic” tax settlement that we’re won in the courts. So 6 billion shillings turns into 2.4 trillion shillings, which is vast fortunes misspent by regime that clearly doesn’t care for accountability or transparency. The oil-deal between the government and the licenced in the Lake Albertine Basin!

Other than the little knowledge that was dropped in the 2014 report made by the NGO Global Witness that stated this: “Consequently it is not currently possible to track payments by international oil companies into government accounts with Tullow Oil being the only company voluntarily publishing disaggregated payments to the Ugandan Government. This creates the risk that any theoretical tax avoidance by companies or embezzlement by government officials may go unnoticed (Global Witness makes no claim of any such wrongdoing in relation to the contracts we have examined in this report). This will be increasingly important as oil production begins and more and bigger payments begin to flow into government accounts” (Global Witness, P: 35, 2014).

So this report alone states the fact that world and citizens of Uganda cannot know where the revenue ends. The state supposed petroleum revenue is not visible since 2010. The Ugandans people should be terrified and be mad of the obvious thieving. When the licenced public resources get squandered away and the black gold gets tricked away. So that President Museveni have within his powers and with his cronies made sure the fortunes made on licencing oil in the Lake Albertine basin goes to his or other associates accounts, instead of into government accounts in the Bank of Uganda.

2. Trillion shillings are not a chicken or a small fee easily to lose, it is not something that get earned over a hot minute. The citizens are kept in dark with the funds earned and taken away over years into secret accounts through sophisticated financial instruments. Certainly, Museveni and his bands of brothers who squeezed the government for decades and this is the final nail of salvaging any good reputation. The rep of the Museveni is already barely legal; still this here is just insane that the little 6 billion “handshake” to a bunch of civil servants and NRM elites revealed the madness.

So there was one guy in court who actually had the courage to reveal the greatest crime in decades. Even as the rigging of elections is thieving the country of their representation and of their true leaders, the government isn’t represented by legitimate people, but the ones there is now thieving the whole oil fund. This is not okay, this is thieving the future and the present development, as the Museveni regime and the NRM does not care about their citizens when so much revenue of the petroleum went missing. Peace.

Reference:

The Economist – ‘The curse of oil – The paradox of plenty’ (20.12.2005) link: http://www.economist.com/node/5323394

Global Witness: ‘A Good Deal Better? Uganda’s Secret Oil Contracts Explained’ (2014)

Republic of Uganda – Ministry of Energy and Mineral Development – ‘Strengthening the Management of the Oil and Gas Sector in Uganda –  Phase II – 2015-2018 –  A Development Programme in Co-operation with Norway’ (March 2015)

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