PwC report spells gloom over rising debt in Uganda!

Ugandan shillings

A report released by PricewaterhouseCoopers limited has delivered this month is clearly seeing what others has seen with the economic situation and the use of funds by the National Resistance Movement (NRM) and their regime. This report by a company which is an international company who works with other businesses and civil society organizations who needs economic advice and advisory services for taxes and such; therefore the report from PwC on economic situation is telling. Their speciality on their outlook will be saying with auditors and financial analyst whose words means a lot. They are professional analysts in this field are writing and saying this on the economic climate. The Economic climate is worrying and that has been visible. The liability of the growing debt in the republic has been a hazard together with the lacking internal revenue for the state as well. Just take a look!

Sluggish economy with higher debt:

“This bulletin comes at a very crucial time for the Uganda economy when growth is slowing down, private sector credit is on a decline, consumer demand is low, implementation and execution of critical public infrastructure projects is very sluggish, and the public sector debt burden on the economy is at the highest it has ever been” (PwC, P: 3, 2017). “If the domestic revenues collections continue to underperform, the government will be forced to borrow more from the domestic market. The increase in government borrowing may result in a substantial increase in yields on government securities, which may result in an increase in borrowing rates, which may constrain the private sector credit growth even further” (PwC, P: 7, 2017).

Growing debt:

“The Uganda’s public debt burden has risen by 12.7% in the past four years from 25.9% of GDP in FY 2012/13, to 38.6% of GDP in FY 2016/17. The debt burden is projected to continue rising to 45% of GDP by 2020. Debt as a percentage of revenues has risen by 54% since 2012 and is expected to exceed 250% by 2018. The country’s ever increasing debt burden has resulted in a deterioration of the debt affordability situation” (PwC, P: 8, 2017). “Uganda’s capital expenditures are still too reliant on external finance. Currently debt servicing constitutes 11% of the total government expenditure, one of the highest debt burdens in sub-Saharan Africa. This is expected to increase to 16% of the total government expenditure by 2018. Uganda’s debt burden has risen faster than the government’s own resources, resulting in a debt-to-revenue ratio of 236%, one of the highest amongst B-rated countries. This has prompted Moody’s recent down grade of Uganda’s long-term bond rating by one notch to B2 from B1” (PwC, P: 8, 2017).

An Economy with challenges:

“2016 was an economically difficult year for Uganda. The economy faced numerous challenges due to the continued uncertainty surrounding the recovery in global economic growth, weak commodity prices and geopolitical events in our key trading partners. As a result, of these numerous challenges, our export earnings, FDI flows and remittances to Uganda all went down. These developments, together with a slowdown in the execution of public investment projects and weaker than expected private sector demand, had a major effect on the economy” (…) “Other internal risks include delays in the implementation of public infrastructure projects such as the Standard Gauge Railway (SGR) linking Uganda to its East African neighbours, and the key infrastructure projects critical for the commencement of oil production” (PwC, P: 4-5, 2017).

If you are worried by the Republic and their economy after this, than you haven’t followed the class since this signs have been there for while! The state of the economy is fragile and the debt rise should concern all the ones inside the Republic and also outside. However, this could change, but that has to be done by the government and steer in another direction as today. The greed and the common sense of developing the economy is forgotten, as they are fixated on infrastructure projects and oil developments, while borrowing to fill the losses of donor-aid and internal revenue. This could be done in many ways, but that would not be easy. Peace.

Reference:

PricewaterhouseCoopers Limited (PwC) – ‘Uganda Economic Outlook 2017’ (February 2017)

Mzee doesn’t care about his own laws with the appointment of Kyabanzinga Gabula IV as a Special Envoy in the Office of the President!

mzee-busogo-12-02-2017

Whatever being said is that Busoga kingdom who’s King Gabula IV have been under fire recently as President Yoweri Kaguta Museveni has appointed him as a Special Ambassador in the Office of the President.  Since this is downgrading the cultural or traditional leader, who has a kingdom to reign over.

This being Busoga which is: “Busoga comprises of 11 principalities of the Basoga people. Our kingdom’s capital is located in Bugembe, which in Jinja District, the second largest city in Uganda. Busoga Kingdom is composed of ten politically organised districts: Jinja, Buyende, Kamuli, Kaliro, Iganga, Mayuge, Luuka, Namutumba, Bugiiri and Namayingo. Each district is headed by democratically elected chairpersons or Local Council Five, while municipalities are headed by an elected Mayor. Jinja is the industrial and economical hub of Busoga. The Busoga area is bounded on the north by the swampy Lake Kyoga which separates it from Lango, on the west by the Victoria Nile which separates it from Buganda, on the south by Lake Victoria which separates it from Tanzania and Kenya, and on the east by the Mpologoma River, which separates it from various smaller tribal groups (Padhola, Bugwere, Bugisu, etc.)” (http://busogakingdom.com/).

This is a strange appointment of Kyabanzinga of Busoga William Gabula, when reading certain parts of the law. This is with the knowledge of Traditional and Cultural Leaders Act of 2011. Where the law says so in Part V – Restriction on a Traditional or Cultural Leaders:

“12. Exercise of administrative, legislative or executive powers. A traditional or cultural leader shall not have or exercise any administrative, legislative or executive powers of Government or a local government” (The Institutional of Traditional or Cultural Leaders Act of 2011).

As President Museveni himself written yesterday:

As someone who was involved in restoration of kingdoms, I know the laws governing them. I know where a cultural leader can contribute to Uganda without interfering with the law. I heard the critics say royals don’t work. That is not the case. The Kyabazinga is youthful, he recently acquired useful education from abroad. He can contribute to national development and I see no merit in denying him that opportunity. There’s a great history of royals and monarchs contributing and leading the transformation of nations. One example is King Peter the Great who is considered the father of Russia’s transformation” (Yoweri Kaguta Museveni, 12.02.2017).

So the President himself cannot be able to read or justify that an Appointment of Cultural Leader isn’t countering the law Part V paragraph 12 which says that a king inside the republic of Uganda “shall not have or exercise any administrative, legislative or executive powers of Government”. I know that is words or paragraphs that President Museveni hasn’t remembered or even cares about. Still, his own appointment counters his own law. The law of Cultural Leaders doesn’t matter if Kyabazinga Gabula becomes the next Special Ambassador in the Office of the President.

With this in mind it doesn’t matter if the King feels he wants an ordinary job, he is supposed to get funds through government budget directed through fees from the consolidation fund. That is spelled in the law of 2011, therefore they should not need to apply or work government jobs, as their job is to promote and work for their better of their people and region. The King of Busoga is supposed to be head representative and historical crown-bearer of his kingdom, not work for any political gain. Therefore, the appointment isn’t only wrong in the sense of ordinary understanding of a monarchy. However, this is also of the laws that have been put in place during the 8th Parliament or beginning of 9th Parliament.

national-leaders-11-02-2017

So when the king is quoted with this: “The Busoga cultural leader [Kyabazinga], William Nadiope Gabula IV, has said he will snap up the opportunity to serve as an Ambassador in spite of protestations by some of his subjects and other Ugandans.” (Ladu & Nakato, 2017). Even he himself wants to have position in Parliament, even in an Ordinary Ministry or becoming Permanent Secretary of Education and Sports, it would still be wrong. The laws that are put in place isn’t justifying hiring this king nor any other in Uganda. This is laws that NRM has sanctioned and put in place. Surely, because they wouldn’t have the same issue as President Obote, who in the end got rid of the kingdoms in Uganda!

The history has taught us a lot and President Museveni have forgotten more and more. As his will of putting himself full-circle for all movement; soon he will offer the Baganda and Kabaka Ronald Muwenda Mutebi II another token of goodwill, as he cannot burn everybody’s palace down or create havoc there too. The Same with King Oyo of Toro, who has been silent since the fall of Gadafi, but that, is another matter.

That President Museveni says he knows and then counters his own law, shows that he doesn’t respect his own laws or has any plans of doing so. Because he now beliefs that his judgement means more or behest more power than the laws of the nation he reign. President Museveni doesn’t respect the laws he has enacted and sanction. Mzee is careless with the appointment of Kyabazinga Gabula IV. It is a proof of his mismanagement and clear-cut Machiavellian tactics of paying of people for loyalty, if not he burns or make more districts to make more people loyal to him. This is the proof of that and isn’t just mere words, but acts of using will power to control. Busoga kingdom is proven to be a walkover if this is an end-product.

The Busoga King Gabula wills sell-out his role as a king for becoming a little working ant for Museveni. That is the end-game, the result of this appointment with the neglect of the law and the rule of law. As his appointment is alone being breached, if the king was abdicating for serving the President. It would be different, than somebody else could rule as king and he could be a Special Envoy under the wings of the President. Naye, which is not the case!! Peace.

Reference:

Parliament of Uganda – ‘The Institution of Traditional or Cultural Leaders’ Act of 2011

Ladu, Ismail Musa & Nakato, Tausi – ‘I’ll take paid envoy job – Busoga king’ (30.01.2017) link: http://www.monitor.co.ug/News/National/I-ll-take-paid-envoy-job—-Busoga-king/688334-3792974-4rfdjg/index.html

A look into the proposed International Contribution to the National Budget of Uganda for the Financial Year 2017/2018

Mengo Hospital needs funds

There are many budget posts in a National Budget, but as there are talk of lacking international support of the budget in the Republic of Uganda. The certainty is that even as the donors are fleeing the National Resistance Movement (NRM) and the President Museveni own way of saying he doesn’t need them. Still, I want to show the world collectively what the NRM government have donor sponsored projects through the National Budget, these are projects and development of infrastructure that the NRM needs to show something after over 30 years reign.

Like take Japan the donor funding to the Northern Uganda Farmer Livelihood Improvement Project in the next Financial Year gives to the project Ush. 31.33bn. also donate funds to is the Nakawa TVET Lead Project got Ush. 4.69bn. Japan also donates to Kampala Flyover Construction and Road Upgrading Project with Ush. 155.44bn.

World Bank itself is donating funds in different ways to two other projects, which is African Centeres of Excellence that got Ush. 13.36bn. and Albertine Region Sustainable Development got Ush. 9.35bn. On the other hand the Kingdom of Saudi Arabia donated to the Construction of 5 Regional Technical Institutes with funds of Ush. 6.98bn.

Belgium has also offered their donor funds into the Ugandan state through various projects, like the Program/Project Support to Improve the Quality of Teaching and Learning with Ush. 11.97bn. also the Rehabilitation of the National Teacher Training Centre Kaliro allocated Ush. 15.16bn, they also gave to Rehabilitation of the National Teacher Training Centre Muni funds of Ush. 15.16bn. another project that Belgium was behind is the Support to the Implementation of Skilling Uganda with Ush. 15.96bn.

The Democratic People’s Republic of China has donated to new development projects in Uganda, like they are donating to Industrial Substations Ush. 91.74bn. they also donated to Isimba Hydro Power Plant Ush. 407bn. and also  Karuma Hydro Power Plant where they have pledged Ush. 1,305.07bn. or Ush. 1.3 trillion to that alone! The Chinese is also involved in Entebbe Airport Rehabilitation where they have funded Ush. 148.13bn. the pledged funds for Standard Gauge Railway will first come next Financial Year 2018/2019 and not this financial year.

African Union (AU) funds to the UPDF Peace Keeping Mission in Somalia with total Ush. 256.66bn. United Kingdom pledged funds to the Road Infrastructure for Delivery of First Oil with Ush. 252.63bn.

The pledged funds for Kampala-Jinja Highway are first for FY 2018/2019, but no official donor or loaner of funds. Therefore the estimated funds come from thin air. What is also relevant is to see that the Funds from Austria and Denmark has been suspended for different development projects. Still, which I haven’t mentioned is the funds from African Development Bank, also GAVI and Global Funds still gives to health care development, even with the knowledge of the rampant corrupt behaviour in the Ministry of Health.

Therefore if the NRM are contemplating that they are themselves giving these sorts of projects to the people, I hope the donors are putting up boards or signs in the entrance or hallways, even start of the roads where it says what sort of amount of funds they spent on it. So that President Museveni or any other crony can take all the credit, because the credit and the footing the bill to somebody else! Peace.

Opinion: Mzee must have angered his donors when seeing the dwindling budget support for FY 2017/2018!

M7 26.07.2016 P2

I haven’t been much focused on the budget for 2017/2018 because the more I know, the sadder I be for the citizens of Uganda. Since the revelations of the use of funds and allocations are usually not in sync. The allocations and maladministration is so rampant that the allocated funds are most likely spent on other projects than we’re they was anticipated to be. Either saves a Bank with owners tied to Museveni or to pay for gasoline for his Presidential Jet. Who knows right?

Well, we know that over the past few months and year President Yoweri Kaguta Museveni has attacked the hypocrisy and the West for interfering in his democracy. Mr. I-Am-Not-A-Civil-Servant, but I am your President. Since there are some questionable things in Uganda National Budget Framework Paper of December 2016. That are putting numbers for how they see fit for the government use of funds.

Key numbers:

Area FY 2016/2017 FY 2017/2018
Budget Support 926,6bn 33,8bn

This numbers says a lot of the usual donor-friendly regime of Museveni, which has been since he was the new-breed of African leaders that was even praised by Bill Clinton during the 1990s. Therefore the revelation that over a year period the donor-funding to direct budget support is scrapped says something. That of 30 Trillion budget of 2017/2018 is only getting meagre sum of 33 billion. That is just a few Presidential Handshakes to loyal cronies an then they are spent!

President Museveni must really angered and made them tired of throwing monies at his regime since they are not as friendly with their taxpayers monies as before. I am sure they have another cause and another country that they are doling their budget aid funds to. Now they are not directed at the NRM or the Mzee who certainly eats more alone. Peace.

My letter to the 10th Parliament on their reckless behaviour!

10th-parliament-sep-2016-p2

Dear Members of Parliament!

I know by now that you doesn’t’ care much about the National Economy or about Transparency as you excluded yourself from the citizens you represented when you gave yourself a giant tax-break with no-income tax. That is the way you are I guess, reckless misbehaving children who are creating havoc in the candy store pointing at all the different kinds of treats and wants them all, even if it make them sick of sugar; they still want it all!

You guys, ladies and gentleman, the so called nobles, the so-called honourable citizens of the Republic have no totally forgotten your place and your reason for co-existing in the Republic. You might think that your above the people, the citizens, the one that you represent exist because of. Even if you think you exists and breathes eats and have pleasure because of President Yoweri Museveni, let’s be clear he is just using you!

I am not mad that you want to have air-conditioner in the North or the Eastern Building of the Parliament, it’s hot and you guys doesn’t want to turn into hot-air or Wokoloso. I know that, you want to peaceful creatures, which doesn’t kill Kasese or support arms for the rebels in Democratic Republic of Congo. You want to keep cool and be great support of the Republic.

I am furious over you wish to grand yourself 4 station wagons for whatever purpose of trading socks at Kololo Airstrip or having secretaries to drive some of you around on your shopping spree at Game or Garden City. That is all up to you and the use of the Station Wagons that you acquire to Parliament. You already have a massive fortune in Car money and doling it out when you started your terms as MPs because your official duty needs that the public offer you luxurious transport. Not take Taxis, Specials or boda-boda’s to Parliament Avenue, which is beneath you. You just like eating the monies of the public who would so!

I understand that the Parliament isn’t built for nor have the facilities for all the MPs now. Since you’re Executive, the chief of Rwakitura and the whole nation has let the nation sore with districts and parishes since his dire beginning of power in the 80s. It was nearly any districts when he entered the building as a Defence Minister under Dr. Milton Obote, now it is more than pages in the Kampala Eye and whatnot Tourist Information brochures that are delivered at Entebbe International Airport. Therefore the amount of MPs has soured with the amount of districts; a cow hasn’t been butchered as many ways the districts in Uganda has been during the last decades under Museveni.

So that the MPs needs office space and rebuild their accommodations is responsible acts of the Parliament, though costly because the share amount of MPs created under the President all of his terms. The MPs are in this one reacting with sense, but they should question the need for all of their services, even if it means giving up their wealthy new acquired lifestyle in the Capital.

What makes doesn’t make sense to me, in a nation where the state doesn’t have enough funds to allocate for the Presidential Jet or Helicopter of the farmer of Rwakitura. So when the current reflection of that in mind, the 10th Parliament are allocating funds and finding ways of giving Speaker Rebecca Kadaga and Deputy Speaker Jacob Oulanyah. Because these noble creatures and honourable minds needs to take into air and land wherever. Since their roles in Parliament is damn important that they need to follow the Presidential Jet and Helicopter that the State House cannot allocate enough funds too. So they can all stand still at the Helicopter Landing-sites in Kampala. At the Merry for the Kadaga and Oulanyah who dearly need them for their service of the country. They need to be mosquitos who can travel in the air and suck funds out the taxpayers coffers like the mosquito suck blood of their pray. If the Speaker and Deputy Speaker are lucky they will give the nation malaria as of the purchase and maintenance so the inflation keeps rising and the dwindling economy needs more debt to feed the fiscal imbalance of the state budget. The same state budget the Parliament allocated funds to their helicopters. Their needed helicopter that they will silence the MPs and show their way in Parliament; the Parliament will controlled by the waving wings of silence and the blood sucking drones the Speakers have become.

If you don’t understand the spending is of the chain, when the Mulago Hospital still lacks needed equipment, when other state institutions is depleted and civil servants not getting salaries. At that moment of time… the Speakers doesn’t need more perks, they need to be fiscal responsible and show the Executive just ways, since he is not caring about the Bank of Uganda’s hard work to stagger Inflation and the running debt rate. So when they are using public funds as their playground, these runs rapid wild in spending to be sure they can play all the cool games and be spoiled kids. That is what the Parliament and MPs are right now. Time to stop, rehash ideas and think of accountability, transparency and being fiscal responsible! Peace.

ug-24-01-2017

Written

By the Writer of this Blog!

OAG Muwanga reports that the Local Government misuse of public funds, while Court Awards are going unpaid!

ag-muwanga

Parts of this has been reported before, but that was as reports of the coverage from Parliament as the Auditor General John Muwanga we’re attending preliminary sessions and delivering OAG Report of 31st December 2016, which is the end of year report from the OAG. That one has stories to tell. Parts of this are known, but they are proving that words in Parliament had other numbers than the report that is released later on online. Still, the vast waste of funds and the unallocated or unaccounted funds proves questionable use of public coffers in the Local Government, the districts, parish and municipalities. These funds are important that is well spent and accounted for, because the funds are supposed to go to local government salaries and investments for the citizens. Therefore the mismanagement of this is thieving or maladministration from the civil servants or the locally elected officials. Take a look!

Outstanding Court Awards:

“Government had outstanding amounts in court awards, compensations and other liabilities totaling to UGX.684Bn as at 30th June 2016. The outstanding amount in Court awards and compensations has been accumulating over the last five financial years raising from 54Bn to now 684Bn. I observed that as a result of government’s failure to pay these court awards on time, the awards have accumulated interest and in some instances the interest has exceeded the principal award. As at the close of the year outstanding interest had accumulated to UGX.175.3Bn” (OAG, P: 12, 2016).

Local Government issues:

“The amount is comprised of UGX .1.310Bn which lacked procurement files, UGX.21.225Bn where there was breach of procurement procedures, UGX .4.695Bn involving inadequate contract management and UGX.0.315Bn of unauthorized contract variations. Conse­quently, it becomes difficult to ascertain whether value for money was achieved” (…) “Expenditure amounting to UGX.3.896Bn was identified as funds unaccounted for. Consequently, I could not confirm that the funds were utilized for the intended purposes. The delayed submission of accountability may also lead to falsification of documents resulting into loss of funds. This was caused by failure of Accounting Officers to enforce accountability controls and lack of an advances ledger to monitor advances” (…) “Regulation 32 of the Local Governments Financial and Accounting Regulations, 2007 requires Councils to ensure collection of all budgeted revenue in an approved manner. Review of revenue performance revealed significant under collection of Local revenue in 161 Councils amounting to UGX.17.165Bn” (OAG, P: 31, 2016). “Out of 307 Local Governments, 148 entities representing 48% of the Local governments lacked land titles for the land where council properties are located. There is a risk that council land is exposed to encroachment and disputes which later leads to litigation in courts of law arising from land disputes between the Councils and the Communities” (OAG, P: 33, 2016).

Here you can see the numbers and it is dozens of Presidential Handshakes, the handshakes of the President could go unaccounted for a dozens of times. That the Government have learned from the Parliament and Central Government is clear, since this is rampant and seems to indicated in many local governments. It cannot be okay that the lacking of documentation and of how the monies where spent. Of how and where the documentations went before the allocation of the funds. That shows malpractice and maladministration in the Local Government. Something that is also evident in the Courts, the Courts hasn’t paid out their awards on time and adds extra interests, which the government have to pay as well. Peace.

Reference:

Office of Auditor General (OAG) – ‘Extracts of the Summary of Key Findings of the Annual Report of the Auditor General for the Year Ended 31st December 2016’ (31.12.2016)

Opinion: Ugandan Government rising debt levels, brings fear of higher inflation, devalued currency and defaulting on the debt!

quote-when-uganda-got-debt-relief-in-1999-the-first-item-president-museveni-bought-was-a-presidential-george-ayittey-74-46-61

Well, an election year and campaigning as a tyrant and dictator cost, the fortunes splashed on fellow peers and citizens to buy goodwill costs. The price usually happens after the splash funds on villages and on buses. The estimated exhaust of funds and State House can strain the economy. Therefore after elections in the past there been rising food-prices, more expensive oil and gas and other needed imported goods for the average citizen.

This is happening as the donor-community doesn’t have the same faith in the Movement or the President that been there since 1986. His longevity is now hurting him, as his tricks of trade isn’t building steady progress, instead he is using up every single allocation to make sure the loyal servants and movement peers are paid-in-full, even as his own party haven’t paid salaries for months. There are rumours of how the Special Force Command with Maj. Gen. Muhoozi Kainerugaba has gotten their salaries received as much there are questions of the government bailouts of the friends and business-mates of Gen. Salim Selah.

Still, the economic problems continue to arise, the ill-minded would say there hope of wealth, but the lack of transparency, misused funds as the Uganda Revenue Authority – Oil Money scheme and other’s prove there are lacking accountability for how the government funds are spent. This with the knowledge of the lacking salaries to teachers and even Local Government funds that are spent without concern of showing where it got spent; all these activities doesn’t give confidence and trust between the stakeholders and citizens.

With all of this in mind the revelation that the growing debt are now eating too much of government spending, as the arising splashing of funds to civil servants are happening; the reports from Bank of Uganda (BoU) isn’t a beautiful fairy-tale, instead it is doom.

“In its state-of-the-economy report for December 2016, BOU said: “There are also perceptions in the market that Uganda may not be able to service its rising debt levels.” (…) “The central bank said external debt has grown rapidly and, on a commitment basis, is now estimated at $10.7bn as at end of October 2016. BOU said: “A lump up [in] infrastructure investment has contributed to a rise in our debt portfolio in recent years.” (…) “Uganda’s public debt burden has risen by 12.7 per cent to 38.6 per cent of GDP in 2016/17 from 25.9 per cent of GDP in 2012/13. BOU says it is projected to continue rising towards 45 per cent of GDP by 2020” (Mwesigwa, 2017).

Highlights on the 2015/16 budget (New Vision Graphic)
Highlights on the 2015/16 budget (New Vision Graphic)

That the Movement and the NRM are not able to service their debt, is an indication and will also create a problem with the banks and multi-national financial institutions that has offered these loans to help the government with the day-to-day operations of a sufficient government, as well as offering loans to promising infrastructure projects. These all are now in danger of defaulting loans. These levels are estimated to become 45% of the income of the Republic, which is not the sign of riches; more of poverty and mismanagement. The Executive that has been leading the nations for the decades have seen the signs of the wall, but instead of telling the truth; he has promised industrial revolution and amazing progress that would be bigger than when the United Kingdom found out how to earn money on the Steam-Engine. The same kind of promises to become a middle income nation, when your debt burden is arising as rapidly as it is doing now.

This should be worrying as the Movement has revealed and gotten released plans for own total production and releasing own notes, that could also increase possibilities of devaluing the currency, this with growing debt can create a hyper-inflation that only his fellow comrade has been able to create in Zimbabwe. That is the worst case scenario if the bank-notes production gets out of bond to sort of make quick fortunes for the Movement.

The Movement has all their days used any kind of acts to get monies for themselves and hide it away, only when gotten public they needed to have inquiries and detain the ones that not kingpins, but the low-level employees that doesn’t hurt the leadership. Therefore the concern of not a fiscal well-thought monetary policy, as the Movement are more settled on building projects without having to have giant loans from Multi-National Monetary lenders like IMF; AfDB and others. These loans has to be paid back and also with interest. As the Government bonds has also lost their track compared to the need of sufficient funding. These institutional defaults and as well with the lack of clear conscience of the use of funds, shows the Movement has to step up their game if they don’t want their currency and their budget to lack funds for the coming budget year.

The growing loans will also stop the amount of absorbed funds in the republic goes down as the government has to use bigger parts of the resources on loans, as the extended collected funds from URA might have grown, but they are not collecting enough to keep up with the debt. If so they wouldn’t have defaulted and probably would have paid their interest and debt rate as promised when they we’re accepting taking on the debt.

Time for the Movement and their regime to charge, change patterns, their eating as much as they can, but they will leave the next one with a huge bill of no-confidence, while their short-term riches will be spoiled and devalued as the coming depressing economic stability will not give the market and the currency the needed trust as it should has a tool for exchange values between two parties. Peace.

Reference:

Mwesigwa, Alon – ‘CENTRAL BANK WARNS ABOUT RISING DEBT’ (06.01.2017) link: http://www.observer.ug/business/50631-central-bank-warns-about-rising-debt

AG Muwanga address mismanagement of public funds in the Local Government; staggering amount of funds that disappears!

ag-muwanga

I hope this does not boggle your mind. Bear in mind that the Uganda Revenue Authority (URA) lots of scrutiny for paying bonuses on a Tax-Case against Tullow Oil Corporations. This has led to giant pay-out’s to fellow loyalists in the regime and in the civil service, and other who helped the arranged case that they won in favour of the URA and the NRM; so that AG Muwanga tells about bad practices in the districts and counties is not surprising. When I went through the local portfolios during the campaigning, there was usually funds not spend or even unaccounted in a dozens districts. That was last budget year, not the one mentioned from the AG this time around.

Therefore, here is his revelation in Parliament yesterday:

“Auditor General, John Muwanga, who presented the report to the Speaker of Parliament, Rebecca Kadaga at Parliament on January 4, 2017, said the accounting officers attributed the irregularities to challenges encountered during decentralization of salary payments on the Integrated Financial Management System and Integrated Personnel and Payment System. “Many of the accounting officers explained that they had initiated the process of recovering the overpaid amounts and training of staff to build capacity and address the challenges. I wait for evidence to that effect,” Muwanga stated in the report. At least 33 local governments are quoted to have procured items worth Shs 27.5 billion without following public procurement regulations and guidelines. Out of this, Shs 1.3 billion lacked procurement files; Shs 21.2 billion where there was breach of procurement procedures; Shs 4.6 billion involving inadequate contract management and Shs 315 million from unauthorized contract variations. About Shs 3.8 billion was identified as funds unaccounted for by the local governments. “I could not confirm that the funds were utilized for the intended purposes. The delayed submission of accountability may also lead to falsification of documents resulting into loss of funds”. On under collection of local revenue, 161 councils registered a shortfall in collection of revenue amounting to Shs 17.1 billion, majorly attributed to failure to carry out revenue enumeration and assessments, non-enforcement of contracts with private revenue collectors, understaffing and incomplete revenue records” (Parliament Watch Uganda, 04.01.2016).

If you wonder where it went, than the only ones knowing is the ones that was in charge of transactions and the ones actually taking the monies. The Public Coffers gotten looted without proper procedure for random trades. We can only imagine where the money went. Who used it and for what purpose is not easy to know, if it was buying a great car or house, even if it was paying a side-chick of a local mayor, we do not know. What we do know is that the money left the system without acknowledgement and without needed guidelines of the usage of the funds. That is worrying how easily billions can fly out of the coffers. Brown envelopes of funds easy spent on joy and needed supplies for the elected and public servants without any recites or valid reason for the use.

That this is clear indication of the practices and lacking moral of both central government and local government is certain. Certainly if the Central Government cared and the Local Government was worried of repercussions for their misbehaviour they would have acted otherwise and might even tried to payback the funds to the state. Instead, they used it without warning and might be wasted monies on luxury items during the election.

When the Local Government even with lacking of protocol extend their goodwill to forge documents to prove the valid use, you know the system is made wrong and need a recharge, there are certainly to many loose ends when they go to that extend to clean their wrong doings. Peace.

Opinion: I miss Olara Otunnu, already!

Otunnu

After this General Election of 2016, he promised to step-down after the continuing process of keeping him away from the Presidency of Uganda People’s Congress as there we’re a strange placement of UPC in connection with the NRM government, as they got cabinet positions. The fighter and long-time human-rights activist and politician said he would give up politics.

“Tension at the opposition Uganda People’s Congress Party hit the boiling point on Friday, as supporters of the newly elected party President Jimmy Akena, battled with outgoing president Dr Olara Otunnu” (…) “The latter, who announced his resignation at the end of his term, is unsatisfied with the process through which Mr Akena was elected president last week, citing irregularities that characterized the entire process that must be probed” (…) “Sources in the party told us a new committee led by one Patrick Mwondha was set up, which will provide interim leadership until the July Delegates Conference when the new President will be endorsed” (…) “The council will handle all party activities leading to the July 10th National Council and July 11th National Delegates Conference” (…) “All this took place in the presence of president elect Jimmy Akena, who was occupying the party Vice President Joseph Bossa’s office” (Segwa, 2016).

This continued with a long process where Jimmy Akena finally overpowered Otunnu and kicked him out of the party, together with others who has essentially cleared the party of the loyalist behind Otunnu.

Therefore the realization that we do something bold again could appear, but instead he did this: ““Ambassador Olara Otunnu, the embattled UPC president’s time at the helm of one of Uganda’s oldest political parties is up. The man eagerly waiting to hand over power says his attempts have since been failed from 12th of June 2015,when he scheduled to officially hand over power only to be sabotaged by what he calls the Akena faction coup – d’état” (NBS TV Uganda, 10.05.2016).

Now months after I have to drop a few words for this man. Who has a long history in Uganda Politics and all of sudden has silently disappeared, something he didn’t deserve and he could have become more vital if people had given the man a chance. That is not something I alone could believe as he has been important for many during his years in the UPC. A place and heart of a fraction that Akena never can carry, because honest political craft isn’t Jimmy Akena’s way, if it we’re so the battle for Presidency of late would have been without tension, court dates and kicking out people out of the famous Uganda House.

But when looking away from the hurt, let look at the gentleman that Ugandan people now has lost, as he turned civilian and surely has a position with good people around him. Because he has the experience and the wisdom to lead and to focus his capacity at greater things!

In 1982 – New York:

“’There’s been a mistake,” he told Mr. Otunnu, who is Uganda’s representative to the United Nations. ”We don’t accept diplomats.” Mr. Otunnu kept looking, and found another apartment. ”Everything looked O.K.,” he said, ”but when I came on the appointed day with my check, I was told it was no longer available. I had a friend call up and cross-check, and he found the apartment was still available. So I went back with him, and they were embarrassed – they said the apartment was indeed available, but they couldn’t give it to me because I was a diplomat.” (…) “He found a third apartment, but he was again rejected and again for the same reason. Mr. Otunnu, who eventually found an apartment in a new building, remembers his experience with anger. But, he said, it is a ”common story” for diplomats.” (Bennetts, 1982).

In 2009 – ‘About his role in 1985:

Melina Platas Izma asks: “Some of your critics have alleged that you were involved in the coup of 1985. What is your reaction?”

Otunnu: “That is absolute falsehood. It is a vicious smear campaign being peddled for political reasons. At the time of the coup, I was based in New York. First, there were those reports about tensions in military barracks on the outskirts of Kampala. When I contacted my superiors in Kampala, I was assured that the incidents were not serious and were nothing to be concerned about. But then, in very quick order (and to my great shock), came the coup itself. I knew absolutely nothing about it and had no part whatsoever in its planning or execution. After the coup, I travelled to London for a previously scheduled meeting of the Commonwealth Commission on Small States. While in London, I was summoned home. At that time, I called Mzee Milton Obote from Shafiq Arain’s office. He told me how the coup by Bazilio Okello had unfolded. He knew I had nothing to do with it. He concluded the conversation by telling me: “The situation in Kampala is very dangerous. Be careful. And stay in touch when you can.” I did stay in touch with him. During the Nairobi peace talks, I travelled to Lusaka to consult Mzee.  Much later I would visit him while I was now based in New York. From time to time, he would send me messages. In fact one of the persons who carried an important personal letter from Mzee to me on one occasion was Chris Opoka, the current Secretary General of UPC. When I reported to Kampala, at the urging of Paulo Muwanga and Tito Okello, I accepted the assignment to initiate and facilitate the peace talks. That was my primary responsibility as minister. At the time, in a television discussion with Col. [Zed] Maruru, I defended the record and programmes of UPC from what was a wholesale visceral condemnation of the party without any regard to facts. I argued for an objective assessment of UPC’s record across the board – both its achievements and mistakes. Incidentally, soon after the coup, and before I left New York, Museveni had called from Gothenburg in Sweden (my telephone number was given to him by Betty Bikangaga from Geneva), urging me to return home to facilitate contacts and eventual peace talks: “The people who are in charge in Kampala know you and we know you; you can serve as a go-between and help to build confidence for talks.” (Izama, 2009)

His own statement in 1994 as member on the Commission on Global Governance:

“I think it would be equally difficult to have Germany and Japan join as permanent members without seeking some way to redress the imbalance which will be accentuated–the North-South imbalance within the Council. At the very least during this transitional period, we would need to have what one might call “tenured members” of the Council. Those who would serve for a period longer than two years–maybe five, six or seven years–but who would not be permanent members. A possible formula would be three-plus-one. Three tenured members would be drawn from the three regions of the world which are now not represented on a permanent basis–Africa, Latin America and parts of Asia. The remaining one would be a global seat, tenured, elected on the basis of some rough standard of good UN citizenship. It would allow a number of countries, who would not necessarily belong to the three regions mentioned previously, but who contribute very actively to the purposes of the UN, to be invited to serve on this tenured basis” (…) “Now I come to the use of the veto, which obviously has to be discussed in any context, whether it is transitional or long-term. In the long term, I am not sure what the fate of the veto is going to be. I have a feeling that it will be a major issue of discussion. As we move into a world that is more democratic (in spirit if not always in practice), the veto will increasingly be questioned. But in the transitional package, I see the veto being retained by those who now have it, for purely practical purposes. They will not cooperate on anything that prejudices their right of veto” (Otunnu, 1994).

In 2005 – His work for Children in Conflict:  

“Reacting to his departure as Special Representative of the Secretary-General for Children and Armed Conflict, UNICEF said today that it was deeply grateful to Olara Otunnu for being an outspoken advocate for millions of children caught in conflict around the world” (…) “She praised Mr. Otunnu for insisting that egregious violations of the rights of children in armed conflict cannot be overlooked or forgotten, and that the cloak of impunity must be lifted for all war crimes and abuses committed against children” (…) “Ms. Salah also hailed Mr. Otunnu for his close work with UNICEF in negotiating the landmark resolution passed by the Security Council last week, which establishes a comprehensive monitoring and reporting system for children affected by armed conflict” (UNICEF, 2005).

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In 2007 – Otunnu could return:

“The Ugandan Government would not accept &rewarding8 the disaffected diaspora and &terrorists8 through the peace process. Museveni argued that if regime critics such as former U.N. Special Representative for Children in Armed Conflict Olara Otunnu wanted to return to Uganda to run for office, they could do so. If northern Uganda was &thirsty8 to have Otunnu represent it, then a member of Parliament should vacate his seat for Otunnu to compete” (WikiLeaks, 2007).

In 2010 – Leadership role:

Last weekend, UPC delegates gave you a hoe to get back to work for Uganda, and the job is very big. Luckily, you bring to the job two very distinct qualities that will allow you to become part of nation building. Foremost, as a former diplomat on the world stage, you are known across the globe; when you call, leaders pick up their phones to listen. Your ability to network, and to connect internationally will serve Uganda well as a developing country” (Opiyo, 2010)

In 2013 – liberate Uganda:

The selection of Prof Omara-Otunnu who comes from northern Uganda may raise eyebrows to many in Uganda but a source close to FUF told The London Evening Post, that the front’s leadership is determined to have leaders from all regions of the country and that no particular tribe would monopolise the front as is the case in the ruling National Resistance Movement. Omara-Otunnu will need all his international experience in bringing together many Ugandans who have for years been frustrated by Museveni’s leadership and are being united because they all share one desire, that of removing Museveni from power and returning the country back to the people” (…) “A practical idealist and visionary, Prof Omara-Otunnu has devoted most of his adult life to promoting democracy, human rights, sustainable development, social justice and the ideal and practice of a common humanity around the globe. He engages these causes as a scholar advocate and a practitioner, by shaping policy and building structures and alliances through which to effect positive change in society. For his achievements, Professor Omara-Otunnu has received international recognition, including the luminary award given by the international affairs council to individuals who have made significant contributions that have profoundly impacted the world” (Gombya, 2013).

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When you see this kind of words and his rich history from the cradle and in the midst of battles as the rise of Museveni was happening, while he also became a negotiation partner for the government of Obote. So he was on the losing side of history. Olara Otunnu we’re a man who at one point of time, though if I remember correctly that the youth had a say in the Obote government after the fall of Idi Amin where Museveni we’re Minister. So the turn of the coup of 1985, made him flee and also his reputation after years abroad made him a candidate for international works in the United Nations Organizations and partners. Therefore he is man with wide knowledge of the world and of his own nation.

Therefore it saddens me that he is now totally silent. That a man of this stature we wing-clipped by James Akena. That a man of hypocrisy and deceit like Akena could bring a man like this down! Otunnu had deserved another outcome. He has been steady and wanted the positive change of an accountable-government and a transparent election where a government like that would be elected. Certainly a vision he hasn’t seen in his time. Where also a transgression in his own party lead to his fall, as Akena made power moves and in the end cut the ties with the man of a rich history and also knowledge.

Otunnu, the diplomat who has a long career has now been gone into oblivion. The reality is that the man who has worked hard for justice for children and against war-crimes. As well as working of peaceful change from Museveni. That hasn’t occurred instead a man who turned loyal against all odds to Museveni got control over UPC. The Party that are old and stood against the Museveni paradigm is now gone. The UPC that stood against and lost that is well known now.

Otunnu has had many transition and been through many storms, been in exile and been through the worst of the worst. Many might not know this, but they should. He is not a relic or forgotten man; he should be a treasure to counter the NRM propaganda and the NRM control of the historical facts. He has been in the midst of the creation of the NRM from the outside and knows what the losing team looks like. He knows the struggle to get back their legacy and recharge a broken party. A party that betrayed him and took him for granted.

UPC was too good and to deceitful to be connected with Olara Otunnu! Olara Otunnu deserves credit for the work for the cause and I miss him from the public sphere. I am sure it does him good to be out of the spotlight. But the politics and the history of Uganda needs men like this. Who fights within reason and with enlightenment, with the tact and procedure and not with brown-envelopes and impunity! Peace.

Reference:

Bennetts, Leslie – ‘DIPLOMATS HAVING TO SCRATCH FOR APARTMENTS’ (06.06.1982) link: http://www.nytimes.com/1982/06/06/realestate/diplomats-having-to-scratch-for-apartments.html?pagewanted=all

Gombya, Henry – ‘EXCLUSIVE: Otunnu set to lead new Ugandan liberation front’ (10.10.2013) link: http://www.nyamile.com/uganda-in-south-sudan/exclusive-otunnu-set-to-lead-new-ugandan-liberation-front/

Otunnu, Olara A. – ‘1994 Conference – Statement by Olara Otunnu’

Former President, International Peace Academy 1990-98; Member, Commission on Global Governance) link: https://www.globalpolicy.org/the-dark-side-of-natural-resources-st/water-in-conflict/32794-1994-conference-statement-by-olara-otunnu.html

Opiyo, Oloya – ‘Olara Otunnu, UPC has given you a hoe get back to work’ (17.10.2010) – New Vision

Segawa, Nixon – ‘Olara Otunnu Overthrown as UPC President’ (05.07.2015) link: http://www.chimpreports.com/olara-otunnu-overthrown-as-upc-president/

Melina Platas Izama – ‘Olara Otunnu on the way’ (06.07.2009) link: https://melinaplatas.com/2009/07/06/olara-otunnu-on-the-way/

Unicef – ‘UNICEF thanks Olara Otunnu’ (03.08.2005) link: https://www.unicef.org/media/media_27835.html

WikiLeaks – ‘UGANDA: A/S FRAZER DISCUSSES LRA, CONGO, AND SOMALIA WITH PRESIDENT MUSEVENI’ (14.09.2007) link: https://wikileaks.org/plusd/cables/07KAMPALA1449_a.html

Opinion: Mwenda’s life shouldn’t be in focus, there are so many other important political questions unanswered right now in Uganda!

masaka-golf

I find it weird that the Facebook posts on Facebook are addressing the sexual preferences of Independent Magazine editor and owner Andew Mwenda, the man who has gone from a lone voice for the citizens to suddenly sounding like a regime imposter. Still, that is a another discussion than what has been on the web of late. Whatever sort of love-life he has is in my opinion his business, unless he marries and get wedded to the daughters of President Museveni or related to his kin. If so, than he is part of the Movement elite and the discussion of his “free” mind would be more in question, than it is already is after the revelations of late about his economic transgression with Rwandan Government and other questionable clientele.

Still, the bum-fun and the dirty dozen is the questions that are trying to figure out, instead of discussion needed political transgression that needs to be addressed, as of all of sudden in Masaka where there only green area that is saved the Masaka Golf Club, but the rest of land is grabbed by rich Chinese investors in haste that seems more like a heist than a power move from the buyers of the land. As they have sealed of land for banking business without proper titles or informed the other Central Government and not even the Local Government; the Local Council seems also boggled as much as the Masaka Golf Club who even written a letter to Central Government on the 27th December.

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This is interesting enough as the trial and imprisoned soldiers that came from the UPDF garrison in the AMISOM mission, that has already leaked pictures of torture where the fellow who are alleged for selling weapons and ammunition to Al-Shabaab warlords that the AMISOM mission tries to squash and get rid of, apparently have been mistreated by their own before a trial and proof of evidence. Soldiers and men who are serving the military and one apparent wrong to selling equipment while being on tour; still, the reason for these activities is that the UPDF and Ugandan Government haven’t paid steady salaries and the hungry fighting soldiers has to get funds to sustain themselves. Even stealing and selling ammunition to the ones they are trying to fight. That shows how wrong the systematic eating of the Central Government towards their own, how forgotten and how the mismanagement of funds from African Union and United Nation in the AMISOM army. They even torture their own who has done the last resort to pay themselves as the soldiers needs to eat food and send their family needed funds. That is why they signed up in the first place, not because all of them loves to shoot-to-kill. We already has seen during the years that the Ugandan Garrisons has sold gasoline and other equipment to sustain themselves, so that the soldiers goes to these extend says something about the arranged maladministration from the top to the bottom of the food-chain.

These two cases alone should be put on blast, more than the Mwenda’s troubles and that he cannot keep his house in order. That the land-grabbing happens as rampant that the commercial golf-course in Masaka reacts by the Chinese land-grab should put the fear in the locals and the ones who feels that the state shouldn’t just move people and take away land for a simple dime without consideration of the Local Council and Local Government, because the Central Government really needs funds. That is evident with the recent case of soon starting to print own monies that even the Bank of Uganda, fearing the inflation and devalued currency that could make the hyper-inflation as pure case for Uganda. So that President Museveni can follow the suits and shades of President Robert Mugabe who made it possible in 2007-2008. So the 50,000 note wouldn’t be biggest anymore after the start of printing. The Ugandan Citizens might have use 300,000 to buy a hand of tomatoes at the market and pay for a short ride on a boda-boda 100,000 instead of the about for instance 3,000 now. So the biggest note from the Central Government of Museveni will be after the deal is sealed is 500,000 or even a 1,000,000. That is if his business partners are lucky and get their hands in the cookie-jar while the citizens will struggle more to pay for ordinary products. That is the worst case scenario, but not far away from the regulated funds and monies in the market might be juked and fixed to the moment of brilliance of Museveni instead of technocrats that can keep the inflation at bay.

Still, people are more worried if the Mwenda has a gay-lover or more, if he has a girlfriend or even if has land overseas, as the editor is that special and needs to be discussed in this matter. Like Tamale Mirundi needs to explain how he orders tires to his taxis, buses and how make his wife happy. Instead of us hearing and understanding their machine mouths of ignorance, brilliance or nonsense depending on their day.

We should be worried of the debate, the level of what is important when the national dialogue goes on this while we haven’t gotten answers for the apparent violation of movement and religious activity as the Police Force and the other Security Organizations went into the Nakasero Mosque in the middle of the night without any pre-warning and raided the holy-house on non-existent intelligence during the Christmas Season.

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We are not to may days ago since the UPDF and Special Force Command burned the Bukihari Royal Palace in Kasese. The Kasese clashes and the deaths of several guards, police officers and soldiers during the bloody days of November 2016; this together with the aftermath where the Ombusinga bwa Rwenzuururu Charles Wesley Mumbere are lingering on treason charge at Luzira Prison while the state and security organization isn’t delivering any profile or case worth talking about. But they could pull the trigger and delete the existence of Royal Guards, kids and other bystanders as the UPDF, UPF and Special Force Command had no issues killing hundreds of people during 48 hours.

Still, a month after this we have no answers, a silent President Museveni who couldn’t care less about the killed and slaughtered citizens in Kasese and in the sub-counties close to Royal Palace. This done without precautions and done with purpose to unsettle the area and also keep people afraid of the Central Government as they can go in with all weapons and guns on civilians without any warrant. Just like they did at the Nakasero Mosque, we will see more of this as the NRM Regime doesn’t care about the loss of life and the viable aftermath after the violence. They are trying to shade over the deaths and move-on. Like they families of the dead can get a new father or mother. They just vanished in the middle of no time and without any charges except the bullets from security organizations from the NRM regime.

10th-parliament-sep-2016

When we have all of this, as much as we have a Parliament who are just thinking about themselves and not the public, why can I say that because the MPs are more important that the rest of the ordinary paying citizens who pays taxes on their salaries; something the MPs in Uganda doesn’t have to care about. While that is happening after all the newly created districts and new levels of MPs the old Parliament in Kampala is to small and doesn’t have enough facilities to the loyalist of Museveni. They need bigger space and that cost, so they can divert funds to fix the building and chambers to be filled with all of them, even if they are not always there and instead fixing suits, fixing fresh posh cars and other casual business. Like a MP who we’re caught during December that he wanted to pay over 1,5 million shillings for a three-some with two female Makererere Students while their University we’re closed. The disgraced MP has not answered after the leaked conversation came unto the web. Still, that discussion is more interesting than the bumping movements of Mwenda.

People shouldn’t dance easy just because these men are Honourable, they are MPs because they are “elected” by the people and they are paying for their existence. Still, they are fist eating without any courtesy and now their workplace get upgraded, while schools are falling apart, teachers payments are inadequate and they even has small farms to feed themselves; while the same teachers are seeing ghosts being paid to secure the local government needed funds to their post cars. Still, the MPs let them walk because the allocations are happening slow and never as much as the budget. They claim there trouble in the system, but not the people who are doing this to eat of it in the Central Government so that the ones in districts has less or nothing to eat off. That is the current state and in this state the MPs decided they doesn’t deserve to pay tax and secondly deserves a better working condition. This is disgraceful to all the diligent civil servants who doesn’t get their salary on time or getting needed funds to keep their buildings, schools and police station that are falling apart.

This is the reality of Steady progress, the proof that the Yellow Movement is a poof, it’s a created manufactured design to divert attention while the President is having a splendid time. Let you forget the torture, the mismanagement and the greed of the MPs. While the system are led by a party where the NRM EC Dr. Tanga Odoi has also been going unpaid and even Justine Kasule Lumumba had to go public and tell that the Movement we’re broke. So dope the Party running the country, the steady progress has let their men and woman go without payments for 6 months. As fresh funds has dwindled. NRM are like Central Government very broke and out of bound with reality. They are spending stupid and not caring about the consequences. Therefore the solution in the silence to print own currency together with a company that is inter-connected with the Museveni clan; that is double payment for the Executive while the citizens pays to pay for their money. A brilliant idea, but also a way of certify the inflation, if they are actually going through with this arrangement.

lewis-hamilton

Still, people care more about the donuts that Mwenda is eating. So beautiful way of spending Christmas season discussing the dumping grounds of a editor, instead of torture, ghost-salaries, land-grab or Parliamentary Mismanagement where the systemic idiocrasy of Museveni gets into the same speed as Lewis Hamilton on the Formula 1 race track in Dubai. That speed is so fast we cannot follow all of the curves as the track is burning after the wheels leave stains on the tarmac.

The same is happening with real news when the Editor is in focus for his love-life and not all of these government acts. The Ugandan President Museveni should be happy his family and elite can run their Wild West show and let a egocentric writer get all the attention. Still, the people and citizen should react to the UPDF; question the acts of Kasese and not forget together with all the other current events. Peace!