Opinion: Mzee don’t want to bother foreign investors with taxes, just give him a Presidential Handshakes!

Well, I am biased, as the President are visiting Dubai for 4th Global Business Forum on Africa on the 2^nd November 2017. President Yoweri Kaguta Museveni is trying to cater to foreign investors. People who he usually cater to at the State House, so he can get favors and Presidential Handshakes. That is why he isn’t bothered with taxes, because the tax-holidays and possible offerings will be huge for the investors who comes in. That is what the National Resistance Movement (NRM) are doing, especially if it is for instance a nations offering the state loan, than the same state can come with state-companies to build infrastructure like Chinese companies coming in after offering loans to the same NRM government. Therefore, just look at what he was saying yesterday, which is weird, but fit a pattern.

“Since you are business people, we must be talking about profits. When you talk of Uganda and Africa, you are talking about peace as an enabling environment; which we have. We have raw materials, and have a population of 40 million people that’s’ a market. And if we talk of integration we have a four tear market” (…) “In Africa, the demand is there and growing because we have been under-consuming while the rest of the world the demand is falling because they have been over consuming” (…) “There are plenty of raw materials, minerals, tourism and so on so when you invest there you have access to all these” (…) “I don’t have to bother investors with taxes, what I want is for them to invest, use our raw materials, create jobs, add value and promote exports” (State House Uganda, 2017).

Well, so the President trying to say to foreign investors, you don’t need to pay taxes for your output, just cater to me. The state you don’t have to bother about, just bother about catering to the State House and me. We will add value and promote exports, we will agreements and make sure you get the value on our resources and low-payed workers.

We know who is the biggest taxpayers in the republic, because of Uganda Revenue Authority own statement in the media on the 31^st October 2017, which stated names like Mr. Alnasir Virani Gulam Hussein Habib, Dr. Sudhir Ruparelia, Mohammed Hussain, Nakayima Janat, Karia Minex, Karia Kunnal, Alykhan Hudani and Dayalijil Karan. Who are sounding like foreign investors and they are on the top 25 biggest taxpayers in Uganda. So the state has already connected families from abroad to invest there in various businesses. This shows there are already people who is not worried about taxes, but about the output of their companies.

Some of these investors has made big names, while others have worked more in silence. Still, this shows that the top earners even promoted by URA and Doris Akol. Proves how they are working, as there wasn’t that many own citizens on the list. That shows that the foreign investors must get a special advantage and special agreements at the state house for their dealings. Especially, considering how it has been done, just for tearing down markets in Kampala for own investors and financial agreements. This has been done and arranged from the State House without consultation with locals, neither KCCA or the renters of these markets. That is how the NRM and Museveni do deals in favor of him and if he get ill-gained funds, he will support the “development”. It is in similar fashion he exposes his intent in Dubai.

That the State doesn’t need taxes or need structures to facilitate for foreign investors, they just needs agreements with State House and then it is all fair-game. It is insane, but fits the Modus Operandi of the Musevenism and NRM regime. Give him a Presidential Handshake and you can operate as you want in the Republic. Peace.

Reference:

State House Uganda – ‘President Museveni woos Arab investors to Uganda “We have the raw materials, human resource and market”’ (02.11.2017) link: https://www.africa-newsroom.com/press/president-museveni-woos-arab-investors-to-uganda-we-have-the-raw-materials-human-resource-and-market?lang=en

Opinion: It’s ironic that President Museveni is talking about disciplining the government!

“The three arms of government and their sub-branches must have discipline. For example I have been involved in disciplining the army. We should do the same for other sub-branches of government. If the Judiciary is also disciplined in fighting corruption, citizens will lead a good life.” – Yoweri Kaguta Museveni on the 1^st October 2017, State House Entebbe.

Its just one of these days that hearing the news and seeing the tweets of the President, makes me laugh and wonder if he listen to himself. He knows his system and has made his garden. The way the government steers and govern is because of his policies, his regulations and his support. It is not like there been other ruling for last 30 years in Uganda. The Republic has been under the control of Museveni and his National Resistance Movement (NRM).

The NRM has suffocated all other free-will and control. Therefore, Ministers, Members of Parliament and others seek guidance and funds directly at the State House in Entebbe. Even foreign investors meet there to make agreements. Everything is nearly sanctioned out there. The Discipline now is more on the narrow-minded government that is run from there. The institutions and the procedures are not so important. Since most things happening is with the words from “above”, meaning the President and his close advisers.

It is not rocket science to know where the benefactor or the reason for lacking structures. That is because government waits for their go sign by the State House, they are waiting for funding of the projects and institutions from the State House. The projects and the works of the State House and under the Prime Ministers Offices are the key organizations within this government. They might say all of the massive cabinet has part to play, but that is the facade.

Therefore, it is ironic for a man so controlling and so disorganized that it gives sometimes way to the unthinkable. Just like the Presidential Handshake, that was sanctioned by the State House, but taken form the wrong account. That was the problem for the President, not that the corrupt behavior was occurring on his watch. Its like he talks against himself. Because he has no problem speaking anti-corruption, but if corruption benefit his cronies – its fine and dandy!

I am not surprised by him at this point of time, its fit his narrative. He says what he expects and wants out of others, but the next day he finds a way to benefit or use the loyalty of his cronies. Not like he would have excepted the UCC not to listen and stop the suspended MPs to hit the airways and be broadcast on TV. He rather being himself on radio and in the spotlight, but will accept anyone else sharing the same space.

President Museveni is the proof of someone saying something noble, but doing opposite. He might say something insane, but act rational. Therefore, you never know where you have him. I will never believe him actually disciplining the government, if doing so. It means they are all blindfolded and following his guidelines. It does not mean building proper governance and protocol, neither is institutionalize the departments and ministries, it is all about his will and his stature.

When it comes to Museveni, discipline is about following him. Not building transparent and proper government institutions. Peace.

NRM Letter to President Museveni: “Re: Memorandum of Important Issues Affecting Our Party and The Running of Government under the National Resistance Movement” (03.03.2017)

Opinion: Tired of NRM apologists defending the record of President Museveni!

It is depressing, it is sad and it tormenting to listen and read the defenses of National Resistance Movement. The defense of the 31 years of rule, the rule of the for life President Yoweri Kaguta Museveni and his cronies. The cronies and their 10^th Parliament, the By-Elections that are rigged in favor of the NRM Regime. The government of Uganda is totally controlled by the one in-charge, the President and kingpin.

The Parliament are following orders and making amends to seem to be different. Therefore, the results of elections are more to just show overpower, but not to have real elections. As the NRM sends buses and pays of villages with small-fees and commodities. There aren’t anything fruitful or sincere by the regime. The ones who put dissidents in the Nalufenya prison. Where they will be beaten, tortured and get ill. As well, as in the overcrowded prison in Luzira. The organized silence of opposition, as their rallies are filled with tear-gas and police brutality. If not the ones who are feared by the NRM are put on treason charges and called terrorists.

President Museveni with his patronage, his bloated State House, the massive cabinet and the Presidential Advisors. There certainly enough ghosts, fake bills and misuse of state reserves to write books ten times thicker than the bible. We can know by the lost trillions of the Petroleum monies, as the “Presidential Handshake” is a drop in the ocean. As the UNRA and other agencies has misused the taxpayers monies. This happens with such ease and lacking finesse, but the agencies looking into graft and corruption is compromised, because the ones leading it are loyal Musevenist.

That the government and budgets are bloated. That the financial and economic state is in deep distress, as the state is suffering from lacking provisions and revenue. As well, as they are struggling with the stop of donor friendly relationships. People’s and Foreigners trust in the leadership of Museveni has been dwindling. President Museveni are also already prospecting the revenue of the oil and petroleum, even before it has surfaced. Therefore, the future will also be compromised by the deals done today.

The defenders of the NRM now, does not believe in real democracy, as they defending the rigging and militant Movement. A President who has no trouble with killing and destroying to stay in power. The ones defending him has no trouble to stand by a man who empties the treasury and state reserves with no hesitation. As well, as the men and woman who stays by the regime, are easily taking land and resources, they are eating of the plate and selling it back to the Ugandans. This with impunity and without any consideration of the ones who loses their chances.

It is a nation who has a government, not based on merit, but on loyalty. The loyalty to Museveni and his agenda. The agenda to work for him and his ideas. Not work to develop the nation, but develop the estate of Museveni. The idea of real Movement is ploy from the master himself. He just needs shadows to work for him and for envelopes. Not a real party who deliver policy or working for the future Republic. No the Movement is now a shell used pounce out the empty ideas of greed, nurture of the estates of Museveni and of the staging the power of the old-man with the hat!

President Museveni and his apologists knows all of this, they live by this and has faith that this is ideal and the dream. That someone comes with empty promises and lives by the fake party celebrating the 1986 coup. The coup that overruled the government and the old constitution, that President Museveni couldn’t pigeonhole. That has he done to his own and plans to do it again for his 8^th Term.

The apologists can say he created safety, but he also created warfare and civil-war to get to power. Some called it a revolution, other calls it a takeover. But with time it wasn’t for the idea of a people’s government, but more a government and state built around the revolutionary, who didn’t really believe in the words he spoke.

The ones defending him, is defending a lie and that for the sake of eating. Not for the benefit of the Republic or the public. The struggling public is pawns, they are just needed props now and then for the Movement. As they praise their master, as they know if they get to close or too ambitious they are surely losing their place. Therefore, all of them are loyal cadres, elite and patrons who surely basks in the pasture of the President. But really, they should know it is on borrowed time. No-one knows how long the patronage and military can be serviced, how long they can all live on the charade and the misuse of power.

Certainly, the President knows this too, therefore, he uses all ways to make sure and get people on board. Even if that lets people starve, let them cheat on food reliefs and even use refugees as bailing-out card on the struggling economy. That is solely made of the patronage and grand-corruption orchestrated from the seat of the President at the Okello House. He can created all sorts of schemes and manufacture new ways of promoting better agriculture or better yields, but it is all ploys of generating more funds for his own. Not for the public to earn or get better output of the seeds and seedlings. If so, than the agricultural should be booming after 30 years in power.

However, the defense of this will be in the patronage and by the spokespersons appointed by the President. These ones will make a fuzz and say the Opposition never was a viable option and never had the leadership to overturn the Movement. The Movement has always been the only option, they say and use new ways of saying so. But that doesn’t make it true, as the rigging and the intimidation is used to forge this facade. The flawless untouched ballots doesn’t exists, there has been all sorts of play to get the will of the President.

President Museveni, even detain opposition, he uses safe-houses and some like Sam Mugumya are detained in the Democratic Republic of Congo, with no plan of getting him home. Him and others are lingering abroad as the political prisoner lingers in uncertainty. This is the legacy of the revolutionary, who became the draconian and the militarized government who uses all means to stay. He uses all methods on earth, Machiavellian and Orwellian blended in a Yellow Color with no fear of repression… no fear that the Movement can be touched, but when the moment appear. Than the Ugandans shouldn’t lose it, because they have already lost so much in the name of Museveni. Museveni has stolen the past and the present. His men has rewritten the history and tried to become the grand hero, and the generations from the rebellion is dwindling away. The young generation only knows the folklore and should beware, it is not all what it seems. The ghosts are not only in the budgets, but they are haunting the President from the past. They are the ones he stole to gain power and to silence the opposition. These souls will ask in the after-life, why he did what he did to them and also why he punished their grand-kids. Since they all lead the same faith. They all got to feel the pain, with no mercy from the leadership controlled by the President.

That is why there are no defending a man like Museveni. He has used all tricks, even was able to deceive the west for decades to pay for his decadence. Certainly, he must laugh about the dumb-white men and their agendas. His grin must be wide thinking of all the sorts of cars, airplanes and ranch expansions that are paid by the friends of direct-state aid. They have kept his roof and his ammunition, to oppress and to relief his patronage. Therefore, if someone is defending this man. Think of his track-record and all the souls he has left behind. Peace.

Opinion: These two ideas shouldn’t be thing in 2017: Goats for tuition fees and Jerrycan-Irrigation!

NRM in July 2016 in Kakinga in Western Uganda.

In the Republic of Uganda and Zimbabwe there are two issues that should not occur or need to happen, as the societies under Zimbabwean African National Union Patriotic Front (ZANU-PF) and National Resistance Movement (NRM), that President Robert Mugabe and President Yoweri Museveni has been the Executives for decades.

These two republics has both their issues concerning these gentleman, though not the same. Still, the republics has some dire needs. You know so, when President Museveni has to spread this message in the year of 2017:

“I continue to encourage farmers to use drip irrigation. Even as we wait for government to roll out mass irrigation, farmers can irrigate their crops with basic tools like bottles. No one should let seedlings go to waste on claims of drought yet we are surrounded by water” (Yoweri Museveni, 16.04.2017).

The Jerrycan and bottle irrigation mantra in the land of steady progress, you can wonder and pound about the agriculture reforms that was about to happen when the NRM came into power. Where the wealth creation and the cash crops we’re supposed to change the economic landscape. Still, since the Movement ceased power in 1986, the same President as back-then has to spread the message of a drip-drop irrigation system based on bottles and jerrycans. Instead of modern agriculture, because of how he misused the state reserves and the donated aid. Therefore, the lacking facilitation of agriculture. So it is sad to know that the President Museveni has to propagandize the jerrycan irrigation system, like it is a fantastic invention and something that would really be a paradigm shift.

Than you have in Zimbabwe, the county of the Lancaster House Agreement, the ZANU-PF elite and the Bond-Notes, with a massive movement behind the voices of opposition, as well as the financial troubles under President Mugabe. Who has turned the Southern African breadbasket unto a food-import heaven as his land-reforms has destroyed the agricultural production as well as the economic climate. Therefore this news shouldn’t be a thing of 2017!

“Parents who cannot raise tuition fees for children can offer livestock in lieu of payment or do chores for learning institutions, a Cabinet minister has said. The Sunday Mail understands that several State-run primary schools in Glen View, Harare have already adopted the arrangement. Primary and Secondary Education Minister Dr Lazarus Dokora told this paper last week, “Our schools have to be flexible and ensure those who do not have money to pay fees can work. For example, if there is a builder in the community, he/she must be given that opportunity to work as a form of payment of tuition fees” (…) “On the issue of livestock, the community has to arrange a market where everyone participates; from the school authorities, local leadership and parents themselves to avoid parents being duped” (Gwete, 2017).

So in the proud republic of Zimbabwe the Cabinet Minister Dr. Lazarus Dokora, says parents who doesn’t have enough cash to pay tuition fees can now pay in livestock or goats. We know by now that the faith in the Bond-Notes is abysmal, still that the Republic has such little cash flow; that can take animals as payments. Shows the neglect of the state, the little money circulation and the financial vows right now. If the financial market and the currency we’re in a better condition, than such massive amount of parents wouldn’t have to trade their goats and livestock so their kids can go to school.

That under President Mugabe, the citizens have to use their livestock and goats as trading tools, or even as currency because of the lack of stable financial policies. This shows the draconian state and what sort of government that is in charge. When they are more concerned about their Mercedes Benz’s than the population!

That the Zimbabwean people and citizens of the Republic run by Zanu-PF should feel betrayed by the lack of governance and care of the taxpayers funds. The Zimbabwean people should be in sorrow as even as their state is insufficient, it now has a plan not to only eat their monies, but also take their animals. So that the future of Zimbabwe can learn how to read and write, even type and some hopefully understanding better what it means to be a Statesmen. A Statesmen that cares about its constituent and their struggles, not just eat of it and leave them to rot. That is what the Zanu-PF elite does right now.

What we have have seen with these two stories is clear lack of policies and wish to intervene in the struggles of the citizens. We can see two governments, that is Zanu-PF and NRM, who clearly are both out-of-time and out-of-pocket as they scrap their best ideas to salvage some hope. The hope is that some can be duped by the idea and support the so-called progress. That it is progressive to take goats as currency to pay for tuition and the other revolutionary idea of using bottles and jerrycans to irrigate the dirt. That President Museveni and President Mugabe is over-due is proof with this. The milk is thick and nasty. The milk is not drinkable and if so you will vomit. The reality is that these men doesn’t see or doesn’t want to see.

They are eating of the plate and sells their propaganda, the own mindset of lies and deception, and it has been said so many times that the old-men believes. Even if it isn’t so. The manufactured reality and the destruction of the society, is the reasons for these tales, many factors involved, but the Presidents has been there through the stages. They have seen it all and created policies that has changed to this level of underdevelopment. If they really did care, than the countries would have looked different. If they would have created parliaments for serving cadres for the people and not their own bellies like right now. That is why many of them think these sort of policies are acceptable and even profess to them. Therefore, the republic’s are living in a state they doesn’t deserve and the citizens are used as pawns. Peace.

Reference:

Gwete, Wendy – ‘‘Pay school fees with goats, labour’ (15.02.2017) link:

http://www.sundaymail.co.zw/pay-school-fees-with-goats-labour/

31st Celebration of NRM Regime with a Yellow Jerrycan’s into the future!

NRM in July 2016 in Kakinga in Western Uganda.

The National Resistance Movement had their Celebration Party and unleashed their new ruling-party national newspaper. I thought that was the New Vision? Apparently, I am other we’re wrong on the Bukedde and New Vision ass-kissing mission during the three decades of President Yoweri Kaguta Museveni. Well, there is so much to celebrate for the NRM!

They have yet another election that rigged and had a new number of sole candidates without any competitions. This is a real victory like stealing candy from a little kid. The NRM can be so celebratory as they are having a too small Parliament, having to few cars for their MPs, added more debt every year into the state coffers with added interest rates on these loans. Together with the waiting of petroleum monies that seems more and more likely to happen closer to 2020 than ever.

NRM can celebrate that they have had a bunch of Vice Presidents, but none has outlasted the long-serving rebel on the throne, that has installed the Jerrycan irrigations as the State cannot afford proper relief or modern irrigation to the their farmers. The cash crops are also struggling as well as staple-food, even the cattle is dying in the cattle-corridor. The NRM has certainly built a perfect nation.

The Uganda Airways, Uganda Telecom, Uganda Broadcasting Company and others  are either gone, near depleted or living on their last legs. UTL the phone company is dead-broke and on life-support. UBC is the only State financed Television Company that couldn’t afford to get licence to send the African Cup of Nations from Gabon this AFCOM2017. NRM has so much to celebrate.

Certainly the lucky guests who got a Presidential Handshake can be all smiles and grin, as the illegitimate government are postponing and struggling with infrastructure projects, as they are all embezzlement projects for the UNRA to trick monies out of the state. The expenses or building roads have sky-rocketed, the Mukono – Katosi Road Project and Kampala – Entebbe Expressway is examples of the open-air bazar of looting under the NRM.

We can question the ambition of the NRM, as they have included all sorts of missions and promises. Most of them shelved out every election cycle, but then forgotten when the NRM MPs and President has entered the Parliament Avenue. The certainty of Steady Progress isn’t there, except for puppy talk of the loyal Musevenists.

This can be said as National Medicak Stores (NMS) are often empty of needed medicines or issuing issues with the sale of copy medicines that we’re not supposed to be on the market. The Hospitals lacking medicines, enough trained personnel, lacking payment structures and salaries as the nurses and teachers even have cash-crops or other jobs to survive. The lacking structure and care for the Health Care is evident as the Nobel men and honourable are travelling abroad for their curing of sickness, as even some of the Generals are suddenly dying as they are travelling to their Asian allies.

We can question if the NRM should celebrate that Nakasero Hospital is now seen as the National Referral Hospital instead of the historic hospital, the Kings Hospital Mulago, the Mulago Referral Hospital Complex that is even missing a well-working cancer machine. The only one that was last bought in 1990s and early in the reign of the NRM! The NRM forgot their mission and let it dwindle like so many other institutions; there are many hospitals without working X-Ray machines and other needed equipment to help the sick patience. This is happening on the daily. The responsibility of this fate is their maladministration and it’s all in the hands of the NRM.

Certainly they can take their Jerry-Cans into the future, with the yellow t-shirts and yellow flags. Still forgetting their mission and their purpose, they have forgotten why they exists! Since they are now only bowing their knees for the Mzee instead of workingfor the citizens. Right now the liberation was only liberating Museveni, but letting everybody else being under his mercy. That isn’t freedom, liberty or justice. That is a dictatorship and Museveni is dictating everything and behind all acts. Just like the biggest scam of 2017, the Presidential Handshake. That proves how little NRM Regime has to really celebrate. Peace.

Project 1034 Mukono-Katosi Scandal: The MoU between UNRA and EUTAW Construction Company

If you want to look more into do it here:

Project 1034 Mukono-Katosi Road Scandal

Peace.

Project 1034: Mukono-Katosi Road Scandal

There been written a lot by this scandal. I have looked through a dozen dose of documents and found this linking the upgrading of the road from Mukono to Katosi. Which was contracted out from UNRA to two other companies, wasn’t properly checked before contracts and authorization. There also been reported on missing monies. Therefore when you read through the quotes and numbers you will have the ability to see through what you have read other places. It’s should be an enlightenment journey through a new path.

The road construction and rebuilding of the road from Mukono-Katosi was to upgrade the road from gravel to bitumen standard. The project started 31.1.2014 and is anticipated to be done by 31.1.2017 (MPS, P: 197. 2014).

The Government of Uganda put into the project 960,000 UGX. The releases of funding in July were 80, 000, 00 UGX, in August was 160,000 UGX and in November it was 240,000 UGX. The total release from July to August for the project was 480,000 UGX. Release of the total budget in that time was 50% of that year. (MoFPED,P: 18, 2009).

On the 1st December 2010 the Government of Uganda made a memorandum of understanding between the government and the company of High Tides Limited and also with the Eutaw Construction Company of United States of America. High Tides Ltd will pay Eutaw Construction Company the monies $1.750.000. That agreement is for the license for UNRA/Works/2009-10/00001/18/08 for tarmacking of Mukono – Kyetumo – Katosi/ Kisonga – Nyenga Road (72km) (MOU – 2010).

The Strategic Plan from UNRA had the development plan set for finishing tarmacking the road from Mukono – Kyetume – Katosi done by 2017. And the works would be started by 2014 (UNRA, P: 57, 2012).

The budget performance Financial Year of 2011/2012, the Government budget that was revised was 6,841,489,157 UGX. Released for FY 2011/2012 6,697,682,837 UGX, and the expenditure of the FY 2011/2012 it was 6,697,682,837 UGX. The release performance for the FY was 98% and absorption rate was 100%. (MoFPED, P: 41, 2012).

PPDA findings:

“The procurement for the contractor for upgrading the Mukono-Kyetume-Katosi/Kisoga-Nyenga road commenced in July 2010 and by 19th January 2011, the procurement had reached award stage. However due to lack of funding as stated by the PDU the contract could not be awarded hence the request by PDU on 22nd March 2012 to have it cancelled. The First request by PDU to have the contract cancelled was rejected by the CC. However on re-submission by the PDU on 9th May 2012, the CC approved the cancellation” (…) “The HPDU also recommended that negotiations be held with M/s Eutaw Construction Company Inc. to confirm cost adjustments. The negotiations were held by the appointed members (see annex) and this culminated into signing of the contract with M/s Eutaw Construction Company Inc. on 15th November 2013 at UGX. 165,272,156,814 after SG approval” (…) “The Authority noted that the UNRA Directorate of Planning prepared BoQs from which the estimated value of the procurement was derived amounting to UGX. 184,357,246,540. It was noted that the Contracts Committee approved the solicitation document to be used on 2nd November 2010” (…)“The negotiation team recommended that a price of UGX 165,272,156,814 was sufficient to carry out the works”(PPDA P:2-3). “On 2nd October 2013, supplementary negotiations were held between the appointed UNRA negotiations team and M/s EUTAW Construction. The negotiations concluded that a price of UGX. 165,272,156,814 was sufficient to carry out the works” (…) “On 10th October 2013, the HPDU submitted the conclusions of the negotiations to the Contracts Committee for approval. The HPDU recommended for the award of contract for the Civil Works for the upgrading of Mukono-Kyetume-Katosi/Kisoga-Nyenga road from gravel to paved standard to M/s EUTAW Construction Company Inc. at a contract price of UGX. 165,272,156,814 inclusive of taxes” (…) “On 7th November 2013, the AO wrote to M/s EUTAW Construction Company Inc. informing the bidder that the bid with the corrected amount of UGX. 165,721,156,814 had been accepted. The AO also asked M/s EUTAW Construction to furnish the entity with the performance security within 28 days in accordance with conditions of the solicitation document” (…) “On 15th November 2013, the contract between M/s EUTAW Construction Company Inc. and Uganda National Roads Authority for Civil Works for Upgrading of Mukono-Kyetume-Katosi/Kisoga-Nyenga was signed at a price of UGX. 165,272,156,814 inclusive of taxes” (…) “On 13th February 2014, the Authority received a letter from the Inspectorate of Government. In the letter, the Inspectorate of Government alleged that the award of contract to M/s EUTAW Construction Company for Civil Works for Upgrading of Mukono-Kyetume-Katosi/Kisoga-Nyenga was done in a dubious manner and that the costs were unrealistic. 2.40 On 27th March 2014, the Authority wrote to the Uganda National Roads Authority informing the entity that it had instituted an investigation into the award of contract for the for Civil Works for Upgrading of Mukono-Kyetume-Katosi/Kisoga-Nyenga road from bituminous to paved standard” (PPDA, P:10-12).

Unrealistic pricing on the road:

“The directorate of planning prepared BoQs from which the estimated value of the procurement was derived amounting to UGX.184,357,246,540. It was noted that the Contracts Committee approved the solicitation document to be used on 2nd November 2010” (…) “on 7th November 2013, the AO wrote to M/s Eutaw Construction Company Inc. informing the bidder that the bid with the corrected amount of UGX. 165,272,156,814 had been accepted. M/s Eutaw Construction wrote to the HPDU acknowledging receipt of the bid acceptance from the entity on 8th November 2013, and also confirmed acceptance of the offer to commence work as soon as the contract was signed. The Authority noted that the reduction in price from UGX 182,983,576,600 to UGX. 165,272,156,814 after negotiations was irregular and contrary to the requirements of PPDA Regulation 219 (3)” (…)“The Authority noted that on 14th November 2013, the Hon. Minister for Works and Transport, Hon. Abraham James Byandala wrote to the Accounting Officer UNRA directing him to implement the contract for the Civil works for upgrading of Mukono-Kyetume-Katosi/Kisoga-Nyenga road from gravel to paved standard immediately while due diligence was still being carried out by the UNRA Technical team. The Authority also noted that on 14th November 2013, the Legal Counsel UNRA, Mr. Marvin Baryaruha wrote to the Accounting Officer advising him that the contract with M/s EUTAW Construction could be signed while due diligence tests were still continuing. The Authority also noted that the PDE proceeded to sign the contract before the completion of due diligence tests. The Authority notes that it was highly irregular for the Accounting Officer to sign the contract before the completion of due diligence tests contrary to the requirements under Regulation 34 of the PPDA Regulations, 2003”  (PPDA P:12-15).

Grand Corruption: 

Inspector of Government Irene Mulyagonja Kakooza where it was said in the introduction: “While Uganda has developed excellent laws to prevent and combat corruption, the challenge remains the implementation and enforcement of the laws. Uganda has ratified a number of regional and international instruments aimed at fighting corruption. It is now crucial to ensure these instruments are implemented and enforced in order to achieve their intended purpose. If corruption is not addressed, it will continue to have a drastic negative impact on public service delivery. In turn, this will prevent all Ugandans from fulfilling the aspirations articulated in the Vision 2040” (Inspectorate of Government P: 6, 2014). Further on: “A significant amount of evidence supports the view that the incidence of grand corruption in Uganda has increased over recent years. Recent cases involving the embezzlement of public funds suggest the effectiveness of state institutions in monitoring government programs is limited. Recent examples of cases of grand corruption include the fraudulent procurement of a contractor for the Mukono-Katosi road and subsequent advancement of UGX 24 billion to nonexistent contractor to kick-start the road construction in 2014; of UGX 205 billion through the national identity card system scam in 2011; and of UGX 58 billion lost in the OPM in 2012, among others” (Inspectorate of Government P: 33, 2014).

MoFPED quick analysis;

Mukono-Kywetume-Katosi/Kisoga-Nyenga: 74km, how much work completed by May 2014:  0% (BMAU, P: 14, 2014). “Limited capacity within UNRA and the Uganda Road Fund: For example UNRA is faced with in the Mukono- Katosi road procurement scandal and sluggish performance of other roads such as Ishaka-Kagamba, and Mbale-Soroti” (BMAU, P: 19, 2014).

MPS on the Project:

“Mukono – Katosi/ Kisoga – Nyenga (72km) – Contractor is on site mobilizing to commence works in July 2014. Payment of land and property compensation was ongoing” (MPS, P: 6, 2014). By the June 2014 progress of the reconstruction and rehabilitation of the gravel roads of 20% of the road and 80% cumulative (MPS, P: 14.15 2014). Workplan output for the road was 160 Acres in 2013/2014 and 2014/2015. By 2013/2014 there was expected to be 5% of the work. By 2014/2015 will be 20% of the road. In the 2013/2014 we’re the budget for road 40.000.000 UGX. And in 2015/2016 it was expected to cost 50.000.000 UGX for the progress of the road. Of the 20% – 10% was for Supervision and 15.9% funds for works (MPS, P: 197, 2014).

EU speech on Infrastructure in Uganda:

“First, Institutional Reforms and Strengthening of good practices as Uganda prepares for an important expansion of the infrastructure works, present and future investors need to be reassured that there are well-functioning Regulatory Institutions; clear, transparent and efficient procurement procedures and respect for the rule of law” (…) “This leads to the loss of significant amounts of public resources, as in the case of the Mukono-Katosi contract that you have mentioned this morning. Development Partners are encouraging you and will support you, Hon. Minister, in all your efforts to take efficient and rapid corrective measures in order to avoid these episodes from happening again in the future” (EU, 2014).

Ruling from the High Court of Uganda in 2014:

“The order of Her Worship Lillian Mwandha issued on 06th November 2014 in Miscellaneous Application No. 704 of 2014, restraining the Attorney General and  (UNRA) or their agents from implementing the order/directive of the 1st Applicant to  exclude the 2nd Applicant from participating in the emergency procurement for the construction of Mukono-Katosi-Kyetume/Kisoga-Nyenga Road be set aside” (…) “A Court of law cannot sanction what is illegal, and an illegality once brought to the attention of the Court overrides all questions of pleading, including admissions made thereon.  In the premises, and in view of what I have outlined above, I do hereby allow preliminary objection by Counsel for the 3^rdRespondent” (…) “Accordingly I do hereby set aside and/or vacate the Interim Order issued by the Deputy Registrar of this Court on 6^th November, 2014.  Since the main Application for Temporary Injunction and Judicial Review are still pending, I order that costs be in the cause” (IGG, 2015).

Timeline: 

“On 15th November 2013, UNRA entered into an agreement with Eutaw Construction Company Inc. of 622 Beach land Bivd Suite 201 Vero Beach Florida USA for upgrading of Mukono- Kyetume -Katosi/Kisoga –Nyenge Road (74 Km) from gravel to paved (Bitumen) for a contract price of UGX.165,272,156,814 including all local taxes. Examination of expenditure vouchers showed that only UGX.24,790,823,522 (15% of the contract price) was paid to the construction company as advance payment” (OAG, P: 6, 2015). “On 18th November 2013; UNRA received the contractor`s performance guarantee from a local bank dated 13th November 2013. On the 19th November 2013, UNRA management wrote to the contractor rejecting the performance guarantee on condition that it was not consistent with the provisions of the contract data. A second performance guarantee from the same bank dated 21st November 2013 was tendered in by the contractor. On receipt of the performance guarantee, the Acting Director Procurement wrote a memorandum dated 26th November 2013 to the Director Finance and Administration (DFA) requesting him to verify the authenticity of the performance guarantee and requested the DFA to inform them of the results of the verification” (…) “The due diligence report was dated 8th November 2013 and the agreement was signed on 15th November 2013. It was evident that management ignored the findings and recommendations of the due-diligence team by going ahead to conclude the contract” (…) “the agreement details revealed that management later entered into an agreement at a contract price of UGX.165,272,156,814 far less than the bid price of UGX.183,285,341,234 translating into a reduction in price of UGX.18,013,184,420 (183,285,341,234 – 165,272,156,814) which was 9.9% of the bid price. I could not establish the cause of the reduction” (OAG, P: 7-9, 2015). “Examination of expenditure vouchers showed that UGX.24,790,823,522 (15% of the contract price) was paid to Eutaw Construction Company Inc. of 622 Beach land Bivd. Suite 201 Vero Beach Florida USA on the 24th of January, 2014. However, I noted that management had not made any effort to recover the money advanced after the failed contract. In response, management explained that the issue is under investigation by the IGG and Police. UNRA Board and indeed the Police and IGG are in charge of these investigations and they shall take action based on the findings” (…) “I noted that on 12th January 2015, the same construction work of Upgrading of Mukono- Kyetume -Katosi/Kisoga –Nyenge Road (74 Km) was contracted to another company for a contract price of UGX.253,940,121,150. This was far higher than the original contract price of UGX.165,272,156,814 in a failed contract earlier awarded to Eutaw Construction Company Inc. of Suite 201 Vero Beach Florida 32963 United States of America. This reflected additional spending” (…)”The schedule of other receivables includes a figure reflected as Prepayments in ABC Capital Bank of UGX.173,701,010. This amount has been held in ABC Capital Bank for over a year under unclear circumstances. During the review, I noted that there were been no significant steps taken to recover the money held since the previous audit. In response, management explained that this amount was fraudulently transferred to ABC Capital Bank with the assistance of some UNRA Staff members and officers working with ABC Capital Bank. Police instituted investigations where suspects were arrested” (OAG, P: 10 -12, 2015). For the road building even by 2014 there was no acquisition of land by the government because of the requirement of the TIN (Tax Identification Number), there have been issued with the payment for the land. And have been relaxed by the MoFPED. When it comes to the construction of the road there wasn’t any signs when the review was written (OAG, P: 23, 2015).

UNRA clarified their story:

“The contract for construction of Mukono-Kyetume-Katosi/Kisoga-Nyenga road project was awarded to EUTAW, an American road construction firm, after an international bidding process. This project is being supervised by another international company, M/s Arab Consulting Engineers, from Egypt. UNRA is working with both the consultant and contractor for this project to make sure all contractual obligations are met, project specifications are followed and the project is completed on time” (…) “The purpose of Advance Payment is to allow the contractor mobilise equipment, personnel, materials, set up camps and commence works. The contractor on Mukono – Kyetume – Katosi / Kisoga – Nyenga road project has fully mobilized, there is active equipment on site, the site camp is ready and works have commenced” (…) “While it is true that UNRA may have potentially been exposed to a fraud with a risk that the UGX 24 Bn advanced to EUTAW would not have a security backing it up, this situation has been largely avoided for now. UNRA is currently reviewing its due diligence protocol to make sure Government funds are not exposed to this kind of risk again. UNRA is cooperating with the Inspectorate of Government, the Uganda Police and other enforcement institutions to make sure that a thorough investigation is carried out as per their mandates” (Kitakule) .

Afterthought:

When the courts are over and all the numbers will be on the ground they will be different then the official documents I have in my possession. The IGG and the courts should after the trials deliver that documents to the public. So that the people involved could be scrutinized. Though that might hurt people in power, like infrastructure ministry and UNRA which also deserves that after not even doing a proper “due diligence” on the agreement between UNRA and the companies involved in the project and upgrading of the road. This should still be able for folks to look through the paper trail left behind and get information. Because this scandal didn’t happen overnight… happened with money and where it went should be interesting. Especially when it all will be put into place, because I don’t have the shadow budget of this or the rates of the monies that got pocketed by somebody else, that is for sure! But compare that to the basic budgets and appropriate funds from the government of Uganda to the tarmacking for years. And will until 2017 when its estimated to be done. Peace.

Reference:

Alnange, Dan Kitakule – ‘CLARIFICATION ON ALLEGATIONS THAT 24BN HAS BEEN LOST ON MUKONO-KYETUME-KATOSI/KISOGA-NYENGA ROAD PROJECT’ Link: https://www.unra.go.ug/index.php?option=com_content&view=article&id=423:clarification-on-allegations-that-24bn-has-been-lost-on-mukono-kyetume-katosikisoga-nyenga-road-project&catid=1:latest-news-first=.-title=Clarification

Delegation of the European Union to Uganda- H.E AMBASSADOR KRISTIAN SCHMIDT – ‘EU Head of Delegation Speech at the 10th Joint Transport Sector Review October 24, 2014’ (24/10/2014) Link: http://eeas.europa.eu/delegations/uganda/press_corner/speeches/2014/20141024_en.htm

IGG: THE REPUBLIC OF UGANDA – IN THE HIGH COURT OF UGANDA AT NAKAWA- MISC. APPLICATION NO. 744 OF 2014: [Arising from Misc. Application No. 703/2014 and 704/2014 and Misc. Cause No. 63 of 2014] (12.01.2015) Link: http://www.ulii.org/ug/judgment/high-court-civil-division/2015/1

Inspectorate of Government (IG) & Economic Policy Research Center (EPRC): Tracking Corruption Trends in Uganda – Using data tracking mechanism – Annual Fourth Report 2014.

Republic of Uganda – MoFPED: Budget Monitoring Report October – December 2008 (January 2009)

Republic of Uganda – The CONTRACT ACT CAP 73 – Memorandum of Understanding – The Agreement is made this 1^st Day of December 2010 Between High Tides Ltd and Eustaw Construction Company.

Republic of Uganda – MINISTRY OF FINANCE, PLANNING AND

ECONOMIC DEVELOPMENT (MoFPED) – Budget Monitoring and Accountability Unit (BMAU): Improving Service Delivery in Uganda – BMAU Discussion Paper 1/14 November 2014

Republic of Uganda – Office of the Auditor General (OAG) – ANNUAL REPORT OF THE AUDITOR GENERAL FOR THE YEAR ENDED 30TH JUNE 2014 – VOLUME 2(B) CENTRAL GOVERNMENT AND STATUTORY CORPORATIONS (June, 2015).

Republic of Uganda – Ministry of Works and Transport: MPS 2015/2016 – Presented to Parliament for the debate on the budget estimates of the Revenue and Expenditure for Financial Year 2014/2015 (June 2014) Link: http://www.csbag.org/docs/Ministry%20of%20Works%20and%20Transport%20Ministerial%20Policy%20Statement%20FY2014-15.pdf

Republic of Uganda- MoFPED – ‘Annual Budget Monitoring Report FY 2011/12’ (December 2012)

PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY  (PPDA) – “INVESTIGATION INTO THE ALLEGED IRREGULARITIES IN THE AWARD OF A CONTRACT FOR THE UPGARDING OF MUKONO-KYETUME-KATOSI/KISOGANYENGA ROAD FROM GRAVEL TO PAVED STANDARD TO M/S EUTAW CONSTRUCTION COMPANY” (June 2014)

UNRA – ‘5 Year Corporate Strategic Plan’ (2012/2013 -2016/2017) – (June 2012) link: http://ric-uganda.com/rc/files/1.7_UNRA_5Year_Corporate_Strategic_Plan.pdf