MinBane

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Archive for the tag “Salim Selah”

Bank of Uganda: Monetary Policy Statement for October 2019 (07.10.2019)

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[Disclaimer] 68% needs to wake up in the Republic, apparently!

“In order to produce something you need four things; land which is a natural resource, labour which we have in plenty, capital money and entrepreneurship, the spectacles to see where the opportunity is and turn it into profit. You can’t have 68% of the homesteads (eating what they produce) and you think you’re an economist. You’re just a total failure. Infant mortality rate, how many children are dying when they are still young? Why are they dying? Because they have problems, mainly because of problems of having no money. What does it mean that 68% of the homesteads are outside the money economy? We have a few modern farmers who are part of the 32% and other entrepreneurs. Those will continue but let us wake up this 68%.” Museveni said” (URN – ‘68% of Ugandans are poor because of sleeping – Museveni’ 12.08.2019).

President Yoweri Kaguta Museveni have just ended his campaign and Wealth Creation Tour after a few months of steadily traveling across the Republic. In the final days of this he was a part of Investment Symposium 2019 in Arua.

What his saying isn’t new, he has used this message before, that the public is lazy, that they are not working hard enough. That they are not as hardworking and smart working like himself. Because, everyone should aim for being the photo-copy of the President. That is how you move ahead in the Republic.

That this is an insulting message from someone who had 33 years to make a difference. For someone who has had three decades to change the institutions, state owned enterprises and organisations run by state.

If the President really worked for this, strived to make the finances good and economy booming. He would have delivered that already. His party has reigned supreme, had the majority of Parliament, had a One-Party state for a decade as well. So, if someone should have the ability to get his vision through, it should have been him.

However, spoiler alert. His been working for himself and his wealth. Not the wealth of the public, his using the state as racket. That is why the state gets into debt, while himself and his family is running successful businesses. This is the mere reality, a reality he doesn’t touch. As well, as the open laisses faire approach, while only partial subsidizing whatever defunct enterprise that is in the wind.

President Museveni can put the blame on the public. If not he will blame the opposition, the lazy bureaucrats or anyone who doesn’t cut it. Because, that is something this man does. Right now he blames the majority of the public. However, he has had 33 years to wake them up and get into the economy. Still, its not like his succeeded or even tried, except with schemes that the Kitchen cabinet have earned funds from.

Therefore, maybe just maybe, Mr. President its your failure, its your lack of policy and will, which is the reason for the people sleepwalking to their inevitable death. You could have done something, but you didn’t, that’s the fact. Peace.

My 2 Cents: On Mzee’s final lecture from the OWC Tour!

Well, I am sure we should break down the whole speech, the whole history lesson and look into the madness, the repetitive and usage of facts that is President Yoweri Kaguta Museveni in 2019. As the National Resistance Movement (NRM) had the Sole Candidate Endorsement trip across the republic. Since, he needed to show relevance, as his opposition is growing in strength, because of the tiredness of the captivity of the NRA/NRM leadership in the republic.

However, he still has to show relevance, by addressing the colonial time, Idi Amin and even his basic structures. Like he has never written or spoken about it before. It is time for this man to retire either to one of his farms as a cattle keeper or become a honorary history lecture at Makerere University. Because, that suits him more than governing at this point.

Nevertheless, let me drop a few snippets of his recent letter, before addressing it!

First Paragraph:

Therefore, the Ugandan economy is one of the fastest growing in the World on account of the NRA/UPDF ensuring peace, the NRM ensuring reconciliation and democratic empowerment of the Ugandans, the NRM ensuring macro-economic stability as well as the NRM ensuring some limited infrastructure rehabilitation and development. It would have grown faster if the 6th Parliament had not delayed the construction of Bujagali dam and if we did not have corrupt actors asking for bribes before delivering services or those corrupt officials doing shoddy jobs and inflating costs. The corruption issue, however, is a software issue and not a hardware one. Given our transparent democratic system, the corrupt always get exposed and, on account of our massive educational system, nobody is indispensable” (Yoweri Kaguta Museveni – ‘Comment on my just concluded wealth creation countrywide tour’ 06.08.2019).

Second Paragraph:

How do the 68% move forward, following the present campaign? My answer is that there are already four funds for Wealth and Job creation. These are: the Operation Wealth Creation (OWC) Fund; the Women Fund; the Youth Fund; the Micro-finance fund and the Innovation Fund. This is a total of Shs437.2bn. This money has been there every year, in some cases, even since the year 2001 as NAADS money. The complaints are now that, this money is given to the ones “who already have”. The have-nots do not get. It is the “haves” that access this support. This cannot be a big problem. The big issue is that the money is there. If the routes through which it is passing have a problem, then we shall get better routes” (Yoweri Kaguta Museveni – ‘Comment on my just concluded wealth creation countrywide tour’ 06.08.2019).

The President does what he does best. Complain about others and saying they are indispensable. But when is himself so indispensable himself? As everyone else can be changed but not himself? How about that, Mr. Sole Candidate since 1986?

Well, that was the cheap and easy shots at the President and his own reasoning. Let me dig a bit deeper. As when concerning Bujagali dam, the European Investment Bank and the EU didn’t want to invest in the dam. There was even sent a complain to the EIB in 2009, but the EU said the project didn’t meet its standard for substantial development goals in such investment project. Still, the government pushed for it and even needed refinancing of it 2017. Surely, the expensive project has been a prestige project for the President, while putting blame to other leaders. That is what he does, instead of questioning, why foreigners didn’t want to invest in it in the first place.

Lastly, the Ugandan version of democracy isn’t that democratic, as there is no level playing field. If your a true opposition you get pinned with charges and spend time in court, even tortured if your a true threat to the Presidency That is why, the rigging, voter tourism and pre-ticked ballots is a steady act of the democratic values of this regime. Therefore, if he believes in his words, his surely deluded.

The last part, which I won’t use much time on. But there has been a Parliament report on the OWC and the President haven’t followed any of the recommendation from it. Neither, has he ever criticised or critically said anything about Gen. Salim Selah. Well, his part of his family and his kin never does anything wrong. They are legends because of their bloodline. That is why everyone else is indispensable, but his own is not.

So, if the President was serious about changing the OWC, maybe he should look into how the OWC is run by Gen. Salim Selah. But don’t expect that. It is cardinal sin to ask for that.

Well, enough of this nonsense. Peace.

Uganda: Fresh report states that the debt-service has grown 129% within one financial year!

 

The Republic of Uganda’s economy is really reeling, it cannot be sustainable as the Government of Uganda is growing their debt like there is no tomorrow. While the fiscal growth is substantially lower than their rate of debt-service. As the growth of debt combined with lacking growth to substantiate the shortfall.

In addition, with the knowledge of added expenses, growing shortfall of funds in the upcoming Financial Year of 2019/20 and the election year of FY 2020/21. There will be more add-ons on the need for debt service, as the state already had loans outstanding, which the grace period ends and the debt-service begins on. Therefore, the amount of loans will transpire even more, than what is in this report. The endless cycle of debt and growth of it, is worrying, as well, as the state thinks that the magical wand of oil-money will clear this debt. Even as the first operational oil field and such has been postponed yet again.

Just look!

“The total Government of Uganda external debt service by end of FY 2017/18 amounted to US$275.75 million, which was an increment of l29% compared to US$120.62 million in FY 2016/17” (…) “Debt service of Uganda’s external debt is on the rise and outstripping growth of the country’s income, currently at 6%. This poses risks for future debt repayments, especially as the country continues to acquire external debt at less concessional terms, especially to finance the oil development programme” (P: 6-7, 2019)

“It follows that as interest rates increase, the debt service obligations of Government also increases. The rise in external debt interest costs attests to the fact the government is increasingly contracting non-concessional debt, which will increase the repayment burden” (P: 24, 2019)

“However, this may not be the most likely scenario, as most projects have been discounted and some excluded in the macroeconomic framework. With the development of the NDP III, additional project and other pipeline project related to the oil developments and other infrastructure, will increase the financing requirement of government in the medium term. The inclusion of the above projects will re-classify Uganda from low risk of debt distress to moderate risk of debt distress or high risk if the export shocks materialize. A downgrade would have significant implications for the program with the IMF, where Uganda’s credit risk rating will worsen; implying that accessibility of nonconcessional financing will be limited. This will limit credit to Uganda to only concessional and grants financing.” (P: 28, 2019)

You don’t need to smart about it, as the state has bigger budgets with higher shortfall in the economy, combined with debt service and higher interest payments on the growing amount of loans. You know sooner or later, the economy will tank, as the fiscal responsibility is taken for granted and that fresh funds are lacking, because these are taken out of the economy to finance the payments of the old debts. Instead of generating growth and actually naturally grow the economy, by spending and investing as a state. The money is taken away to service debt, instead of building the state. That is what they are doing and at a alarming rate. Peace.

Reference:

NEC1-19 – ‘REPORT OF THE COMMITTEE ON NATIONAL ECONOMY ON THE STATE OF INDEBTEDNESS, GRANTS AND GUARANTEES’ June 2019, Parliament of Uganda

Uganda Peoples Congress: Caution on Coffee Bill (17.07.2019)

New details in the UN Experts Report: On the Illegal Gold Export from Butembo to Uganda!

This is now more than known, that the Gold Refinery in Entebbe is a source of gold from Democratic Republic of Congo. Where the illicit gold export persists. This is a problem, where the state are not able to catch and the wealthy traders in Butembo/Bukavu bribe the local government associates. This here is showing how the President of Uganda and his family is involved in the illegal trading of gold. As the African Gold Refinery, which the First Family is owning is involved in. They are not transparent and for the reason, that the state doesn’t want to take responsibility for this trade.

“Several sources associated with gold trade told the Group that wealthy traders in Butembo and Bukavu or buyers in transit countries and Dubai financed the smugglers, enabling them to buy gold and transport it to foreign markets. Two sources directly involved in such transactions with gold traders based in Butembo told the Group that traders with no affiliation with the gold trade lent money to their bosses. The latter used the money in order to buy gold in Butembo. Traders who lent money were paid back in cash, either in Kampala or in Dubai, by those who received gold. The Group believes that circumventing the banking system through gold-based financial transactions generates a lack of transparency and violates the recommendations of the Financial Action Task Force as reflected in Congolese legislation” (Final report of the Group of Experts on the Democratic Republic of the Congo, P: 35-36, 2019).

“Uganda declared gold exports of 12,000 kg, but the United Arab Emirates said that it had received 21,044 kg of gold from Uganda” (…) “The Group noted that, at the time of writing, the authorities of Uganda had failed to send the Group the report of their investigations into the activities of Kampala-based gold traders, as officials had promised. On 16 January 2019, the Group met with representatives of African Gold Refinery Ltd. (AGR) at AGR premises in Entebbe, Uganda, and discussed in particular the fact that AGR had yet to provide the names of its suppliers to the Group” (Final report of the Group of Experts on the Democratic Republic of the Congo, P: 36, 2019).

This is just verified reports from the United Nations Experts, whose investigated it. They have digging deeper. The Report is continuing to show how the state is benefiting of the illegal trade, as long as the Democratic Republic of Congo is missing it. They are being looted by illegal logging, trading, smuggling and not doing due diligence of the mineral resources produced there.

The Ugandan authorities doesn’t care that this is stolen and not verified, as the refinery is showing that they are not caring about the production or the proper protocol of the mineral production, as long as they are profiting from the illicit trade. This is the moral of the story, as the elites of Kampala are eating of the illegal trade. They are doing this and continuing to do so. Peace.

Opinion: The OWC is a total failure, no regional coordinators can save it!

Well, it had to come to this, that the President Yoweri Kagtua Museveni knows that the Uganda Peoples Defence Force (UPDF) infused Operation Wealth Creation (OWC) is failing. As the previously Parliament Report has said too. That is why its ironic that the President is using more and more funds on promoting it. Because, it is clearly failing because of lack of implementation and coordination.

The OWC is run by his Gen. Salim Selah and his associates are eating of this plate. That is well-known. To say otherwise is to be blind to the fact and the usage of this is to gain more funds out the state coffers. It isn’t only to supposedly elevate the rural farmers and their cash-crops. Because, if it was so, the OWC would have worked already.

The OWC with a few coordinators will only be more patronage. As the OWC which is run by the army, should gotten help and implementation from the Residential District Commanders. As their duty is to progress the works of the government, which happens to be the OWC, National Agricultural Advisory Services (NAADS), Savings and Credit Co-Operative Society (SACCOs), Youth Livelihood Programme (YLP), Northern Uganda Resilience Initiative (NURI) and whatever else the President see fit.

We can act a fool and celebrate that a few more brothers get a job, but the reality it is a shit-show and the results are in the pudding. We can act like its a good idea, but it seems only to fix more cronies of the President, than actually make a difference. If it had, the OWC and the other funding schemes would work for the public.

We know already the OWC is not able to find the right seedlings, deliver them on time or to the proper district. Therefore, the spending on the OWC is already exaggerated and excessive. That is why the act of getting coordinators is more a front, than actually changing it. If the OWC was serious, the OWC organization would have implemented some of the advice giving in the Parliament Report of 2018. However, that never appeared, because than the President have to discredit Salim Selah and that’s not happening.

The reality is that the OWC cannot be fixed, not because its impossible. But as long as these power structures are there, it will most likely amount to nothing. Since that is how it is. President Museveni knows this and is the aide in charge for keeping it. He knows that these coordinators will not amount to much. Just like the RDCs are not acting up as per request of the President, if they have even gotten the memo from him. They will be blasted in a campaign rally and used as pawns in need.

It is weird that the OWC are in thes issues, that funds getting missed, lack of coordination and logistics, that such a vital part of National Resistance Movement (NRM) Government Programme. This programme is the promoted and favourable theme for the campaigns done in all of May 2019. That is why the programme should be the perfect window of what the NRM has done in power. Instead, the programme shows the lack of governance and the misuse of state funds. The NRM should focus on something they have actually achieved and made changes with. As they are amending and twisting the OWC to make it seem successful, even when it isn’t.

The President should look to other ways if his serious about reforms, about progress or wanting to make a difference. But this scheme isn’t for that, it is to enriching his cronies and ensuring that the patronage has an avenue for wealth. If it was differently, than the state would have made sufficient changes to actually get the farmers to yield more out of their investments. Alas, that is not happening.

No coordinators will make the needed push for the OWC. The OWC will be messed up as long as the patronage gets to control it, the coordinators is just an extended hand to be fed by it. Not make work. Peace.

Update on Food Poisoning Investigations in Karamoja Region (27.05.2019)

World Food Programme (WFP) halts distribution of super cereal while tests continue (03.05.2019)

As suspicion fell on Super Cereal as a possible cause or carrier of contamination, WFP acted swiftly, halting all distributions of the food first in Karamoja and then across Uganda.

ROME, Italy, May 3, 2019 – As a precautionary measure, the World Food Programme (WFP) has temporarily halted distribution worldwide of a fortified blended food from one of its suppliers as tests continue to establish whether it is linked to outbreaks of illness in East Africa.

According to medical centres and hospital records, three people died and 293 were admitted to health centres in the Karamoja region of Northeast Uganda in March and April after eating Super Cereal, distributed by WFP. The product is used by WFP and partners to prevent malnutrition, especially among women and children.

Preliminary investigations have failed to conclusively find what caused the illness. To date, more than 2,400 food-related laboratory tests were conducted – including for mycotoxins, heavy metals, pesticides and microbial contaminants – but the root cause of the problem has not yet been established.

As suspicion fell on Super Cereal as a possible cause or carrier of contamination, WFP acted swiftly, halting all distributions of the food first in Karamoja and then across Uganda. Communications campaigns were launched to urge any people in Karamoja with remaining stocks to return them. These campaigns included using radio messages, focus group discussions, community dialogues and public discussions with elders and community leaders.

On 9 April, WFP halted the distribution globally of all products from the supplier in question. This involved putting on hold Super Cereal stocks in WFP operations in 25 countries.

In a further precautionary move, on 30 April, WFP ordered all stocks of Super Cereal from the same supplier should be secured in WFP warehouses and storage areas belonging to partners. Samples from the stock will continue to be tested to confirm or rule out any of the preliminary conclusions.

This issue is unprecedented in its implications for WFP’s global supply chain as the food supplies on hold around the world amount to over 21,000 metric tons, with an estimated replacement value of US$22 million. WFP has taken extensive preventative action as the health and safety of the people we serve is our foremost concern.

Super Cereal is maize or wheat blended with soya beans, fortified with vitamins and minerals, processed into a flour and supplied in 25-kg bags and is a critical part of WFP’s efforts to prevent malnutrition and save lives.

Bank of Uganda: Monetary Policy Statement for April 2019 (01.04.2019)

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