A look into how the American and British Companies defied the embargo and UN sanctions against the South African Apartheid Government in the 1970s and 1980s

This here will be about how American and British interest we’re in the draconian Apartheid regime in South Africa in 1970s and 1980s. I been looking into how businesses at the time went through hoops and not caring about the United Nations Sanctions and resolution 418 of 4^th November 1977 states this:

“Determines, having regard to the policies and acts of the South African Government, that the acquisition by South Africa of arms and related material constitutes, a threat to the maintenance of international peace and security; Decides that all States shall cease forthwith  any provisions to South Africa of arms and related materiel of all types, including the sale of transfer of weapons and ammunition, military vehicles and equipment, para military police equipment, and spare parts for the aforementioned, and shall cease as well the provision of all types of equipment and supplies and grants of licensing arrangements for the manufacture of the aforementioned” (UN, 1977).

So with that in mind, we can see how businesses of United States and Britain started and worked as subsidiaries in South Africa during the Apartheid, where the instances of FORD Motors and Leyland Vehicles we’re produced and used by the Police under the worst atrocities of a regime who used their laws, security agencies to harass the majority; while keeping the minority rulers and their economic incentive intact by any means. So that big business and other ones defied the Sanctions and even collaborated with necessary arms, cars and other procurement for the totalitarian state; shows how far the Corporation goes for profit and serve even governments who has no quarrel with prosecuting innocent citizens. Therefore the history of these corporations and their dealings should come to light and be questioned. As business today does the same under regimes that are totalitarian and militaristic with the favor of elite and harassing the opposition. That is why we can see at the tactics of the 1970s and 1980s and see how they might be used today.

So with that introduction take a look at my findings and hope you find it interesting.

How to start the discussion:

“Johannesburg Star (South African daily), Nov. 26, 1977, at 15. See also 1978 Hearings, supra note 13, at 846 (statement of John Gaetsewe, General Secretary of the banned South African Congress of Trade Unions) (“The ending of foreign investment in South Africa … is a means of undermining the power of the apartheid regime. Foreign investment is a pillar of the whole system which maintains the virtual slavery of the Black workers in South Africa.”); Christian Sci. Monitor, Feb. 21, 1984, at 25 (statement by Winnie Mandela, wife of imprisoned African National Congress leader Nelson Mandela)” (Hopkins, 1985).

Some money earned by the SADF at the time:

“According to official SADF accounts, the money that would have been recouped from the sale of ivory would flow back into funding the Unita rebels. However, Breytenbach knew that in the year 1986/1987 alone, the SADF’s assistance to Unita through military intelligence totalled R400 million (ZAR2005=R2,5 billion) and this excluded the supply of almost all Unita’s hardware and fuel. It is therefore unlikely that this was the reason behind the SADF’s interest in ivory smuggling. It is more likely that the potential for self-enrichment that this presented to SADF officers was enormous. General Chris Thirion, Former Deputy Chief of Staff Intelligence, agrees and suspects that Savimbi was in fact over-funded at the time” (Van Vuren, 2006).

How much RSA used on Military Equipment during Apartheid in the 1980s:

“According to evidence presented to the UN Security Council arms embargo committee in 1984, out of its annual total arms procurement budget of some R1.62 billion over R900 million was to be spent on arms purchases from overseas” (…)”This R900 million is spent on the procurement of arms directly by the regime from overseas and via the private sector. No official figures are published about how much is actually spent on direct imports of armaments. However, it can be estimated from figures contained in an in-depth survey by the Johannesburg Sunday Times in July 1982 that imports from overseas were 15 per cent of defence spending which then stood at R3,320 million per annum” (AAM, 1985).

How that happen:

“Those breaches of the arms embargo which have been exposed have also revealed the myth of South Africa’s self-sufficiency. Equipment smuggled into South Africa include weapons such as machine guns, rifles and pistols as well as spares and components for them. In a trial at the Old Bailey, London, in October 1982, the Court was informed that South African efforts to produce components for pre-war machine guns had not been successful. This points to the serious deficiencies in the quality and reliability of even minor items manufactured in South Africa” (AAM, 1985).

Export of R.J. Electronics International:

“Britain’s refusal to strictly implement the UN arms embargo and its continuing military collaboration in various fields are not totally surprising since much of this arises out of its traditional relationship with South Africa” (…)”They failed to re-appear in Court on 22 October 1984 and the following weekend gave a press conference. At it, Colonel Botha disclosed that they had operated as undercover agents for five years and “had saved the country at least R5 million on purchases of vital equipment”. Metelerkamp claimed he was only a consultant to Kentron and was the Managing Director of R J Electronics International. However, it emerged that he had been employed by Kentron up to a month prior to his arrest, and R J Electronics International was “a company used to purchase illicit arms” (AAM, 1985).

Other Examples:

“One cargo of FN rifles was initially exported by air to Red Baron Ltd at an address in Zurich before being forwarded to South Africa. This company, however, was not Swiss, but registered in England. Its directors were Mr Trinkler and two others who had also been directors of Kuehne and Nagel in Britain” (…)”The most controversial case was that of the British Aerospace naval reconaissance aircraft, the Coastguarder. In Hay 1984 it was disclosed that British Aerospace had been approached by the South African Government and that initial discussions had taken place concerning the purchase of eight aircraft. These were to replace the Shackleton aircraft which were having to be phased out. The South African authorities had sought to evade the arms embargo by forming a Coastguard service as a civilian authority through which the order for the aircraft would be placed. Repeated efforts to secure from the Government an undertaking that the Coastguarder would not be granted licence for export to South Africa met with the response that “it would not be proper for me to offer a definitive view now on the hypothetical question on the issue of a licence for the export of an aircraft such as the Coastguarder to South Africa” (AAM, 1985).

Shell Corporation working with the Regime:

“The South Africans agreed and supplied a cash advance that allowed the traders to purchase a tanker, shipping company and the required insurance. The tanker docked in Kuwait and filled its tanks with oil owned by Shell. The oil was registered for delivery in France. However, en route to Europe from the Gulf the tanker stopped in Durban and off-loaded almost all of its oil crude oil—almost 180,000 tonnes—with the South Africans paying the difference between the purchase price and the fees it had advanced for the purchase of the tanker. The Salem was then filled up with water in order to create the impression that it was still laden with oil. Off the coast of West Africa (Senegal), at one of the deepest points of the Atlantic, the ship was scuttled and the crew, who were prepared for the evacuation, were conveniently ‘rescued’. They had hoped to make an extra $24 million off the insurance claim for the lost oil. Following investigations by the insurance company the main perpetrators were prosecuted. The biggest loser next to Shell was South Africa, asit agreed to pay the Dutch multinational US$30 million (ZAR2005=R436 million) in an out-of-court settlement. Shell was left to carry a remaining loss of US$20 million. The use of corrupt middlemen had cost South Africa almost half a billion rand. There was no prosecution in South Africa of the officials at the SFF who had authorised South Africa’s procurement of a full tanker of oil from three novice (criminal) entrepreneurs” (Van Vuren, 2006).

British Subsidiaries in South Africa:

“Many of these subsidiaries are British. They include Leyland (Landrovers and Trucks); ICI (through its 40 per cent holding in AECI) (Ammunition and Explosives); Trafalgar House (through Cementation Engineering) (artillery shells); ICL (Computers); GEC including Marconis (Military Communications Equipment); Lontho (aircraft franchises); Plessey (Military Communications Equipment); BP and Shell (oil and other petroleum products for the military and police)” (…)”An impression of the full extent of the role of British subsidiaries in South Africa in undermining the arms embargo can be obtained from studying Appendix C. This is a list of British companies with subsidiaries in South Africa which are also known to be engaged in the manufacture of military and related equipment” (AAM, 1985).

British Mercenaries:

“British mercenaries, some recruited. originally for the forces of the illegal Smith regime, are serving in a number of South African Defence Force units, including the infamous “32 Battallion” operating out of Namibia into Angola. A British mercenary was killed in the South African commando raid on the residence of South African refugees in Maputo, Mozambique, in January 1981” (AAM, 1985).

“British Government policy so far has been to grant permission for Officers to serve in the South African Defence Forces.” (…)”This was explained by Secretary of State for Defence, Michael Heseltine, in a letter to the Rt Hon Denis Healey:

“An Officer is required to resign his commission before joining the forces of a country that does not owe allegiance to the Crown, and if he did not do so then the commission would be removed. As you will appreciate, this is the only power that we can exercise over an officer who has already retired from the Services. Guidance is given to officers about these procedures before they retire, but no specific recommendations are made about which countries’ Armed Forces an officer should join; nor do I believe that it would be right to do so.” (AAM, 1985).

American Businesses under Apartheid:

“Approximately 350 of the most prominent companies in the United States, including more than half of the Fortune 500’s top one hundred firms, operate subsidiaries in South Africa [18]. Another 6000 do business there through sales agents and distributers [19]. The United States holds fifty-seven percent of all foreign holdings on the Johannesburg stock exchange, including gold mines, mining houses, platinum mines, and diamonds [20]. The State Department estimated that U.S. direct investment amounted to $2.3 billion in 1983, down from the $2.8 billion calculated by the South African Institute of Race Relations for 1982 [21]. Other estimates put overall American investment, including loans and gold stocks, at $14 billion [22]” (…)”rcent [25]. U.S. exports to South Africa, however, grew from approximately R1.2 billion in 1979 to R2.7 billion in 1981 [26]. As a result, the United States emerged as the Republic’s largest trading partner [27]. Apart from its quantitative impact, U.S. business investment has a qualitative impact disproportionate to its financial value” (…)”John Purcell of Goodyear concurred, asserting that economic pressures will not encourage nonviolent social change in South Africa; rather, this will be brought about by “economic growth, expanded contact with the outside, and time” ((Hopkins, 1985)

Ford sold cars to the Apartheid regime:

“Ford Directed and Controlled its South African Policies from the United States, Exported Equipment from the United States, and Acted to Circumvent the United States Sanctions Regime: (New York Southern Cout Case, P: 65, 2014)

“Thus, despite the tightening of U.S. trade sanctions in February 1978, Ford U.S. still announced a “large infusion[] of capital into its South African subsidiary. Ford injected $8 million for upkeep and retooling” (New York Southern Court Case, P: 67, 2014).

“Ford support was significant: “[B]etween 1973 and 1977 [Ford] sold 128 cars and 683 trucks directly to the South African Ministry of Defense and 646 cars and 1,473 trucks to the South African police. Ford sold at least 1,582 F series U.S.-origin trucks to the police” (…)”Despite the prohibitions, Ford continued to supply vehicles to the South African security forces with the purpose of facilitating apartheid crimes. Ford denied that its continued sales to the South African security forces ran counter to the U.S. prohibitions, on the basis that the vehicles did not contain parts or technical data of U.S. origin” (…)”Notably, into the 1980s, Ford sold vehicles that did not need to be “converted” by the apartheid government for military or police use but were already specialized before leaving the plant in South Africa” (…)”Ford built a limited number of XR6 model Cortinas known as “interceptors” that were sold almost exclusively to the police. The XR6 was special because it had three Weber model double carburetors, as opposed to all other Cortinas that had only one double carburetor” (…)”Ford knew that the normal market for these vehicles was the security forces. The vehicles were deliberately pre-equipped with armor and military fixtures and designed for easy modification by the security forces to add additional defensive and offensive features” (…)”By making profits which they knew could only come from their encouragement of the security forces’ illicit operations through the sale of vehicles, parts, designs, and services, Ford acquired a stake in the criminal enterprise that was the apartheid regime” (New York Southern Case, P: 71-77, 2014).

Leyland under Apartheid:

“The British government now virtually owns British Leyland and therefore controls the company’s operations in South Africa. Yet it has done little in practice to press for the rights of black workers to organize through trade unions, or for the recognition of the unions for collective bargaining purposes” (…)”The South African “branch” is Leyland’s biggest operation in the world outside of the U.K. At present it is the 8^th largest car manufacturer (holding approximately 5% of the market) and the 7^th largest commercial vehicle manufacturer (holding approximately 5,5% of the market) in South Africa. Despite the depressed condition of the South African Market it sold 1959 vehicles in January-February of 1977 alone” (…)”B.L.S.A. has massive contracts with the South African state. It is one of the chief suppliers of the South African Defense Force, providing not only trucks and landrovers (which form the backbone of anti-guerrilla operations) but also armored personnel carriers. Of course, the figures for these contracts are never made public” (…)”For example, in June 1976 it was announced that B.L.S.A. had won a £1.9millon order for 250 trucks from the Cape Provincial Authority” (…)”As Leyland itself have argued , It “must conform, it not entirely” to South African government and established wishes” (Coventry Anti-Apartheid, 1977).

This here is not easy to finish up as the implications of this deals and arrangement used to support a government that oppressed and detained the majority. This Apartheid government did it all openly and with a clear message that the white minority should rule, while the rest should serve them.

In that context these businesses earned good amount of cash and profits for their stakeholders and their shareholders. While their products and procured services by the state we’re used to oppress majority of people in South Africa. We can surely see the amount of money and how this have affected the society and given way for the government of the time to continue with the process of detaining and harassing the majority of South Africans. This could not have happen if there wasn’t a helping hand from businesses and their subsidiaries. This here is just a brief look into it.

Certainly this should be studied even more and become clear evidence of how heartbreaking it is to know how certain businesses and people owning them will profit on suffering of fellow human beings. That is why I myself shed a light on it, to show the extent of disobedience of the UN Resolution and also what these corporations does in regimes that harassing and oppressing fellow citizens for their background, creed, tribe etc. It’s just ghastly and makes my tummy vomit. But that is just me, hope you got some indication of how they did their business and served the Apartheid government. Peace.

Reference:

Anti-Apartheid Movement – ‘How Britian Arms Apartheid – A memorandum for presentation to her Majesty’s Government’ (1985)

Coventry Anti-Apartheid Movement – ‘Leyland in Britain and in South Africa’ (1977)

Hopkins, Sheila M. – ‘AN ANALYSIS OF U.S.-SOUTH AFRICAN RELATIONS IN THE 1980s: HAS ENGAGEMENT BEEN CONSTRUCTIVE?’ (1985) – Journal of Comparative Business and Capital Market Law 7 (1985) 89-115, North Holland

United States, New York Southern Court: Case 1:02-md-01499-SAS Document 280-1 Filed 08/08/14

Van Vuren, Hennie – ‘Apartheid grand corruption – Assessing the scale of crimes of profit from 1976 to 1994’ (2006)

Dr. Kizza Besigye went to All Saints for Service; detained straight-away after Service at Kiira Road P.S.; Before escorted back to Kasangati for more House-Arrest!

This day started as it has done in the recent days at the besieged Kasangati in Wakiso District, where Dr. Kizza Besigye is under house-arrest with heavy deployment of the Police; the Police have sealed of the area and getting people detained for trying to get to the house of the presidential candidate.

Today Reverend Augustine of Namirembe Diocese in Kampala has arrived at Dr. Besigye’s residence to pick and take him to church at All Saints. First the Police officers around the home would not allow him to leave the compound. Even with the reverend taking him there!

The good news before the church-service is the people turned around the car of Kizza Besigye, just as they did during the campaign and pre-election period. While the fear was gone even when he was escorted by heavy police presence like he was the most dangerous person in Uganda!

Even the Journalist have to discuss the oppertunity to monitor the situation:

“Following “serious consultations”, journalists have been allowed to enter All Saints Cathedral with their phones and cameras” (NBS TV Uganda, 28.02.2016).

After some time:

“Let’s all head to All Saints, Nakasero for prayers with Dr. Kizza Besigye. He’s been released after thirty minutes of waiting and phone calls from “above” (Forum for Democratic Change, 28.02.2016).

The message from the Service at the All Saints:

“Rev Dr. Medard Birungi leading service at All Saints Cathedral Nakasero falls short of declaring Kizza Besigye president!” (…)”Uganda is going to be a nation of One Uganda One People Moving Forward in Steady Progress” (…)”God is going to punish this country. Because what is going on in Uganda is against God’s will. All institutions are dead. Hospitals are dead, school system is dead ……ooh God the Electoral Commission. …. (he pauses) Yamaweeeee….!! This nation is dead, it needs to raise again. The Uganda electoral commission…how can people go to a polling station, they vote for a person but EC declares a different person. What is going on is treating symptoms. Beating demonstrators is not a solution to Uganda. You need to ask yourself why people are demonstrating then solve the problems. God is weeping over this nation. He is weeping over Kampala today. Jesus will never leave u alone. When EC steals your election, just call the Lord and say JESUS WILL NEVER LEAVE ME ALONE!” (…)”There are people who celebrated when Jesus died on Friday but on the 3rd day, they melted like ice. Those who had put a big stone on the grave could not understand what happened.” (…)”He told a story of the disaster he went through when his team Liverpool was playing the Champions League final against AC Millan. The first half was a disaster. Liverpool had been beaten 3:0. But then the 2nd half started and Liverpool charged. At the end of it Liverpool was champion” (…)“I tell you my brothers and sisters your second half is coming. Just stay focused and steadfast. You are going to be the champion.” (Forum for Democratic Change, 28.02.2016).

Then when he was leaving the church and the service, the Police went back to normal. The Police force started to tow his car on Nakasero Road and make sure that Dr. Kizza Besigye would not go home directly to Kasangati.

Kizza Besigye Message after the Service today:

“Glad that for first time in a week I left home. Attended All Saints church service. Now detained at Kiira Rd Police Station”.

Kampala Metropolitan spokesperson Partick Onyango has uttered these beautiful quotes on the detaining of Kizza Besigye at Kiira Road Police Station:

“Kizza Besigye is not arrested or detained but he is a Kiira Road Police Station he is “chatting with people”. Well, the spokesperson continued: “Kizza Besigye wanted to go home via the Kiseka Market is a “hotbed of strikes”. If you thought he was done Onyango said this to: “he is still free as a bird”. MR Onyango a free bird doesn’t ask permission to go to church or get his car towed. I think somebody should give you permission to talk, since you have today just talked nonsense.

Back to house-arrest:

“Dr Kiiza Besigye back at his Kasangati home after police escorted him there following brief detention at Kira Police Station” (NBS TV Uganda, 2016).

If you wonder about the security detail to his place from Kampala to Kasangati:

“There are now three road blocks to KB’s place, One is in Lutete before you reach Kasangati, the second one is in Kasangati trading center, the third is on the route that branches off to KB’s home, Police thoroughly checks each and every vehicle, if you miss the first and second road block minus being netted, you will definitely be netted on the third one and they (police) will immediately disperse you” (Paisely, 28.02.2016)

So things are back to normal, he got a brief time of some strange sort of freedom and feel the presence of people and the country where he was campaigning for the cause of liberty and justice. Something that he still does not have; the Police continues to keep him on lock-down and under siege in his own home. This Sunday was rear, but still only a bliss moment of normalcy, but the totalitarian state that is now under control of President Museveni could not see Dr. Kizza Besigye walking around with the people as they surrounded him just on the way to Church. Peace.

Press Release: Tata Communications and MasterCard join forces to empower 100 million women [Company Update] (30.09.2015)

PLO Lumumba – “We are Co-Authors of our misfortune”

Interesting, right? Enlightenment, right?

Peace!

Uganda – The Annual Report Audit General for FY ended 2014 – Value for Money Audit Volum 5: Quotes and Outtakes from this.

This blog here will be focused on the ‘Office of the Auditor General’ who released ‘Annual report of the Auditor General for the Financial Year ended 30^th June 2014 – Volume 5 Value for Money Audit’. What you will read is actual quotes from the paper or report. Here you get a vivid picture of how the financial year (FY 2013-2014) was in reality.

I haven’t taken everything from the piece. It would be too long and you might end up bored. Here is what should get your mind boggling and wonder. How could this be this way? Why is it like this? How did it end up like this? What does this tell me about the economic practices in Uganda? And so on. If you start to think like that, then it was worth using my time. Enjoy the quotes from the report. Hope you catch some wisdom.

When it comes to managing Public Debt:

“Public debt is incurred primarily for financing budget deficits, development of domestic financial markets, supporting the country’s Balance of Payment (BOP) position/foreign reserves and monetary policy objectives. In Uganda, public debt is managed by the Ministry of Finance, Planning and Economic Development (MoFPED) in liaison with Bank of Uganda (BoU). Government borrows internally from domestic markets through issuance of Treasury bills and Bonds by the BoU and externally through Bilateral and multilateral borrowings. Currently, over 60% of the public debt is external debt and 40% is domestic debt. GoU borrowing has been rising over the years from USD 5.7 billion in Financial Year (FY) 2011/12 to USD 7 billion in FY 2013/14. The growing National debt, if not properly managed, could revert to unsustainable levels as was the case in the past”.

“Interest rates on domestic debt have overall stabilised in recent years relative to their peak in 2011/12. However, they remain a cause for concern due to their high contribution to overall debt service costs and the relatively high yields which they attract stand in stark contrast to those achieved by comparator nations with similar credit ratings”.

When it comes to roads:

“The Uganda Road Fund invested a total of UGX 914 billion in road maintenance activities during the three years under review (2011/2012, 2012/2013 and 2013/2014),4 with a total of 4,565km of roads maintained. Despite the increasing investment, there are reports and persistent public outcry about the poor state of roads and the deteriorating quality of works being executed. The physical and financial performance reports of designated agencies in FY 2011/12 revealed the following issues: budget indiscipline, poor absorption of road maintenance funds, inaccuracies in reporting, lethargy of Designated Agencies (DAs) in complying with reporting requirements, widely varying unit costs, risk of loss of funds through end of year procedures, and grave underperformance of periodic maintenance works” (…) ”The road maintenance needs in Uganda cannot be met due to limited resources, for example for FY 2011/2012, the total maintenance needs from the agencies was UGX 413.95bn, and the budget provided by the Ministry of Finance, Planning and Economic Development (MoFPED) was UGX 280.95bn, indicating a 32% deficit” (…) “The road maintenance equipment inventory maintained by the URF is incomplete; the inventory is only for 12 (55%) of the municipalities and it is outdated as it was submitted in January 2011”.

When it comes to Gas and Oil:

“Through a review of reports on procurement submitted by the oil companies to PEPD, it was noted that from 2010-2013, the oil companies spent a total of USD 1,171.8 million on purchase of goods and services. Of this, USD 329.9 million was paid to Ugandan service providers, representing 28% of the total spend for all the companies in the period under review” (…) “The Ugandan service providers comprised about 73% of the approved suppliers which implies that the total value of the procurements from them was less than their relative number” (…) “Ugandans employed in the oil and gas sector by the oil companies overall rose from 69% in 2012 to 80% in 2014, absolute numbers of employees decreased from 546 to 432 between 2013 and 2014; in particular, the nationals dropped from 370 to 347 over the same period” (…) “For all the 27 jobs advertised in the newspapers, attracting over 700 local applicants, none was appointed, citing lack of experience in the oil and gas sector. Instead, the recruitment report submitted by the CNOOC to PEPD recommended recruitment of expatriates” (…) “According to the Industrial baseline survey done by the Joint Venture partners (CNOOC, TEP and TUOP), 60% of the workforce required for the next phases will be technicians and craftsmen, which translates to a demand of 7,800 and 1,800 technicians and craftsmen at the peak and plateau phases, respectively, of development and production. With the current total of only 86 UPIK graduates, there is doubt that the projected demand will be met by the time production starts (2018)” (…) “There are still several areas with clear potential for enhancing national content, such as: establishment of a clear regulatory framework, performance targets and indicators for national content; determining the level of state participation; local supplier development; employment and training of Nationals by the oil companies and government; ensuring gender parity and involving host communities”.

When it comes to the Healthcare:

“The Uganda Health Systems Strengthening Project (UHSSP) is a project administered under the Ministry of Health (MoH)” (…) “UHSSP, is a five year project, which was established in 2010, commenced operations in February 2011 and is due to end on 31st July 2015. The UHSSP project is jointly funded by the Government of Uganda (GoU) and the World Bank to a tune of USD 14.31 million and USD 130 million, respectively” (…) “UHSSP was set up to bridge the existing gap of supply and maintenance of medical equipment in 46 selected health facilities in order to improve the quality of health care delivered to patients. The project has spent USD 24 million (UGX 60.480 billion) on procurement and supply of these medical equipment, yet some of the equipment remains unused in the facilities where it was supplied” (…) “For instance, at the time of audit field visit in September 2014, the project had supplied anesthetics machines to 165 HCIVs at a cost of USD 2,063,085.75, however, all the HCIVs visited were not utilising this equipment because they lacked the technical expertise to effectively utilise the equipment. In a related instance, 2 auto strainers valued at USD 25,345.68, which were issued to Mubende and Moroto Regional Referral Hospitals, are not operational because of lack of qualified staff” (…) “observations conducted during field visits to the seventeen selected beneficiary health facilities, it was noted that some of the equipment supplied, worth Euros 3,954.67 and USD 1,209,879.09, was not being used at all while other equipment was not optimally utilized” (…) “Through field inspections, it was observed that health facilities namely Mwizi had no power supply while others such as: Moyo, Aduku, Aboke Pakwach had unreliable solar power supply, and therefore, were not providing emergency obstetric care services when needed” (…) “that various equipment supplied by the project, worth USD 319,676.35 and Euros 347.24, required additional logistical supplies to be effectively put to use. Such equipment included anesthesia units which required regulators, oxygen cylinders and other reagents while incubator cultures, incubator baby, defribrators, counting chamber, colorimeter required Medias, distilled water, thermometers, tubes and batteries”.

When it comes to handling Public Debt Part 2:

“Uganda benefited from the various Debt relief initiatives like the Heavily Indebted Poor Country (HIPC) Initiative in 1998, the Enhanced HIPC in 2000 and the Multilateral Debt Relief Initiative (MDRI) in 2006. Despite these initiatives, GoU borrowing has been rising over the years from USD 5.7 billion in Financial Year (FY) 2011/12 to USD 7 billion in FY 2013/14. The growing National debt, if not properly managed, could revert to unsustainable levels as was the case in the past” (…) “In the FY 2013/14 Public debt increased to USD 7 billion up from USD 6.4 billion in F/Y 2012/13, reflecting a 9.38% increment in one year alone, the increment was way above the GDP growth of 6.2% in the FY 2013/14. Domestic debt accounted for 9.55% (UGX 1,437 billion) of the National budget, 2014/15 an increase of 1.65% (UGX 397 billion) from 7.9% (UGX 1,040 billion) in financialyear 2013/14. External financing on the other hand increased from UGX 2,660 billion in F/Y 2013/14 to UGX 2,733 billion of the National budget, 2014/15 an increase of UGX 73 billion. As non-concessional borrowing increases, the need for proper debt management becomes even much greater” (…) “On average, 60% of public debt is external loans of which Multilateral loans constitute over 80%. The domestic debt is largely derived from the sale of bonds which constituted an average of about 60% over the period FY2011/12 – 2013/14 “ (…) “In evaluating whether the debt, acquisition process facilitates debt sustainability, the audit mainly focussed on the acquisition of external debt since it constitutes over 60% of the National debt portfolio” (…) “The 2012 corruption scandal involving the Prime Minister’s office resulted in a changed relationship between multilateral lenders to the Ugandan government and a consequent reduction in the amount of aid in the form of direct budget support. Budget support in 2011/12 amounted to 168m USD, but reduced to 24.1m USD in 2013/14. The shortfall has in part been filled through domestic financing” (…) “The lack of coordination between debt and cash management functions contributed to inaccurate forecasting of cash needs. This exacerbated the problem of unplanned cuts to government programmes and led to the needless issuance of short-term debt, with the associated debt service costs” (…) “it was noted that local government authorities still held significant cash balances accrued from non-tax revenues and unutilised balances which were not remitted to the Consolidated Fund regularly, and that some accounts containing cash lay dormant, risking embezzlement” (…) “the current economic conditions characterised by reduced exports and a depreciating Ugandan Shilling against the dollar (30% for the last 4 months) there is a risk of stress which can affect future sustainability. Interest rates on domestic debt remain a cause for concern due to their high contribution to overall debt service costs (78%)”

When it comes to Health Care Part 2:

“Over the past three financial years 2011/12, 2012/13 and 2013/14, there has been an 18% increment in the funding of RRHs from UGX 53.86 billion to UGX 63.56 billion” (…) “Jinja nd Lira RRHs revealed that Jinja RRH which ran a 13-bed Intensive Care unit only used 6 of the beds, leaving 7 beds idle in the unit while Lira RRH had not utilized its 16-bed ICU since FY 2012/13. The Hospital Directors of Jinja and Lira RRHs explained that more nurses wouldhave to be deployed as each bed required at least 2 full time nurses to the unit to ensure full utilisation of the unit without compromising the quality of care. The unit would also require full time doctors and an anaesthesiologist. In Lira RRH, management explained that the ICU had not been commissioned and that its underutilisation was also due to the absence of an oxygen plant” (…) “With the current ICU bed capacity in Uganda of 61 in all public and private hospitals, 23 unutilized ICU beds in Jinja and Lira represents a wasted resource. It is estimated that about 10 critically ill patients were deprived of ICU admission daily and as a result succumbed to their illnesses” (…) “Hospital managers in response attributed this to the lack of bio medical engineers and high costs of repairing the equipment, for instance, according to Jinja RRH, the maintenance of the En-Visor ultra sound machine and the repairs of the Duo-Diagnostic big x-ray machine requires not less than UGX 15 million, and without a medical equipment maintenance fund, it is a challenge to maintain and repair the radiology and imaging machines. Management of Fort Portal RRH attributed the low usage of the x-ray and ultrasound machines to stock-outs of the supplies, such as reagents and films required for the operation of this diagnostic equipment” (…) “The average doctor-patient ratio per year in RRHs was 12440:1 implying one doctor for 34 patients per day while clinician- patient ratio was 10652:1 annually implying one clinician for 29 patients” (…) “For example; Kabale, Fort Portal, Masaka and Mbale Regional Hospitals referred some special cases to Mbarara RRH for services like CT scan, renal dialysis, neurosurgeon, paediatric surgery. In addition, lack of adequate staff has led to referrals to the National Referral Hospital and this has further resulted in the congestion and handling of cases at National Referral Hospital which cases could be handled by the RRHs. The process of referrals is costly and in some cases patients lose their lives in the process of reaching the health facility to which they have been referred”.

 When it comes to Management of Sewage in Urban areas:

“Poor sanitation costs Uganda 389 billion shillings annually, equivalent to 1.1% of the national GDP” (…) “Fifty six percent (56%) of the pipes in Kampala were built in the 1940s and 86% of these have been operational for 35 years or more” (…) “National Water and Sewerage Corporation (NWSC)” (…) “NWSC had spent UGX 10.9billion towards sewage management activities in the areas under its jurisdiction over the last three years” (…) “the volume of sewage generated in the different towns and the volume of sewage collected and treated by NWSC, a study conducted by Mott Macdonald on behalf of NWSC in December 2012 estimated that by 2014, a total of 238.9 ML of wastewater would be generated of which, only 8.38ML would be collected and treated. This leaves approximately 230.52 ML of generated sewage uncollected and therefore not treated”.

Short ending:

I hope this was worth your time and also giving you an indication on the matters on the ground. This is just a fragment on the matters and what got told in the report. This just comes as gift to you. Especially to all of you who don’t use time reading the report on your free will or are lucky enough to get the report in your mailbox. Never the less, hope you got enlighten and also got a picture on how the monies is spent in last FY. Peace.

President of Uganda: H.E. Yoweri Kaguta Museveni – State of Nation Adress of 2014.

H.E. Yoweri Kaguta Museveni
President of the Republic of Uganda

Kampala
5th June, 2014

His Excellency the Vice President
Rt. Hon. Speaker of Parliament,
His Lordship The Ag. Chief Justice
Rt. Hon. Prime Minister,
Hon. Ministers,
Hon. Members of Parliament,
The Members of the Diplomatic Corp,
Distinguished Guests,
Ladies and Gentlemen.

Madam Speaker,
In fulfillment of the Constitutional requirement stipulated in article 101 (1) of the Constitution of Uganda, I stand here to deliver the State of the Nation Address, 2014. This is not a mere constitutional ritual as some people may want to perceive it but accountability on particular Government commitments since the last State of the Nation Address.
Madam Speaker, on 12th June 2014 the Minister of Finance, Planning and Economic development will present to this August House and the entire Nation the Budget FY 2014/2015. She will also detail what has been achieved and what we intend to achieve in the coming Financial Year.

The State of the Nation Address I am delivering today, therefore, gives a broader picture concentrating on the basic priority sectors which are: agriculture, industry, services and ICT.

The Ugandan economy continues to be vibrant amidst economic challenges and reforms on the local, regional and International scene.
I keep telling the audiences I address that there are the four sectors for wealth creation and access to employment. Anybody wishing to generate wealth, create self employment, employ others or access employment has no alternative but choose one of these four. The four sectors are: Agriculture, Industry, Services and ICT. 
How are the four sectors performing? Agriculture is in two parts. There is the commercial and plantation farming. The commercial farming still has got challenges such as the high costs of inputs, the under-development of water for agriculture, the low use of fertilizers and poor management skills by the farmers themselves. What is decisive for any enterprise to prosper, apart from the entrepreneur, is the market ─ the buyer. If enough people do not buy from you, you cannot continue to produce. That is why I am always careful to recommend to the farmers only crops and livestock products that have got a big internal, regional and international markets.

The global demand for coffee is 149.1 million bags at the value of US$ 13.6 billion unprocessed and 32 billion processed; the value of tea is US$ 11.4 billion with a total demand of 4 million tonnes; the total value of milk and milk products is US$ 32.8 billion with the total quantities of 730 million tonnes; etc. These are values of these products as materials, not as finished products. The values of finished products of the items above, are as follows: If something has got a low global demand, we should know the consequences of encouraging the farmers to flock into it. Therefore, the leaders and the farmers should know that these products of our agriculture must compete regionally and globally because that is where the big market is. In order to compete, our prices and quality must be competitive. Having looked at the global prices, we should, then, work backwards and see how we can reduce our costs and improve our yields in order to improve our profit margins within the market determined international prices. As a farmer, it is good enough for me that somebody is buying my milk and my beef. At one time, we had nobody buying our milk because the milk being consumed in the towns was coming from outside. We are now dominating the milk sales in Uganda and also exporting to the entire East African region, Nigeria, Mauritius, the Middle East and, also, India and the United States, etc. What I have said is true of bananas, etc. The relevant Government departments must, accordingly, firmly regulate these products. Otherwise, if our quality is compromised, we shall be ruined. We cannot afford a bad reputation within Uganda and outside of poor quality products on account of poor regulation.
As you can see, infrastructure in many parts of the country is improving, such as: the tarmac roads, the electricity, the telephones, etc. I am negotiating with Japan International Co-operation Agency (JICA) to buy Japanese earth-moving equipment for both roads and water excavation on a big scale. Once this deal goes through, it will help us with the roads, water excavation for earth dams and even bush clearing. The Japanese equipment is very good. I have seen its capacity on my own farms. Within our means, we are continuing to roll out the irrigation schemes. Doho Irrigation Rice Scheme has been repaired at the cost of Shs 19.7 billion. Mobuku has also been repaired at the cost of Shs. 19 billion. The Agoro Irrigation Scheme has been completed at the cost of Shs. 27 billion. The rehabilitation of the Olweny Irrigation Scheme will commence in 2014/15 and is estimated to cost a total of 42 billion shillings. The Ministry of Agriculture, working with our brothers and sisters in Kenya, should avail affordable mini-irrigation equipment. Working with Makerere, we are also trying to develop a solar-powered irrigation pump.

The agricultural sector grew by 1.5% per annum this financial year in spite of these challenges. As I keep telling you, the agriculture of Uganda is still handicapped by the 68% of the households that were still in subsistence farming according to the census of 2002. If all these homesteads were converted to commercial farming, the size of agriculture would be much bigger. In the Manifesto of 1996, the NRM put forward a four acres plan for these homesteads that have got that size of land. Using the yardstick of the financial returns per acre per annum and of sufficiently large global demand mentioned above, we recommended the following enterprises: clonal coffee ─ one acre; fruits (oranges, mangoes and pineapples) ─ one acre; bananas or any other food crop (cassava, Irish potatoes or upland rice) ─ one acre; and elephant grass for zero-grazing Friesian cattle ─ one acre. On these, you should add poultry for layers of eggs and pigs as backyard activities. These do not require much land. Those near the swamps should engage in fish farming. Many can participate in apiary for honey. In some areas, they grow tea. With 3 acres of tea, one can get about Ug. Shs 13.5million per annum. In the case of those with less land than the four acres, there is the option of mushroom growing as well as vegetable growing in addition to poultry and piggeries. In the case of the latter two (poultry and piggery), you would use animal food bought from the others. With one room-full of mushrooms, using shelves one on top of the other, you would earn Ug. Shs. 20 million per annum. One acre of onions would give you Shs. 24.8 million per annum; an acre of tomatoes would give you Shs. 14 million per acre per annum; an acre of cabbages would give you Shs. 20 million per acre per annum. The global demand of mushrooms is 3.5 million tonnes, valued at US$10 billion.

The political class, the religious leaders, the cultural leaders and even the peasants themselves have been slow in grasping this issue of enterprise selection for the peasants with small pieces of land and for the need to convert from subsistence farming to commercial farming. The peasants that have woken up to this need, have had the problem of planting materials and breeding materials. NAADS that has been given huge resources to do this, spends most of the Shs. 203 billion we give them each year on salaries and seminars. They only spend Shs. 57 billion on buying materials for plantation and breeding. The rest is spent on salaries and seminars. We are determined to totally restructure NAADS in the coming financial year. Many farmers have woken up. When they get planting and breeding materials, they look after them well, for the majority of cases.

In this financial year, although starting late, I experimented with the deployment of UPDF officers in our former war zones. There are 25 former war-zones. These are: Bumbo; Mayuge; Awere: Atiak; Birembo; Mukono ─ Namugongo; Black bomber (Matugga-Migadde); Mondlane (Kalasa-Makulubita); Lutta (Semuto area); Kabalega (Kapeeka ─Kasiiso area); Nkrumah (Bukomero); Nkrumah (Lwamata); Nkrumah (Kiboga); Nkrumah (Kyenkwanzi); Nkrumah (Kyamusisi); Lutta (Sekanyonyi); Ngoma; Mwanga (Bamunanika); Rwenzori (Kasese); Rwenzori (Kabarole); Rwenzori (Bundibugyo); etc. etc. Using only a total of 9 billion shillings in the two rainy seasons of the last 9 months, the commanders deployed in these areas, have distributed: 11 million seedlings of coffee; 2 million seedlings of tea; 464,137 seedlings of oranges and mangoes and 1,412 tonnes of maize and beans, etc. If the soldiers can do this using so little money, why should NAADS and all those associated with it fail with these hundreds of billions? It is really embarrassing for all those involved. The good news is that the money is there and has been there. It is just a question of getting the right channels for this money to reach the peasant farmers. Above, I have just talked about NAADS money. There is also the money of micro-finance. Every year, we provide Ug. Shs. 16 billion for this. There is also the money of the youth. Every year we provide Shs.32 billion for this. There is money for NUSAF. Every year we provide Shs.53 billions for this. There is PRDP. Every year we provide Ug. Shs. 73.9 billion for this. There is the restocking money. Every year we provide money for this. The problem is not shortage of money. It is the shortage of reliable agents for conveying this money to the people. To show you the scale of this money, if we used only Shs. 100 billion of this money in one year, at a cost of Shs. 310 per coffee seedling including transport, we would plant 322 million new coffee trees of the clonal type ─ far in excess of the 220 million old coffee trees. By just planting new coffee trees, even without expanding the acreage, using the 100 billion shillings which is less than 50% of what we give NAADS each year, with good crop husbandry, our annul coffee production would go from the present 4 million bags of 60 kgs each to, at least, more than 10 million bags. That would make Uganda second only to Brazil in the global coffee production.

I have dwelt on agriculture because it is the sector that is most easily accessible to the majority of Ugandans. Even the ones without land can borrow or rent from the others. It takes a few months form planting to harvesting (18 months for coffee, two months for tomatoes, etc). God has really favoured Africa and, especially, Uganda. However, many Africans are never keen to accept God’s blessings. Within 2 months, 3 months, 4 months, 6 months, 18 months, depending on the crops, a farmer can go from planting to harvesting. Yet, there are challenges such as drought, pests, fungi, etc. However, there is a solution for any of those challenges. We only have to do a bit of sweating. In the Book of Genesis: Chapter 3 verse 19, it says: “By the sweat of your brow, you shall eat bread, till you return to the ground, for out of it you were taken; for you are dust and to dust you will return”.

Having said all that, however, it is necessary to remind ourselves that a modern economy cannot depend on agriculture alone. Gone are the days of the physiocrats in France who believed that all value came from agriculture. Hence, we must go the second sector ─ industries ─ manufacturing ─ big factories and small ones. Industry now employs 841,704 persons. The annual rate of growth of the industrial sector has been 5.6%. With the commissioning of Bujagaali, there has been alleviation of power shortage although the price of electricity is still high. We are determined to provide electricity for manufacturing at 4 US cents per unit whatever the challenges. This is what I agreed with the coffee processor and the new textile manufacturers that are beginning to flock in the country as the factories migrate from China on account of the rising labour costs there. Those who, out of context, agitate for higher salaries should bear this in mind. Uganda cannot miss this round of industrialization for any reason. Apart from industries coming from outside, I want to inform the country that our young scientists, graduating from universities, are happily entering the manufacturing fields. As you could see from the shows in Kumi ─ 8th of March – Women’s Day; ─ Rubaare, Ntungamo ─ 1st of May, Labour Day; and only the other day at Namulanda for the youth, the Ugandan scientists have the knowledge to produce anything from food processing, ceramics, herbal medicine, machine parts, light engineering, wood products, etc. etc. Our scientists at Makerere have already produced electric automobiles and I tasked them to work on solar water pumps. My office has collected all the names of the people involved. We shall fund them using these huge sums of money that go to waste in the hands of all sorts of actors. It is so pleasing to see that Ugandan scientists can manufacture almost anything provided they are funded. With the emphasis we have put on electricity, the roads and the railway, we shall be able to lower the costs of doing business in this economy and, therefore, make our products more competitive.
The third sector ─ services (hotels, transport, banks, professional services, etc) this year grew by 5.6%. With peace, this sector has become very useful in our economy. It employs 2,684,290 persons and accounts for 45.4% of our GDP. Given the uniquely good climate of Uganda, very few countries in the world can compete with us in this area. We only need to control the problems of: corruption, pollution and deforestation. It is only these three that can undermine our unrivalled advantage for services, especially tourism. In the year 2012, Uganda was declared the best tourism destination in the whole world. Between 11th and 16th November, 2014, we are going to host the Conference of the World Association of Tourist Operators. However, when I see, through the window of the plane, the green algae in the water around Entebbe, I do not feel happy. The Minister of the Environment must strive to find ways to stop the following:
(i) The pollutants that go into the lake;
(ii) Cutting forests up to the edge of all lakes;
(iii) Digging on the banks of the River Nile;

It is high time that Ugandans remember and appreciate these precious gifts from God. If they don’t get the care they need and deserve, they can all disappear. We should remember what Jesus said in Mathew 7:6, “don’t give what is holy to the dogs, nor cast your pearls before swine, lest they trample them under their feet, and turn and tear you in pieces.” When we destroy our God given environment, we will be like those pigs.

I must salute the Director of the National Forestry Authority (NFA). It seems he has somewhat woken up. In the recent past, I have flown over Mabira forest, Budongo forest, the forest around Butiiti in Kabarole and Semliki forest. It seems the encroachment has declined. I flew for dozens of minutes over this large area of thick forest. How beautiful it is. Let the Minister of the Environment similarly wake up in respect of the shores of Lake Victoria and the banks of river Nile. Our uniqueness, in the service sector can only be enhanced by protecting these treasures ─ the lakes, the rivers, the mountains, the wetlands and the National Parks.

The ICT sector is growing at 15% annually for last 2 years. It has got capacity to employ many people. The ICT is crucial for communication among people, for data processing and for automation. It is crucial, therefore, for industrial production and communication. It, therefore, will create a lot of jobs. Already about over 1 million persons are employed in the ICT sector both direct and indirect.

In the area of Business Processing Outsourcing (BPOs), we already have 54 companies operating in Uganda and they are employing 4,250 persons. Given that our youth speak English well, a lot more youths can get employed in this sector. This is where an accountant can work for a company in North America and convey the results of his/her work over the internet and be paid. Recently, while in Europe, I discussed with some entrepreneurs that can help us expand this business. It is an area of great potential.

While talking about the industrial sector, I did not talk about minerals. You are aware of the petroleum and gas that we shall be able to start extracting from the ground by 2017. As you may be aware, we have already found 3.5 billion barrels of petroleum in 40% of the potential area. Exploration in the rest of the area is continuing. Our negotiations with the oil companies had delayed because there were contentious clauses, happily, we have agreed with the oil companies on the MOU. We can, therefore, proceed to negotiate on the details. Our crude oil will be used in the refinery to produce final products, part of it will be exported as crude and part of it will be used for electricity generation. The gas will be used for electricity generation and for assisting in extracting the crude. If we have enough quantities of gas, it will be used in steel manufacture, using our huge iron-ore deposits in the Kabale-Kanungu areas and in the Sukuru hills near Tororo. Apart from oil and gas, the government conducted exploration in many part of the country and discovered the following minerals in the following quantities:
(i) Iron-ore – more than 200 million metric tonnes
of proven ore in Kabale and Kanungu areas;

(ii) Phosphates – 230 million metric tonnes of proven
Ore in Sigulu hills, Tororo;

(iii) Cement – more than 300 million tonnes of
Limestone in Karamoja areas in addition to the one in Hima;

(iv) Aluminium clays – more than 3 billion tonnes of
ore in Makuru areas in Bugweri;

(v) Copper – more than 9 million tonnes in
Kilembe areas;

(vi) Cobalt – more than 5.5 million tonnes in
Kisoro areas;

(vii) Wolfram – more than 800,000 tonnes, in some
parts of Kabale;

(viii) Tin – more than 1 million tonnes in
Ruhaama Ntungamo areas;

(ix) Gold – more than 8.2 million ounces in
different parts of the country

(x) Vermiculite – more than 54.9 million tonnes in
some parts of the country;

(xi) Columbite-tantalite (Coltan) 133 million tonnes

(xiv) Rock salt and brine – 22 million tonnes in Katwe and
some parts of the country

(xv) Uranium – in some parts of the country
Pressure is already on for exporting these minerals in unprocessed form. I will never accept these pressures. This is because even the traditional peasants in Uganda have enough economics in their heads to know that when you produce the mbiire (embidde – the bananas for brewing beer), you brew the beer yourself (tonto – Lwaagwa). You do not produce embiire, sell them to your neighbor, who, then, brews the beer and sells it to you. Most of these minerals will be processed here and will also be mixed with other minerals so as to produce intermediate products, such as alloyed steel and, where the economics allows, final products. Uranium, in the medium and long-term, could rescue us in the field of energy. We have a lot of it and nobody is touching it now on my orders. Meanwhile, like we did for petroleum, we have sent out our scientists for more advance training in nuclear physics. They will form a nuclear energy unit in the Ministry of Energy. Uganda does not have a lot of hydro-power even if you add all the sites that are not yet exploited: Kalagala, Isimba, Karuma, Ayago, Murchison falls, Kiba, Korianga, Agago, Muzizi; and over 40 small hydro-power sites. We shall have some more energy from the geo-thermal (may be 1,000 megawatts or there about). Yet a developed Uganda needs a lot energy ─ 50,000 megawatts or more. Where shall we get this level of energy from? If the cost per unit for solar energy goes down, then the solar energy will be the solution. Meanwhile, I prepare the country for the option of the nuclear energy.

Economic Growth Performance:
The composite growth for the whole economy has improved even before the bottlenecks have been removed.
The size of the Ugandan economy is expected to increase to Uganda Shillings 63.329 Trillion, equivalent to US Dollars 25.3 billion. The size of the economy has increased by 5.7% in the current financial year. This Economic Growth rate is comparable to the 5.8% growth achieved in FY2012/13, despite constraints outside Government’s control.
These constraints included unfavorable weather conditions in many parts of the country in the second half of 2013, which negatively impacted agricultural production. In addition, the ongoing instability in South Sudan, which had become one of Uganda’s export destinations, is also a factor impeding faster growth of the economy. Despite these constraints, output growth during FY 2013/14 still represents a strong performance. Growth was largely driven by strong performances in mining and quarrying, cash-crop production, informal manufacturing, wholesale and retail trade. Price Inflation has also remained under control during most of the year and is expected to be 7.9% percent at end of June 2014.

Economic Growth and Welfare:
The economic performance reveals the resilience of the Uganda economy that has resulted from the consistently correct policies of the NRM Government over the last twenty eight years. Consequently, the proportion of people living below the poverty line has further declined from above 56% in 1992 to 24.5% percent in 2009/10; and now to 19.7% in 2012/13. Uganda has, therefore, already surpassed the first MDG target of halving the proportion of the population living in extreme poverty by 2015. Some parts of the country have got even better performance figures. When the other areas catch up, Uganda will enter the Middle Income status.

The share of population with access to electricity, for instance, has risen from under 3% in 1986 to 10% in 2009 to 14% in 2013. In rural areas, the share has risen from 0% to 7% over the same period. The NRM Government has set a target of 40% for electricity access by 2022. Over the next ten years, Government plans to increase access to Electricity in Rural areas to 26% of the total rural households. Similar examples abound in areas such as access to water, Primary, Secondary and Tertiary education; These indicators are therefore not mere talk, but actual reality on the ground.
The above sectors of the economy cannot grow if we do not address the issue of infrastructure ─ the roads, electricity, the railway, the ICT backbone, etc. I am very happy with NRM Members of Parliament (MPs). They have rallied around my long held view that infra-structure development and security are primary. That is why in the budget of 2013/014, Roads and Energy account for Shs.4,186.4 billions and Defence and Security account for Shs 1,048.5 billions. That will remain the orientation of our future plans. We are adding the development of the standard gauge railway from Mombasa-Kampala-Kigali-Juba, working with Kenyan brothers, brothers from South Sudan and from Rwanda as well as our Chinese friends. Low costs of production will attract more manufacturers and service companies. You have already the seen results of this type of prioritization in budgeting. New areas that had no electricity do so now ─ Moroto, Nakapiripirit, Amudat, Otukei, Moyo, Bibia, Bundibugyo, etc. The same has happened with roads.

There is nothing that pleases me more than seeing new tarmac roads ─ especially those done with the Uganda Government money such the nearly finished Kampala –Masaka road, Mbarara-Kikagati, etc.
The other area of emphasis is skills for the youth. Since some time ago, we have been emphasizing that science knowledge and technical skills are crucial. That is why, since August, 2006, we had decided that 70% of Government scholarships for universities will go to science students, however, Cabinet approved 53%. I have been interacting with the youth ─ especially the university graduates. A new awakening is apparent. Three trends are noticeable. Trend one is that science graduates are going into starting manufacturing enterprises in association with others or singly. Trend two is that those who did general arts degrees are going into farming and other enterprises. Trend three is that some of the scientists are being absorbed into the new companies that are opening up. I was most pleased to see the young graduates of electrical engineering running the machines at the new Bujagaali power station.

One of the greatest stimuli for our economy to continue growing the global economic problems notwithstanding, is the regional market. It says in the Book of Galatians chapter 6, verse 7, it says that “whatever a man sows, that is what he will reap”. When a nation has no vision, it perishes, it says in another portion of the Bible. Our emphasis, with our brothers and sisters in the region, on regional integration has paid the Ugandans most handsomely. Uganda exports to the region goods and services to the tune of US$1.36 billions. We also buy from the region goods and services to the tune of US$ 671millions.

Finally, all this would not happen if Uganda was not peaceful. I salute the UPDF, the Uganda Police, the Intelligence services and the vigilance of the population of Uganda for the peace that is prevailing in every corner of Uganda ─ Karamoja included. Everything else depends on this.
In the coming session of Parliament, the Government will present to you for consideration, the following bills:
1. Land Lord Tenant Bill
2. Uganda Land Commission Bill
3. Retirement’s Benefits Liberalization Bill 2013
4. National Legal Aid Bill (2013)
5. Universities and other Tertiary Institution Act (2011) Amendment Bill
6. Physical Activity and Sports (PAS) Bill, 2014
7. Appropriation Bill (2014)
8. The Finance Bill 2014
9. Indigenous and Complimentary Medicine Bill
10. Mental Health Bill
11. National Health Institute Bill
12. Uganda Heart Institute Bill
13. National Health Laboratories Services
14. Toxic Chemical Prohibition & Control Bill
15. Overseas Properties & Immunities Bill
16. Foreign Service Bill
17. Local Government (Amendment)Bill 2014/15
18. Constitution (Amendment) Bill(s)
19. Bills for Amendment of Electoral Laws:
– Presidential Election Act, 2005
– Parliamentary Elections Act 2005
– Electoral Commission Act, Cap 140
– Local Government Act. Cap. 243
– Political Parties and Organizations Act, 2005
20. Geneva Conventions (Amendment) Bill
21. National Legal Aid Bill, 2013

I thank you very much and hope that this was a fruitful session.

5th June, 2014 – UICC, Serena

(thanks to UBC Radio Newshour).

Transport, kundeservice og kvalitetsprodukt fra selskapene: en salig blanding av ideer og opplevelser.

Man kan bli irritert å sitte å vente på informasjon. Kundeservice og kvalitet. Man kjøper et produkt. Det er greit at man ikke styre vær og vind, men likevel vise hensyn til både regelverk og rettigheter burde henge høyt. Når man sitter på bussen mellom Bregen og Stavanger eller på Flesland å flyet er kansellert. Eller man er Kjosfast etter enda en dreamliner er stående i New York.

Kundeservice er bygd opp av to prinsipp: at vi er kunde av selskapet, og deretter som kunde trenger vi service. Service er det inntrykket og tillitsskapende arbeid som en bedrift gjør ovenfor sine kunder. Slik at disse kanskje kommer tilbake. Grunnen til at kundene kommer tilbake er enten på grunn av produktet, prisen eller tilgjengeligheten. Til sist servicen. Service som gir første inntrykk og gjør at man kommer tilbake.

Når man reisende og kjøper bilett. Har man kjøpt en tjeneste til og fra. Ikke minst også en sikker greie. Ringer man kundeservicen til buss-selskapet eller flyselskapet. Da må man vente på Frank Sinatra synge samme låten for ente gang. Eller beskjeden at du har forflyttet deg en millimeter den siste halvtimen. Før Britney Spears siste singel blir spilt og du venter som nummer 20 på ventelisten. Det blir litt som vår tradisjonelle selvbetjening. Selvbetjeningen er en magisk funksjon – der man betaler femti kroner for å smøre smøret og skinken på sandwichen og samtidig betaler blodpris for det. En vidunderlig skapt ordning for bedriftene. Å på sett å vis viser litt tillit til alle kundene og verdsettes med en stiv pris på produktet. Siden det er selvbetjent så kan man ikke klage om skinken er eldre en stavkirken lengre nede på vestlandet eller om kaffen er laget igår og smaker som lunkent svart bestøvet varmt-vann. Det er slikt man også føler når man ringer kundeservice. Ikke minst også når man ikke vet hvordan man skal kontakte selskapet som ikke leverte varen.

Når man ikke kommer fram på grunn av vind og vær- ikke at det er transportselskap skyld at storm over Boknafjorden eller at fylkes-selskapet Fjord1 har innstilt ferjen over fjorden. Det gjør likevel at bussen ikke ender opp der den skal, siste destinasjon som du har betalt for. Busssjåføren er like uheldig som deg. Han kommer heller ikke fram. Kan ringe hovedkvarter og prøve å løse det lille han har makt til. Forsatt vil kunden være låst i en situasjon som ikke er god. Uansett hvilke selskap det er. Så blir man stående. Ting kommer ikke fram. Det er naturens harde fakta. Som kunde har man likevel alternativ. Det er ikke slik som når man skal videre fra neste destinasjon hvor selskapet kan være behjelpelig med korrespondanse eller ikke. Slik jeg har opplevd flere ganger at Kystbussen ikke har gjort i Stavanger. Det har vært gjentakende og gjort meg til kunde av Bus4you – Nettbuss mellom Bergen – Stavanger, oftest tok jeg Kystbussen, men etter flere ganger en time ekstra ventende på korrespondanse til Sør-Vest ekspressen. Har gjort at hver gang jeg har anledning tar jeg Bus4you. Dette på grunn av service. Prisen og produktet er relativt likt, selv om du kan være heldig på Bus4you å få skinnseter og strømuttak ved sete ditt.

Kundeservice blir dermed enten en idrett, en ting man gjør fordi man må gjøre det eller det som faktisk skaffe lojale kunder. Det er et valg som bedriften eller transportselskapet velger. Om det er en idrett, så vil de faktisk være best, både med produkt, men også en tjeneste for kunden. Om det er noe som blir gjort fordi man må gjøre det blir det en slapp gest som et svakt håndtrykk, en pose med ketchup til wienerpølsen eller bare «kvittering?». Det siste er som det første. Første gir det beste inntrykket det er. Om service blir sett på som en tjeneste for kunden. Så vil kanskje transportselskapet sette mer kredibilitet for å levere ett fullstendig godt produkt til sine kunder, som omhandler selve transporten og helhetsinntrykket. Dette før man Kjosfast i en dreamliner og sitter der for andre dagen fordi et filter fra Frankrike ikke kommer fram før det og dermed er usikkert for flyet å fly over Atlanteren. Nå setter jeg det på spissen, men det er for å få deg til å tenke.

Service burde være noe så enkelt. Implisitt. Konstruktivt. Det er naivt å tro noe annet. Vi har forventninger. Selvfølgelig kan vi alle feile i perioder, men når det er gjentakende så er det systemet ikke personene. Når service blir ikke tilstede, så blir man skuffet.

Opplevelsen av produktet er viktigere enn reklamen om produktet. Smaker pizzaen plast, kjøper du den ikke igjen. Smaker suppen som syre. Kjøper du den ikke igjen. Opplever du at reisen går forferdelig og du har alternativer til denne. Eller at sjåføren ikke gidder å hjelpe med noe så enkelt som korrespondanse og lar deg vente en time ekstra, om og om igjen. Så bytter man selskap. Ikke fordi prisen er forskjellig på pizzaen, suppen eller transporten. Det som er greia er at man forventer visse ting med produktet. At pizzaen smaker tomat eller har en anelse smak av bunnen og at den ikke stiv som papp. At suppen faktisk er slik som lovet og ikke bare varmet vann med aroma. Transporten at du kommer fram til lovet tid, men også kan bruke tjenester som får deg videre forbi ankerpunktet. Spesielt når det er med samme selskap som skal transportere deg videre. Selv om i vår verden skjer det sjeldent. Bare i juletider gidder Kystbussen å gjøre slike tjenester. Resten av året i 2013 var det ikke å oppleve.. Service er bare for julen når man er glad og ‘merry’.

Så god tur og god service. Måtte vi ikke bli tatt av vinden eller galskap bare av god service fra de som leverer produkter til oss daglig. Peace.