Nakumatt Applied to the High Court to go into Administration (30.10.2017)
I write what I like.
I’m tired; I am so tired of these suits getting away with felonies while the Chicken thieves are starving worldwide. The chicken thief does deserve punishment for stealing the neighbour’s chicken; while tailing it by the sidewalk before the Police Officer picked him-up and threw him into the Police car before stalling him in the cell at the Police Station. Still, the one who does bigger work and on paper get rid of the charges at ease it seems.
White Collar Crimes:
“White collar crimes, on the other hand, originally referred to those crimes committed by individuals with a higher social status or upper-level occupation that often required them to wear a suit and a white collared shirt. In this day and age, white collar crimes are those crimes which are generally committed in a business setting and are considered to be non-violent. Some people refer to white collar crimes as “paper crimes”. A few examples of white collar crimes include wire fraud, forgery, embezzlement and more” (Henrickson & Sereebutra LLC, 16.11.2012).
With this in mind, with the knowledge at hand; the ones who does this are higher level of corruption, are inside trading and also their networks. If there we’re judgement fair and caring than the ones who stealing the chicken. The Multi-National Corporations with their profits are accepting to try whatever way of not paying taxes and even when courts are judging even against it; they do whatever they can to cast judgement and also expect to run away from it. Like the Apple Corporation who has dodged taxes illegally in Europe, still trying to dodge the payments of excessive taxes to the Republic of Ireland. If it wasn’t Apple Corporation, but McGuiness stealing a beer at Tesco he would pay dearly for the thieving.
So the White-Collar crimes pays off, like all the embezzled funds world-wide, the grand corruption where the culprits are walking sideways and stashing funds in Swiss Accounts and foreign islands Tax-Havens far away from the tax-man and the ombudsman. The proud force of the world and the reality of it all, that the White Collar can release their mind and get off the way they do.
These Suits who knows the Mayors, Governors, Senators, Members of Parliament, Presidents, Foreign Investors and CEOs! They forged arrangement paying fees, setting up shell-companies and securing family members work inside other businesses. Because of these ties between them the implications cannot become public. The Central Government who forged this deals are also on the line with their reputations while they accept this contracts and agreements between the suits who takes advantage of them.
That a Telecommunication Company can get licenses cheaply while running a profitable business in the nation. That they are selling airtime and subscriptions to costumers of the nation, while the state employees are in oblivion of the real deal between the Telecom and the MPs who worked under the President to offer the CELTEL Limited the Operation License in the nation. This is happening and nobody acts on the Suits or the MPs…
Still, they get it easy and get off. I wonder why the businesses that are running the mining operations and mining licenses from foreign lands. These owners of giant businesses are keep exporting Rare-Earth minerals and the Coltan; these companies are nearly in charge of guerrillas that are keeping control of the workforce around the mines. That this is going on and the human rights violations are under the direction of the Suits. They get high profits from the deals and arrangement hold by the guerrillas. They don’t get any slack for doing so, they do it in low profile and certainly where the world sees as the wrong zip-code since his crime doesn’t matter.
The White Collar Crime continues and the world just keeps turning. The International business community keeps doing this and living with it. They are feeding the fume for the fire and nobody is really questioning it hard enough. While the Corporate Media owned by the Conglomerates doesn’t want us to question this world order. Where the money goes and who keeps this upkeep, they don’t want us to be enlightened and be in the dark. That as long as the decisions are happening in the boardrooms as Corporate Trade Secrets and Government doesn’t want their dirty secrets.
The Suits prefer these secrets as with the tax-evasion, the tax-dodging practises and the luminous deals done with nondurables in the Parliaments. This with the stakeholders and liability firms that shelves the properties and fortunes that are squandered away like small-change at the cashier in the Supermarket without any consideration of the implication of these transactions.
It’s time to take this serious, it’s killing society and killing the livelihood of our economies and tax-base with impunity, as the wealthy is getting wealthier and the states are crowd-sourcing more than needed; while the Multi-National Corporations together with the lawyers and board-meetings decide how to trick the money from the expensive and profitable place to the tax-haven. This or making sure the producers and stifle the workers who produce the products as they are wishing to nullify them. This is the reality and the mentality, the ethical and moral conundrum would be to deliver the tax from where you profited and also pay the men and woman decent wage for producing the products. Instead the Corporations try to avoid both and earn a grander margin on each unit they sell. This is all legal, but still should be seen as White Collar Crime!
That is why I ask myself… If we want to get rid of this the investors, the capital of the nations and structure between government and them has to settle in a different way. Because the Government cannot be to connected with the giant businesses, than they will have the ability to deteriorate the levels of governance and the regulations of them.
We have seen that time and time again. The crime of our time is letting this happen and not do anything serious about it. The thieving in the broad daylight and without any concern of the citizens that is not eating of it as they supposed to through the solidarity of the state! Peace.
“We are struggling, the situation is not as easy, but we are not desperate and the situation is under control. For us [government] we are ready to listen and to learn” (…) “The economy is not receding, the disposable income for drinking may not be there but we are not in recession” (…) “To avoid having arrears, we have to budget appropriately and the money budgeted for has to be absorbed” said Finance Minister Matia Kasajja earlier today (Oketch, 2016).
Nakumatt Holdings is apparently struggling as evident today of their Corporate Statement, that they have to even state it to the Nation, even after the takeover of Shoprite Supermarket Limited; they are still not financial stable. This news is coming days after the Crane Bank got into Administration by the Bank of Uganda (BoU). That after the bank tried to subdue the public together with the BoU in September, telling that the Bank we’re not looking for new owners. This is happening while the troubling times for Cairo International Bank and United Bank of Africa (UBA) Uganda… this is known as the Prof. Emmanuel Tumusiime-Mutebile of BoU said they we’re under notice.
Just as this is known in March 2016 the Exim Bank Uganda, that is a subsidiary of the Exim Bank of Tanzania. That bank took over Imperial Bank of Uganda and also Imperial Bank of Kenya. This is banks licenced by the BoU. So there have already been issues for the banks in Uganda, just more silent movement as the Investors of Exim Bank wanted it to die down.
Cancelled funding from Exim Bank:
“The major funder of Karuma and Isimba dams has withheld money for the country’s two biggest hydro-power projects until the legal disputes in Ugandan courts about the two ventures are resolved. The Export-Import Bank of China has written to Uganda’s Ministry of Finance, asking the Secretary to the Treasury, Mr Keith Muhakanizi, to explain why the ministry submitted to them documents of due diligence on the two dams and confirming the tendering process had been properly concluded yet the power projects are now a subject of litigation in court” (…) “Mr Muhakanizi was in State House yesterday for a meeting with President Museveni, but after consulting him, Ministry of finance spokesperson Jim Mugunga said: “It is true that the Export Import Bank of China like any other responsible party, expressed concern about the court case by a concerned Ugandan citizen which listed the bank among defendants. The Government of Uganda, through the Attorney General, secured a court order dismissing the case against the Exim Bank. The bank, therefore, is no longer party to the suit and the PSST Mr Keith Muhakanizi this week communicated the same to the bank.” (…) “Mr YuMeng expressed concerns that the outcome of the case in question would affect the commercial contracts related to Karuma Hydropower Dam and Associated Transmission Lines Works and Sub Stations Project, the 183MW Isimba Hydropower Project and the Isimba-Bujagali Interconnection project under Preferential Buyer Credit facility” (Mugerwa, 2016).
This is new that the Exim Bank is answering with postponing the building of the dam. Something that is the Markie and big Infrastructure projects that the Movement needs to shine a light into the dim situation of the Government. Certainly this answer from them could not be anticipated by President Museveni and his friend in the State House.
This is not the first blow this year as Uganda National Roads Authority (UNRA) has been under fire all year ever since first response from World Bank on the 8th January 2016:
“Following the cancellation on December 21, 2015 of the World Bank-supported Uganda Transport Sector Development Project, overseen by the Uganda National Roads Authority (UNRA), the World Bank has suspended the disbursement of funds for civil works in two other projects in Uganda. Those projects, overseen by the UNRA, are the North Eastern Road-Corridor Asset Management Project and the Albertine Region Sustainable Development Project which are suspended pending a review and strengthening of the capacity of UNRA to adhere to the required environmental and social standards” (World Bank, 08.01.2016).
If you though it wasn’t demeaning enough the World Bank continued later in the year with this statement: “UGANDA, September 13, 2016 –The World Bank Group took a decision to withhold new lending to Uganda effective August 22, 2016 while reviewing the country’s portfolio in consultation with the Government of Uganda. We continue to actively work with the Ugandan authorities to address the outstanding performance issues in the portfolio, including delays in project effectiveness, weaknesses in safeguards monitoring and enforcement, and low disbursement” (World Bank, 13.09.2016).
This is now evident that they used all the months from December 2015 to September 2016, that means the suspended funds for the projects been delayed for 10 months already, which is a close to year. Certainly that must hurt the UNRA and Government of Uganda really, really hard. The World Bank has because of this made the UNRA change how their work, as the Director and staff has sacked at a point. Now in October the agreement made between UNRA on behalf of GoU has been looked over and seen that some has been fraudulent and not made with due-diligence.
And your know there is issues in the finance market when even the states own National Social Security Fund (NSSF) have to explain where they invests their funds after social media spreads rumours of buying a mall in Nigeria and borrowing heavy funds from the Banking Sector of Uganda. This is happening as there 3 banks under fire and struggling already and if you forgotten they are Crane, Cairo International and United Bank of Africa. So the citizens and costumers of Uganda are already worried, they have been there before with the Greenland Bank and other who has lost confidence and gotten into receivership.
Yesterday even the IMF has answered the financial issues of the republic under the Movement:
“The mission notes the difficult environment for fiscal policy in FY15/16. While revenue collection increased as a share of GDP, it fell short of program expectations, reflecting lower than projected nominal GDP growth. At the same time, current spending was higher than anticipated. Taken together, the overall deficit target was missed by 0.4 percent of GDP, and the government partly relied on BoU advances for its financing needs. The execution of externally financed projects lagged behind target” (…) “the financial sector remains well capitalized, though non-performing loans have edged up. This has prompted a tightening of lending standards and a slowdown in credit to the private sector. The third largest domestic bank had become undercapitalized, and the BoU appropriately took over its management to protect deposits and safeguard financial sector stability. As a next step, the financial position of the bank needs to be established, and BoU will look for a strategic investor” (IMF, 2016).
If you see all of this and wonder how can this be, that one government has all of this just months after a General Election, than you know something isn’t as it supposed to be. The Government of Uganda are not running a steady ship when a bank is trailing, 3rd biggest commercial in the nation by 19th October into Administration, Cairo and UBA under the watch-list of the BoU; World Bank suspending loans for the Infrastructure Projects that is needed. While the BoU are fixing some financial stability it is not helped by the giving ways of the President Museveni and his dropping funds like a Walking ATM.
“Prof Joe Oloka Onyango said every crisis in this country is being solved by way of brown envelopes, a scenario he described as being sad and far below the rule of law in the country” (…) “In early 1980s, when this country was under the leadership of Godfrey Binaisa Lukongwa, State House was like a market place. Today, State House has been converted into an ATM,” he said amid cheers” (Wesaka & Adengo, 2016).
So for the once that do forget, the ATM Museveni is the cause of the issues that are now; this is his fiscal responsibility and Monetary Policies that made this happen. This is the reactions to the overdue and overspending of the Presidential Campaigns. These reactions should also lead to higher Inflations that it has done before after the elections. Therefore the Finance Minister Kasajja and Executive director Tumusiime-Mutebile have made some progress from previous elections in the Republic. Though the aftermath is now vivid for the citizens who are costumers at Cairo, UBA and Crane… there visible proof and the evidence are in the reaction of the Campaigning as the fraudulent and maladministration of the Banking Sector. This comes into mind as the State House had this message after February:
“As parliament’s budget committee tussled with an avalanche of supplementary budget requests late last week, which totalled Shs 1.04 trillion, some officials confessed that they emptied their initial budget allocations in order to sustain President Museveni’s campaign expenditure. State House comptroller, Lucy Nakyobe, whose office tabled a supplementary budget request of Shs 49.7 billion, told the parliamentary budget committee on April 1 that her coffers were depleted by the so many inland travels of President Museveni, who addressed four campaign rallies daily on average for the campaign period” (Namuloki & Oluka, 2016).
So the debt has to repay and taken from somewhere as the Central-Government, Banks and Multi-National Organizations are stepping off from the Ugandan Government, the Movement are running in circles taking care of their own while the citizens is now trailing and falling off. That is why businesses are giving in.
Just as people might have forgotten the paying of businesses connected to the family and General Salim Selah: “Prominent businesses in the country might soon run out of business if a decision that could see the use of Shs1.3 trillion taxpayers’ money to bailout companies in distress is not taken in their favour” (…) “Talking to Daily Monitor on condition of anonymity, a source privy to the talks revealed that “there is concern that bailing out companies without correcting the economic situation in the country will not resolve the problem.” (…) “The economy is not growing fast enough to generate activity for these companies to perform at full capacity. A bailout will not deal with the core problem. That is the argument being fronted by several government technocrats against the bailout,” the source said” (Muhumuza & Adengo, 2016).
So with this in mind, there are some sound imbalance about the bailouts months before one of the great banks put into Administration, NSSF has to answer for Social Media outbursts, two more Banks on a stroll, State House being broke months ago, UNRA projects suspended by the World Bank, IMF are seeing that infrastructure projects are lagging behind, Exim Bank suspended pay to the two dam projects and the strange bailout. There are too many evidence of lacking financial sound practises… Even Nakumatt the Supermarket are having troubles. There just more pawns on the set ready to move, but how they fall only the kings knows; because the Kings stay King. Peace.
IMF Communication Department – ‘IMF Staff Concludes Review Mission to Uganda’ (26.10.2016) link: http://www.imf.org/en/News/Articles/2016/10/26/PR16462-Uganda-IMF-Staff-Completes-Review-Mission
Mugerwa, Yasiin – ‘Chinese bank holds back Karuma funds’ (27.10.2016) link: http://www.monitor.co.ug/News/National/Chinese-bank-holds-back-Karuma-funds/688334-3431376-qxr194/index.html
Muhumuza, Keith & Adengo, Jonathan – ‘FULL LIST: 65 loan-stressed firms line up for Shs1 trillion taxpayer bailout’ (22.07.2016) link: http://www.monitor.co.ug/Business/65-loan-stressed-firms-line-up-for-Shs1-trillion-tax/688322-3305166-d6h193/index.html
Namuloki, Josephine & Oluka, Benon Herbert – ‘State House broke after spending on Museveni campaign’ (09.04.2016) link: http://www.observer.ug/news-headlines/43556-state-house-broke-after-spending-on-museveni-campaign
Oketch, Martin Luther – ‘Economy is struggling – Minister Kasaija’ (27.10.2016) link: http://www.monitor.co.ug/News/National/Economy-is-struggling—Minister-Kasaija/688334-3432534-t8dv3c/index.html
Wesaka, Anthony & Adengo, Jonathan – ‘State House turning into ATM, says Mak don’ (11.10.2016) Link: http://www.monitor.co.ug/News/National/State-House—ATM–Mak-don-/688334-3411968-1155d8t/index.html