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Archive for the tag “Uganda Shillings”

Bosco was warned in 2016 about printing own currency, but in 2018: Goes ahead with it anyway!

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” Ernest Hemingway

There are someone who doesn’t listen to advise, even when it is well written and with shown data to President Yoweri Kaguta Museveni in October 2016, as there was reports and even made deals at the State House on the 7th October 2016. As the meetings was already ensuring and securing the deals between the Government and the printing company Veridos GmBh. By that time the Veridos company had delivered their commitments to print currency in Uganda. Also a comprehensive business plan that envisioned the proposed joint venture between Veridos and the government.

Now it is the 10th October 2018. Surely for many or plenty, this sort of an agreement is forgotten. Again, today at Entebbe State House, the deals was sealed.

As the Chimps Reports stated: “In the meeting that took place at State House Entebbe on Thursday afternoon, President Museveni noted that this new venture would save Uganda a lot of money that it has been spending on printing documents from abroad. “There was hemorrhage of resources that was unjustified. Money was going out to print currency notes for a long time. About US$25 million was spent each year to create Ugandan currency,” he said” (Kyatusiimire, 2018).

He is saying this without saying the cost of what sort of agreement the government has with company they are already using. As the lack of openness is shown from the state. That is why in 2016, the documents leaked and today, they just came on a government friendly web-paper.

To long:

Interestingly, Mr Museveni, who thanked the German company for its joint cooperation, criticized government officials for “taking too long” to act on such “crucial matters that affect the country.” He added that licensing bodies must not “over price working licenses for investors because it cripples investment and discourages potential investors. “These things of taking two years to deliberate on such matters must stop. Why did you spend two years discussing something that was so obvious?” he wondered” (Kyatusiimire, 2018).

That wasn’t obvious to the Governor of Bank of Uganda Prof. Emmanuel Tumusiime-Mutebile or the Minister for the Ministry of Finance, Planning Economic Development Matia Kasaija, who both was skeptical, not only because isn’t a company who is known for producing currency, secondly the costs are likely to be more, than what they have today and last the possibility for more forgery. All of this data was scrapped, as Bosco had decided himself.

So for some weird reason, Bosco want to take a bad deal, which his experts has said is a bad deal. He complains that his experts has made it takes this, because they didn’t have faith in the project. All been done at the State House, as it was started in 2016 and rewinds again in 2018. What value has the Governor of the BoU and Finance Minister, when their words are meaningless towards Bosco?

Someone please tell me, because I got nothing. Peace.

Reference:

Sharon Kyatusiimire – ‘BREAKING: Uganda to Print its Own Money Locally’ 04.10.2018 link: https://chimpreports.com/breaking-uganda-to-print-its-own-money-locally/

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

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

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

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

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

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

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

Reference:

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

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

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

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

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

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

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

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

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

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

Opinion: President Museveni claims in a letter to the FM Kasaija – ‘that the government is “mushrooming”’, well, that is his own creation!

 

It is ironic and hard to take serious that President Yoweri Kaguta Museveni wrote a letter to the Finance Minister Matia Kasaija, Minister of Public Service Muruli Mukasa, Minister of the Presidency Esther Mbayo and Head of Public Service and Secretary to the Cabinet John Mitala. This letter was sent on the 17th July of 2017 and was titled: “Re: Mushrooming Agencies/Authorities”. It is ironic and weird, it is the irrational part of Musevenism. The ones that speaks against corruption, but give provisions for a “Presidential Handshake”. Therefore, this is in line of the others chronic problems, this is just one of them.

This here is in line of this, just like the President has problems to understand that the state will have higher costs with each added district and carving out every single county to have someone to be leaders as Residential District Commander and other local government. The same feeling I’m getting by this letter. Since it is his creation and his vision behind the new agencies and the bold hiring of cronies to any department in Uganda. That shouldn’t be shaved from history. He has had 30 decades, most of the Ministries and their agencies has come as answer to his reasoning and him sanctioning it.

Therefore this quote from the letter is obvious trying to put blame elsewhere:

The questions are: “Why have an Agency when you have a department of the government dealing with the same area of responsibility?” “Why have an Authority when you have a department of the government dealing with the same area of responsibility?” “Why have Boards for money consuming units rather than money generating units?” Boards came into existence when capitalism was growing. In the infancy of capitalism, the owner (the proprietor) would also be the manager because the operations were small. When capitalism grew, it was too much for the owner to manage. Ownership, therefore, got divorced from supervision (board work) and management (managerial work)” (Museveni, 17.07.2017).

I would say most of them are created for the same issue that the state are soon paying former ministers with remuneration to them, even when they are not in cabinet. The same procedure is with hiring cronies to the boards and agencies. Not all about need or necessary for the government or the ministries. How come there are City Hall of Kampala, Kampala Capital City Authority (KCCA) and the Ministry of Kampala. That is because the state needs to hire enough cronies to make sure they stay loyal, also the state needs more administrative organs to make sure they can find jobs for their loyalists. Not because Kampala needs all of these administrative bodies to function, it does not help that the state also have a Presidential Advisor for Kampala. All of this is proof of the mismanagement. This is only in Kampala and without taking a deep dig into the wards and under all the mayors of Kampala. Not what that is under Lord Mayor and KCCA Executive Director.

The letter continues:

Why, then, should you separate the policy role from the regulation role for the non-commercial bureaucratic portions of the government; Forests, National Parks, Roads, NAADs, etc? Their functions are just two: policy and regulation. There is no business involved. If the Ministries of Works and Finance want to form Road Construction companies that will compete for construction jobs, then it makes sense for those companies to have Boards and Management but not a Board for a unit whose only job is to award contracts using government money” (Museveni, 17.07.2017).

It is ironic again, because NAADs, SACCOs and other Youth Livelihood Programmes have all been created by Museveni and run by close associates, even Salim Selah in some instances. That the President suddenly have issues with this weird. Since on the Campaign Trials, it seems like it is remedy and the solutions to use these government programs, but now with growing debt, it is an issue? You need this money to build a petroleum pipeline and refinery? You can wonder, I wonder, if this is the reason! Since these sort of boards, sort of agencies has been put in place, by laws signed by Museveni and accepted by him. Many is part of legislation to secure each and several ones for pivotal parts of government. Others are just created to hire cronies! Therefore, weird that he want to sack cronies… but maybe it is within need?

I want efficient with no further delays. You have up to 20th December 2017, to propose a plan to Cabinet” (Museveni, 17.07.2017). It seems only to able to change this with bringing in new tools. President Museveni needs these boards for every produce and every parts of government. That is within himself, as the ideology has no value and also no vision. Other than keeping himself in power by any means. Therefore, the boards and agencies will not cease to exists, he needs to hire cronies and pay them by either a hook or a crook. If not he has to go forward or change his system. Maybe he shouldn’t create so many ministries, districts and sort of specialized organizations, but he cannot help himself. That is his MO, nothing else. This will not change! Peace.

The letter:

Uganda: Ministry of Public Service – Establishment Notice No. 1 of 2017: “Dressing Code for the Non-Uniformed Officers in the Public Service” (04.07.2017)

Bank of Uganda: Change in Signature on Uganda Shilling Banknotes (17.02.2017)

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Mzee gives the government officials double or triple salary rises in the Ministry of Public Service!

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A letter dated from the 12th January 2017 from the Ministry of Public Service is estimating the current salaries and then the new salaries of certain civil servants. These are interesting as the first one mentioned in this letter where the salary of the Chief Justice Bart Mugunda Katureebe who had a salary of 11,560,150 UGX per month in 2016. But from now on he will get the double salary of 20,000,000 UGX per month. Certainly it is service rendered for the positive judgement and also accepting the rigged election results. This means by a full year wage as CJ will earn UGX 260m.

The other lucky guy who gets new pieces of gold every month is his underling, the Deputy Court Justice Stephen Kavuma went from a decent 10,532,581 UGX per month to the gracefully 18,000,000 UGX per month; which is very close to the double salary for his acts against defiance and proven loyalty to the regime. DCJ would then earn in a year’s salary UGX 116m.

Then you have one who walks in the shadow who also got a decent pay rise John Mitala, the Head of Public Service goes from earning 4,952,059 UGX in 2016 to earn the loads of 17,600,000 UGX. Mr Mitala surely has worked his loads of paper to be so well compensated the year after the elections. He gets his new salary increase which can be calculated up to a triple of what the current one is, that means that his current new yearly salary will be about UGX 211m.

Under the well paid Mitala, there is the Deputy Head of Public Service Vincent Opio-Lukone who also deserves recognition it seems by the regime. His meagre monthly salary until now has been UGX 4,099,486. So the government will give him better conditions for his hard work and labour so they raise the salary up to UGX 15,500,000 per month. That means the Deputy Head of Public Service earns per year UGX 186m.

So when all of these men has gotten their pay rise and the key civil servants under the State Minister and Minister of Public Service, the Permanent Secretary Catherine Bitarakwate Musingwiire deserves a rise from the meagre monthly pay UGX 3,768,835. So the Secretary gets a salary to the levels of UGX 15,400,000 per month. Yearly salary will that will be UGX 184m!

So we can see that the National Resistance Movement (NRM) and President Museveni can afford to pay handsome wages to loyal cronies as the “Presidential Handshake” make him dole out more funds on his allies. The regime does what it can to pay for loyalty. This is happening while the government are getting more in debt and troubles with interests on those loans. That is certainly a evil spiral of bad spending government funds. Peace.

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

masaka-golf

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

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

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

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

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

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

kasese-27-11-2016-p2

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

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

10th-parliament-sep-2016

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

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

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

lewis-hamilton

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

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

Leaked: Secret Bank Notes Production scheme between Verdios GmbH and President Museveni!

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The Auditor General Muwanga really told stories on mismanagement and maladministration of the NRM government (Quotes from the End of the Year AG Report 30th June 2015)

Ugandan shillings

As of yesterday there we’re the reported 111 cars that vanished and weren’t procured by a Ministry in Uganda. Because of that I had to look more through the report of the Auditor General John Muwanga. There are many stories; some of the ones in this Report have already been discussed on my page.

There so many stories to pick, but here is some of my favourites that shows all from a goats, expressways to other where money have disappeared, over-compensated or not allocated needed funds for the planned procurement and projects that the Government we’re supposed to do. Take a look!

Indebted to International Organizations:

I noted that a number of Government entities are indebted to International Organizations such as PTA Bank, ADB, EADB, WTO, UNIDO, COMESA and Shelter Afrique. A sample of five entities revealed indebtedness of UGX.77,724,089,603 and US$.4,968,950” (OAG, P: 36, 2015).

Overpay on construction of Kampala-Entebbe Expressway:

“An analysis was done and adjustments for the different features of the two expressways were made. It was observed that the unit cost for the Kampala-Entebbe expressway was US$ 2.315 million per lane kilometre while the similar expressway was US$ 1.204 million per lane kilometer” (OAG, P: 38, 2015).

NAO Project going nowhere:

“The protocol agreement between Government of Uganda (GoU) and Democratic People’s Republic of China (DPRC) was signed on the 27th June 2008. It involved establishment of a demonstration centre under the National Agricultural Organisation. However, it was observed that after hand-over of the site by Ministry of Agriculture, Animal Industry and Fisheries to the DPRC, there was no proper follow up by Government on the project as such it was difficult to establish whether the anticipated funding of RMB YUAN 50,000,000 equivalent to UGX.26 bn was received and how it was applied to the project” (OAG, P: 42, 2015).

NCIP disbursed funds:

“Government signed fourteen (14) protocols under the Northern Corridor Integration Projects where substantial amounts of funds have been invested and implementation is on-going. For example amounts totalling to UGX4.2bn was disbursed to fund the power interconnection and the Hoima-Lokichar-Lamu oil pipeline. However, the protocols do not provide for regional coordination and monitoring as well as the audit framework to provide an independent assurance on the utilization of joint funds. This renders it difficult to track the progress of the projects and follow up the accountability for the funds disbursed” (OAG, P: 43, 2015).

Advances Unaccounted for:

Uganda National Roads Authority: 47,738,040,619 UGX” (…) “Ministry of Local Government:  3,827,011,454 UGX” (OAG, P:87, 2015).

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Bidco has avoided VAT:

It was noted that as of November, 2014, the outstanding VAT obligations for BIDCO stood at UGX.744,420,170, included in this figure was late payment interest charge of UGX.168,747,557. Accordingly, a sum of UGX.700,000,000 was paid to URA towards settlement of the tax arrears” (OAG, P: 93, 2015). “After the eleven (11) years, BIDCO would start paying VAT directly on its own and from the 12th year start refunding to Government the VAT plus 5% interest for the first eleven (11) years in (8) equal installments over a period of (8) years. This condition was subject to fulfillment of article 4(3) of the agreement which requires Government to have handed fully to BIDCO all the agreed 26,500 hectares of land” (OAG, P: 94, 2015).

ADB Susbscription:

“In August, 2010, the Governing Council of the African Development Bank (AfDB) under the sixth general capital increase of the bank allocated Uganda shares worth USD.19,759,798 payable over a 12 years period in annual instalments of USD.1,646,649. It was noted that the payment of Uganda’s 4th instalment of UDS.1,293,299 which became due on 16th March, 2015 had not been made. As a result, the callable shares related to the missed instalment had been suspended in line with the Board of Governors resolution on the sixth general capital increase of the bank meeting” (OAG, P:95, 2016).

Banana Project:

“The banana project owns land in Bushenyi together with other movable properties. However, it was noted that the land title is still in the names of the project without the legal mandate to continue owning this land of behalf on government unless the expired legal status is resolved following the legal opinion of the Attorney General to transfer the project under Agriculture sector” (…) “During the financial year 2014/2015, the PIBID project had a budget provision of UGX.9bn out of which only UGX.2.7bn was released as vote on account and as a result, activities worth UGX.6,682,145,000 were not under taken. The affected activities include: purchase and installation of machinery and equipment (UGX.2.5bn), Construction materials (UGX.1.457bn.), marketing of the tooke products (UGX.777,665,000) and procurement of transport equipment (UGX.780,000000)” (OAG, P: 102-103, 2015).

Delayed Construction of Katuna OSBP and swamp reclamation works:

“The construction of Katuna OSBP is undertaken at a contract sum of UGX.8,951,277,750 and Swamp reclamation for access road works estimated at UGX.12,000,000,000. The commencement date for the construction was 13th June 2014 and the estimated completion date was set for 13th June 2015. This was later revised to 30th December 2015. Inspection of construction works showed the following” (…) “The EU Confirmed funding on the 12th May 2014 and all the conditions set by World Bank were met including NEMA’s clearance that was received on the 30th April 2014. I noted that GOU was required to finance the building works for Katuna OSBP since IDA credit funding had been exhausted. The contract for construction of OSBP was finally awarded at a sum of UGX.8,951,277,750 on the 5th June 2014. The EU delayed to operationalize her support and the contractor could not commence on the major building works due to delayed reclamation of the wetland where the buildings were to be constructed” (…) “Management explained that heavy rains, poor terrain and lack of material sources in Katuna such as sand are the biggest challenges. The would be material sources such as hard core are not readily accessible due to the hilly terrain of the area and the contractor can only make a few trips only on a sunny day. For materials like sand, the source is Mbarara (about 150km) and the contractor can only make a few trips given that the road (Mbarara-Ntungamo and Kabale-Katuna) is under construction” (OAG, P: 137-139, 2015).

Uganda Police Force:

“A review of the statement of financial position revealed outstanding payables of UGX.16,454,307,782. Payables worth UGX.10,500,682,162 were incurred during the year which implies that management continued to incur arrears without establishing sufficient mechanisms to monitor and control them” (OAG, P: 183, 2015).

Ministry of Local Government:

“A review of the Ministry of Local Government’s expenditure revealed that the entity charged wrong expenditure codes to a tune of UGX.12,086,792,676. This constituted 40% of total actual expenditure for the Ministry of Local Government. Whereas the funds were spent on items for which they were not originally budgeted for, the accounts have been presented in a way that reflects that the amounts were spent on the earlier budgeted items” (OAG, 2015).

M/S Faw Limited:

“A local company was contracted by the Ministry to provide storage space for the various roads, sanitary and fire-fighting equipment procured under a Chinese loan in 2011/2012 financial year from their parent company. The providers were paid UGX.1,416,000,000 during the year 2014/15 for 20 months storage of the equipment delivered. A review of the procurement file revealed the following” (…) “It was noted that only the Contracts Committee decision on a submission (PP Form 209) approving the evaluation report and contract award at a monthly fee of UGX.70,800,000 were available on file. However, the Solicitor General’s approval and contract agreement were on the procurement file. No initiation of procurement, invitation of potential bidders, record of receipt of bidders, evaluation report and PDU submission of Evaluation Committee report to Contracts Committee were on file to support the award” (…) “A review of the availed documentation revealed that two conflicting pro-forma invoices were submitted by the firm with one quoting a monthly fee of US$.14,160 VAT inclusive for ten months, that is; from 1st June 2012 to 31st March 2013 totaling US$.141,600 and dated 17/5/2012 and another one dated 2/1/2012 quoting a monthly fee of UGX.70,800,000 VAT inclusive for twenty months without clarifying the particular months” (…) “The final batch which arrived in August 2013, was commissioned by the president in October 2013 and handed over to police on 19th December 2013 implying storage of at most five (5) months. This makes fourteen (14) total months of storage as opposed to the 20 months billed resulting into a loss of UGX.424,800,000” (OAG, P: 237-239).

updf-south-sudan

Ministry of Defence:

“During the year the Ministry’s total expenditure on land acquired amounted to UGX.1,119,388,145. However, it was noted that the government policy of capitalising the acquired land from the financial year 2011/2012 did not give guidance on what to include as cost of land acquired. As such, this amount could not be verified due to lack of guidelines on treatment of land costs in the financial statements” (…) “It was observed that a sum of UGX.1,000,000,000 was paid to an individual as part payment on a claim of UGX.2,958,668,733 for the compensation of 683 cattle and 119 goats which were handed over to 4th Division for safe custody during the insurgency period in 1986” (…) “It was not possible to confirm whether this claim had not been paid before since it is now 28 years since the purported supply of the animals” (…) “It also appears that these animals were for various people but instead the compensation was made to one individual” (OAG, P: 285-288, 2015).

State House Entebbe – Okello House:

“State House has been occupying Okello House for many years with a tenancy agreement that expired in 2013. However, it was observed that State House has not renewed the tenancy agreement and no rent payments have been made to the landlord despite continued occupancy. At the close of the financial year, a sum of UGX.1.272,363,507 was outstanding in rental arrears” (…) “National Housing and Construction Corporation owns properties on Plot 1 Kyagwe Road–Nakasero which is currently occupied by State House. Documents indicate that National Housing has been demanding arrears of UGX.201,100,000 from State House. These arrears have not been reflected in the financial statements”  (OAG, P: 294-295, 2015).

If you don’t find this interesting that the Government of Uganda is misspending funds in this way and that this is just a figment of imagination as this is pieces of a giant report. The most interesting is that one man got the whole piece of the pie of what happen in 1986 and secondly that the State House doesn’t even have an agreement with the tenant who owns Okello House where the President has gallant dignitaries. That shows the state of affairs, brothers, time for a change and also better procedures and practices! Peace.

Reference:

OAG – ANNUAL REPORT OF THE AUDITOR GENERAL FOR THE YEAR ENDED 30TH JUNE 2015

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