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Archive for the tag “Ugandan Government”

Opinion: Mzee wants it to BOP his way

You want another rap? Nah, didn’t think so. Even if President Museveni wants a BOP. Not a DaBaby track or anything. His just approved the US$500 million dollars to the Republic. This was reported earlier this month and he approved it on the 6th of May 2020, but stamped by the Ministry of Finance, Planning and Economic Development (MoFPED) on the 11th of May 2020.

What is unique here is that this loan is given on the idea of “Balance of Payments”. Economist would know that this to cover the deficit and the balance the budgets. This is to ensure the state has enough revenue to already cover the deficit it has. That is why grants and loans comes to ensure the levels of revenue covers the spending. This means that the state has spend a hundred dollars, but only had 50 dollars in liquidity. So, to ensure the accounts are balanced, the BOP comes in and fix the shortfall.

Museveni writes this in the letter:

The money that goes to the Bank of Uganda is for “balance of payments support”. “Balance of Payments supports” does not only mean helping the country to “import more” but must also mean helping the country to “import less” by manufacturing these products here. With this undertaking, I approve the loan” (Museveni, 06.05.2020).

Because what the support does in the instance of the hundred dollars budget with a shortfall of 50 dollars revenue. The BOP support is the missing 50 dollars and makes it zero. Meaning, the accounts and financial flows should turn into zero. That means with the budget with its expenditure and its revenue its should be a nil or zero sum game. Therefore, when the President claims this helps local industry and less imports. I don’t see it.

Especially, if this is a BOP. Because, a BOP is a fixated way of balancing the budgets, not secure more trade. Its to cover deficits between expenditure and revenue. This isn’t a magical sphere of happiness and joy. This is budgetary measure to cover the shortfalls and lack of domestic revenue. To cover expenses that appeared or was already budgeted. Therefore, the need of Balance of Payments from the IMF to cover those.

This can be seen as a Financial Inflow to cover the deficit.

Like this:

-100 dollars budget/Import

+50 dollars revenue/Export

+50 dollars Financial inflow (BOP Support)

= 0

That is why, when the man says like this. Its a game of balancing the budget. Not putting a wand on the thing and swiftly changing things. This is just a financial measure to cover a deficit. A short-term solution to a shortfall. That will not solve anything, but by time. Not cover debt, not create a market nor make a big difference. Its just covering expenditure. Nothing else.

The President can make it seem so, but that wouldn’t be a BOP. That would be another instrument and another measure. Where the funds was actually meant for investment. This is covering the basics.

Let me end with DaBaby: “I needed some shit with some bop in it (Let’s go)” (DaBaby – ‘BOP’ of KIRK, 2019). Peace.

Statement by the People Power Movement on the IMF Rapid Credit Facility Announced on 6th May 2020 (09.05.2020)

Opinion: Don’t let Mzee pimp a second round of debt relief

Back in the day, President Yoweri Kaguta Museveni in the end of the 1990s the World Bank let the Republic of Uganda the opportunity to join their Heavily Indebted Poor Countries (HIPC) to cut the debt of the Republic. However, even with the massive amount of debt relief done in 1998 and later never stopped him from taking up more debt.

That is why the amount of interests paid on every single budget is debt burden, which is created by the President himself and his extensive cronyism. The President has ensured that the state owns so much money, while he stills continues the drill by financing half of it by more debt. Which has been method the National Resistance Movement (NRM) and Mzee has used in the recent years.

That is why such a big amount of funds is going into interest payments. Also, why the Republic are going in a negative spiral, while the lack of domestic revenue isn’t following the projections of growth that the state always promises.

With the knowledge of this, as the President is asking for a debt relief now. His using the Coronavirus or COVID-19. The whole world are into a recession because of this. It is the perfect smokescreen. The President had the 2000s and 2010s to fix issues, but instead the plunge the economy anyway. He just need an excuse for a bailout.

Last time it was Universal Primary Education, a empty campaign promise and now there are plenty of dilapidated schools. They played and tried to focus on it, but gave it up along the way. Because, doing this properly would actually cost time and effort. The President and his big convoy would actually have invested more, than they wanted too. More promising spending on proxy-wars, than on proper education for everyone.

So, knowing that the Multi-National Organizations, Bretton-Woods Organizations and donors gave way to the Uganda in between the late 1990s and early 2000s. They offered billions in various of schemes, not only HPIC and Poverty Eradication Action Plan (PEAP). This has been done already and still the state is bound by loans and grants to function its government. Therefore, the bullet of debt relief has been wasted.

The amount of US Dollars spent on the debt relief earlier in the reign of Museveni. The Head of State has misused this in the past. Not like he will change now. He has used the system to pimp his budgets and his wealth. His enriched himself and his cronies. While the Republic is still poor and the revenue isn’t growing like the economic recovery of the 1990s said it should have done. If the cure of the past would have worked, than the need for debt relief now would be unnecessary.

In 2020, the Republic shouldn’t get debt relief. It will be only spoils for the elites and the cronies around the President. It will be used buying tear-gas and SUVs. The WaBenzi will eat the spoils and only give away beans to the ones in need.

That Museveni says the continent needs debt relief. He means that himself needs it now. Even if his a wealthy guy in an impoverished republic. A republic he has run for three decades. Which already got special treatment and had a controlled Consultative Group. So, its not like this man hasn’t pimped the system already. He has tricked it and promised to juice up vehicle, but instead continue to run it to the ground. Hoping he could trick some new leaders to do the same mistake. Trusting him and his “high above” leadership.

They already spent millions of dollars to cut of the debt of the Republic under his control. The leadership is the same and they will misuse this if they get it again. When he had the opportunity to use it the last time. He instead wasted it and has ensured the state is more addicted to loans. That is why he hopes someone else can bail him out. While his paying ghosts, fake tenders and whatnot.

So, the IMF and World Bank should know this, but they are maybe more afraid of their image, than the result of letting go of some funds. These funds will not help anyone directly out. Only ensure the President longer life in office. This will not help the ones in need. Than he would have already ensured that. Instead his continuing this ballad and serenading the international community. While he hopes that no one knows history.

He has failed the last debt-relief and misused his chance. That is why his continued to grow the debt, addicted to grants and not created a space for more development. Unless, they give the President some handshakes at the State House. This is the way it goes.

The President of the Republic has had all the time since 1986 and we are still here. There are still opposition Members of Parliament who are tortured, there are still lack of free space and militarization of politics. That has never changed, but he hopes nobody notice. That is why he hopes he can pimp the International Community another time. He already did the trick and hope he can get them buzzed by a few buzzwords.

I know for some this is a moment of nostalgia, but for some its deja vu’. We have been here before and we shouldn’t need to repeat the same bad tune, again and again. However, I expect nobody to listen to me. Peace.

Bank of Uganda: Measures to mitigate the economic impact of COVID-19 (20.03.2020)

Bank of Uganda: Monetary Policy Statement for February 2020 (13.02.2020)

Government and donors enable WFP to assist 1.2 million refugees and build local economies in Uganda (31.01.2020)

KAMPALA – The United Nations World Food Programme (WFP) commends the Government of Uganda and all its donors for helping it to contribute to the basic food needs of 1.2 million refugees and their host communities across the country in 2019.

Donors and the Government of Uganda supported WFP to meet the basic dietary needs of refugees through monthly food or cash transfers. In addition, donors funded the treatment and prevention of malnutrition among refugees and Ugandans living around refugee settlements.

WFP was also able to support smallholder farmers to improve their yields and incomes while reducing food losses.

“The partnership between government, donors and WFP is vital to fight hunger and malnutrition in Uganda,” said El-Khidir Daloum, WFP Country Director. “The ability of donors to swiftly provide funding and entrust us to deliver assistance to those seeking refuge —often women and children fleeing unimaginable hardships—needs our heartfelt recognition.”

In 2019, WFP’s refugee operation received contributions from Uganda, Canada, the European Commission, Ireland, Japan, Sweden, the Republic of Korea, the Russian Federation, the United Kingdom, the UN Central Emergency Response Fund and the United States of America.

Donors enabled WFP to help boost economies within Uganda by purchasing food locally. In addition, WFP strengthened its food and cash distribution procedures, including using biometrics to confirm identities in order to improve the accountability and integrity of the refugee response.

The government and donors helped WFP to expand cash-based transfers, reaching 35 percent of all refugees assisted. Cash allows refugees to choose what food they buy and stimulates economic growth in and around settlements. Cash also boosts government efforts to enhance financial inclusion.

Through cash-based transfers, WFP injected US$35 million into refugee settlements in 2019.

At the end of 2019, Uganda hosted 1.38 million refugees— the highest number of refugees in Africa. More than 67,300 refugees arrived from the Democratic Republic of Congo and South Sudan between July and December. Women and people under the age of 18 make up 83 percent of refugees.

They typically arrive in Uganda with little to no assets, leaving them heavily dependent on assistance. A WFP and government study in 2017 found that even while the government gives land and the UN and other organizations provide additional assistance, refugees remain vulnerable for years.

By meeting their basic food and nutrition needs, WFP and its partners enable refugees to begin a journey toward self-reliance and resilience in line with Uganda’s refugee policy.

Donors to WFP’s relief and development work in Uganda to support refugees and host communities in 2019 were: Canada (US$562,000), the European Commission’s Humanitarian Aid and Civil Protection Department (US$16 million), Ireland (US$2.3 million), Japan (US$2 million), the Republic of Korea (US$7 million of oil and rice), Russia (US$1.5 million), Sweden (US$1.7 million), Uganda (US$2.7 million of rice), the United Kingdom (US$56 million), the UN Central Emergency Response Fund (US$3.5 million) and the United States of America (US$110.6 million).

Contributions also came from multilateral (US$2 million) and private donors (US$306,400).

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The United Nations World Food Programme is the world’s largest humanitarian organization, saving lives in emergencies, building prosperity and supporting a sustainable future for people recovering from conflict, disasters and the impact of climate change.

Opinion: Museveni ask his new ministers to desist from himself…

I call upon all ministers and public servants to desist from engaging in any form of corruption. Corruption by any government officials is a great betrayal to Ugandans who are desperately yearning for service delivery. I implore the general public to embrace this fight and report the crooked officials with evidence, as opposed to rumours and we will take action” (Yoweri Kaguta Museveni, 13.01.2020).

President Yoweri Kaguta Museveni, the President since 1986, whose now richer than God, but came into power with little or nothing. Therefore, he knows what he did to get there. He knows the implicated scandals, the grand corruption and often noticed missing funds in the headlines in the Republic.

That is why these sorts of desisting from corruption Telling the Ministers and the Public from stopping it. Meaning it should stop and get all evidence on plenty of high ranking officials in this government. Get the evidence of state owned enterprises and authorities. There are plenty of officials who would easily be implicated and connected with government tenders and whatnot.

There is enough ghosts, over-inflated state contracts and some-what. Therefore, days like today. Feels futile. The state has created a lot of mechanisms, a lot of organizations fighting corruption. Still, the big-men, the men sanctioned by the State House and the secretive investment deals are overshadowing the supposed battle against corruption.

When there is lack of transparency from the top. There will be less from the bottom too. There is no reason for changes, when everyone is eating and the ones with influence of the State House. They got an ability to get kickbacks, suits, graft and so-on. This is not news, but a reality.

The NRA historicals can steal land, take property and easily, therefore have other perks too. The NRM knows this and let them go. If your big enough and has the blessing, you can eat UNRA funds, eat NSSF funds and GAVI Funds with no costs or damages. You get to build a mansion and own business, on stolen funds.

That is why statements like today is worthless. Not believable. He has the Public Procurement And Disposal of Public Assets Authority (PPDA), Financial Intelligence Authority (FIA), State House Anti-Corruption Unit, Inspectorate of Government (IGG) and Auditor General (AG). Nevertheless, the big-fish is not getting caught. You have the Police Force and the Judiciary too. Still, all of these cooks cannot make a decent meal. Its a bland mix of watery soup, not even a good broth.

That is why President Museveni. We have to see you fight yourself. Not walk, not talk, but battle your own shadow and that’s not happening. Because, your not a cartoon character, but a self-styled President for Life. Peace.

UN Experts Report says NDC-R finance itself on illegal gold trade to Uganda and Burundi

Again, there is illegal gold trade to the neighbour republics of the Democratic Republic of Congo. This time its the NDC-R whose trading illegal gold to Uganda and Burundi. That means the militia is funnelling funds by illegal mining and trading. Also, that the Ugandan and Burundian authorities are earning fortunes on the soldiers of fortunes in the province of North Kivu.

However, this is not really new that militias and that there is illegal gold trade in the Great Lakes region from the DRC. What was new now, is that athe NDC-R is involved in this. There been other groups in the past and shown that the African Gold Refinery (AGR) of Entebbe, the refinery owned by Gen. Salim Selah, the half-brother of the President Museveni have been involved in this trade. Also, selling the gold to the United Arab Emirates. Therefore, what is in this months report. Shows, another pattern, but says what militia who does it. Which is an interesting tale, as the illegal trade is boosting the NDC-R and their capabilities to cause havoc in the province.

NDC-R:

The Group has found that the armed group Nduma défense du Congo-Rénové (NDC-R) has remained active in North Kivu and has continued to recruit and expand. NDC-R engaged in fighting with the Collectif des mouvements pour le changement (CMC) comprised of Nyatura factions, the Alliance des patriotes pour un Congo libre et souverain (APCLS) and FDLR-FOCA in Masisi and Rutshuru territories” (Midterm report of the Group of Experts on the Democratic Republic of the Congo, P: 6, 20.12.2019).

Financing of the militia:

A senior NDC-R combatant with first-hand knowledge of the matter and three NDC-R members recounted that gold sales brokered by close relatives of Guidon, who sold to gold buying houses in Goma, also generated cash for the movement. Sales were cash-based and were not usually documented. The Group is aware of two occasions on which senior NDC-R ex-combatants sold gold to buyers in Uganda and one on which they did so in Burundi” (Midterm report of the Group of Experts on the Democratic Republic of the Congo, P: 10, 20.12.2019).

This is a worrying sign. Not that its new, but this shows how the NDC-R is financed. Through illicit financing through illegal gold-mining and illegal gold trade. There been trade between Butembo/Goma and over to Entebbe through back-channels. If the NDC-R does this, that wouldn’t be shocking either. Not that the UN Experts Report is specific about this matter.

However, it again reveals more details and reports about one specific group. Which is interesting for the world to know. That it happens to be a group, which has FDLR-FOCA fighters is even more special. Since, there been reports of meetings and supporting arms to them over the last few years. Therefore, the revelation of NDC-R connection with FDLR-FOCA opens more questions, than what it answers. Peace.

Bank of Uganda: Monetary Policy Statement for December 2019 (09.12.2019)

Opinion: Mr. President your late to the party…

I have a hard time believing that President Yoweri Kaguta Museveni and the National Resistance Movement (NRM) will stop creating districts, sub-counties and whatever local government administrations in the Republic. They will never really cease doing so, because they constantly carved the Republic into tiny pieces. So, that every single Sub-County today can become a district in the near future. It should be a joke, but looking at history, than it isn’t far-fetched at all.

By seeing this one piece from the New Vision:

In 1986 when NRM took power, Uganda had 33 districts which increased to 81 districts by 2008. The districts increased to 112 by 2011, but reduced to 111 after the Capital city ceased to be a district” (John Odyek, Mary Karugaba and Moses Walubiri – ‘25 more districts created’ 19.07.2012, New Vision).

Than my own calculation from November 2019:

The State has continued to create the districts and sub-counties. In 2016 there was 112 districts and by 2021, there will be 135 districts. As well as there was 1,403 sub-counties in 2016, while in 2021 there will be 2057 sub-counties.

With knowing this and the knowledge of the mushrooming state. There is bit a late to cry foul over more town councils and the affordability. When during your time the state has gone from having 33 districts to 135 districts in 2021.

Therefore, this warning seems a bit late:

They are going to be too many and not affordable. Let the little money we have be concentrated first in maintaining security, building infrastructure(roads, railway, electricity, schools, and health centres) and not expanding administrative costs,”Museveni warned in November 28 letter to Butime. The warning by the president comes at a time when government recently announced the creation of 162 new town council that started being operational this year, whereas others will be operational by July 1, 2020” (Kenneth Kazibwe – ‘Museveni warns against creation of new municipalities’ 08.12.2019).

Because of this, I don’t believe the man. I really don’t believe the President and his motives here. It is weird that he has issues, when his made so many districts and sub-counties already. That creating further town councils only follows the modus operandi of the state.

Not like its a revolutionary idea from the state to make more. It would be more shocking if he started to merge sub-counties and districts. So, that it would be less districts and sub-counties in the Republic. In this current stage and time, that would have been positive and plans for actual change. However, than the devolution and the years of curving the districts. It would show the public that it was only political motivated and not really making government better.

That he warns about this in 2019 after 33 years in power and been so hyper-active with creating smaller entities. His surely the wrong man to signal the red-flag. Yes, the state cannot afford more town-councils and such. But that is because the state has already to many districts and sub-counties to pay for.

The state is already deficit financing, the mushroomed state, which the President and his men has created over the years. That is why, writing a letter this year isn’t solving anything or making a difference on the negative and expensive spiral, the President has started. The President knows this, but thinks this make him look smart. When it doesn’t, since his in charge of all these small entities and that will part of his legacy. He can cry now, but his crocodile tears are coming late.

He should have stopped before he created a 100 districts more in his time. Who knows how many sub-counties his created, but surely a 1000 by now. Than count the Municipalities and Town Councils, than you get humongous number. That is what bloated numbers sound like. Therefore, sending out warnings now is late from the old man, he should have done it long time ago, but he didn’t care. Peace.

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