Bank of Uganda: Monetary Policy Statement for February 2017 (15.02.2016)

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PwC report spells gloom over rising debt in Uganda!

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A report released by PricewaterhouseCoopers limited has delivered this month is clearly seeing what others has seen with the economic situation and the use of funds by the National Resistance Movement (NRM) and their regime. This report by a company which is an international company who works with other businesses and civil society organizations who needs economic advice and advisory services for taxes and such; therefore the report from PwC on economic situation is telling. Their speciality on their outlook will be saying with auditors and financial analyst whose words means a lot. They are professional analysts in this field are writing and saying this on the economic climate. The Economic climate is worrying and that has been visible. The liability of the growing debt in the republic has been a hazard together with the lacking internal revenue for the state as well. Just take a look!

Sluggish economy with higher debt:

“This bulletin comes at a very crucial time for the Uganda economy when growth is slowing down, private sector credit is on a decline, consumer demand is low, implementation and execution of critical public infrastructure projects is very sluggish, and the public sector debt burden on the economy is at the highest it has ever been” (PwC, P: 3, 2017). “If the domestic revenues collections continue to underperform, the government will be forced to borrow more from the domestic market. The increase in government borrowing may result in a substantial increase in yields on government securities, which may result in an increase in borrowing rates, which may constrain the private sector credit growth even further” (PwC, P: 7, 2017).

Growing debt:

“The Uganda’s public debt burden has risen by 12.7% in the past four years from 25.9% of GDP in FY 2012/13, to 38.6% of GDP in FY 2016/17. The debt burden is projected to continue rising to 45% of GDP by 2020. Debt as a percentage of revenues has risen by 54% since 2012 and is expected to exceed 250% by 2018. The country’s ever increasing debt burden has resulted in a deterioration of the debt affordability situation” (PwC, P: 8, 2017). “Uganda’s capital expenditures are still too reliant on external finance. Currently debt servicing constitutes 11% of the total government expenditure, one of the highest debt burdens in sub-Saharan Africa. This is expected to increase to 16% of the total government expenditure by 2018. Uganda’s debt burden has risen faster than the government’s own resources, resulting in a debt-to-revenue ratio of 236%, one of the highest amongst B-rated countries. This has prompted Moody’s recent down grade of Uganda’s long-term bond rating by one notch to B2 from B1” (PwC, P: 8, 2017).

An Economy with challenges:

“2016 was an economically difficult year for Uganda. The economy faced numerous challenges due to the continued uncertainty surrounding the recovery in global economic growth, weak commodity prices and geopolitical events in our key trading partners. As a result, of these numerous challenges, our export earnings, FDI flows and remittances to Uganda all went down. These developments, together with a slowdown in the execution of public investment projects and weaker than expected private sector demand, had a major effect on the economy” (…) “Other internal risks include delays in the implementation of public infrastructure projects such as the Standard Gauge Railway (SGR) linking Uganda to its East African neighbours, and the key infrastructure projects critical for the commencement of oil production” (PwC, P: 4-5, 2017).

If you are worried by the Republic and their economy after this, than you haven’t followed the class since this signs have been there for while! The state of the economy is fragile and the debt rise should concern all the ones inside the Republic and also outside. However, this could change, but that has to be done by the government and steer in another direction as today. The greed and the common sense of developing the economy is forgotten, as they are fixated on infrastructure projects and oil developments, while borrowing to fill the losses of donor-aid and internal revenue. This could be done in many ways, but that would not be easy. Peace.

Reference:

PricewaterhouseCoopers Limited (PwC) – ‘Uganda Economic Outlook 2017’ (February 2017)

Mzee doesn’t care about his own laws with the appointment of Kyabanzinga Gabula IV as a Special Envoy in the Office of the President!

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Whatever being said is that Busoga kingdom who’s King Gabula IV have been under fire recently as President Yoweri Kaguta Museveni has appointed him as a Special Ambassador in the Office of the President.  Since this is downgrading the cultural or traditional leader, who has a kingdom to reign over.

This being Busoga which is: “Busoga comprises of 11 principalities of the Basoga people. Our kingdom’s capital is located in Bugembe, which in Jinja District, the second largest city in Uganda. Busoga Kingdom is composed of ten politically organised districts: Jinja, Buyende, Kamuli, Kaliro, Iganga, Mayuge, Luuka, Namutumba, Bugiiri and Namayingo. Each district is headed by democratically elected chairpersons or Local Council Five, while municipalities are headed by an elected Mayor. Jinja is the industrial and economical hub of Busoga. The Busoga area is bounded on the north by the swampy Lake Kyoga which separates it from Lango, on the west by the Victoria Nile which separates it from Buganda, on the south by Lake Victoria which separates it from Tanzania and Kenya, and on the east by the Mpologoma River, which separates it from various smaller tribal groups (Padhola, Bugwere, Bugisu, etc.)” (http://busogakingdom.com/).

This is a strange appointment of Kyabanzinga of Busoga William Gabula, when reading certain parts of the law. This is with the knowledge of Traditional and Cultural Leaders Act of 2011. Where the law says so in Part V – Restriction on a Traditional or Cultural Leaders:

“12. Exercise of administrative, legislative or executive powers. A traditional or cultural leader shall not have or exercise any administrative, legislative or executive powers of Government or a local government” (The Institutional of Traditional or Cultural Leaders Act of 2011).

As President Museveni himself written yesterday:

As someone who was involved in restoration of kingdoms, I know the laws governing them. I know where a cultural leader can contribute to Uganda without interfering with the law. I heard the critics say royals don’t work. That is not the case. The Kyabazinga is youthful, he recently acquired useful education from abroad. He can contribute to national development and I see no merit in denying him that opportunity. There’s a great history of royals and monarchs contributing and leading the transformation of nations. One example is King Peter the Great who is considered the father of Russia’s transformation” (Yoweri Kaguta Museveni, 12.02.2017).

So the President himself cannot be able to read or justify that an Appointment of Cultural Leader isn’t countering the law Part V paragraph 12 which says that a king inside the republic of Uganda “shall not have or exercise any administrative, legislative or executive powers of Government”. I know that is words or paragraphs that President Museveni hasn’t remembered or even cares about. Still, his own appointment counters his own law. The law of Cultural Leaders doesn’t matter if Kyabazinga Gabula becomes the next Special Ambassador in the Office of the President.

With this in mind it doesn’t matter if the King feels he wants an ordinary job, he is supposed to get funds through government budget directed through fees from the consolidation fund. That is spelled in the law of 2011, therefore they should not need to apply or work government jobs, as their job is to promote and work for their better of their people and region. The King of Busoga is supposed to be head representative and historical crown-bearer of his kingdom, not work for any political gain. Therefore, the appointment isn’t only wrong in the sense of ordinary understanding of a monarchy. However, this is also of the laws that have been put in place during the 8th Parliament or beginning of 9th Parliament.

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So when the king is quoted with this: “The Busoga cultural leader [Kyabazinga], William Nadiope Gabula IV, has said he will snap up the opportunity to serve as an Ambassador in spite of protestations by some of his subjects and other Ugandans.” (Ladu & Nakato, 2017). Even he himself wants to have position in Parliament, even in an Ordinary Ministry or becoming Permanent Secretary of Education and Sports, it would still be wrong. The laws that are put in place isn’t justifying hiring this king nor any other in Uganda. This is laws that NRM has sanctioned and put in place. Surely, because they wouldn’t have the same issue as President Obote, who in the end got rid of the kingdoms in Uganda!

The history has taught us a lot and President Museveni have forgotten more and more. As his will of putting himself full-circle for all movement; soon he will offer the Baganda and Kabaka Ronald Muwenda Mutebi II another token of goodwill, as he cannot burn everybody’s palace down or create havoc there too. The Same with King Oyo of Toro, who has been silent since the fall of Gadafi, but that, is another matter.

That President Museveni says he knows and then counters his own law, shows that he doesn’t respect his own laws or has any plans of doing so. Because he now beliefs that his judgement means more or behest more power than the laws of the nation he reign. President Museveni doesn’t respect the laws he has enacted and sanction. Mzee is careless with the appointment of Kyabazinga Gabula IV. It is a proof of his mismanagement and clear-cut Machiavellian tactics of paying of people for loyalty, if not he burns or make more districts to make more people loyal to him. This is the proof of that and isn’t just mere words, but acts of using will power to control. Busoga kingdom is proven to be a walkover if this is an end-product.

The Busoga King Gabula wills sell-out his role as a king for becoming a little working ant for Museveni. That is the end-game, the result of this appointment with the neglect of the law and the rule of law. As his appointment is alone being breached, if the king was abdicating for serving the President. It would be different, than somebody else could rule as king and he could be a Special Envoy under the wings of the President. Naye, which is not the case!! Peace.

Reference:

Parliament of Uganda – ‘The Institution of Traditional or Cultural Leaders’ Act of 2011

Ladu, Ismail Musa & Nakato, Tausi – ‘I’ll take paid envoy job – Busoga king’ (30.01.2017) link: http://www.monitor.co.ug/News/National/I-ll-take-paid-envoy-job—-Busoga-king/688334-3792974-4rfdjg/index.html

Opinion: NRM SG Lumumba wants the CAOs only to work together with ruling party; as the Opposition are only creating trouble with the civil servants she assumes!

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I got to be honest, when the NRM SG Lumumba or any other in the Ruling Regime is forgetting how they hired people and for what reason; then I need to address the mistakes and the bewilderment in the lacking of institutionalism and professionalism in the Movement. Not that I am surprised as they follow any wink or movement from Mzee. Let’s show first what the Secretary General Lumumba said recently and then what a CAO was claimed to be doing when the Public Service Commission hired a dozen in 2014!

“The National Resistance Movement (NRM) secretary general, Ms Kasule Lumumba, has warned district Chief Administrative Officers (CAOs) against being influenced by Opposition district chairpersons while executing their duties” (…) “It has come to my attention that most of the district Opposition leaders use their positions to intimidate our CAOs, mostly those who have been transferred to new offices such as our CAO in Wakiso and others in different districts,” Ms Lumumba said” (…) “When I stop you CAOs from being influenced by the district chairpersons, it doesn’t mean that I have told you to have disagreements with them but when you notice that you’re being influenced, please refuse and report to our offices for technical support. But I also need you people to have harmony and good working relationship with them while executing your duties,” she added” (Kiggundu, 2017).

What are key factors in all job descriptions of CAOs?

“Providing direction and guidance to the Local Government Councils and their Departments in the application of the relevant laws and policies. Supervising, monitoring and coordinating the activities of the District and Lower Council’s employees and departments and ensuring accountability and transparency in the management and delivery of Council services. Developing capacity for development and management of the planning function in the District. Supervising and coordinating the activities of all delegated services and the officers working in those services. Keeping custody of all documents and records of the Local Government Council. Acting as liaison Officer between the District Council, Government and private sector. Advising the Chairperson and Executive on the administration of the Council” (Public Service Commission, 31.09.2014).

So when you see the NRM Secretary general statement, it is fault and mistaken it’s role of the CAO. The CAOs are for the better work of the Local Government Council, that means for all members neither if they are Democratic Party, Uganda People’s Congress, Forum for Democratic Change, Farmers Party or the Progressive People’s Party. What matters is that the results and the work of the Local Government Council, not their allegiance or their place in which party. The CAO are also for ensuring accountability and transparency. Being so means that the CAO has to look over the LGC and their portfolios, their works and their needed assistance across party lines, neither if it is NRM or any other party. Still, the NRM SG Lumumba is more about the opposition creating fear supposedly from the Opposition. Since the NRM are usually pre-occupied with finding ways of bribing justice and rule of law.

The CAO and the LGC are inter-connected neither party involved in the district that matters. The Councillors and other leaders need to know what plans and how to participate together with the CAO to fulfil the guidance and needed state oversight of the works of the district. If this isn’t done, than the checks and balances will be lacking trust.  There need to be a working relationship between the District Council and the CAO. When the CAO will be the liaison of the works done in the district!

So I would wish the ruling party and ruling regime had more tact. But that is asking too much, people like NRM SG Lumumba always create enemies instead of trying to bring an olive-branch. It is not in her character to be peaceful or dialogue. Instead she is on the war-path. Blaming the opposition and giving them a head-spin.

She would never ever have said this about her own, hey she would praise for the work in the districts. NRM SG didn’t say anything about the NRM Councillors because they are perfect and doesn’t try to intimidate or use their positions at all. They are perfect party members and local elected officials who work in wonderful harmony with the CAOs, not like the opposition. This could be the second meaning of what she did say?

Well, enough of the nonsense from the Movement for today. Peace.

Reference:

Kiggundu, Joseph – ‘Lumumba cautions CAOs on Opposition leaders’ (12.02.2017) link: http://www.monitor.co.ug/News/National/Lumumba-cautions-CAOs-on-Opposition-leaders/688334-3809580-41if1u/index.html

Uganda: Change of Dates of Birth for Public Officers (06.02.2017)

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Uganda: No approved plan by Ministry of Health to offer Family Planning Services to children aged 10 and above (09.02.2017)

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#PresidentialHandshake: URA Staffer’s earns nearly UGX30m bonus for clerical work!

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The Republic under the National Resistance Movement doesn’t create any dull moment. Uganda Revenue Authority staff Paul Ojiambo got UGX29.5m net for photocopying beyond official time. That was a part of the Presidential Handshake, since he copied the documents that contained information of the Tullow tax case.

As NTV Uganda put it:

“URA’s Paul Ojambo was paid UGX 29.5M for overtime photocopying of documents used during the oil court cases” (NTV Uganda, 08.02.2017).
“Katuntu- What extraordinary work did you do?

Ojiambo-Photocopying beyond official time.

Katuntu-Is that extraordinary

Ojiambo- yes” (Parliament Watch, 08.02.2017).

Ojiambo also claimed this: “official says he served documents, raised assessments and kept documents confidentialy” (Parliament Watch, 08.02.2017). So the copying of documents is a job that deserves higher payment than usual, especially when they are kept secret. Ojiambo is the next Police Officer or Clerical worker for Central Intelligence Division in the Uganda Police Force.

Another civil servant from URA getting extra funds was Rose Adakuni who received UGX 29m because of the handshake; usually her yearly wage is UGX 2m monthly. With these to you can wonder how the spoils really got served around and to what point inside the Uganda Revenue Authority. She was doing the E-Mail management during the case; therefore she got a big pay-out when the case was over.

Third office worker who got UGX 29m Joseph Agulla as a Clerical Officer got his with his statement, not done anything special. Still, the Authority thought of him as worthy of big-bonus.

You should question the URA, when one person for copying document later than 17:00 got millions upon millions. This shows how rotten the system is and how they all eat of the government funds without any concern of the wasted monies. The trust in URA and spending of the taxes is not strengthening, as the governance in the URA isn’t trustworthy.

When people are getting bonuses for doing their duty as civil servants and given such massive funds, than you have the right to wonder and boggle your mind around the values that are given away from the Authority to their civil servants. The Movement really is careless with their spoils and internally giving away bribes to their own. Peace.

Opinion: M23 operations only there for Kabila to postpone the elections!

Earlier in November 2016, there we’re reports of movement from the M23 from Uganda into the Democratic Republic of Congo. As there we’re even clear violence from the rebels in December. Now that we in 2017 and another month gone, there are reports and official reports that Brigadier Sultani Makenga has fled his home and is on the move.

In mid-January the Ministry of Defence Minister Henry Okello Oryem in Uganda claimed there we’re little movement and they we’re still captured. Still, there we’re at the same time said to be 200 rebel soldiers moving across into the DRC.

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Just as of yesterday when the news broke of fleeing Makenga and the raids of Police Stations in and around Kasese District and Rwenzori Sub-Region. As the raids we’re going after guns and bullets in these police stations. As Bwera Police Station we’re put on fire and they also burned down Luwero Town Council, therefore armed militants seems to be on the move.

There we’re reports in January from Nord-Kivu Governor Julien Paluku we’re writing of the movement of the M23 across the borders. Still, the reminiscent of past was not certain at that point. Because in the past the M23 has had sufficient weapons and training in Kisoro on the Ugandan border, where the UN had witness affidavits briefing the UNSC on the rebels. That was the Local Governor that broke the news and the FARDC and the Central Government in Kinshasa did not verify it. Therefore the intelligence between the Central and Local was different. Just as of now, there are indicated violence and attacks inside Uganda, but also news of escalation of M23 prescience of them in the DRC.

As it happen and news we’re out of M23, the DRC government and transitional government under “third term” President Joseph Kabila are running on it and keeping their power as they have to fight another militant group creating chaos in North and South Kivu’s. This is just a curious timing that the M23 just happen to come after the CENCO agreement and the new timeline for elections, elections where President Kabila cannot be a candidate with the current Constitution of the 3rd Republic.

It is just like a rabbit out of the hat, the M23 get guns and run-wild in Kasese and Rwenzori Sub-Regions, as the numbers of militants has differed from who is counting. Some said a 101 soldiers crossed the borders other said about 230. In mid-January the M23 we’re reported to take the village of Ishasha in Nord-Kivu. Reports in late-January we’re that FARDC lost two military helicopters in running battles in a town called Rushuru, also in Nord-Kivu, which is close to the Rwandan border. Therefore the insurgency could be from both Rwanda and Uganda as the attacks are happening close to the too nation at separate time.

Therefore the sudden resurgence of M23 and the message from Kinshasa seems so fitting and just. So all of a sudden the Elections have to be postponed again and give political mileage for Kabila. So he can be the hero who fights M23 again. We can question and should question why this is an issue that can destroy the elections when ADF-NALU and Mayi-Mayi are already causing issues in the provinces in the Kivu’s, as well as the FDLR that is still creating havoc. So M23 isn’t the only militants and rebels in the region.

That is why it is suspicious that the M23 are the sole reason for postponing the elections and ballots so there can be another government running the Republic. If there we’re other circumstances that we’re less fishy and without having the history of both M23 and the Kabila Regime, it might been substantial. Since it isn’t so and the actors and the politicians has played these ploys before we should question the reasoning and the effects of the violence.

The ones dying, the ones losing property and innocent suffering for the political games of the big-men in the region, that they uses rebels and militants to sufficiently steady their political life is demeaning. The M23 we’re as off the Nairobi Agreement deserters in Uganda. Some was also expected to come back and be contained in the DRC. Instead they are now returning with vile force, some are seen as thieves in the border regions, others are implicating that the M23 and UPDF is covering their tracks with burning of Police Stations and other facilities to make it seem like a fleeing insurgent force returning to Nord-Kivu.

We can certainly question the efforts and the timing, as it fits the time-frame and evidence Kabila needs to overstay in power without changing the laws. That has been the goal since long before the negotiations with CENCO or anybody else, it wasn’t like President Kabila we’re intent to stepdown. He even runs a transitional term before twice elected. Therefore that Kabila tries to succumb the rules and still being the President without any election. That is why the sudden launch of M23 into the Kivu’s of recent days and months. This story will not end, if so then the Kabila presidency would also have ended. Peace.   

URA: Rolling Out of the URA Costoms Centralized Document Processing Centre (DPC) in Kampala (04.02.2017)

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Kampala raid on LASPNET: Statement on the Break-In of LASPNET Premises (02.02.2017)

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