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Archive for the tag “WB”

A look into the rising Sugar prices in Uganda!

I commissioned a state-of-the-art ethanol distillery at Kakira Sugar Factory in Jinja today (Museveni, 23rd January 2017)

There are various of reasons for the rising prices of Sugar and processed sugar in Uganda. This isn’t the first time or last cycle of inflation on the prices of this common commodity. Sugar is common in Uganda for concept of having in it in the chai or the milk tea. To sweeten the milk and the black tea the Ugandans drink. Therefore, the Ugandans are needing and using lots of it on daily basis. It isn’t a luxurious goods, but a daily usage, for ordinary use. It has become staple and is staple together with matooke, cassava, rice and maize flour. This is all seemed as basic for the Ugandan people. Sugar is something very important. Therefore, the rising prices says something is out balance.

The balance have now been lost a year after the election. The prices of goods and food was also rising in 2011, therefore, the Republic had the Walk 2 Work demonstrations. These was demonstrations against the rising food prices, which also meant the sugar at that time went up. The same is happening now. With also on alternative exception, that the producers are not only creating sugar for consumption anymore, but ethanol and bio-fuel. Therefore, the produce and profits are going to export bio-fuel and other products, instead of the sugar that the consumers in Uganda uses. This also is an explanation for the rising prices, as well the added exports to Kenya, where the producers gain more selling it there. Than in Uganda, take a look!

In April 2017 USMA commented:

Uganda Sugar Manufacturers Association (USMA) says the increase in sugar prices has been prompted by the increase in cost of production and the deprecating shillings against major currencies. The Association’s Chairperson, Jim Kabeho says sugar millers were forced to announce what he called a paltry 4 percent increase on each 50-kilogram bag on ex-factory price. The increase according to Kabeho saw a 50-kilogram bag of sugar trading at one hundred and eighty five thousand shillings up from one hundred and seventy thousand shillings” (…) “Meanwhile a source at the Ministry of Trade Industry and Cooperatives who asked for anonymity says the Ministry suspects that the big players like Kakira could have decided not sell its sugar to the market so as to increase production at the ethanol its ethanol plant. The sources says sugar mills with ethanol plants are finally making money on sugar through on co-generation of power, alcohol and ethanol” (URN, 2017).

In April in Masindi:

Masindi district leaders have risen up against the Masindi district Resident Commissioner, Godfrey Nyakahuma over stopping sugar cane buyers from buying cane from Masindi district. Last week, Nyakahuma launched an operation of impounding trucks of all sugar cane buyers who buy sugar cane from Kinyara sugar limited out growers and over five trucks loaded with cane were impounded by police” (…) “Byaruhanga added that that is a sign indicating that Kinyara sugar Factory has no capacity to crush the available sugar cane adding that since Uganda has a liberalized economy let everyone come and buy the abundant cane available instead of leaving the farmers suffer with the monopoly of Kinyara sugar factory. Amanyire Joshua the former mayor Masindi municipality said that if Kinyara is saying that sugar cane buyers are poachers, Kinyara sugar factory is a smuggler because it is also doing the same. Mary Mujumura the deputy speaker Masindi district blamed Byaruhanga Moses the presidential advisor on political affairs for failing to advise the president on political issues saying that he is not supposed to enter into business matters” (Gucwaki, 2017).

In May 2017:

From last year’s average of Shs 3,000 per kilo of sugar, the price shot to Shs 4,000 early this year and is now hovering over Shs 5,500. A kilo of Kinyara sugar is the cheapest at Shs 5000, while Kakira sugar is selling at 6,000 a kilo. On the shelves, Kakira sugar and Lugazi sugar are scarce compared to Kinyara sugar, which is in plenty. Many dealers have now started hoarding sugar in order to benefit from anticipated price hike in the short term” (URN, 2017).

In May 2017 – Stanbic Statement:

The only category to buck that trend was wholesale & retail, where staff costs rose and employment fell. Average purchasing costs also rose in April, reflecting increased prices for animal feed, food stuffs, raw materials and sugar. Higher cost burdens were passed on to clients, leading to a further increase in output charges” (Stanbic Bank, 2017).

President Museveni praises Kakira Millers:

I would like to thank the Madhvani Group, despite the disappointment by Idi Amin. The family pioneered the production of sugar in Uganda. By 1972 they were producing 70,000 tons but today they have almost tripled the production to 180,000 tons,” he said. The President was today commissioning a state of the art ethanol distillery at Kakira Sugar Limited in Jinja district. The US$36 million facility, which is the largest in the East African Region, will be producing 20 million litres of ethanol annually” (…) “President Museveni pledged to address the issues to regulate the sugar industry but urged the Madhvanis to partner with farmers with large chunks of land for production of sugar-cane, as the cane is not a high value crop. He said people with small land holdings should be left to do intensive farming like the growing of fruits that give high returns. Turning to the issue of prices payable to sugar-cane out-growers, President Museveni advised the buyers and out-growers to sit together and agree on the prices taking into consideration the market prices globally” (Uganda Media Centre, 2017).

Government statement on the 11th May:

Speaking to 256BN on condition of anonymity a government official monitoring the situation said the manufacturers have not increased the factory price, but he conceded that the situation is worrying. “At the factory prices are stable. Why is it that the prices at the retail gate are high. This means that there are some distributors who are using the hiding strategy in order to rob Ugandans. As Government we shall continue monitoring the situation until we come up with the solution” the official said. Affordability of sugar is considered a key barometer of an ordinary person’s well-being and its pricing can take on political dimensions when people cannot have sugar with their tea” (256BusinessNews, 2017).

Putting the price in pespective:

Kakensa Media reported this today: “Today sugar costs 7000/- per kilo. When Museveni came to power in 1986 each kilo was at 4/-(four shillings). Immediately he came to power he said Ugandan shilling had lost value, in 1987 all money was changed, not only changed but two zeros were cut off to give it value on addition to the 30% levied on each shilling. This means on every 100 shillings, you got 70cents. Those who had 100,000/- got 700/-” (Kakensa Media, 12.05.2017).

This is all proof of a systemic malpractice, where both export, together with lacking yields because of drought and also the production of ethanol and bio-fuel. All of this collected together are reasons for the rising prices of sugar. The sugar price goes up because the use of cane for other things than millers producers sugar for consumption, but for other export products. This is all making sure even as the Republic of Uganda has in the past produces to much, it now doesn’t. Since it elaborately uses the sugarcane for other products.

That has made the Madhvani Group rich and their exports of sugarcane products are clearly selling. Now even their basic milled sugar are sold more expensive on the Ugandan market. There are also proven problems by other millers, who either has to much cane like Kinyara Sugar Factor in Masindi. Which is ironical problem, as the Kakira and Lugazi sugar is empty on the shelves, while the sugarcane hoarding Kinyara are still in the shops. But Kakira which is produced by Madhvani Group, we can now understand, since they have bigger operation and is blessed by the President for their industrial production of ethanol and bio-fuel.

Therefore, the are more reasons than just shopkeepers not getting enough stocks. That the rising prices are not only that there is lacking production. It is the system of export and production. Where the cane isn’t only becoming milled sugar for consumption, but for all the expensive industrial exports like bio-fuel and ethanol. This is all good business, but also bad for consumers and citizens who are accustom with decent prices for their sugar. That is not the fact anymore, as the business and millers has found new profitable ways. So that the surplus sugarcane and also the other gains massive profits. This is all good business for the owners of the sugar-millers and sugar industry. The one who feels the pitch is the consumer and the citizens. Who see scarcity of sugar inside the shops and also the inflation of prices on the sugar. Peace.

Reference:

256BusinessNews – ‘Government to issue statement on sugar’ (11.05.2017) link:http://256businessnews.com/government-to-issue-statement-on-sugar/

Gucwaki, Yosam – ‘MASINDI RDC IN TROUBLE OVER STOPPING SUGAR CANE BUYERS’ (28.04.2017) link: http://mknewslink.com/2017/04/28/masindi-rdc-trouble-stopping-sugar-cane-buyers/

Stanbic Bank Uganda – ‘Ugandan economic growth continues at start of second quarter’ (04.05.2017) link: https://www.markiteconomics.com/Survey/PressRelease.mvc/143ca2b8e3d84c79b96aed4885b7337e

URN – ‘Sugar manufacturer’s association explains price hikes’ (14.04.2017) link: https://dispatch.ug/2017/04/14/sugar-manufacturers-association-explains-price-hikes/

URN – ‘Uganda: Sugar Crisis On for Another 2 Years – Manufacturers’ (09.05.2017) link: http://allafrica.com/stories/201705100129.html

Uganda Media Centre – ‘President Praises Madhvani Group’ (05.05.2017) link: https://mediacentre.go.ug/news/president-praises-madhvani-group

Ugandan economy could get Oil-Shocks due to external factors, recent BoU report claims!

Surprise, surprise the Bank of Uganda (BoU) has made a working paper on the possible consequences of the oil price, the oil exports and the oil imports on the Ugandan economy. This didn’t exceed my expectation of a report or paper, but said enough to clearly anticipate changes in the economy with the coming export. Even as the BoU called the domestic oil production in embryonic stages, which means the real impact will come when it is closer petroleum production the GDP and CPI feel more impact of the oil prices and the volumes exported from the Lake Albert Basin.

That the Ugandan State and the Republic of Uganda, should know that the fresh foreign exchange and currency into the economy, as the domestic parts of petroleum is not having big impact on the economy! Still, the export can change it as the oil prices and change the consumer price index for instance. Take a look!

One such shock that is a source of major concern and risks to monetary policy-making in Uganda is the oil shock. To our knowledge, the effects of oil shocks in Uganda, to date, have not yet been analyzed. The objective of this paper therefore, is to analyze the nature and importance of oil shocks to Uganda’s economy in a dynamic framework” (Nyanzi & Bwire, P: 4, 2017).

According to the Uganda’s Ministry of Energy and Mineral Development (2012), oil provides about 10 percent of Uganda’s energy requirements – the rest is sourced from the small and underdeveloped and unreliable electricity sub-sector and the cheap biomass energy. The oil sector was also deregulated in 1994, under the broad structural reforms implemented by the Government of Uganda, which effectively eliminated oil prices subsidies. Uganda is endowed with commercially-viable oil reserves, but domestic oil production is in embryonic stages. Consequently, all of the oil-energy needs of the country are satisfied by imports” (Nyanzi & Bwire, P: 8, 2017).

The results of the variance decomposition in regard to oil shock are not entirely unexpected, given the structure of Uganda’s economy. Oil and its products constitute 8 percent of total intermediate consumption and 10 percent of energy requirements. In addition, oil is crucial to electricity supply in Uganda because hydro-electricity is unreliable and insufficient. This implies little or no substitutability of oil with hydro-electric energy in production in case of adverse oil shock, which could justify the long-run 20 percent variance in output due to oil shocks. Regarding consumer prices, the small percentage of variance in consumer prices due to oil shocks is justified by the small weight of oil in the CPI basket. Oil constitutes about 1 percent in the 2009/10 rebased CPI basket, of which 0.8 percent is oil for personal transportation and 0.2 percent a source of liquefied energy at home. These numbers are not surprising given that over 75 percent of the population live in rural areas and depend mainly on wood and charcoal as a source of energy, and that rates of car ownership are generally low. Moreover, the main source of short-run volatility in the Uganda CPI is weather-related factors affecting food prices. This leaves the bulk of fluctuations in the core consumer prices (Comprising over 80 percent) explained by demand” (Nyanzi & Bwire, P: 18, 2017).

Oil shocks are transmitted through the supply channel, as a shock that increases the international price of oil leads to opposite movements in real output and consumer prices in Uganda” (Nyanzi & Bwire, P: 19, 2017).

It is hard to say how it could impact and how the petroleum production and exports will change the economy, how the prices and the inflation, as the measure of how much the price of the crude-oil will be at the given time. That the government has secret agreements with oil companies and also agreements with other to build the crude-oil pipeline that goes to Tanzania. Therefore, the reaction in the economy is not yet known, but with the background and knowledge of the how it is now. Most likely a real output and change in consumer prices in Uganda.

That will be an oil-shock no-one can be prepared for. Unless the Government and Parliament created legislation and policies who might soften the change of the economy. Therefore, with this in mind, the National Resistance Movement, the State House and the President Museveni have work to do. That is if they consider the implication the petroleum production and exports will have on inflation, currency value and consumer prices index as well. This report should open some eyes into it, but it should not be surprising. Peace.

Reference:

Nyanzi, Sulaiman & Bwire, Thomas – ‘Working Paper No. 04/2017 – The Macroeconomic responses to Petro Shocks for Uganda’ (May, 2017)

Kenya: Monetary Policy Committee Meeting (27.03.2017)

REDD+ Kasigau Corridor Project: Lacking results and with questionable affiliations!

There are a December 2016 report written by Jutta Kill and published in parts by the European Union. The name of the Report are: “The Kasigau Corridor REDD+ Project in Kenya: A crash dive for Althelia Climate Fund”. This report tells a worrying story of how a project is a possible revenue source, instead of being there for climate change use or even local development. This sort of project and funding should be used for sort of projected land titles that saves the forests or create land that the owners can earn on instead of destroying the land. Something most of the REDD+ funds and projects is about, making sure the forest and the agricultural lands are kept and saved by the use of funding from donors and project builders.

One of the first hard-hitting quotes from the report are: “In addition, several reports document how land use restrictions imposed by the Kasigau Corridor REDD+ project hit pastoralists and ethnic Taita and Duruma communities particularly hard while these groups receive very few if any of the benefits the REDD+ project provides to local communities” (Jutta Kill, P: 4, 2016).

So if there are donors who seems to be positive to projects and development projects that isn’t being there for the locals, than why are they offering the monies and using the time to facilitate the project in Kenya?

The Taita Hills REDD+ Project in Kenya has been marketed by Althelia, the project developer Wildlife Works Carbon, institutional funders like the EIB and media supporting market-based environmentalism as the Fund’s signature investment. Wildlife Works Carbon has been operating the Kasigau Corridor REDD+ project in south-eastern Kenya since 2005” (Jutta Kill, P: 6, 2016). So with this in mind the Althelia has offered certain amount of money on the table, as this was the signature investment, even as it have no benefit for the local communities. The Althelia had done this: “For four of the projects, the Fund’s annual reports indicate that the investment is made in the form of loans whereas for the REDD+ project in Kenya, the 2015 audited financial report mentions an investment through an ‘Emission Reductions Purchase Agreement’ (ERPA). Four of the five projects are also covered by a US$133.8m loan guarantee that USAID has extended to the Althelia Climate Fund in 2014. As of 31 December 2015, investors had disbursed €18,36m of the €101m committed” (Jutta Kill, P: 5, 2016). So the development project are funded through loans that are guaranteed by the USAID, but extended into the Althelia Climate Fund, so the two are co-operating in the direct funding of the REDD+ Kenya. So they are rubber-stamping and giving faith to the projects.

The ‘Stand for Trees’ Initiative, a brainchild of Wildlife Works and supported by USAID, has become an important source of revenue – some say, a lifeline – for many private sector REDD+ projects” (Jutta Kill, P: 17, 2016). So that the Wildlife Works that works inside this REDD+ project, that are using the funds from USAID and EIB, are complicating it more as the other revelations that should worry the ones who cares about the environment and accountability of ones running it: “The Kasigau Corridor REDD+ project’s financial lifeline came from the International Finance Corporation (IFC), the private sector arm of the World Bank, and BHP Billiton, the mining company with a record of severe environmental damage and forced displacement of communities that stretches back decades and continues to this day” (Jutta Kill, P: 18. 2016). So why would a mining company cares about an environmental project in Kenya, unless they we’re earning funds and getting profits on the project?

You can really understand the issues of the IFC and BHP Biliton involvement, when the local communities gets no benefit or contributing to the projects.

So when you have the Althelia Climate Fund, which is funded with loans from the World Bank private corporation branch IFC and the USAID loans, together in corporation of BHP Bilition, as the REDD+ Project in Kenya is in works with both Wildlife Works, as the ‘Save the Tree’ brainchild. As this was the Althelia signature project. That there are problematic forces in play when the EIB are supporting the REDD+ projects as well, either directly through loans like USAID or like IFC. Therefore, the many actors are surely paying and donating favorable loans so the owners of the fund and the ones living of it makes this the lifeline for the Wildlife Works, even as this one doesn’t have the impact on local communities.

Just as one key observation:

One of the most striking observations was how locally, people referred to Wildlife Works as “the company”. The reasons for this seemed twofold. For one part of “the community”, Wildlife Works is “the company” that instructs guards to confiscate cattle and goats; that prevents the poorest community members in the area from collecting even dry branches for firewood when “the company” itself runs a charcoal production business on the REDD+ project area; that puts up water tanks on residents’ land without even asking permission, let alone paying for the use of the land; that claims to dedicate initially 1/3 of carbon revenue sales to local community projects, but does so in a way that means benefits from these “community” projects are captured by local elites. For example, ranch shareholders who receive 1/3 of the revenue from the carbon credit sales might also sit on the “community development committees” that decide how the 50% of the profit from carbon credit sales” (Jutta Kill, P: 21, 2016).

Another insulting observation:

A carbon offset provider offering carbon credits from the Kasigau Corridor REDD+ project writes on its website that “committees determine what projects to undertake, prioritizing them by need and feasibility. ‘So many people have problems with water, so water projects—water tanks, water pipelines—always come first,’ said Pascal Kizaka, a local chief and committee board member” (…) “Exploring the location of one of the “water pipelines” advertised as an activity of the Wildlife Works Carbon REDD+ project revealed that far from what was suggested by the large placard outside the building (a One Vision Center), it seemed that the Wildlife Works contribution to the “water pipelines” project had been just the guttering along the side of the building’s roof and piping to connect the gutters with a water tank constructed by others. People also commented about bore holes put in by “the company” that had never provided any water” (Jutta Kill, P: 23, 2016).

So the Company, the Wildlife Works are supposed to provide water and pipelines. Still, there aren’t any who has been provided with the water, even as the REDD+ Committee Board Member Pascal Kizaka claims, as the locals and community says otherwise. This together with the lacking proof of the help with carbon credit sales and the control of land. This whole development project seems sketchy and a lifeline for Wildlife Works instead of being there for the local Kenyan Communities. Therefore, the use of IFC and Althelia Climate Fund, seems like way of misusing Carbon Tax and Carbon trading, instead of developing the Kasigau project for the Taita and Duruma communities. That deserves better and also deserves that when people and organizations comes in that they does not earn on their misfortune, but actually comes with projects serving them. If not this is just a way of fraudulent development industry, that no republic deserves. Peace.

Uganda: Letter on Officer’s of the ‘Food Security and Rainfall Awareness Country Campaign’ (18.11.2016)

uganda-awareness-campaign

Footage: On 5 October 2016, AfDB President Akinwumi Ayodeji Adesina receives his African Passport, symbol of continental integration

UN, World Bank, insurance sector tackle climate vulnerability (06.10.2016)

un-idf

NEW YORK, 6 October 2016 – A new public-private partnership between the leaders of the United Nations, the World Bank and the insurance sector has adopted a risk management strategy that seeks to harness insurance to promote economic recovery and resilience to climate hazards and disasters.

The Insurance Development Forum (IDF) said that it has decided to contribute to achieving the G7 “InsuResilience” target of providing 400 million of the most vulnerable people in developing countries with increased access to direct or indirect insurance coverage against the impacts of climate change and related natural catastrophes by 2020.

“For many developing countries with scarce resources, rebuilding is often beyond their means. Typically, a disaster is followed by appeals to bilateral, regional, and international partners for aid relief and financial support,” said Ms. Helen Clark, IDF Co-Chair and Administrator of the United Nations Development Programme.

“This support, however, often falls well short of what is required. Systemic lack of funds and recurrent inefficiency of recovery initiatives on the ground impede progress. Insurance can be an efficient, fast-disbursing mechanism to build back better in vulnerable countries and communities hit by disasters, but also to reduce risks and the costs of risks in the long term.”

The IDF was first announced at the COP21 UN climate summit in Paris in December 2015 and officially launched in April 2016.

It is led by a Steering Committee, chaired by Mr. Stephen Catlin, Deputy Executive Chair of XL Group Ltd., with Co-Chairs Ms. Clark and Mr. Joaquim Levy, World Bank Group Managing Director and Chief Financial Officer. Other Steering Committee members include Mr. Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, and Mr. Robert Glasser, the UN’s Special Representative of the Secretary-General for Disaster Risk Reduction, as well as 13 insurance industry CEOs. Additional governmental and public sector organizations are expected to engage in the coming year.

The IDF adopted its insurance-based strategy when it met on the sidelines of the recent UN General Assembly session. It approved a proposal to create a Technical Assistance Facility (TAF), which will assemble public and private insurance industry resources and tools necessary to support governments in building public-private partnerships that will better manage the financial consequences of climate events and natural disasters while increasing the use of insurance in emerging markets and developing countries. Work has begun to secure funds for the programme.

The IDF’s work is linked with a string of UN agreements adopted in 2015 to set the global development agenda for years to come. They include the Sendai Framework for Disaster Risk Reduction, the Sustainable Development Goals and the Paris Agreement on climate change.

“With growing natural disaster losses it is essential that governments learn how to incorporate risk management fundamentals into their planning, budgeting and governing processes so that their citizens can be better protected,” said Mr. Catlin.

Joaquim Levy, IDF Co-Chair and World Bank Group Chief Financial Officer stated that “many emerging market and developing countries lack sufficiently developed insurance markets, which does stifle growth and has a negative impact not only on business but on general welfare, notably among the poorest. The lack of insurance instruments or broader risk-pooling or risk-mitigation mechanisms is also evident in the public sector, affecting government’s ability to respond to natural disasters and other large-scale events”.

Mr. Rowan Douglas, chair of the IDF Implementation Committee and head of the Capital Science and Policy Practice at Willis Towers Watson, said, “We all recognize a unique moment and opportunity to make a huge step forward in the protection of lives, livelihoods and communities – realizing the benefits of insurance across public, private and mutual and cooperative sectors.”

The IDF focuses on members of the “Vulnerable Twenty Group”, which was set up in 2015 and groups the finance ministers of countries highly vulnerable to a warming planet in dialogue and action to tackle global climate change.

Vulnerable to Shocks: Uganda how drought and low prices could jeopardize Uganda’s Poverty Reduction (13.09.2016)

ug15-09-2016

Press Release: World Bank Group Suspends Financing to the Inga-3 Basse Chute Technical Assistance Project (25.07.2016)

inga3_figure2

WASHINGTON, July 25, 2016 — The World Bank Group has suspended disbursements of funding to the Inga-3 Basse Chute (BC) & Mid-Size Hydropower Development Technical Assistance (TA) Project in the Democratic Republic of Congo (DRC). This follows the Government of DRC’s decision to take the project in a different strategic direction to that agreed between the World Bank and the Government in 2014.

On March 20, 2014 the World Bank’s Board approved a US$73.1-million grant from its International Development Association (IDA) for the project, consisting of Inga-3 BC development support (US$47.5 million) and mid-size hydropower development support (US$25.6 million). At the time of suspension, approximately 6% of total project financing had been disbursed.

The Inga component of the TA project aimed to finance a flexible suite of technical assistance, including strategic advice to the Government, complementary studies, capacity building, and institutional strengthening. The IDA TA project aimed to support a government-led process for the transparent development of Inga-3 BC as a public private partnership. The World Bank Group is in a continuing dialogue with the Government about the implementation arrangements of the project, with the goal of ensuring that it follows international good practice.

The World Bank Group remains committed to supporting the DRC in its efforts to provide affordable and reliable energy for its people and to drive sustainable sources of growth for its economy. Beyond the Inga project, the Bank Group will remain engaged in the electricity sector in DRC by focusing on improving the performance of the State Utility SNEL, rehabilitating mid-size hydropower plants, increasing energy access, and continuing support to regional transmission interconnections.

Opinion: Why is there so little sanction on Corrupt behaviour and why don’t the donors stop the funds?

corruption-1

We should question the ability of certain leaders to be able to squander away government funds, donor-funding while keeping their citizens in poverty and neglect the civil service, the state functions and keeping the state fragile; so that the Executive can brown envelope the Members of Parliament and that other civil servants to get paid, instead of government salaries depend on being paid under table for government delivery.

This is not one nation problem, this is not a one continent problem, and this is a worldwide problem. Not only government acts like this organizations, multi-lateral organizations and businesses. Corporations and other LLCs are also misusing their fortunes and ability to generate wealth for their stakeholders through intricate and complex banking structure that fixes the profits away from the countries we’re they earn high profits; while squandering away the profits so that the owners and stakeholders gain massive funds and leave the consumers, workers and the nations as they keep the funds away from the State of real business.

Tax Avoidance

Why can I address the neglect of government in the same regard as tax-avoidance in modern business, because the same ethics and norms are made and regulated by the Parliaments, Executive Power and by the interests of politicians; that needs funds and create business in their constituency as they earn currency on opening business there. So with that in mind, the way the business is set-up and regulated are by admission from the political framework and laws, not to talk about tax-regulations together with multi-lateral agreements that either opens or closes doors for tax-fugitives from the profitable country.

The Government are the Sovereign Power, the ones that represent and distribute the resources and funds to their citizens through departments, ministries, institutions and programs that are sufficient to make sure of education, security and development of the country. That happens as they can either use their taxes, aid and loans to fund the government work. Well, they could if they wanted to represent the people who paid the tax and elected them.

One key reason for the maladministration and mismanagement from the government are that they are responsible for sham elections and rigging themselves in power; worst case scenario the government and executive took the power with the gun; so the responsibility is more on the ammunition instead of the transparency and accountability towards the citizens. The citizens are supposed to have safe-guards from corrupt behaviour and alleged graft; as the Auditor General and Ombudsman are supposed see through the files and budgets, together with registered procurements, so that the actual facts are the same as the planned efforts from the State.

That is why the breaking figures and knowledge of squandered monies from the funds. Something that shouldn’t be that easy to do or get away with; as so many leaders and executives have saved giant bank-accounts in Swiss Banks and in Tax-Havens. So the humble men from villages all of sudden own 30 luxury cars, 4 mansions and have a wife who spends a ministries months salaries on exclusive clothing and shoes in Paris and London. While the taxpayer are struggling to eat and feed their families, which is an issue that shouldn’t be there when the Executive and wife can have a cortege of 25 cars driving from their State House to their Ranch without any consideration.

Obama Stockholm

The worrying sign is that the International Monetary Fund, World Bank and other Multi-lateral organizations don’t sufficiently sanction this kind of activities or even punish the countries with this behaviour; except when the nations are on their back hunting wild goose. The United Nations and European Union, other Pacts doesn’t even sanction much either. The diplomatic tensions and the wish for resources sometimes stop the knowledge of the thievery, if not to save face of both parties as they doesn’t want the public of the nation importing to know about the maladministration.

What I am wondering with all the corruption scandals, with the rich executives and the haemorrhaging of monies from the state and businesses; It happens daily while the begging for funds from international community and also getting investors from the exterior to invest in business. These businessmen are set in function with civil servant and government officials that are corrupting the state; something that the world knows… and still keeps it going around.

Certainly the knowledge of this isn’t something in the shadow, some places all of this is in the spotlight and expected by the officials, as a second way of getting add-ons on their meagre salaries as the government doesn’t pay enough or on time for the Police Officers and Teachers to secure pay to pay for food and even rent. Therefore the system generate where the Government can’t even supplement funds for their own, while their leaders eat the most delicious stakes. This should be a warning, but the world moves on.

quote-the-givers-of-most-of-the-corruption-in-africa-are-from-outside-africa-olusegun-obasanjo-88-15-33

What worries me… is how this keep on happening with different names, different places and with different funds, while the sanctions and the stopping of funding from the communities doesn’t stop; while the massive overload of stolen monies are hidden and the ability to use this banked currency in developing the state and nation, instead lost in trail of lies and deceit where the accountability got dropped in the ocean.

We should question these transactions and not accept these facts of life, this is the ones that steal the development and progress, steal foreign taxpayer’s monies into personal bank-accounts and private business of elites instead of the public functions as they we’re supposed to go.

I am just writing in frustration… and tired of seeing and hearing about the scandal after scandal… While the ones dishing it out are silent, while the punishment is not happening and the characters who are behind the thieving is walking like kings and queens in main-streets of capitals all around the world. That is what is bugging me. It shouldn’t be like this and the behaviour should be tormented, questioned and also charged for their stolen cash. This cash we’re not automatically made for and created for the Executive’s and their Elites; which isn’t justified. So why does it seem that some people are allowed to steal a country, steal a national treasury and the foreign exchange funds are walking scotch-free while hanging around the mayors and government-officials; but when a pocket-thief or a man stealing a goat, gets detained and not hired again.

The rules for this is provable not equal, not for all men are equal under god, except if you like shrimp. Well, that is not the case in this matter, there are too set of standards, the Executives and their Elites; while the citizens and public are a disgrace and can be disregarded easily, but the rich can get-a-way-jail-free-card! Peace.   

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