RDC: Rawbank – Communique Presse (27.05.2019)

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)

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).

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).

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

Opinion: Zimbabwe’s Government troubles with the West, but easy accessible with the Chinese

“No, I don’t care about that, the international — what they decide is entirely their own affair — their own affair. I’m concerned about Zimbabwe, and I’m concerned about the lives of the people of Zimbabwe. And don’t forget, it was my party which brought democracy into the country. I fought the British. We had to fight the British for democracy for one man, one person, one vote” – Robert Mugabe (Amanpour. 24.09.2009 interview – CNN).

There are these days that vicious attacks from President Mugabe will be normal, where the words of oppressive colonial attacks on Zimbabwe will be addressed with flowery perfection from the old-timer, the long-running President of the Southern African Nation of Zimbabwe, the country he have had in his hands since the Lancaster Agreement and the release of the Country from the British Colonial.

At one point he we’re acting more British than African, but with the Age, he has more and more hated the Europeans and Americans, as their respect for the leader have dwindled. The Respect has fallen as much as the respect for a McDonalds Burger has gone down in the West.

He we’re the man at one point, until the Aparteid of South Africa went sour and his gold-star got taken away. After that he must felt betrayed as he was the man of the continent and the man who even we’re knighted by the United Kingdom at one point and even a candidate for the Nobel Peace Prize in 1991. So the rich history of the man and ruler is vast. My words and reasoning will be belittling the histories and the vicious need for power the man have.

Though there vast amounts of irony from the leader, that is now clear as the sun is setting and rising again. Just as he has blasted the West, had have land-reforms exiting the White farmers and their plantations as they we’re the grand issue of the land. Surely there we’re in-balance between the ‘Africans’ and the ‘Afrikaans’; which is well-known as the British and the Dutch settlers took the best land and let the ‘locals’ become workers and renters. It was natural for anyone who lead to wish for a difference and create a better life for more citizens of Zimbabwe. Though the technic of giving ZANU-PF Elite the best land and evict landowners that have run farms for generations without compensations is just critical; though the colonial powers stole the land, there are ways of punishing the generation for the sins of the for-fathers while still trying to mend on the insufficient systems of the present day. Something that is lost tale and lost option as brutality have become the station of Mugabe, ever since he got his Army and Police trained by the North Koreans. As long as he got rid of his worst opponent in Joshua Nkomo and even raided and massacred the loyalist in the Matabeleland.

With this history and with his reign of power; all of these initial acts of violence and the control of the state; that he has exhausted the state and the economy, while blowing the donor funding from the West and later when they quit funding his oppressive regime. Saying it was colonial acts of belittling African Nation, while he himself was harassing people and detaining opposition of ‘Movement for Democratic Change’. Even at one point accepting the power-sharing agreement made by Thabo Mbeki, though partial and used by Zuma to overpower him in South Africa, the last stain on Mbeki; we’re the weak agreement that gave the Executive back to the loser Mugabe in 2008, while the winner got the VP Tsvangirai. So the tried peaceful transition to another leader was not successful and a reason why the 92 year old man is the king-pin of the Republic Zimbabwe.

“I think in relation to sport, we set out the position many, many times, but nothing that happens in relation to that should take anything away from our total condemnation of the way that Robert Mugabe is making the plight of the people in Zimbabwe terrible. Now whatever issues there are to do with sport, you can put those to one side for a moment, the issue is how do we make sure that we put the maximum pressure on Robert Mugabe’s regime in order that we change the situation in Zimbabwe and change it for the better politically, but also in humanitarian terms as well. And I totally agree with what Prime Minister John Howard was saying just a moment or two ago. There are no grounds, so far as we can see, for saying that there has been any significant progress at all, indeed if anything the situation has got worse, and that means that we have got to keep up maximum international pressure upon the regime” – Prime Minister Tony Blair (Jon Howard Interview at Joint Press Conference with PM Howard of Australia, 07.05.2003).

So that he blames the West and address the West for the shortcomings is natural, but the Economic instability is not all on the Western Sanctions, as that is also because the ZANU-PF, the Benzes bought under the ZANU-PF elite while the schools depleted, the civil servants delayed salaries, the missing of foreign exchange and dollars in the country are run-out. There are reasons as the nepotism, the unstructured business, the export and the agricultural inefficiencies together with draught and all the weak governance that creates deficiencies and devalued the economy. There are reasons for the economy crashed as the empty coffers while the elite was eating elephants and entertaining the Luxury Hotels in the Honor of the President Mugabe latest birthday. So there is money, but they are spent on truffles for the President, instead on citizens and services for the public. That is not the fault of the Western that he claims, together with reforms and not institutions, but instead all centralized in the hands of President.

That is from the same man who has put his hate on the West, as they are sanctioning the Zanu-PF regime and Mugabe long-term reign of the Nation. The same man who have said anything possible about the Americans and British, the man who has claimed that they are the reason for all the troubles, have no quarrel this year and of recent years traded with the Chinese government and their national companies. Like there 128 development projects from 2000 – 2012 made by the Chinese in Zimbabwe. While the Zimbabwean Government have also planned to go from US Dollar to Chinese Yuan (was planned in 2015) as the official currency as the Mugabe regime is more in the pocket of the Chinese, than everybody else (Archdeacon, 2016).

This is also a way of Chinese to grade their power and take more control on the African Continent, as the Zimbabwean have such a monetary fiscal issues that anybody who will clear debt and will drop fresh coins to the regime is friend, especially when there only optional to let the Chinese work and build there; as a way of renting the country away, while the Elite eats the money. Something the country wished the IMF would let them do, but since they are Western, French and even US Dollar fueled they are not as willing as Beijing, therefore Mugabe will easily play kind Uncle Bob, while blasting the West, which is a good luck for the Zimbabwean Government. Though we know and they know, they would easily said ‘YES’ to the loans from the International Monetary Fund.

So the hatred towards the once who was the allies and friends, like he was once so proud of English culture and being knighted, the man who once was their ally and turned into a villain, the question if he was a needed villain for the British, as he fought their colonial rule under Smith Government in Rhodesia and made the new state Zimbabwe. Which was a feat and was something that people could look up-to, when he surged the power he consoled it by all means and even ended lives to keep it; this what happen to Nkomo and to the once that he used the military on, as they we’re not loyal to him; instead to the Opposition that wasn’t him. That is why it is ZANU-PF, as they we’re two parties to take control over and even consolidated with all ways. The same he has done with the state and therefore the disarray and the economic instability, therefore the stop of using own currency and American Dollar together with the newly planned transition towards the Chinese Yuan.

There are an issue and aggression from Mugabe towards the West, he has fought them all his life, but also had a an admiration for it, as he would easily wear Western clothes and import expensive westernized products, as his wife spends the government funds there and not in Beijing, even if the government gets the funds there and development projects from there now, as the IMF and other does not offer the sanctions nation with fiscal financial subsidizes and loans. Peace.

Reference:

Archdeacon, Olivia – ‘China buys its first African colony for a meagre $40 million’ (15.01.2016) link: http://capx.co/china-buys-its-first-african-colony-for-a-meagre-40million/