Electronics

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Thursday, June 14, 2012

2012 Budget breakdown


2012/13 Budget. Govt introduces new taxes as it seeks to spur growth.



WINNERS

EDUCATION

Education continues to take the biggest chunk of the budget. Ms Kiwanuka allocated Shs1,669 billion to the sector (or 17 per cent of total budget). This is an increase from the Shs1,418b allocated in the last financial year. Primary school teachers can expect a pay rise.

INFRASTRUCTURE

The works and transport sector also got an increment in allocation. The sector will spend Shs1,651 billion up from last year’s Shs1,291 billion.

YOUTH EMPLOYMENT
An additional Shs3.25 billion has been provided to boost the Youth Venture Capital Fund for which Shs25 billion is currently being lent out to youth. The minister said Shs8b has been lent out so far.

PAYE
Government has increased the Pay As You Earn threshold from Shs130,000 to Shs235,000 per month. That means people with earning of Shs230,000 and below are exempted from this tax.

DIGITAL TECH
To facilitate smooth transition from analogue to digital terrestrial transmission by use of Set Top Boxes, import duty on Set Top Boxes was reduced from 25 percent to 0 percent for a period of one year.

GAMING AND BETTING

Whereas the minister announced that she was reinstating the VAT exemption on gambling, she increased the Gaming and Pool Betting Tax from 15 per cent to 20 per cent. This measure, she says, will generate Shs.4.3 billion.

SPIRITS/COSMETICS
The excise duty on spirits from locally-made raw materials has been raised from 45 per cent to 60 per cent. Minister also announced the introduction of a 10 per cent tax on cosmetics and perfumes.

WATER
The cost of piped water is expected to rise after the minister announced the reintroduction of VAT at 18 per cent. The measure, Ms Kiwanuka says, will generate Shs21.7 billion.




Thursday, June 7, 2012

Museveni delivers Uganda State of the Nation Address 2012



H.E. the Vice President,

Rt. Hon. Speaker of Parliament,
His Lordship, The Hon. The Chief Justice,
Rt. Hon. Deputy Speaker of Parliament,
Her Ladyship, The Deputy Chief Justice,
Rt. Hon. Prime Minister,
Honourable Ministers,
Rt. Hon. Leader of the Opposition,
Honourable Members of Parliament,
Members of the Diplomatic Corps,
Distinguished Guests,
Ladies and Gentlemen.

As usual, I will start my State of the Nation Address with the economy. This time, however, I will concentrate on only four aspects:


i)the recovery of the economy in the last 26 years;
ii)disagreement amongst us on the priority of allocation of scarce resources and the consequent delay in infrastructure development, with its implications for the delay of socio-economic transformation;
iii)sabotage of vital development projects by the indiscipline and, sometimes, selfishness of various actors, including some political leaders; and
iv)corruption as well as selfishness.

Before I talk about the above four aspects, I should also talk about the five reasons that have caused the recovery of the economy since 1986 to-date. These are:

i) security of person and property brought about by the NRM, but more especially by the discipline of NRA/UPDF;
ii) the Private Sector, whose investments account for about 77% of all total investments in the economy, including investments of our citizens of Indian origin (who contribute 25-30% of all the total investments);

iii)the macro-economic stabilization and liberalization of the economy, which enabled us to control inflation for a very long time and to free the Private Sector from bureaucratic interference;
iv) the ever-expanding consumer demand in Uganda and in the Region; and
v) some little support from Development Partners that enabled us to repair some roads, repair the Nalubaale power station, etc.


In particular, I would like to salute the former British Minister, Baroness Linda Chalker, who helped us to repair Nalubaale.

Most of these five are obvious and they need no explanation. The fact that people’s property cannot be grabbed by soldiers and that Ugandans can no longer disappear without a trace needs no explanation. I will only comment on two of the five. These are the nature of the Private Sector that propelled our recovery and the support from the Donors (Development Partners). Regarding the Private Sector that propelled our recovery, it comprises of three elements:

i) those engaged in services such as transport (matatus, boda bodas, buses, etc.), hotels, restaurants, beauty saloons, fuel stations, real estate and shopping malls;
ii) those engaged in light industry manufacturing for import substitution as well as some limited exports; and
iii) those engaged in trading, especially importing – the Kampala City Traders Association (KACITA) type.
Some of the industrial activities are linked with agriculture like fruits juices, coffee, cotton, etc. Agricultural production has certainly contributed to the recovery of the economy. Three players in agriculture have done so. These are:

i) the plantation owners (sugar, tea and coffee);
ii) the big scale farmers; and
iii)the medium scale farmers.


The subsistence farmers, who, according to the 2002 census, comprised 68% of all homesteads, still have much of their potential untapped because we have not yet mobilized them to do. The Mrs. Josephine Kizza’s model farm is the solution to their problem.

Nobody here can claim that I have not exposed all of you to this fact. If all the 40 million acres of land of Uganda that are suitable for arable farming are put to their full potential, there will be a revolution in this country. Everybody will be richer – the families themselves, the Local Governments, the churches and the mosques and the country. Through our zonal meetings, we identified the packages of enterprises for each area according to the households’ landholdings. Let all the leaders get moving on this one.

The first two elements of the Private Sector, i.e. those engaged in services and light manufacturing industries, are the most useful because they add value to the goods and services produced in Uganda. They are not like KACITA which concentrates on turning Uganda into a perpetual market for the products of foreign countries. This is where the future lies. We should have more and stronger enterprises of this type. These groups must be specifically encouraged. They should not be delayed in any way by anybody

if we want our country to go beyond where we are now. Yet the economy cannot stay where it is now. This is because it is already being overtaken by the demand for jobs by the young people as well as the demand for dollars for imports.


As you know, the light manufacturing has been in sugar, soft drinks, beer, soaps, some little textiles operations, vegetable oils (Mukwano and BIDCO), fish processing, cotton-ginning, coffee-hulling (removing the skin of the coffee berry), cement production, steel bars production (mitayimbwa), recycling of batteries, milk processing, fruit juice processing, plastics, etc. These light industries save or earn the equivalent of US$ 1,230 million for Uganda per annum. This category has got a lot of potential for expansion. If we could, for instance, stop the bad fishing practices on our lakes, deepen coffee processing beyond coffee-hulling to coffee-roasting and grinding, expand juice and milk processing, link the steel mills with the iron-ore deposits at Muko and Sukuru hills, etc, this economy would be totally transformed.

We have seen that among the categories of the Private Sector, the most useful ones are: agriculture, services (transport, banking, hotels, etc) and light industry. The perpetual importers of products that can be made here are not a positive element in the long run. As already mentioned, trading is partly positive if it involves internal distribution in Uganda and exporting our products to the Region or beyond.

Importers, however, have caused chronic haemorrhage in Africa, especially because most of the imports are simply luxury goods, not production inputs. It is important to point out that, even when they are inputs for production, it would be better if most of them were produced in Uganda and if the local products are comparable in price as well as quality to the imported ones.
Light industry is the most promising of all these. It produces products that are, indeed, very much needed for human sustenance. These include transport, food, clothing, building materials, medicines for human beings, drugs for pest control and for livestock and so on. These are all basics for human life and their demand is durable. In addition, light industries produce weapons for self-defence and, then, a country’s future is assured. These days, brains, in the form of computers, are the ones that operate machines – guiding them to do work. These are the sectors where the whole political and administrative groups should focus their attention. This is where the future of the country lies. In time, light industries will move into sectors of heavy industry such as steel manufacturing out of our good iron-ore deposits, fertilizer manufacturing, earth-moving equipment and so forth.


Yet, if you examine the sectors that have been growing fast in the last decade, you will find that they are the following: importing vehicles i.e. transport in that sense – not in the sense of manufacturing the means of transport here; beauty saloons; restaurants and hotels; bars; real estate; shopping malls and many others. These have been growing at the following average annual growth rates: banking sector – 17.2%; transport and communication services including mobile telephones – 14.3%; hotels and restaurants – 8.8%; real estate – 5.6%; other business services (saloons, stationery sales, etc) – 9.7%. If you compare them with growth in manufacturing and agriculture, the figures are as follows: 6.5% and 1.4% respectively (period 2004-2011). All these, except for hotels, are characterized by little employment potential, no export earnings and low or no technology. This is where Uganda is now.
High rates of growth but in sectors that create little employment, bring in little or no foreign exchange and, actually, sometimes squander the little foreign exchange we earn from coffee, etc, in the form of inputs imported for their operations. This source of growth does not bring socio-economic transformation quickly. Their main attraction is that they are of low technology and require little capital to start-up. These are what the indigenous Private Sector can afford as of now. This is the paradox of the present economy of Uganda: growth without creating enough employment and without earning enough foreign exchange but instead squandering the foreign exchange earned from coffee and other raw-material exports. I, therefore, think that it may be useful to distinguish between core industries that are a must in terms of sustaining human life and, then, peripheral or dependent industries that are either not as important as the other ones or dependent on the others to thrive.

The second category is easy to set up by the Private Sector as they have done in Uganda. The core ones need deliberate nurturing by the State even if they are done by the Private Sector. It is the country that needs them and not the Private Sector.


More often, you hear misnomers such as “factory y’ omuyindi”. There are no Indians’ factories in Uganda. The Indians’ factories are in India even if they are built and owned by non-Indians. What we have in Uganda are Ugandan factories operated or owned by Indian families. Those Indians are working for us. Those factories, by whomsoever, expand our GDP, not that of India. Whose raw-materials do they buy? Whose utilities (electricity, water, telephones, etc) do they use? Which market do they produce products for? Who benefits from their export earnings? Whose youth are employed by these factories – ours or the Indian ones? To which Government do they pay taxes? When you answer each of the questions above, you will discover that these are Ugandan factories and not Indian factories. That ignorant talk should stop.
The three sugar factories in Uganda i.e. Kakira, Lugazi and Kinyara save Uganda US$ 232 million in import substitution per annum. They paid 400 billion shillings in taxes in the Financial Year 2010/2011. They employ 19,000 Ugandans and engage over 200,000 people in indirect employment including out-growers, transporters, traders, stockiest, etc. In the Financial Year 2010/2011, they earned US$ 41 million in export earnings. When all the three expand as they plan to, these factories will earn about US$ 60 million in export earnings and will pay over 600 billion shillings in taxes per annum. The three factories will also employ 25,000 Ugandans and produce a total of 450,000 metric tonnes of sugar per annum instead of the present 290,000 metric tonnes per annum.


What is planned for sugar should also be planned for coffee, milk, fruits, maize, rice, irish potatoes, beans, wheat, beef and so on. It should be the same plan for minerals, wood products and, of course, fish products.

This brings me back to the four factors I mentioned at the beginning of this speech, namely:

i) the recovery of the economy in the last 26 years;
ii) disagreement amongst us on the prioritization of the allocation of scarce resources and the attendant delays in our infrastructure projects;
iii) sabotage of vital development projects; and
iv)corruption as well as egocentrism based on monetary gain or political opportunism.

Political opportunism involves failure to tell the people what the country needs and instead pandering to uninformed, wrong and populist positions. This is suicidal. Calling cancer ‘flu’ is the surest way of killing the patient. Uganda needs more factories, not just beauty saloons, bars, fuel stations, boda bodas and taxis.


As already said above, I have talked about elements of a modernized Ugandan economy based on natural resources such as agriculture, minerals, fishing, wood products, tourism, etc. There are, however, also knowledge-based industries. These are products of the brain such as cars, machines, computers, processing formulae for food (value addition), medicines, vaccines, etc. Fortunately, our people have designed an electric car. They have processed flour out of bananas. They have made juices out of our traditional foods and medicines out of our traditional medicinal herbs. They have made perfumes out of our traditional herbs (emigaju), etc. These have got huge economic potential – much more than coffee as a raw-material and the like. Scientific innovations and scientists in general must, therefore, be given priority, in terms of Government funding.

I have already told you the factors that led to the recovery of Uganda, namely
•security of persons and property;

•macro-economic stabilization and liberalization;
•expanding national and Regional demand;
•the Private Sector that is responsible for most of the investments; and
•some little Donor support.

All these factors would, however, have assisted greater and faster expansion if we had dealt more decisively with the issue of infrastructure - especially electricity, roads and the railway. Depending on Donor support, we have done some roads, repaired Nalubaale, etc. However, socio-economic transformation needs much more than that. For example, to be where Malaysia is now, we need, at least 11,954 MW of electricity. With Bujagali, we shall be having only 781 MW. This will give us a kWh per capita of 196 compared to the one of the USA of 12,914. Although, we are still lagging behind other developed countries, we recognize that we have made progress in this area. In 1986, Uganda was generating only 60 MW and had a kWh per capita of 28. This was a big shame.

We must also tarmac all the major roads for both economic and political reasons. Depending on funding from foreign sources is not enough. The only sure answer is to rely on our own means. Tax collection in 1986 was only 5 billion shillings. Our tax collection next Financial Year is projected at 7,132 billion shillings. In the Financial Year ending June 2012, we collected 6,169 billion shillings. It was shared out as follows:

) Wage bill and allowances - 1,807 billion

2) Roads - 1,284 billion
3) Energy - 1,200 billion
4) Education - 664 billion
5) Health - 792 billion
6) Defence and Security - 407 billion
7) Local Government - 212.9 billion
As you can see, the wage bill takes about 1,807 billion shillings. This is the largest share in our budget distribution. Recently, I launched the construction of the Arua-Oraba-Kaaya road which will cost us 142 billion shillings including 10 billion shillings for compensating people’s properties near the road. If, therefore, the wage bill was 1,000 billion shillings instead of being 1,807 shillings, we would have saved about 800 billion shillings per annum for roads and dams. Over a five year period, we would have accumulated about 4,000 billion shillings. That would enable us to do about 29 roads like Arua-Oraba-Kaaya. What impact would this have on the economy?

According to Uganda National Road Authority (UNRA) and according to me, in my capacity as President who travels across the country quite often, there are 44 roads in Uganda with a total length of 3,466 kms that should be tarmacked. The list is attached as appendix I. The estimated cost is US$ 4,076 million or 9,791 billion shillings. UNRA puts these roads in two categories: A and B. There are 19 roads in category A. These need US$ 1,428 million or 3,435 billion shillings. These roads are the following
1. Olwiyo-Gulu-Kitgum (167 kms)

2. Moroto-Nakapiripirit (92 kms)
3. Muyembe-Nakapiripirit/Moroto-Kotido (193 kms)
4. Soroti-Katakwi-Moroto-Lokitanyala (208 kms)
5. Kapchorwa-Suam (77 kms)
6. Villa Maria-Sembabule (48 kms)
7. Mpigi-Maddu-Sembabule (135 kms)
8. Mukono-Kyetume-Katosi-Nyenga (74 kms)
9. Ntungamo-Kakitumba/Mirama Hills (37 kms)
10. Rukungiri-Kihihi-Kanungu-Ishasha (74 kms)
11. Kyenjojo-Kabwoya (102.4 km)
12. Buwaya-Kasanje-Mpigi-Kibibi-Mityana (90 kms)
13. Hoima-Butiaba-Wanseko (111 kms)
14. Kayunga- Bbale-Galiraya (88.5 kms)
15. Kabale (Ikumba)-Kanungu-Buhoma (120.0 kms)
16. Ishasha-Katunguru (88.0 kms)
17. Kabale-Bunyonyi (6.0 kms)
18. Mbale-Lwakhakha (41.0 kms)
19. Atiak-Adjumani-Moyo-Afoji (104.0 kms)

Today, I stand here with pride as one of the founders of NRM, ever since 1971, when we started the struggle against criminality and misrule in Uganda. As I have repeatedly told you, tax collection was only 5 billion shillings in 1986. It is now 7,000 billion shillings. If this money was distributed in a kiyekera (guerrilla) way, we could certainly do these roads ourselves – at least the 19 roads in the UNRA’s
category A that need 3,400 billion shillings. If the wage bill was only 1,000 billion shillings instead of 1,800 billion shillings, by saving 800 billion shillings per annum, we would accumulate 4,000 billion shillings in five years. This sum of money is more than enough to do the 19 roads we have been struggling with.


The clamour for higher pay by public servants and political leaders is, therefore, untimely and unfair to the 34 million Ugandans. Remember political and public service workers are only 300,000 in number. Even if you assume that each one of them has 5 persons under him or her, that would put the figure at 1.5 million beneficiaries. How about the other 32.5 million? The correct thing to do, now that we have some money, is to serve the many before we serve the few. If we were patriotic and undertook a voluntary salary cut for a number of years, we would build these roads ourselves.


While I still await patriotic offers about the voluntary salary cuts, I have initiated some talks with National Social Security Fund (NSSF) regarding the possibility of borrowing some money from them to do some of the roads. The NSSF does not have that much money. It only has 2,800 billion shillings. Possibly, we could borrow something like 1,000 billion shillings from them. That would cover some of the roads but not all of them.

There are other funding options which we are looking at with some people in connection with European and Chinese Banks, with some foreign countries, etc.

With our oil, matters will be easier. We shall be able to fund the roads, the railway and the power stations easily using our own money.


For some of the roads, we may have to forego some of the expenditure items and concentrate on the roads instead.

In the meantime, I demand that the clamour for more pay and allowances by public servants and political leaders must stop so that we concentrate on the roads and power. The only public servants that deserve pay rise are the scientists because they contribute decisively to the economy and their contribution is unique. It is not easy to replicate. The promise we had made to the teachers and other public servants of 250 billion will go ahead for at least this Financial Year. I feel very bad to see this 6,169 billion shillings we have succeeded in generating being used in a manner that does not build a higher threshold for our economy. Once we build a road, it will be there for 20 years. Salaries are monthly. Increment of salaries should wait until we have dealt with infrastructure or until our oil and gas are operational so that we can use the proceedings to fund infrastructure. Then, we can start moving again on wages.

I know inadequate salaries are also a challenge to the families of public servants. Uganda, however, is not like Europe. Many of the public servants have land at home and can grow food to supplement the yet small salaries until the situation improves. When we build the base of our economy, we shall all be better off.

Although I am not in favour of salary increases in the public service, there are two categories that are still left out. These are the councilors at the district level and the LCI Chairpersons. These persons monitor Government programmes, maintain security in villages and adjudicate cases. Yet, they have been getting very little or no facilitation at all. A provision of about 20 billion shillings per annum could cater for these two groups provided creation of new villages and new sub-counties stops.


Therefore, those who have been pushing for salary and allowance increases at this time, when we have not finished the base of the economy, are committing a serious mistake. The only people that should get salary increases should be the scientists, as I have already said. These are people we cannot easily replace. Yet we need them for the knowledge-based economy such as making cars, making computers, adding value to agricultural products, fabricating machines and machine-parts, etc. I have already talked about this above.

Those who push for salary and allowance increases as well as endless travels abroad are the same ones that complain that this road is not done, that project is not done, etc. This is hypocritical and should stop. Our discipline of Buhekyera (guerrilla strategy) educated us in the art of first dealing with the core issues and then dealing with peripheral issues later. As bush fighters, I have always told you that we concentrated on the gun and its ammunition, the recruit and some food. The rest, including clothes, medicine, etc., would be got by attacking the enemy units. This is how we built our Army.

The core issues in this economy are:


•defence and security;
•law and order;
•electricity;
•roads;
•the railway;
•piped water for the big towns;
•education;
•health;
•tourism; and
•scientific innovation.

With this foundation in place, we can, then, start looking at wage increases. It was not accidental that the salary of the President was 150,000 shillings between 1986 and 1996. It was deliberate. If one consumes little and invests more, the future will be guaranteed. If one consumes a lot and invests little, the future will be doomed. Spending prematurely on wages is really bad planning. It makes Government spend too much on recurrent costs, yet with capital projects, you spend only once and you do not repeat such expenditure for decades.

Since I am always under harassment for roads and electricity by people who at the same time agitate for higher salaries and allowances, as I have already pointed out above, I may resort to one alternative i.e.
borrowing from NSSF to do some of the urgently required roads. We may have to give a ten-year bond to NSSF in order to get 1.4 trillion shillings to construct about ten good roads like Arua-Oraba-Kaaya. Internal borrowing should always be looked at before we look at external borrowing. Therefore, those who have been talking about the roads in the manifesto should know that these roads will be done in one way or the other.


I have spent a lot of time talking about two of the four factors I said were the main themes of this Address as far as the economy was concerned. These are: the recovery of the economy in the last 26 years and disagreements amongst us on the prioritization for the use of scarce resources.

There are two other factors I need to talk about briefly. These are: sabotage or delay of vital projects as well as corruption and selfishness. It is bad enough for villagers to not fully understand the importance of factories. It is a disaster for leaders to do the same while at the same time they are drawing salaries out of salaries paid by the very factories. We have had delays of factories in Lugazi, Amuru, Tororo, etc caused by this failure of leadership. This is not acceptable. If a leader has a criticism about the method of introducing a factory in one’s area, bring out the criticism in a constructive manner, in the right forum, as you also quickly bring forward a solution. There should be no acrimony, no delays because this is our factory.


Do not deceive yourselves that investors are dying to come here. They have got many places to go to. I attracted BIDCO to come to Kalangala. After some hassles, they started. Kalangala is now completely transformed because of their effort. They, from the beginning wanted to expand since they have idle machinery here. As usual, there were delays by the system here manned by people who do not know where the future belongs. Meanwhile, BIDCO has already got 70,000 hectares of land in Nigeria where they are going to produce 350,000 metric tonnes of palm oil
This is compared to 16,000 metric tonnes of palm oil produced in Kalangala where Government gave them 6,200 hectares of land plus 2,800 hectares of land from out-growers. Who is the loser? Certainly, not the investor. The ones tied to an under-developed Uganda are not the investors; it is the Ugandans, especially the poor ones who cannot go for greener pastures. The investors are mobile with their money.


All the Ugandan leaders must learn how to ‘kwogeleza’ (to woe) as we do with brides when it comes to investors. You do not hold press conferences to discuss the issues with your intended bride. Matters are discussed confidentially and with respect. You may not agree, you may modify arrangements, but it is all done with seriousness and courtesy. If you can do all that for a single bride how about this country of 34 million people? Are we not condemning to doom the future of this ‘bridegroom’ by our conduct, we, his agents? Nevertheless, the officials who handle these should also be serious. Ask the right questions quickly. Who is the legal owner of this land? If there are bibanja-owners, how are you engaging with them? If there are illegal squatters, how do we handle them? Handle issues thoroughly, knowledgeably but firmly and fairly. Knowledge creates confidence and firmness in decision making.

There is the issue of corruption and selfishness. Some of the frustrations to the investors are caused by corruption. Investors are harassed for bribes by these traitors. I do not know why the investors do not report this. I intend to bring a law to punish severely those who endanger our future on account of corruption, selfishness and opportunism.

Before I leave the sections on the economy, I would like to touch, briefly, on how the economy has performed since last year. You remember, soon after the elections of last year, the economy hit what I had long anticipated – some bad times. Owing to some drought but also due to increased Regional demand (which itself is a great opportunity for the region and serious producers), commodity prices went up. This was also due to increased world prices owing to the emergence of bigger middle classes in China, India, Brazil and to some extent, in Africa. As I told you in my previous speeches, it is, actually, good news for serious producers. On account of increased construction in the world, price for steel has gone up, price for sugar has gone up globally because of increased demand and so has the price of petroleum because of more people in the world, including Ugandans who are driving cars.


Additionally, the economies of the West are in decline because for long they have been leading an affluent lifestyle at the expense of the rest of the world especially Asia, Africa and Latin America. Prior to the emergence of China, India, Brazil and to some extent some parts of Africa out of poverty, much of the global resources were only supplying the West. That is why in the 1990s, when I was trying to market our steel in Muko near Kabale and Sukuru hills near Tororo, I was told that there was too much steel in the world, that there was a “steel glut”, as a consequence of that there was nobody willing to invest in iron-ore processing. At that time, the price of a tonne of steel was US$ 200. By last year, a tonne of steel had gone up to US$ 900. Why? It is because steel which was previously being used by only a small population of the world for construction of houses, making cars, etc., is now being used by billions of the world population. This is good news for Africa and for Uganda. Indeed, in 2011, we earned US$ 449 million from the export of coffee against US$267 million which we earned in 2010. In previous years, we earned as less as US$ 120 million annually from export of the same amount of coffee.

Therefore, Uganda had a lot of opportunities. On the one hand, Regional demand was going up and, on the other hand, prices for our commodities were also going up globally. The only negative aspect was that the consumption in Europe and USA was going down. We could, however, not fully take advantage of these opportunities because of previous mistakes committed against my advice and my entreaties to the various power centres. Particularly, relevant for these problems were the delays of Bujagali and sugar factories in Lugazi and Amuru. Instead of taking advantage of the Regional demand, the prices went up for the consumers. The price of sugar went up to about 10,000 shillings per kilogram.


The charlatans went into full gear. “The NRM Government has failed”. “They are useless”. I took time and explained to Ugandans on the radios and also explained to the NRM leaders at Kyankwanzi. You can go back and refer to my speeches and see that there is nothing I predicted that has not turned out to be true. The price of sugar is now at 3,000 shillings per kilogram. The exchange rate that had gone to 2,800 shillings per dollar has been hovering around 2,450 shillings per dollar, etc. Yet, we have not completed dealing with the real bottlenecks except electricity which is beginning to work out miracles in the economy. With just three turbines operational at Bujagali, i.e. 150 MW of the 250 MW total, there is already a remarkable change. I am told that industrialists are already very excited. They have shut down the standby generators that were causing them to ‘bleed’ so much. This is just the beginning. The Banyankore say: Ekihambo kirakutambire kikubanza obutuutu – the pumpkin plant that will solve your hunger problems starts by giving you the young pumpkins. English is a poor language; you cannot easily translate these very precise statements. What, then, will happen when Lugazi is expanded, Amuru is built
Sango Bay is built, Ziwa Ranch is turned into a sugar-cane plantation, Casement sugar in Kaliro starts, irrigation around the Rwenzori and the Elgon areas are expanded and we start using fertilizers, etc? The sky is the limit!


Nevertheless, I should not forget to say “shame to the charlatans”, “shame to the liars”, “shame to the opportunists”.

Before I conclude this section, I would like to add that Besigye’s lawlessness added to the problem of the relative scarcity of the dollars hence the loss of value of the Uganda shilling. The fujo and the false stories that were being sent out of Uganda scared tourists for some time. This meant less dollar inflows, dollar appreciation and more difficulties for KACITA, the importers. However, for exporters and those who are dependent on local production, it meant more opportunities. Whenever you would export, you would earn more because a dollar was giving you more shillings. It should, however, be sacrilege to have political actors who tell lies about the destiny of Ugandan people.

The Minister of Finance, in the budget speech, will deal with the short-term and medium-term tactical issues that are meant to further help the economy. I have been dealing with the strategic issues in this speech.

Apart from the economy, the other issue has been the indiscipline of Dr. Besigye and a small clique of his. I congratulate the Parliament of Uganda for administering democratic political kiboko to the Forum for Democratic Change (FDC) during the East African Legislative Assembly (EALA) elections. I congratulate all the candidates that were elected - NRM and non-NRM. The egocentrism
of Dr. Besigye and his group has totally isolated them from all positive thinking people. Once you pass the Public Order and Management Bill and I sign it, the fujo will stop. I congratulate the Police for defeating this conspiracy by Dr. Besigye of attempting to overthrow the Constitution by insurrection.


The Police was able to protect people’s property in the markets and shops from looters organized by Dr. Besigye. Unfortunately, there were some deaths including that of a Police officer. The Public Order and Management Act will make all this impossible. There is, however, some laxity in the legal system. Why should any judicial officer release on bail somebody who has repeatedly abused the terms of the bail? Is this not an abuse of office? Is this not possibly corruption?

The media is also another corrupt, irresponsible and unprofessional group. Some of my supporters have been asking me for money to bribe characters that are called DJs so as to get favourable coverage in the media. I told my supporters that I would never give them that money. It is the duty of every Media House (radio, TV or news paper) to ensure that they give balanced and objective coverage of any story. It is an obligation on them and not a favour to the public. Any Media House that does not do it will lose out. I will show you how if they continue. We do not have to bribe anybody. The power of licensing belongs to the State. The State of Uganda has got a historical mission: Nationalism, Pan-Africanism, Socio-economic transformation and Democracy. It is the duty of every Media House to further these aims. I hope they will listen to my advice.

Otherwise, the country is peaceful. The UPDF is much stronger than ever before. There are only a few gaps in our overall defence, which will be closed in the coming years’ budgets.
Ugandans have relaxed on HIV/AIDS. I hear the prevalence rate has gone up to 7%. More dangerously, new infections were 129,000 in 2011 up from 115,000 in 2007. This is an increase of about 3,500 new infections per annum. What a big shame! Why should anybody get HIV/AIDS today when all the information on prevention is available? HIV/AIDS only is transmitted through promiscuity. Close this gap. Some of the interventions cover up this failure. Anti-promiscuity measures must be emphasized.


Madam Speaker, I congratulate you, your Deputy and Hon. Members upon completing some of the work of Parliament over the past year, who as at 21st May 2012 had been able to transact business as follows:

(i) Bills passed – 11
(ii) Motions for Resolutions – 40
(iii) Reports considered and adopted – 23
(iv) Petitions considered – 20
(v) Ministerial Statements presented and debated – 35
(vi) Other Statements – 15
vii) Questions for oral answer responded to – 07


Among the Bills passed were:
(i) The Companies Bill 2009.
(ii) The Prohibition and Prevention of Torture Bill, 2010.
(iii) The Uganda National Meteorological Authority Bill 2010.
(iv) The Transfer of Convicted Offenders Bill 2007.

I thank you Madam Speaker, Your Deputy, Hon. Members and the Technical Support Staff for what you have been able to accomplish during the last twelve months. Since quite a number of Bills are still pending, I request the Business Committee to look at what is pending and sort out what can be fast tracked.

A list of Bills from Ministries/Departments which may be presented to Parliament during the next twelve months is appended hereto. (Appendix II).

Finally, I congratulate the Honourable Margaret Zziwa who was elected as Speaker of EALA the other day. There was some confusion in the Newspapers to the effect that there was an NRM official candidate. There was no official candidate because the NRM Caucus had not chosen one.


I thank you very much.
































Thursday, May 31, 2012

Mafabi sacks UPC, DP ministers over elections



The rift in the Opposition in Parliament was yesterday laid bare after the leader of opposition sacked the UPC and DP shadow ministers over a disagreement on EALA representation.


In yesterday’s election, official results indicated that NRM’s Dora Byamukama, Bernard Mulengani, Dan Kidega, Nusura Tiperu, Michael Kennedy Ssebalu and Margaret Zziwa would be joined by UPC’s Chris Opoka (233 votes) and DP’s Fred Mukasa Mbidde (247) as Uganda’s representatives.

The tight race for the single independents slot was won by Ms Susan Nakawuki (106), having defeated fellow former MPs Martin Wandera (95) and Ben Wacha (87).

However, Leader of the Opposition Nandala Mafabi questioned the manner in which the UPC and DP nominated members for EALA yet, “there were no consultations between the different parties.” UPC Whip and the DP Deputy Whip still sharply disagreed with him. Ms Betty Amongi, the UPC whip, was the first to object, saying UPC consulted and even reached out to the NRM for support. “I would like to put it on record that after the meeting [of all parties] in Parliament, UPC as an independent party in Parliament consulted and the party made a decision to nominate a candidate,” she said.

“We consulted with the DP President Mao and he also told us that he had consulted his fellow members and had nominated a candidate.”


And then DP chipped in.

“Democratic Party is a party on its own and its sign is a Hoe. Not a bus, not fingers or any other thing,” said Mr Joseph Ssewungu, the deputy DP Whip. “We as MPs follow what both our Party president Norbert Mao and secretary general tell us and when they met, they decided on a candidate we should support and that’s the person we presented here.”

 After failing to rally the two parties to support his proposal to block the election process, Mr Mafabi, who was accused by NRM MPs of “failing in his work as the Leader of Opposition and exposing his lack of power to manage the opposition”, stood up and announced the dismissal of the “uncooperative” parties from the shadow cabinet.

“I am now going to show you that I have power,” he said. “FDC is not going to participate in these elections and furthermore, I suspend UPC and DP from the opposition cabinet henceforth.”

He added: I thought that we were working together as opposition. Little did I know that the colleagues I was leading turned against me! I thought these were colleagues I was with in the opposition but I was wrong.”


Mr Mafabi told Prime Minister Amama Mbabazi, whom he was looking directly in the eye, to only deal with FDC as the only Opposition in Parliament. “To the Prime Minister,” said Mr Mafabi, “from now on there is only one party in the Opposition that you should deal with and that is FDC.”

Mr Odonga Otto (FDC, Aruu) accused the two parties of betrayal. “They should formally form an alliance with the NRM because we [Official Opposition] are being shot from the front and from the back,” he said.

However, the Speaker of Parliament, Ms Rebecca Kadaga, told the LOP that all MPs from the Opposition were elected from independent parties. “The MPs from DP and UPC were elected to this House on their independent tickets and they are here as such. The shadow cabinet is your business,” she said.

The sacked shadow ministers include Fr Jacinta Ogwal, UPC and minister for disaster, Benson Obua Ogwal, UPC and minister of ICT and communication and Ms Amongi, UPC.

From DP, Mr Mathias Mpuuga, the minister of corruption and presidency; Mr Medard Ssegona, the minister for justice; Ms Betty Namboze Bakireke, minister of local government, Mr Lulume Bayiga the minister for health and Mr Ssebuliba Mutumba the minister of works.
On May 22, 2012, the five opposition parties in Parliament signed a joint statement in which they committed not to nominate candidates to EALA before consensus is reached on satisfying the requirement of Article 50(i) of the EAC Treaty. The statement was read out at a press conference at the Inter-Party Cooperation headquarters.









Tuesday, May 29, 2012

Volvo’s self-driven car convoy treks 125 miles across Spanish motorway

Motorists may soon be able to use their cellphones while driving without fear of getting a ticket. In fact, they may be able to take their eyes off the road completely.


Volvo has successfully completed a public test of a self-driven convoy of cars. A human driver led the convoy of three self-driven vehicles, which mimicked the lead driver's actions through a wireless link.

"Driving among other road-users is a great milestone in our project. It was truly thrilling," Linda Wahlstroem, project manager for the Safe Road Trains for the Environment (SARTRE) project at Volvo Car Corp., told the BBC. "We covered 200km in one day and the test turned out well. We're really delighted."

The four vehicles completed a 125-mile voyage across a Spanish roadway traveling at an average speed of 52 mph.

You can watch a 2011 test video of the SARTRE system:



The SARTRE test was carried out as part of a European Commission research project. If offered to the public, Volvo says, the self-driving convoys could also allow commuters to "work on their laptops, read a book or sit back and enjoy a relaxed lunch" while traveling.


Of course, while the technology is exciting (the SARTRE system uses cameras, radar and laser sensors), the net effect would have some of the same drawbacks as public transportation. After all, you'd have to be traveling in the same direction as your convoy leader.

Still, Volvo says, the "road train" may be a viable future option for motorists and has added value since it would not require the development of new vehicles or roadways.

"People think that autonomous driving is science fiction, but the fact is that the technology is already here. From the purely conceptual viewpoint, it works fine and road train will be around in one form or another in the future," Wahlstroem told the BBC.

"We've focused really hard on changing as little as possible in existing systems. Everything should function without any infrastructure changes to the roads or expensive additional components in the cars."

No word on whether the SARTRE name was inspired by the French existentialist author Jean-Paul Sartre.





Saturday, May 12, 2012

Winnie Byanyima: No ordinary woman




Imagine a picture captioned with “Mrs Winifred Besigye, aeronautical engineer for the Uganda Space Programme, conducting orientation for entrants to the Flight Engineers Training Workshop”. Feels strange on the tongue and mind if you are Ugandan, doesn’t it?
It gives the impression that someone other than Winnie Byanyima, Ugandan politician and women-rights activist, is the subject. Perhaps this is as it should be, because for a long time, Byanyima has been phenomenal in proving that it is only challenging, not impossible, for a woman to score successes while working with or against patriarchal structures.
Besides rather than behind
In hindsight, it seems like a deliberate branding strategy on her part for never overtly using her husband’s name to get ahead, since her 1999 marriage to retired Colonel Kizza Besigye, leader of the opposition party Forum for Democratic Change (FDC). Her example proves that women can be besides successful men, instead of behind them as the popular adage maintains.

She could have scripted her bucket list like most girls: understudy other women for the role of wife and mother; study “soft” courses if the family was either willing or able to send her to school and have many babies really quickly. She could have settled for talking about and leaving women’s issues at the village well, never dabbling in politics beyond voting passively, and generally being satisfied with whichever dream, life or her husband, allowed her to chase.


Instead, she lived the very opposite of such type-cast roles; magnetised to politics by her father’s example, studying engineering at university mainly to defy society’s expectations of girls and excelling at it and winning a scholarship. She refused the token seat and beat men in hotly-contested Women member of Parliamentary elections, spearheading censure of the corrupt, actively contributing to a guerrilla war effort when she was aged 22, being vice chairman to a group in opposition to the government she once worked for and founding, and directing, organisations devoted to bettering the circumstances of women.

Leading by example
The impact on Ugandan society and women in particular is as wide-ranging as the various facets of her personality. Where her father was once National Chairman of the Democratic Party, she ended up being the third Vice-Chair of the Reform Agenda, before it evolved into the FDC. She aided its transformation from an Elect Kizza Besigye Task Force into a party formed on July 12, 2002, aimed at achieving political reforms for good governance, sustainable national unity, democracy and national development.


Her election in 1994 to the parliamentary seat for Mbarara Municipality was one small step for her, but one giant leap for Ugandan women. At the time, she was one of the few women who stood for direct election when others were content with the seats available to them on government’s affirmative action.


“The day I was first elected, women ran out on the streets, sat in the middle of the road, they climbed on top of the cars, ululating and even taking off their tops”, she recounted in a 2004 interview with the magazine Feminist Africa.

Partly, the euphoria was because she was on the road to fulfilling her pledge to campaign for equal value in government policies for women and children. Partly, it was because she had dared Ngoma Ngime, an incumbent Constitutent Assembly delegate, on President Museveni’s own home turf.

But more than dare, she actually had beaten a sitting National Political Commissar who had the resources of the NRM’s machinery at his disposal while her strongly feminist platform seemed like political suicide and won her no favours from her party, despite her longer track record and achievements.

Leveling the political ground for women
In Parliament, she formed the Women’s Caucus, which was instrumental in creating a constitutional basis for a Uganda where the genders were equal. The women’s caucus helped shape the writing of the 1995 Constitution in gender-sensitive language.

It sponsored the inclusion of an explicit statement of equality before the law, which invalidates all other laws, cultures, traditions or customs that undermine the dignity and well-being of women, and provides affirmative action for women to redress historic imbalances. In 1995, she became a founding member and first chair of the Forum for Women in Democracy (FOWODE), which grew out of the caucus. FOWODE extended the caucus’ scope by promoting gender equality in all decision-making through advocacy, training research and publishing.

After two terms as Mbarara Municipality’s representative in Parliament, she voluntarily stepped down in 2004. Hers is an example very immediate as Uganda currently debates the presidential term limits.


Ironically, she has expressed interest in standing for President, come 2016. If she does, she will be the third woman, after Miria Kalule Obote in 2006 and Betty Kamya in 2011, to stand for president.

Popular opinion maintains she might be the first one with a serious chance of succeeding where even her husband has yet to.

Fact file .
Born January 1, 1957.

Married to Dr Kizza Besigye, FDC Chairman, with whom she has a son, Anselm.

Education: Mt St Mary’s College, Namagunga. Has a degree in Aeronautical Engineering, the first female Ugandan to become an Aeronautical Engineer.

Profession background: Aeronautical engineer, politician and diplomat. Byanyima worked as a flight engineer for the now defunct Uganda Airlines. She has served as the Director of the Gender Team in the Bureau for Development Policy at the United Nations Development Programme (UNDP) since 2006.

Political background: Byanyima is a member of the FDC party, although she has significantly reduced her participation in partisan Ugandan politics since she became a Ugandan diplomat in 2006.

Political jobs she has held over the years:

•She was a member of the Constituent Assembly that drafted the Ugandan 1995 Constitution

•She served two consecutive terms as a Member of Parliament, representing Mbarara Municipality, from 1994 until 2004.

•Appointed Director of the Directorate of Women, Gender and Development at the headquarters of the African Union in Addis Ababa, Ethiopia, in 2004. She left this for appointment at UNDP.













Monday, April 9, 2012

South Korea says North preparing for nuclear test



SEOUL, South Korea (AP) — Recent satellite images show North Korea is digging a new underground tunnel in what appears to be preparation for a third nuclear test, according to South Korean intelligence officials.


The excavation at North Korea's northeast Punggye-ri site, where nuclear tests were conducted in 2006 and 2009, is in its final stages, according to a report by intelligence officials that was shared Monday with The Associated Press.

Its release comes as North Korea prepares to launch a long-range rocket that Washington and others say is a cover for testing missile technology that could be used to fire on the United States.

The Obama administration said Monday it would consider both a rocket launch and an underground nuclear test as highly provocative and leave Pyongyang more isolated.

"In each case this would be an indication of North Korea's decision at the leadership level not to take the steps that are necessary to allow North Korea to end its isolation, to rejoin the community of nations and to do something about the extreme poverty and depravation that its people suffer," White House spokesman Jay Carney told a news briefing in Washington.


Susan Rice, the U.S. ambassador to the United Nations and current Security Council president, told CNN on Monday that "either or both developments would be a blatant violation of North Korea's international obligations under Security Council resolutions."

"In the Security Council in New York, I anticipate that the council would convene to discuss this and to respond in a credible fashion, both to the missile launch and to any potential additional subsequent actions," she said.

Observers fear a repeat of 2009, when international criticism of the North's last long-range rocket launch prompted Pyongyang to walk away from nuclear disarmament negotiations and, weeks later, conduct its second nuclear test. A year later, 50 South Korean were killed in attacks blamed on the North.

"North Korea is covertly preparing for a third nuclear test, which would be another grave provocation," said the intelligence report, which cited U.S. commercial satellite photos taken April 1. "North Korea is digging up a new underground tunnel at the Punggye-ri nuclear test site, in addition to its existing two underground tunnels, and it has been confirmed that the excavation works are in the final stages."

Dirt believed to have been brought from other areas is piled at the tunnel entrance, the report said, something experts say is needed to fill up tunnels before a nuclear test. The dirt indicates a "high possibility" North Korea will stage a nuclear test, the report said, as plugging tunnels was the final step taken during its two previous underground nuclear tests.
http://news.yahoo.com/video/us-15749625/28898968


U.S. State Department spokeswoman Victoria Nuland told reporters she was not in a position to confirm whether North Korea was preparing for a nuclear test after the rocket launch.


She said a launch would be "highly provocative" and a nuclear test "would be equally bad, if not worse."

Nuland said the U.S. was urging China to use its influence with North Korea to dissuade it from going ahead with the launch.

Asked about Japanese and South Korean preparations to shoot down any parts of the rocket that threaten to fall on their territory, Nuland told reporters that countries in the region have the right to "self-defense."

North Korea announced plans last month to launch an observation satellite using a three-stage rocket during mid-April celebrations of the 100th anniversary of the birth of North Korean founder Kim Il Sung.

The U.S., Japan, Britain and other nations have urged North Korea to cancel the launch, warning that firing the long-range rocket would violate U.N. resolutions and North Korea's promise to refrain from engaging in nuclear and missile activity.

Nuland declined to specify what consequences Pyongyang might face if the launch goes ahead

At the very least, it would ruin a Feb. 29 U.S.-North Korean accord under which the North agreed to a moratorium on nuclear and long-range missile tests and a freeze on its uranium enrichment program in exchange for U.S. food aid.








Wikileaks: Kony video maker spied for UPDF



Felix Kulayigye

By EMMANUEL GYEZAHO (email the author)


Posted Tuesday, April 10 2012 at 00:00

Leaked cables of secret diplomatic notes by American officials in Uganda to Washington reveal that Invisible Children, the makers of the controversial film, Kony 2012, shared intelligence information with Ugandan security operatives that led to the arrest of a number of suspected regime critics. According to the memos posted by whistle-blower Wikileaks, Mr Patrick Komakech, a reported ex-LRA child soldier currently facing treason charges with a dozen other co-accused, was arrested on March 5, 2009, following a tip-off from officials of Invisible Children.

The development will offer critics fodder to suggest that the US charity should not be entitled to its not-for-profit status that presents fringe benefits such as tax exemptions. Mr Komakech’s arrest, the cable said, was made possible because he had been featured in past documentaries by Invisible Children, and is understood to have led to a swoop that eventually uncovered the supposed recruitment of disgruntled “northerners into anti-Museveni rebel groups”, backed by LRA-leaning individuals from the Acholi Diaspora


“Invisible Children reported that Komakech had been in Nairobi and had recently reappeared in Gulu, where he was staying with the NGO. Security organisations jumped on the tip and immediately arrested him,” wrote former US ambassador to Uganda Steven Browning in the June 11, 2009 cable.


“He had a satellite telephone and other gadgets which were confiscated when he was picked up.”

Both the UPDF and Invisible Children moved to dismiss details of the leaked memo yesterday, while officials from the US Mission in Kampala were unavailable for comment due to the Easter holiday.

“That’s a lie. Komakech was arrested in broad day light and we didn’t need a muzungu to tell us where he was,” UPDF Spokesperson Felix Kulayigye said.

Invisible Children Uganda Spokesperson Florence Ogola said: “That is not true. We are not involved in anything to do with security. We only deal with development.”

She said allegations that the charity was involved in spy work on behalf of the UPDF is part of the “propaganda” and “tagging” that is gaining prominence after the release of the 30-minute Kony 2012 video early this year, which critics dismissed for its supposed simplistic portrayal of the two-decade conflict and insistence on a military solution.

In an interview yesterday, Water Minister Betty Bigombe, who was at the heart of negotiations between government and the LRA, admitted that she “got wind of the role” Invisible Children played in bringing Mr Komakech back to Uganda from Nairobi, where he had been holed up but said she was “unaware” if the charity may have helped Ugandan security in having him arrested.

Mr Browning wrote that Ms Bigombe, “who has known Mr Komakech for 10 years, said he had confessed to being part of a new anti-government movement in the north.”


Mr Komakech is said to have been on the Ugandan security radar, reputedly for impersonating LRA leaders to extort money by presenting “fake defection” plans.

Ms Bigombe said she knew Komakech “very well”, as a child soldier she met during the first peace process in the early 90s and eventually a resourceful individual during the Juba peace process but admitted she was “shocked” to discover “he was playing games with other ex-rebels.”

Mr Browning wrote, however: “Chieftaincy of Military Intelligence officers confirmed Komakech’s confession and said the new group, previously called the Uganda People’s Front, is now the PPF.”

The ex-envoy said Mr Komakech reportedly gave the locations of several arms caches in Pader District with a total of 600 weapons recovered, and reported that the group had begun recruiting throughout the north, from West Nile to Pader.

Mr Komakech is said to have named several former LRA combatants that had been integrated into the UPDF as members of the new group as well as other civilian participants.

egyezaho@ug.nationmedia.com




Friday, March 16, 2012

MPs seek signatures to impeach President



Add cLead petitioner Ken Lukyamuzi signs the impeachment papers as his co-petitioner Odonga Otto waits for his turn at Parliament yesterday. Seven MPs signed the papers on Day One. PHOTO BY Geoffrey Sseruyange



Seven opposition lawmakers yesterday set out on what is likely to be an uphill task when they signed onto an unprecedented petition seeking to impeach President Museveni.

The lawmakers say the President, who faced a similar though unsuccessful challenge during the 7th Parliament from former MP Aggrey Awori, is guilty of economic crimes.

However, pro-ruling party members, who enjoy a commanding majority in the House, were quick to pour cold water on the attempt to unseat the President under Article 107(1)b of the Constitution, describing it as “diversionary, irresponsible and unwarranted.”

“Those MPs who want to impeach the President are jokers,” Information Minister Karooro Okurut said. “Impeaching the President

would be taking an aimless walk in the political desert”.
President Museveni’s Spokesperson Tamale Mirundi later described the MPs as an “impotent lot”.

He said: “There is no serious Ugandan who is going to take them seriously. In fact, they are like a married man who spends a lot of time in a bedroom with his wife but cannot produce a kid.”

Mr Odonga Otto (Aruu, FDC) and Mr Ken Lukyamuzi (Rubaga South, CP) yesterday morning launched the impeachment process which requires at least one-third of Parliament’s 386 members to sign for it to progress.

Other members who appended their signatures are Wafula Oguttu, (Bukholi Central, FDC) Ssemujju Nganda Ibrahim,(Kyaddondo East, FDC), Joseph Gonzaga Sewungu (Kalungu West, DP) Deo Kiyingi (Bukomansimbi, DP) and Bernard Atiku (Ayivu, FDC).


“We the undersigned MPs do hereby append our signatures fully persuaded that Yoweri Kaguta Museveni, the President of the Republic of Uganda, be removed from office on grounds that he has abused his office and willfully violated the oath of allegiance and the presidential oath and other provisions of the Constitution,” Mr Otto announced shortly before the legislators appended their signatures.

Allegations

Mr Otto and Mr Lukyamuzi first revealed their intention to try to impeach Mr Museveni in January, listing 74 grounds for their cause.

“We strongly believe that the continued stay of Yoweri Kaguta Museveni in office as the President is against the national interests of Uganda,” Mr Lukyamuzi said yesterday.

The legislators alleged that President Museveni diverted over Shs100 billion from a British government grant intended for recovery programmes in post-war northern Uganda in 2008 to the purchase of his presidential jet without parliamentary approval.

The MPs also want President Museveni to take responsibility for the withdrawal of $735 million (Shs1.7 trillion) from Bank of Uganda to buy fighter jets and other military hardware without prior parliamentary approval.

“President Museveni has conducted himself in a manner which has brought the office of the President into hatred, ridicule, contempt and disrepute. He has dishonestly done acts and omissions prejudicial and inimical to the economy and the security of Uganda,” said Mr Otto.


The petitioners further accuse the President of disregarding parliamentary resolutions by allowing Prime Minister Amama Mbabazi and Internal Affairs minister Hilary Onek, who were accused of taking bribes from oil exploration, companies to continue working.

They say the President has also frustrated the prosecution of individuals who caused financial loss, citing the Shs142 billion businessman Hassan Basajjabalaba was paid in inflated compensation.

The MPs also cited the Shs500 billion Chogm scandal, and the country’s external debt standing at $4 billion which they attributed to the President’s “reckless public expenditure”.

The MPs have also profiled 112 loans the government has contracted between 1996 to 2011 which they say the government has abused.





Thursday, February 9, 2012

Army put to task over Kerim’s death



Army officers lower Brig. Kerim’s remains into the grave in Paidha Town in Zombo District on Wednesday. Photo by Felix Warom Okello


By Felix Okello Warom (email the author)
In Summary

Complaint. Kerim’s brother Naphtali Ocama, questioned why his deceased brother had not been flown out of the country for specialised medical care as government does for other ailing officials.

Relatives of fallen deputy UPDF Reserve Force commander Peter Kerim have asked the government to explain the circumstances under which he died at Nakasero Hospital in Kampala on Sunday.

The late Brigadier’s brother, Mr Naphtali Ocama, told hundreds of mourners during Kerim’s burial in Paidha Town on Wednesday that they want a proper account, arguing that Kerim was involved in a suspicious motor accident about three months before he died.

“We demand that government gives us explanation on how the accident happened, and we would like to know whether the person who knocked him has been arrested,” Mr Ocama said.

When Paidha Town Council chairman Innocent Onega translated Mr Ocama’s statement in the eulogy delivered in the native Alur language into English, the message sparked tension.

Army Spokesperson Felix Kulayigye immediately grabbed the microphone from Onega, who retorted: “Information being given should be straightforward. We cannot be suppressed on this.”

Mr Ocama also questioned why his deceased brother had not been flown out of the country for specialised medical care as government does for other ailing officials. “Was he really a Brigadier who served this country?” he asked.

Responding to the accusations, the UPDF Land Forces Commander, Lt. Gen. Katumba Wamala, denied that Kerim, who crossed from the government army to join NRA guerillas in 1981, was neglected in his hour of need.

Share “There are always high emotions when death occurs,” he said, “but about the accident, he was scanned on every part of the body but he later developed other complications.”

He added: “It is not true that we (UPDF) took him to a mere clinic. We never deserted his family.”

Brig. Kerim’s death on Sunday amid reports he had been sidelined by the military leadership and made redundant in the deputy Army Reserve Force commander post, shocked and angered the people of West Nile where he was popular.

Thursday, December 29, 2011

Korean Dictator's Final Ride Was In a Vintage Lincoln Continental



Korean Dictator's Final Ride Was In a Vintage Lincoln Continental
 Mourners lined the streets of the North Korean capital Pyongyang today, crying and wailing as the funeral procession of their "Dear Leader' Kim Jong-Il, marched slowly through the streets. But a curious detail was that the boxy black hearse that crept through the light snow was a vintage Lincoln Continental.

The choice of a U.S.-made luxury car seems odd for a country that preached a belligerent self reliance, reviled America and was put on President George W. Bush's Axis of Evil list.

Experts at Edmunds.com put the year of the Lincoln at 1976, making the 35-year-old vehicle older than North Korea's 23-year-old new leader Kim Jong-Un.

The choice of an American luxury car for his final ride is consistent with Kim's tastes, despite his regime's propoganda depicting the U.S. as evil, dangerous and violent, and his history of antagonizing numerous American administrations with threats of war and nuclear weapons.

Kim was reported to be a big fan of Hollywood movies, with favorites including the slasher flick "Friday the 13th" and Sylvester Stallone's action film "Rambo." He supposedly owned both in his
collection of over 20,000 films, many of which starred his favorite actress Elizabeth Taylor. Kim was also a known NBA fan. One of his most prized possessions was said to be an autographed Michael Jordan basketball, presented to him by then Secretary of State Madeline Albright at a rare high point in North Korean-American relations.



Friday, December 23, 2011

Appeals court tosses Obama birthplace challenge

SAN FRANCISCO (AP) — The so-called birther movement was dealt another legal blow Thursday when a federal appeals court tossed out a lawsuit challenging President Barack Obama's U.S. citizenship and his eligibility to serve as commander in chief.

The 9th U.S. Circuit Court of Appeals ruled that none of the challengers had legal standing to file the lawsuit on Jan. 20, 2009, the day Obama was inaugurated. The three-judge panel cited various reasons for disqualifying six sets of plaintiffs, who included Obama's political rivals, taxpayers and military personnel.

The birther movement has filed multiple lawsuits over the issue, so far with no success. Its leaders have lost similar challenges before the U.S. Supreme Court and the California Supreme Court.

The U.S. Constitution says only "a natural born citizen" may serve as president. The challengers allege that Obama, whose father was Kenyan, was born in that African country, rather than the U.S. state of Hawaii. They claim his Hawaii birth certificate is a forgery.

The appeals court didn't address the authenticity of the birth certificate, instead ruling that the challengers couldn't show "concrete injury" from the allegations.

The taxpayers listed in the lawsuit, for instance, failed to show how the citizenship question affected any federal taxing and spending provisions.

The lawsuit was filed in 2009 by 40 plaintiffs, including conservative activists Alan Keyes and Wiley Drake, who ran for president and vice president respectively as members of the American Independent Party against Obama in 2008.

They alleged they had standing to file a lawsuit because of their interest in competing in a fair election. Libertarian Party vice-presidential candidate Gail Lightfoot was also a plaintiff.

Judge Harry Pregerson, writing for the three-judge panel, said Keyes and Drake waited too long to file their lawsuit. The election was over and Obama was already sworn in when the lawsuit was filed.

"Once the 2008 election was over and the President sworn in, Keyes, Drake, and Lightfoot were no longer 'candidates' for the 2008 general election," Pregerson wrote. "Plaintiffs' competitive interest in running against a qualified candidate had lapsed."

Orly Taitz, one of the challengers' lawyers, said she would ask the appeals court to convene a special 11-judge panel to reconsider the case. If she's turned down there, she said she would ask the U.S. Supreme Court to review the case.

Taitz said she has filed similar lawsuits in five states and has two other federal appeals pending in Washington, D.C.



Wednesday, December 7, 2011

Drones: A deeply unsettling future

The rapid expansion of a drone arms race has emerged both domestically and abroad, leaving everyone vulnerable.

At least 50 countries already have unmanned aerial fleets - and that number is rising every month [EPA]


San Francisco, California - On Sunday, Iran claimed to have taken down a US drone in Iranian airspace - not by shooting it out the sky, but with its cyber warfare team.

Reports confirm that the US believes Iran is now in possession of "one of the more sensitive surveillance platforms in the CIA's fleet", but deny Iran's involvement. Of course, Iran’s claim of overtaking the drone with its cyber warfare team should be tempered with a serious dose of scepticism, as cyber security experts say the facts may not add up. But this is just the latest story in a series of incidents that raises worrying questions about security problems caused by drones. And given the coming proliferation of drone technology both domestically and abroad, this should be a concern to citizens all over the world.

Two years ago the Wall Street Journal reported Iran-funded militants in Iraq were able to hack into drones' live-video feeds with "$26 off-the-shelf software". In another unnerving incident, Wired reported in October that a fleet of the Air Force's drones was infected with a computer virus that captured all of drones' key strokes. Technicians continually deleted the virus to no avail. How did the drones get infected? The military is "not quite sure". Worse, the Air Force's cyber security team didn't even know about the virus until they read about it in Wired.

Wired reported in a separate story that an upcoming Congressional report will detail how hackers broke into the US satellite system. With one satellite, hackers "achieved all steps required to command" it, "but never actually exercised control".

Last summer, a drone caused a scene in the nation's capital, when, as New York Times wrote, "fighter jets were almost scrambled after a rogue Fire Scout drone, the size of a small helicopter, wandered into Washington's restricted airspace". A similar incident took place in Afghanistan where military planes had to shoot down a "runaway drone" when pilots lost control.

The US, of course, leads the world in drone use for both surveillance and combat missions. Attacks are carried out in Pakistan every four days on average. Many times, the US isn't even sure exactly who they are killing. Despite the fact that the location of vast majority of drone bases are classified, journalist Nick Turse pieced together a startling picture of the massive US fleet. He determined that the US has at least 60 drone bases operated by either the US military or the CIA around the world, and "most of these facilities have remained unnoted, uncounted, and remarkably anonymous - until now".

But drone use is not just relegated to US military. Drone manufacturers already command a $94bn market, according to some estimates, and the drone arms race is in full swing. As the Washington Post reported, the constant buzz of drones and threats of attack now dominates the lives of civilians in Gaza. And Turkey plans to have Predator drones in operation by June 2012.

Meanwhile, Chinese contractors unveiled 25 types of unmanned aircraft last year. In all, at least 50 countries now have some sort of unmanned aerial vehicles, and the New York Times reports that "the number is rising every month". That number also includes Iran, which is seeking to upgrade its fleet. Even the Libyan rebels had their own surveillance drone - provided to them by Canadian defence contractors - before they were in full control of their own country.

The technology itself is also developing at an alarmingly rapid pace. The New York Times reports that researchers in the US are working on "shrinking unmanned drones, the kind that fire missiles into Pakistan and spy on insurgents in Afghanistan, to the size of insects", along with oversized drones that can capture video of an entire city. There are birdlike drones, underwater drones, drones within drones, facial recognition drones, and perhaps most terrifying, completely autonomous drones - currently being tested in Georgia - which will require no human control at all.

As Micah Zenko, Senior Fellow at the Council on Foreign Relations, told me last month, "It's a very impressive and responsive tool that should be used sparingly. Even if we’re responsible now, we might not be forever."

But in the US, drones will become yet another way authorities can compromise the privacy of ordinary citizens, as the FAA plans to propose new rules for their domestic flight. As Newsweek reported, police forces and border patrols in the US are buying the technology from defence contractors, and one has already been spotted flying over Houston. Police departments are already using GPS and cell phone tracking without warrants, this will another powerful surveillance weapon in their arsenal. As privacy advocates warn, "drones can easily be equipped with facial recognition cameras, infrared cameras, or open Wi-Fi sniffers". And while these drones will be used for many surveillance purposes (a scary thought in and of itself), contractors admit they are equipped to carry weapons, such as Tasers.

Whether they are being used for surveillance or all-out combat, drones will soon pose serious risks for all of the world's citizens. They can offer governments, police departments, or private citizens unprecedented capabilities for spying, and given their security vulnerabilities, the potential consequences could be endless.

Trevor Timm is an activist and blogger at the Electronic Frontier Foundation. He specialises in free speech issues and government transparency

Monday, December 5, 2011

The Next D.C. Power Brokers.

It’s not too soon to start cozying up to the future stars who will hold the glamour power positions in Washington after next November’s elections. It’s time to stop saying unkind things about those with prospects, even in private. All this good behavior and restraint makes for boring conversations. But business is business. Already, speculations are whispered about the next bunch of winners and losers, all below the radar to be sure. Yes, it is necessary to pay attention to the obvious choices who sometimes, only sometimes, land the predicted jobs. But turn on the radar for the over-the-horizon surprises that inevitably materialize. Be creative, starting at the top of the ladder.

Sure, it’s almost certain Barack Obama will run again and maybe even win. But what if the economy really takes another dip, despite Friday’s announcement that unemployment has come down? And what if he starts to do really terribly in the polls against one of the powerhouse Republican candidates like Mitt Romney or mighty Newt Gingrich? He might just decide to go back to Chicago Law School, in which case, the Democrats have a terrific candidate staring them in the face: Joseph Biden.


Biden has done a magnificent job as the veep. He’s probably handled the negotiations with Republicans over the economy and federal budget better than the president himself. He certainly talks more plainly and effectively to the public than Obama. On foreign policy, Obama would have saved himself a lot of grief had he followed Biden’s advice on many occasions. In particular, a year ago, Biden urged the president to adopt an antiterrorist strategy in Afghanistan rather than pursuing the fruitless and high-troop-level counterinsurgency strategy. Biden would be a very strong candidate against any Republican and wouldn’t carry much of Obama’s baggage.



Whether it’s an Obama or Biden administration in 2013, look for many new faces in key places. If Tom Donilon, whose position is strong, decides to leave his post as national security adviser, the line of likely successors would be long: Denis McDonough, the present deputy, also known as the Lord High Executioner for Obama; Jim Steinberg, recently retired as deputy secretary of state and now at Syracuse; or Harvard’s Joe Nye. Two insiders with the strongest reputations and the most talent are Mike Froman, currently Obama’s international economics adviser in the White House; and Tony Blinken, Biden’s national security chief. Support is also building for Stephen Colbert.

Hillary Clinton is almost certainly leaving the State Department. The three most-talked-about replacements are Sen. John Kerry, who has already undertaken many diplomatic missions for Obama and is chair of the Senate Foreign Relations Committee; Susan Rice, the U.N. ambassador; and Brookings president Strobe Talbott. Stephen Colbert is a long shot.


Leon Panetta could keep his post at defense, since the military already loves him for protecting their budget. Other possibles are Ashton Carter; the current No. 2 at the Pentagon; and Center for Strategic and International Studies president John Hamre; or former Navy Secretary Richard Danzig.


Tim Geithner will be leaving the Treasury to return to dreamy Larchmont, N.Y. Two of the strongest contenders to replace him are Vincent Mai, one of Wall Street’s finest, former head of AEA Investors and a Democrat; and David Rubenstein, cofounder of the Carlyle Group. Another possibility is Kenneth Chenault, who runs American Express. Never count out Roger Altman, financial success and former Treasury No. 2.
Other foreign policy and national security stars to watch: Heather Hurlburt, who runs the National Security Network; Suzanne Nossel, who recently left a key post at the State Department; Daniel Feldman of the State Department; foreign-policy expert Nina Hachigian; and defense expert Brian Katulis; and Diamond Derek Chollet, now of the NSC staff. There are also three standouts at the Council on Foreign Relations: Elizabeth Economy on China, Isobel Coleman on international economics, and Julia Sweig on Latin America. The stars from this pack certain to haul in high posts are Jake Sullivan, now director of the State Department Policy Planning staff; and Mathew Spence, formerly special assistant to Tom Donilon

Other foreign policy and national security stars to watch: Heather Hurlburt, who runs the National Security Network; Suzanne Nossel, who recently left a key post at the State Department; Daniel Feldman of the State Department; foreign-policy expert Nina Hachigian; and defense expert Brian Katulis; and Diamond Derek Chollet, now of the NSC staff. There are also three standouts at the Council on Foreign Relations: Elizabeth Economy on China, Isobel Coleman on international economics, and Julia Sweig on Latin America. The stars from this pack certain to haul in high posts are Jake Sullivan, now director of the State Department Policy Planning staff; and Mathew Spence, formerly special Assistant to Tom Donilon.
 
 
For a Republican president, the national security adviser job might go to Richard Haass, now president of the Council on Foreign Relations; Richard Burt, former ambassador to Germany; Dov Zakheim, former senior official in the Pentagon; and a number of senior military officers who have worked closely with Republicans over the years. Good money is also being placed on Nick Burns, the former super diplomat now at Harvard. Burns could serve the Democrats as well.


Foggy Bottom could turn out to be home to Sen. Richard Lugar (R-Ind.); Richard Armitage, former No. 2 at state to Colin Powell; and Jon Huntsman, former ambassador to China and a Republican candidate for president. And if she seeks a return to State Department haunts, Paula Dobriansky will land a top position. Then, of course, there’s Michele Bachmann’s husband, Marcus, who can bring his “pray the gay away” philosophy to American diplomacy.

At the Department of Defense, Sen. Lindsey Graham of South Carolina is bound to be high on the list. Mike Mullen, the retired former chairman of the Joint Chiefs of Staff, would be a leading candidate along with former four-star Army Gen. David Petraeus, now hidden away at the CIA. Bill Kristol might accept the job if the Department of Defense returns to its old and glorious name, the War Department.

Treasury, a Republican president might well turn to Robert Zoellick, now president of the World Bank and formally a senior official in several Republican administrations. Jamie Dimon, now chairman of JPMorgan Chase and an amateur boxer when he was unemployed for two years, might be another name discussed. Paul Ryan, the Tea Party congressman of draconian budget fame, also will be part of the Treasury mix. A long shot may be former IBM chief Louis Gerstner.


Upcoming foreign-policy stars for the Republicans don’t have a substantial presence in the op-ed pages and journals and at foreign-policy conferences. One name that keeps popping up is Peter Schweizer of the Hoover Institution and someone who helped out half-Gov. Sarah Palin. Former George W. Bush national security adviser on Iraq Brett McGurk, emerging whiz, is also a contender, as is Danielle Pletka of the American Enterprise Institute. And someone named Hannah Montana





Wednesday, November 23, 2011

Corruption has reached a crisis level, Kadaga says

The Speaker of Parliament Rebecca Kadaga has admitted that corruption in Uganda has reached “crisis” levels but guaranteed that the 9th Parliament would ruthlessly fight a vice that has bedevilled the NRM administration.

“I believe corruption is at a crisis level. It has become a malignant that all of us are used to it,” Ms Kadaga said.

She added that the 9th Parliament will not tolerate any corruption tendecies in government. Her comments were contained in a message read out on her behalf by Ndorwa West MP David Bahati on Tuesday at the end of the annual general meeting of the 5th East African Association of Anti-Corruption Authorities held in Entebbe.

To back her claim, the Speaker said research had shown that up to 20 per cent of the budgets for the East African member states end up in the pockets of the corrupt while millions continue to wallow in poverty.

She said the region is at a crossroads as corruption robs hardworking citizens of the opportunity to live better lives. “It is because of corruption that Africa continues to grapple with challenges of inadequate infrastructure, poverty, war, disease, famine, high maternal and infant mortality rates,” said the Kamuli Woman MP.


Discussions at the two-day conference focused on the strategies of promoting zero tolerance to corruption in East Africa.

Development hindered

Several delegates from Kenya, Tanzania, Rwanda, Burundi and South Sudan attended the conference. Despite a wide array of machinery at the government’s disposal to fight graft, the vice continues to blight development in the country, delegates heard.

That reality has left some like Judge John Bosco Katutsi, the former head of the Anti-Corruption Court, concluding that graft can only be solved if the culprits are hanged like it’s done in China. The World Bank, a few years ago, said at least Shs500 billion is lost due to graft in Uganda annually.

Ms Kadaga said Parliament had instituted measures to fight graft like the enactment of the Anti-Corruption Act, which strengthened the penalties for corruption offences.

She also cited the enactment of the Whistleblowers Protection Act 2010 that provides for protection and reward of individuals who report corruption cases that result in recovery of public funds as well as the National Audit Act 2008, which empowers the Auditor General to scrutinise books of accounts of the entire organisation where government has interest.


The 8th Parliament’s Public Accounts Committee instituted a probe into the multi-billion 2007 Commonwealth meeting in Kampala. That probe saw several high profile government officials implicated in alleged misuses of Chogm funds. Although some of those officials have appeared in court, no convictions have been made.

awesaka@ug.nationmedia.com






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