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Confirmed: Danish company to acquire 9.97% CDC shares in dfcu bank

By
Our Reporter
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Dfcu head office

Eagle Online yesterday published an article saying that UK’s Commonwealth Development Corporation (CDC) Group had identified the buyer for its 9.97 per cent shares in Dfcu bank. That buyer has now been revealed as IFU- Denmark, the Danish Development Finance Institution/ Investment Fund for Developing Countries.

Yesterday dfcu published a cautionary announcement dated December 13, 2019 informing its shareholders and potential investors of the transaction now awaiting the approval of authorities in the financial sector, particularly the Capital Markets Authority which regulates the Uganda Securities Exchange on which Dfcu is listed .

“Dfcu limited…advises its shareholders and the general public that a significant minority shareholder has received and accepted an expression of interest for the purchase of its shareholding in the Company by another,” Dfcu said in a recent cautionary announcement,” Dfcu said in the statement.

But the transaction, according to the announcement, remains subject to obtainment of regulatory approvals and satisfaction of all conditions precedent.

Due to expected sell of shares by the unnamed minority shareholder, the company has therefore advised shareholders and potential investors to be cautions when transacting in the company’s shares. “Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares until a further announcement is made,” the announcement reads in part.

Eagle Online last year reported that UK’s Commonwealth Development Corporation (CDC) Group was looking for another offshore company to buy its shares in Dfcu. The company owns 9.97 per cent. CDC’s Investment Director Irina Grigorenko wrote a confidential letter to Dfcu Chairman Elly Karuhanga of CDC Group’s intention to sell some or all of its shares.

Grigorenko, said then that CDC Group was “undertaking a review of its investment in Dfcu Limited which may lead to the disposal or some of some or all of its shares in Dfcu over the short to medium term.”

In its letter, CDC also expressed hope that Dfcu would continue to “succeed with the support of Arise B.V., its major shareholder.” CDC’s investment in Dfcu, according to the institution’s official website, is $15.1m (equity) and $10m (subordinated loan).

About nine institutional investors own Dfcu, with Arise BV holding the largest shareholding at 59 per cent. CDC is in second position, followed by National Social Security Fund (NSSF). Months ago, Arise BV Executive Director Deepak Malik resigned from the Dfcu bank’s board of directors.

When asked, analysts said it is normal for shareholders to sell their shares within or get buyers from outside when they think it is the right time to exit. However, he hastened to add that some shareholders exit when they anticipate that the company’s business in future might not be profitable at the level they want it.

However, the latest announcement that a significant minority shareholder has got the buyer of its shares comes at the time when dfcu is facing challenges following the controversial acquisition of Crane Bank Limited (CBL) in January 2017. Dfcu is the holding company of Dfcu bank which bought CBL as offered to it by the Bank of Uganda (BoU).

Recently Dfcu bank realised that it could not take up freehold properties of Meera Investments Limited which had been leased to defunct CBL. Dfcu now wants BoU to compensate it for the loss of the properties it values at Shs47 billion even though it is understood it valued the same properties at Sh10 billion when it took over CBL an estimated Shs200 billion.

About IFU

Rune Norgaard, IFU’s Communication Director, says the institution, an independent government agency provides risk capital and advice to companies wishing to set up business in Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of equity and loans. The purpose is to contribute to economic and social development in the investment countries.

IFU and IFU managed funds have co-invested in close to 1300 companies in 100 countries in Africa, Asia, Latin America and parts of Europe.

Key shareholders in Dfcu

DFCU Shareholding percentages

Arise BV 58.71 per cent

CDC Group of the United Kingdom 9.97 per cent

National Social Security Fund (Uganda) 7.69 per cent

Kimberlite Frontier Africa Naster Fund 6.15 per cent

undisclosed Institutional Investors 3.22 per cent

SSB-Conrad N. Hilton Foundation 0.98 per cent

Vanderbilt University 0.87 per cent

Blakeney Management 0.63 per cent

Retail investors 11.19 per cent

BoU staff retirement benefit scheme is 0.59 per cent

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Boeing to halt production of 737 MAX planes

By
Geoffery Serugo
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Boeing

Boeing will suspend the production of 737 MAX planes beginning January 2020. The suspension follows the grounding of Boeing 737 MAX passenger airliner after two new airplanes belonging to Lion Air and Ethiopian Airlines crashed within five months, killing all 346 people aboard.

According to a statement released by Boeing, they are in the process of approving the 737 MAX’s return to service and determining appropriate training requirements, extraordinarily thorough and robust, to ensure that our regulators, customers, and the flying public have confidence in the 737 MAX updates.

Recently Boeing announced a $50 million compensation fund for the families of people killed in Boeing 737 Max plane crashes. The Fund officials in September said that they have started accepting applications, with a deadline of December 31 for submitting claims. Administrators of the fund include Kenneth Feinberg, who oversaw compensation for victims of the September 11, 2001, terror attacks.

“As we have previously said, the FAA and global regulatory authorities determine the timeline for certification and return to service. We remain fully committed to supporting this process. It is our duty to ensure that every requirement is fulfilled, and every question from our regulators answered.” Reads in part of the statement.

Throughout the grounding of the 737 MAX, Boeing has continued to build new airplanes and there are now approximately 400 airplanes in storage.

“We would continually evaluate our production plans should the MAX grounding continue longer than we expected. As a result of this ongoing evaluation, we have decided to prioritize the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month.” Reads in part of the statement.

The company stated that the suspension is least disruptive to maintaining long-term production system and supply chain health.  This decision is driven by a number of factors, including the extension of certification into 2020, the uncertainty about the timing and conditions of return to service and global training approvals, and the importance of ensuring that we can prioritize the delivery of stored aircraft.

“During this time, it is our plan that affected employees will continue 737-related work, or be temporarily assigned to other teams in Puget Sound. As we have throughout the 737 MAX grounding, we will keep our customers, employees, and supply chain top of mind as we continue to assess appropriate actions. This will include efforts to sustain the gains in production system and supply chain quality and health made over the last many months.”

They pledged to provide financial information regarding the production suspension in connection with our 4Q19 earnings release in late January.

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Court asks gov’t to pay over Shs300m for land probe mess on private property

By
Our Reporter
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Lady Justice Catherine Bamugemereire whose parts of the report was quashed.

The government  has been asked to pay Shs310 million as punitive damages, Shs5 million to each of the 62 applicants who challenged the Attorney General  in court over Justice Catherine Bamugemereire’s land commission interference with private land code named block 127, plot 49.

The applicants led by a one Francis Namara sued the Attorney General after the Commission stopped all activities on the said plot, even though the court had pronounced itself on the matter.

Court ruled that the actions of the Commission were illegal, wanton and committed with impunity and in utter disregard of the law and that it abused the established legal process.

Justice Bashaija K. Andrew who wrote the ruling also said the money awarded attracts 8 percent interest per annum from the date of the ruling on the matter, which is December 13, 2019.

He also awarded the applicants costs of the application.

The Commission of Inquiry into Land Matters wound up its work on November 9 after a 30-month tenure. The Commission has been investigating the effectiveness of the law, policies and processes of land acquisition, management and registration in the country since it was set up by President Museveni on December 8, 2016.

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AfDB approves US$5m grant to scale up Tony Elumelu Entrepreneurship Programme

By
Our Reporter
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Youth sponsored by Tony Elumelu Foundation Entrepreneurship Programme

The Board of Directors of the African Development Bank has approved a grant of $5 million to enable the Tony Elumelu Foundation Entrepreneurship Programme to scale up its outreach and impact to 1,000 select youth entrepreneurs.

The grant follows the signing of a letter of intent between the Bank and the Tony Elumelu Foundation, which took place during the Tony Elumelu Foundation Entrepreneurship Programme launch in March this year. The partnership will bring about future collaboration focused on strengthening small to medium-sized enterprises as well as talent and skills development for Africa’s youth.

The partnership will support 3,050 young entrepreneurs across 54 African countries. The Bank’s participation will enable an additional 1,000 entrepreneurs to benefit from the Tony Elumelu Entrepreneurship Program, which provides much needed opportunities to help stem the rising tide of unemployment and inequality facing the continent’s youngest citizens.

The programme aligns with the Bank’s ten-year Jobs for Youth in Africa strategy launched in 2016, to support the creation of 25 million decent jobs across the continent. The strategy is also expected to equip 50 million young African people with employable skills that enable them to access economic opportunities and realize their full economic potential across the continent.

The Tony Elumelu Foundation Entrepreneurship Programme will deliver business training, mentoring, access to networks, markets and capital for business development to selected youth-led start-ups in order for them to grow and create jobs.

The Entrepreneurship Programme demonstrates a strong alignment with the Bank’s Youth Entrepreneurship and Innovation Multi-Donor Trust Fund objectives to build the African youth entrepreneurship ecosystem by scaling innovative youth led start-ups, expanding youth market opportunities and improving youth access to finance.

Other development partners involved in supporting the Tony Elumelu Entrepreneurship Programme are Agence Française de Développement, the German Agency for International Cooperation, the United Nations Development Programme and the International Committee of the Red Cross. They will also work to provide more business opportunities to youth entrepreneurs across the continent.

In 2017, the Bank established the Youth Entrepreneurship and Innovation Multi-Donor Trust Fund, in partnership with the governments of Norway, Denmark, Sweden, Italy and the Netherlands. The fund is a grant vehicle managed by the Bank to support the African entrepreneurship ecosystem directly and indirectly by leveraging on the Bank’s instruments. Its interventions will equip Africa’s youth with the right tools to establish start-ups and micro, small and medium enterprises.

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Gorilla numbers rise to spur Uganda’s Tourism sector

By
Agencies
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Mountain gorillas

Outgoing Uganda Minister of Tourism Wildlife & Antiquities, Prof. Ephrahim Kamuntu, yesterday unveiled the mountain gorilla populations in the Greater Virunga Conservation Area by declaring the long-awaited global number of the endangered species between Rwanda, Democratic Republic of Congo and Uganda. This was after the release of the December 2018 Census results released at the Kampala Serena International Conference Centre.

The unveiling was presented in collaboration with the Greater Virunga Transboundary and Bwindi-Sarambwe ecosystem revealing that the number of gorillas (gorilla beringei)  in the 340-square-kilometer boundary of protected forest to have increased to 459 in 50 groups and 13 individuals up from an estimated 400 in 2011.

Combined with the published results of the Virunga Mastiff 2015/16 survey of 604, the global figure stands at 1,063. Uganda has 51 percent of the total population and the remaining 49 percent shared between the three countries.

This is the fifth count for this area and the first to include Sarambwe Nature Reserve since surveys began in the 1970s.

The Warden of the Ecological Monitoring and Research Bwindi Mgahinga Conservation Area (BMCA), Joseph Arinitwe, said the process started from the eastern end of the forest to the Sarambwe Nature Reserve in the west.

It involved more than 75 trained survey members in 6 teams in 250 to 500-meter stretches with the support of local governments and communities living around the protected areas. They moved at standard intervals at agreed times in shifts of 2 weeks each collecting elephants, duikers, and gorillas fecal matter from fresh nests whereby samples were collected and preserved for genetic analysis. Additional publications are expected from the survey. Signs of human activity were also studied. The team persevered through challenging rugged terrain, floods, twigs, and insect bites.

Arinitwe emphasized the importance of surveys in monitoring trends and to prove that conservation strategies are working.

Dr. Pantaleon Kasoma who represented the Board of Trustee for the Uganda Wildlife Authority (UWA), reiterated the value of the income generated from the gorillas, noting that there are other conservation areas in the country that do not generate income that are sustained by revenue from gorillas.

Tourism State Minister Suubi Kiwanda lauded minister Kamuntu for his effort to turn around Human Wildlife Conflict into Human Wildlife Relationship having traversed the country to sensitize communities surrounding the National Parks and Wildlife corridors as well as revenue sharing.

Kamuntu welcomed the incoming Tourism Minister Tom Butime. Also in attendance were Japanese Ambassador to Uganda Kazuaki Kameda; Tourism State Minister Suubi Kiwanda; Permanent Secretary MTWA Doreen Katusime; Director of Tourism Mr. James Lutalo; Dr. Andrew Seguya, Executive Secretary at Greater Virunga Transboundary Collaboration; Dr. Gladys Kalema, Conservation Through Public Health (CTPH); Executive Director UWA, Sam Mawanda; Director of Business Services UWA, Stephen Masaba; Professor Robert Bitariho of Mbarara University; and ITFC (Institute of Tropical Forest Conservation) and researchers.

Kamuntu stated, “The Constitution of The Republic of Uganda is enshrined to protect and promote important natural resources including land, air, wetlands, flora, and fauna on behalf of future generations.”

He said God created man and woman and gave the earth under man’s charge. “Therefore, we have custodial responsibility to conserve not only for Ugandans but for the entire human race.”

He lauded international organizations, stating that the gorillas would have been wiped out without their support. They include IGCP (International Gorilla Conservation Program), ICCN (Institut Congolais pour la Conservation de la Nature), RDB (Rwanda Development Board), ITFC (The Institute of Tropical Forest Conservation), WCS (Wildlife Conservation Society), CTPH (Conservation Through Public Health), Diane Fosey Gorilla Fund, WWF (World Wildlife Fund), BMCT (Bwindi Mgahinga Conservation Trust), IGCP (The International Gorilla Conservation Program),Gorilla Doctors, and UC Davis.

In addition to gorillas, he said the country hosts the Big Five Plus Two – namely the gorillas and chimpanzees; 11 percent of bird species globally accounting for 50 percent of Africa’s species; 39 percent of mammals; 19 percent of amphibians; 1,249 species of butterflies; and 600 species of fish.

“Tourism is a transformative force fueling the development of Uganda with US$1.5 billion in foreign exchange earnings and 8 percent of the labour force with 10 percent of the landmass devoted to conservation,” said the minister.

The minister attributed the increase in gorilla numbers and wildlife in general as representing a positive path to development surpassing pre-independence numbers. However, he acknowledged the challenges that come with increasing numbers including pressure from human populations.

He reiterated that Uganda remains committed to the Greater Virunga Wildlife Transboundary Conservation, because the gorillas provide an example that we must remove borders between humans. Representatives from Rwanda and DRC were conspicuously absent.

Much as Ugandans had for centuries stayed with the gorillas, they were discovered in 1902 by Captain Robert von Beringe in his mission to map the boundaries of German East Africa (Tanzanyika). Gorillas were eventually brought to world attention by researcher Diane Fossey who inspired by Dr. Leakey dedicated and gave her life to research on the gorillas and the famous former “poacher dog,” Digit, the mountain gorilla with whom she formed a bond in life and death inspiring the 1988 drama “Gorillas in The Mist.”

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Eight cows robbed in Atiak land wrangles

By
Jimmy Komakech
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Jimmy Patrick Okema, the Aswa region police publicist

The case robbery of eight cow has been registered at police by a person Identified only as Orom a resident of Palokere East in Atiak Sub-County.

According to police,the cows were robbed by a group of people armed with pangas, spears, bows and arrows led a retired major called Ferdinand Otim who is also a resident of the area.

The Police Spokesperson for Aswa River Region Jimmy Patrick Okema says that their forces have visited the place and found that there was land wrangle between the clans of Palokere and Pali Pali

And it is alleged that the retired major commanded those group of people with an intention to chase away the Pali clan for the disputed land.

“During the scuffle the eight cows were robbed and two hats  were set ablaze  and also the brother of the retired major identified as George Obol who is also a retired warrant officer two was also beaten by the Pali Pali clan and was rushed to Lacor Hospital for treatment.”

“However, the retired Major Ferdinand Otim is still in the hiding but we are going to follow him very closely for instigating the conflict and will be charge accordingly if he is found to be the one behind the attack” Okema said.

So far ten suspects have been arrested and detained at Atiak police station after recording their statement that will leads to arrests of more perpetrators. The case has been registered under CRB I6 /19 in Atiak police post.

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Cabinet reshuffle meant to divert Gen. Tumwine versus Lt. Gen. Angina debate-analysts

By
Our Reporter
-

President Yoweri Museveni over the weekend made slight changes to his cabinet as he dropped a few ministers whilst he kept, brought in, or moved others to different ministries in a mini reshuffle some political analysts say was meant to divert public debate on Gen. Elly Tumwine’s recent humiliation of his junior Lt. Gen. Charles Angina.

A few days ago, Gen. Tumwine shocked Ugandans as he publicly castigated Lt Gen. Angina for interfering in a land wrangle between Kampala businessman Godfrey Kirumira and his neighbour in Muyenga. Tumwine whose action was circulated in a video clip on social media accused Angina of abusing the UPDF, saying it has not been easy to build the force.

However, analysts who talked to Eagle Online after Museveni made changes opined that Gen. Tumwine’s humiliation of Lt Gen. Angina had taken sides alongside tribal and regional lines and that Museveni being the chief executive of the country, could only cool the tensions by announcing a mini cabinet reshuffle.

The analysts said the dropped ministers like Irene Muloni, Charles Bakabbulindi, Ida Erios Nantaba and Janat Mukwaya had issues with their performances and that their downfall was expected after all.

According to the analysts, a real cabinet reshuffle should have ‘touched’ the offices of the Vice President, Prime Minister, his deputies and Minister of Security. They argue that President Museveni’s cabinet almost remains the same as the year ends, despite the changes that also saw deputy Attorney General Mwesigwa Rukutana  moved.

“This was a trick by President Museveni to divert the public from debating Gen. Tumwine’s harassing of Angina,” an analyst said. “You know debating an army on tribal lines is dangerous,” he said. In fact, Tumwine himself should have been number one on the list because he has never done anything apart from bragging and singing”. The analyst said.

Adding “We are aware how the matter has drawn lines and in fact, it is tribal as such but a matter of someone think that for him, he is above the law and I wish you know how to serving chiefs reacted to that humiliation of Angina and it is from this that the Commander in Chief reacted by diverting attention with the so called cabinet reshuffle”

“As you may have observed public debate has shifted to the mini reshuffle. People are now debating which region has most ministers, which region has less, which religious faith has most ministers, which one has less. Tumwine and Angina drama is out of people’s minds now,” another one added when asked about his understanding of the reshuffle.

Another analyst said that Museveni used the reshuffle to tell Teso region that despite Tumwine’s humiliation of Angina, he still trusts the region’s sons and daughters. He has kept Musa Ecweru as the State Minister for Disaster Preparedness, Agnes Akiror (Teso Affairs), Jeje Odongo as Minister for Internal Affairs and brought in Peter Ogwang as State Minister for ICT, Ms Hellen Adoa as State Minister for Agriculture in charge of Fisheries and Dr. Kenneth Omona a Kumam as Principal Private Secretary.

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Masaka killers sentenced to death

By
Our Reporter
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Lt Gen Andrew Gutti

Four of the six Masaka machete- wielding men have been sentenced to death for murder by the General Court Martial sitting in Makidye.

The other two have been ordered to serve 43 and 44 years respectively.

The General Court Martial chairman Lt. Gen. Andrew Gutti has ruled that the persons they killed left families that are now suffering because of the convicts’ acts.

Court has also ordered the convicts to refund Shs40 million, a motorcycle and a motor vehicle Toyota Premio to businessman Moses Kalisa.

On December 10th, the six were convicted for murder and robbery of over 400 million shillings from Muto Hardware Shop in Masaka.

The convicts include Rtd corporal Paul Kiwanuka, Steven Kayemba, John Bosco Waligo, Julius Tweheyo also known as Rutwiigi, Gerevazio Kankanka and Tumwesigye Mudathiru.

The group was found guilty of robbing the money from Moses Kalisa’s hardware shop in Masaka and murder of his security guard Moses Musinguzi.

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EC further extends deadline for update of National Voters’ Register

By
Isaiah Mwebaze
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EC boss Simon Byabakama Mugenyi

The Electoral Commission (EC) has extended for the second time the deadline for updating voters’ particulars in the National Voters’ Register to enable more Ugandans register as the Commission prepares for the 2020/2021 general elections.

The update of the National Voters’ Register commenced on November 21, 2019 and was scheduled to close on December 11, 2019 but due to public outcry it was extended to December 16, 2019 which is today.

However, before the end of the extended period (December 16, 2019), the EC Chairman Justice Simon Byabakama Mugenyi said EC once again received several requests from numerous stakeholders in the electoral process, “and recommendations from our own field staff for a further extension of the period for the General update of the National Voters Register.

“Towards the close of the update exercise the Commission observed big numbers of applicants at the update centers across the Country and also received requests for extension from various stakeholders in the electoral process,” he said in a press statement.

The Commission, he said, sat Monday morning and reviewed the reasons advanced by various stakeholders for a further extension, which include; unfavorable weather conditions in many parts of the country and high turn up of applicants at update stations, which forced the Commission to extend the deadline for one week to December 23, 2019.

“The Commission has decided to further extend the update period from tomorrow Tuesday 17th December 2019 for seven (7) more days, ending on Monday 23rd December 2019, after which, there will be no further extension,” Byabakama said.

This exercise will continue to be conducted at update stations in each parish throughout Uganda, starting from 8:00am to 6:00pm, throughout the extended period, including weekends, he said.

The purpose of the extension is to provide an opportunity for eligible persons who have not yet registered to do so. It is an exercise to enable Ugandan citizens who have attained the age of 18 years and above and who have not yet registered to register as voters in order to participate in elections.

Further, a registered voter who wishes to transfer to new voting locations will be able to do so during this period. However, a voter who wishes to transfer to a new voting location must present confirmation that he/she originates from or is, at the time of application for transfer, a resident of the Parish of that (new) voting location. Such applicants should ensure they have details of their previous voting location.

EC has availed the National Voters’ Register for each polling station at the Update center in each parish, so that existing voters check and confirm their registration status, that is, whether their particulars are well-captured.

According to Strategic Plan and Roadmap to the 2021 general elections, The general update of the National Voters’ Register should be done between November 2019 and January 2020 in line with Sections 19(7) and 19(8)(a) of ECA. Over 10 million voters are expected to take part in the electoral process.

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FDC marks 15th year anniversary

By
Geoffery Serugo
-

The leading opposition political party, Forum for democratic Change (FDC), has marked 15 years anniversary at Mandela National Stadium Namboole, Kampala.

The event according to the party spokesperson who also doubles as Kiira Municipality MP, Ssemujju Nganda, will help reinvigorate its members ahead of the anticipated 2021 general elections.

FDC was founded as a merger of various pressure groups has established itself at the centre of the pro-democracy fight in Uganda, and its first leader Col Kizza Besigye is still one of Uganda’s leading opposition figures.

It evolved from pressure group Reform Agenda, mostly for disenchanted former members and followers of President Yoweri Museveni’s National Resistance Movement (NRM). First party president, Rtd. Col.Dr. Kizza Besigye was a close ally of Museveni who would later contest against him in presidential elections of 2001, 2006, 2011 and 2016 presidential elections.

In November 2012, Mugisha Muntu was elected as President of the FDC until November 2017 when he was defeated by Patrick Oboi Amuriat the current party President until 2022. Muntu would later break away from FDC to form his own political party, Alliance for National Transformation (ANT).

FDC has been the greatest challenger to the NRM Party in presidential and parliamentary elections, making it the largest opposition party in parliament even though it has leadership in some district local governments like Kasese and Sironko and others.

In the general election of 23 February 2006, the party won 37 out of 289 elected seats. In the presidential election, Besigye won 37.4 per cent of the vote. In the 2011 election, the party performed worse with Besigye getting 26.01 per cent of the vote and the party winning 34 seats.

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