The Minister of Finance Matia Kasaija who read Shs40.4 trillion budget last Thursday has said Uganda may not be able to achieve middle income status by 2020 as government had earlier announced.

“We wanted to turn this country into a middle income economy by 2020 but that may not be possible,” Kasaija said at National Budget breakfast in Kampala.

According to the World Bank, middle-income countries are nations with annual per-capita gross national income ranging between USD 1,025 and USD12, 615.

Uganda’s Nominal GDP Per capita is forecasted to be 759.066 USD in Dec 2019 as reported by International Monetary Fund – World Economic Outlook. It records an increase from the last reported number of 724.371 USD in Dec 2018. Looking ahead, Uganda’s nominal GDP Per Capita is projected to stand at 1,032.190 USD in Dec 2024 when the country is expected to have attained middle income status.

However Kasaija said he wants every Ugandan to be rich. “The budget was read last Thursday and that was done. The theme for the budget is “Industrialization for job creation and prosperity”. As your minister responsible for this economy, I want everyone to be rich. It is possible,” he said.

He said Ugandans are growing rich at different levels and that the NRM government will continue to manage the economy in the best way. “We cannot all be the same, others will be slightly above. The economy of Uganda will however not crash as long as we are in charge,” he said.

While speaking to guests at the event, Dicksons Kateshumbwa, the Uganda Revenue Authority (URA) Commissioner for Customs urged the public to be tax compliant but at the same time appreciated those who have been paying their taxes: “Please be compliant and pay taxes, don’t wait to be pushed by the law. Last year’s performance was impressive. I want to appreciate taxpayers,” he said.

“We urge you to make use of the technology we shall introduce. We further urge you to support Uganda but buying and building Uganda,” he added

Speaking from Arua MP Kasiano Wadri argued tax administration in the country has been militarized. “Militarisation of tax collection is a thing now. People are ready to pay taxes, but only if you explain to them what the taxes are for and how to collect it. Tax collection needs to be humanly,” he said.

Hoima Municipality legislator, Bategeka Lawrence said that Ugandans need to save and invest instead of waiting for foreign aid to carry out development. “Our desire to develop is very high hence the need to borrow, however, we need to understand that development will not only come from just foreign aid, but we also need to save, invest and develop ourselves,” he said.

URA in partnership with the Ministry of Finance is today in Soroti, Lira, Arua, Kampala and Hoima to explain to the people how the 2019/20 National Budget is going to affect them.

The budget will be financed using a mix of domestic and foreign resources. Our debt remains sustainable in the medium and long term. Much of the borrowing will be used to finance our infrastructural needs.

BUDGET BREAK DOWN FOR 2019/2020

1) Debt repayment 10.6 trillion

2) Works and Transport 6.4 trillion

3) Defence and Security 3.6 trillion

4) Education 3.2 trillion

5) Energy 2.9 trillion

6) Local Governments 2.8 trillion

7) Health 2.5 trillion

8) Accountability 1.9 trillion

9) Justice, Law and Order Sector 1.6 trillion

10) Agriculture 1 trillion

11) Water and Environment 1 trillion

12) Public Administration 908 billion

13) Public Sector Management 789 billion

14) Parliament 688b

15) Social Development 218 billion

16) Lands, Housing and Urban Development 193 billion

17) Tourism 175 billion

18) Trade and Industry 171 billion

19) Science and Technology 159b

20) ICT 123 billion

Total 40.4 trillion

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Two officials of Bank of Uganda have been charged with abuse of office and and corruption at Anti-Corruption Court

Those that were presented before the Anti-Corruption Court are Francis Kaketo and Fred Vito Wanyama who are facing charges of Abuse of office and corruption as an alternative count allegedly committed on April 26, 2019 between France , Belgium and Entebbe international Airport.

The two being Branch manager and Assistant branch manager respectively and while on assignment by their employer (BoU) to carry out a pre-shipment inspection of printed material in France ,allowed inclusion of unauthorized cargo on a chartered plane by BoU.

The duo in the alternative court are said to failed to refute and report inclusion of unauthorized cargo on a plane chartered by BoU. The charges have been sanctioned by Director of Public Prosecution himself Mike Chibita

Yesterday three more government officials were arrested by CID and other agencies investigating the alleged printing of Shs90 billion even though the governor of Bank of Uganda (BoU) insists no extra money was printed.

The latest arrests come as investigators led by the Uganda police detectives continue to hunt for individuals involved in causing the saga that saw private goods and parcels carried on a chartered plane used by BoU to deliver its consignment in April.

The chartered plane landed at Entebbe International Airport on April 27 and was cleared by Uganda Revenue Authority (URA) customs department in the presence of BoU officials, BoU security, aviation security, police and other security agencies. However, it was reported that instead of the expected 20 pallets, the consignment had 25 pallets.

On Wednesday, the investigators arrested three Bank of Uganda (BoU) officials for of abuse of office and neglect of duty. The officials are Caroline Nankabirwa, from procurement department, Simon Peter Zaribugire from currency department and Milton Opio, director security.

Investigators from the Uganda police say investigation into the Bank of Uganda continue and will soon issue a new statement on the latest developments concerning the currency consignment saga in which a chartered plane delivered five crates alongside 20 pallets of BoU consignment.

“Our officers in partnership with other agencies are still doing the investigations and I promise we will soon issue a statement to clear rumours in the media,” an officer who is part of the team said on condition of anonymity as he is not allowed to talk to the media.

The officer said the investigations spearheaded by CID Director Grace Akullo have expanded countrywide to BoU regional currency centres of Kabale, Mbale and Fort Portal, after leads brought those centres into picture.

The detective explained that heads of BoU currency centres in the three regions are being interrogated on whether they had prior knowledge on the five extra pallets that were transported on the chartered plane, which had on board, newly printed Uganda Shilling notes.
The source said the CID team is also probing how and why the directors were transferred to regional currency centres from the head office in Kampala, prior to the arrival of the BoU consignment.

Available information indicates that the Central Bank sent its officials to pick printed cash overseas and alerted Uganda Revenue Authority (URA) about a consignment that required fast clearance.

Sources indicated that the head of Mbale currency centre who was abruptly called to witness the offloading of BoU consignment became suspicious of the extra pallets and briefed BoU Governor Prof. Emmanuel Tumusiime-Mutebile.

But Tumusiime-Mutebile on Tuesday reiterated that there was no extra consignment containing printed money besides that which was officially sanctioned by the bank.

‘I simply said that it was an anomaly in the sense that the plane came along with 20 pallets and additionally five crates (that were not ours). The 20 pallets were consigned,” Mutebile said while reading the latest monetary policy statement, urging media to ignore rumours citing that there was extra money printed.

Mutebile’s comments come after government spokesperson Ofwono Opondo disowned an investigation by police in relation to the unfolding currency scandal at Bank of Uganda.

Police spokesperson Fred Enanga told journalists yesterday that investigators were investigating allegations that additional money was printed and smuggled into the country. The figure that has been thrown about is Shs 90 billion.

But government through Ofwono Opondo, the executive director of Uganda Media Centre said they were not aware of any investigation regarding this money.

“I disagree with Fred Enanga’s statement about investigations in relation to the extra cargo of Shs 90 billion,” said Ofwono.

Opondo said government now wants Enanga to put the record straight.

“We are asking police to correct the statement [that there is an investigation over Shs 90 billion].”

Ofwono said government is investigating the extra boxes on the plane that contained equipment for testing blood.

Today parliament’s Committee on Commissions, State Authorities and State Enterprises (COSASE) quizzed top officials of the Civil Aviation Authority on the saga, with officials saying they had no role to play in the delivery of the currency consignment to BoU.

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