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Marriott announces rapid expansion plans across Africa

By
Our Reporter
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NAIROBI, Kenya, October 1, 2018/ — From the Africa Hotel Investment Forum (AHIF) in Nairobi, Kenya, Marriott International today announced rapid expansion plans across Africa. Strong demand for select-service brands and conversion opportunities are driving the momentum of growth for the company, amplified by five new hotel signings. The new signings will further consolidate Marriott International’s presence in Ghana, Kenya, Morocco and South Africa and mark the company’s entry into Mozambique. The signings put Marriott International on track to increase its portfolio by 50 percent with over 200 hotels and 38,000 rooms by 2023 estimated to generate 12,000 new job opportunities.

Marriott International’s planned growth reinforces its commitment to Africa and underscores the substantial emphasis that countries across Africa are placing on the travel and tourism sector. The company estimates that the five new projects signed will drive investment of over $250 million by the property owners and will generate substantial economic activity.

“Marriott International’s acquisition of Protea Hotels followed by the acquisition of Starwood Hotels & Resorts Worldwide has given an impetus to our organic growth on the continent. Today we are seeing strong owner interest in our brands, backed by our combined loyalty program, the collective strength of our global platform and our highly-experienced, local teams,” said Alex Kyriakidis, President and Managing Director, Middle East and Africa, Marriott International. “African economies have sustained unprecedented rates of growth, which have mainly been driven by a strong domestic demand, improved macroeconomic management and increased political stability. The continent is still under capacity as far as branded hotel supply is concerned, presenting us with a fantastic opportunity to grow our brands and enhance our footprint,” he added.

Today, Marriott International is present in 21 countries on the African continent: Algeria, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Kenya, Malawi, Mali, Mauritius, Morocco, Namibia, Nigeria, Rwanda, Seychelles, South Africa, Tanzania, Tunisia, Uganda and Zambia. The company is set to expand into new markets including Benin, Botswana, Ivory Coast, Mauritania, Mozambique and Senegal.

Conversion strategy spurs growth

Marriott International continues to see increased interest from owners looking to maximize the value of their assets quickly, with many conversion opportunities across Africa. “The increasing demand for conversion deals from new and existing partners is a strong reflection of Marriott International’s powerful network, loyal customer base and commitment to deliver value for owners,” said Kyriakidis. “We’ve developed a conversion-friendly strategy, which allows us to deliver value to our partners through a flexible, cost-efficient process that yields almost immediate results. That strategy gives our partners access to world-class reservation systems and our loyalty program.”

Recent conversions to the company’s brands include Four Points by Sheraton Nairobi, Hurlingham, Four Points by Sheraton Arusha, The Arusha Hotel, Tanzania and the iconic Mena House, Cairo which joined the Marriott Hotels and Resorts global brand portfolio earlier this year.

Amongst new conversion deals, Marriott International has signed the Marriott Marrakech Hotel in Morocco. With over 360 rooms, the hotel is slated to be rebranded in 2020.

Select-Service brands in high demand

Marriott International’s select-service brands, including Four Points by Sheraton, Protea Hotels by Marriott and AC Hotels by Marriott, are experiencing unprecedented demand with vigorous expansion in both mature and emerging markets.

Marriott International has signed two new hotels under the Protea Hotels by Marriott brand including Protea Hotel by Marriott Accra Kotoka Airport, Ghana and Protea Hotel by Marriott Nairobi, Kenya. Protea Hotel by Marriott Accra Kotoka Airport is planned to be a 200-room hotel strategically located in the prestigious airport residential area of Accra offering a restaurant, a lobby bar and lounge, small conference and meeting facilities, an air crew lounge, a gym and a roof-top pool bar and lounge with uninterrupted views of the city. Protea Hotel by Marriott Nairobi will be located approximately 5 km from Jomo Kenyatta International Airport on Mombasa Road. Expected to open in 2021, the 250-room hotel will include a restaurant, a bar, a fitness center, a pool and 600 square meters of meeting space. Earlier this year, Marriott International signed Protea Hotel by Marriott Pretoria Loftus Park, South Africa, which is slated to open later this year.

The company also signed Four Points by Sheraton Nampula, Mozambique, which will be its first hotel in the country. The hotel, expected to open in 2023, is part of a mixed-use development comprised of a shopping center, apartments, residential homes, a hospital, offices and the hotel. The 185-room property includes 100 hotel rooms and 85 extended stay units, food and beverage facilities, conferencing facilities, a fitness center and a pool.

Later this year, Marriott International will debut the AC by Marriott brand into Africa with the opening of the 188-room AC by Marriott Cape Town, Waterfront, conveniently located just minutes away from the buzzing Victoria & Alfred Waterfront and just a 25-minute drive from Cape Town International Airport. The company has also signed its second AC by Marriott hotel in Africa, AC by Marriott Umhlanga Ridge, Kwazulu Natal, Durban. The 205-room hotel will be a part of a mixed-use development comprised of offices and high-end residential apartments and boasts dramatic views of the Indian Ocean. Slated to open in 2023, the hotel is within easy access from major highways and in close proximity to the King Shaka International Airport.

The company expects to introduce some of its other well-known select-service brands like Aloft Hotels, Element, Courtyard by Marriott and Residence Inn by Marriott with hotels already under development. It is also looking for opportunities to bring Fairfield by Marriott to the continent.

Speaking on the increased interest in mixed-use development projects, Kyriakidis said, “As cities evolve and grow into flourishing urban centers, we will continue to see a lot of activity in this space. An international hotel brand can bring cachet to a project that positions it significantly above its peers. Our portfolio of diverse brands lends itself to grow in all markets providing developers the flexibility and choice to identify the right brand for the right location. We believe this also provides an incredible opportunity to develop branded residences with our luxury brands such as The Ritz-Carlton, St. Regis and W Hotels and we are actively pursuing this. Today our brands account for nearly 60 percent of the global hospitality-branded residences market.”

“Africa is a very compelling story for us. With our history on the continent, our footprint and strong pipeline, a diverse portfolio of brands and a robust management infrastructure, we believe that we enjoy the trust and the confidence of Africa’s hotel development community,” he added.

Marriott International is enjoying a strong year of new hotel openings in Africa, which includes its first hotel in Mali – Sheraton Bamako – as well as the first Marriott Hotel in Accra. The company also debuted the Protea Hotel by Marriott brand in North Africa with the opening of Protea Hotel by Marriott Constantine.

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MPs ready to quiz BoU’s Mutebile, Kasekende on sale of defunct banks

By
Isaiah Mwebaze
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By Our Reporter

Members of Parliament on Commissions Statutory Authorities and State Enterprises (Cosase) committee headed by Bugweri County legislator, Abdul Katuntu, expect this this month to open an inquiry into the suspected mismanagement of closed commercial banks by the central bank-Bank of Uganda (BoU), a source has said.

The Mps want BOU Governor Prof. Emmanuel Tumusiime-Mutebile and his deputy Dr. Luise Kasekende, among others to testify under oath with regard to the payment of billions of shillings to external lawyers.

For the expenditures on Crane Bank Ltd, only Shs4 billion was disclosed as the money BoU used in hiring of two external law firms. MMAKs (Shs3.9 billion); Cohen and Collins Solicitors and Notaries (Shs17.4 million).BoU sold Crane Bank to Dfcu Bank at only Shs200 billion paid in installments.

However, there is no expenditure revealed on MMAKS Advocates and AF Mpanga Advocates who were hired by BoU in Crane Bank saga before court kicked them out over conflict of interest. It is also not clear how much BoU officials spent on external lawyers who handled Greenland Bank and others.

MPs want Mutebile and his juniors respond to queries under oath because the Auditor General John Muwanga in his August 27 report to Parliament said that some key documents which he could have used in the audit of closed banks were not availed to him by BoU officials.

For instance Muwanga in the report in regard to Shs200 billion liabilities transferred to Dfcu says: “I could not establish how the consideration of Shs200 billion was derived from the bad book of Shs570.38 billion. I was also not provided with the schedule of loans and the corresponding collateral transferred to Dfcu, therefore I was not able to establish the values and categories of loans transferred.”

Mutebile and others will be tasked to provide details on the BoU expenditures on external law firms hired during the liquidation of Teefe Bank (1993), International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and the sale of Crane Bank Ltd (CBL) to dfcu (2016).
For instance, under Global Trust Bank, Cosase will ask Mutebile to explain the payment of Shs409.3 million in legal fees.

Before Cosase halted investigations in September last year, the committee had found from previous AG reports that BoU officials paid Shs1.4 billion in legal fees to private law firms, despite having a fully-fledged legal department. The MPs have since queried the expenditure and demanded details.

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Ruparelia Group among best private sector exhibitors at Tax Appreciation Week 2018

By
Isaiah Mwebaze
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The Ruparelia was among the best private sector exhibitors at the recently concluded Tax Appreciation Week 2018 organised by the Uganda Revenue Authority (URA).

The Group that runs businesses in education, real estate, horticulture, hospitality and among others was awarded for being First Runner-up behind Roko Construction Limited but beat Tembo Steels that was the third in the category that had a considerable number of private firms exhibit their products and services.

Some of the companies under Ruparelia Group include Victoria University, Resort Hotel Munyonyo, Meera Investments, Rosebud Limited and Kabira Country Club, among others.

Ruparelia Group received the award during the Tax Payers Appreciation Dinner at the Kololo Independence Grounds where the top tax payers in various categories were awarded for their tax compliance.

However, the Excel Award, the biggest award of the Taxpayers Appreciation Awards Gala was bagged by Pepsi Uganda. Pepsi Uganda has been at the pinnacle of tax compliance for the FY 2017/18.

The Commissioner General’s Strategic Partner Professional Body Award has been shared by Uganda Clearing Industry and Forwarding Association (UCIFA) (UCIFA) and Uganda Freight Forwarders Association (UFFA). The two entities have been instrumental in the improvement of the clearing and forwarding industry.

The Commissioner General’s Strategic Award in the Ministries, Departments and Agencies category went to judiciary.

The Regional Non Individual Vantage Award Winners are: Warchild Holland from Northern Uganda, Mbarara Cosmetics Stores from Western Uganda, World Education Inc (WEI) from Eastern Uganda and Azam Trading Ltd from Central Uganda. War Child Holland employs 37 people, have reached over 5000 youth. They contribute to the national coffers mainly through pay as you earn (PAYE).

The Regional Vantage Individual Award Winners are: Willy Oloya from Northern Uganda, Kushemererwa A from Western Uganda, Martin Tibalira from Eastern Uganda and Virani Amin from the Central Region.

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Shareholders doubt Shs1.8b construction cost for Dfcu Financial Centre in Namanve

By
Our Reporter
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Dfcu CEO, Juma Kisaame, photo credit, NTV-Uganda.

The Managing Director Dfcu Juma Kisaame is under pressure to explain to the banker’s shareholders how Shs1.8 billion was spent on the construction of the Dfcu Financial Centre located on the plot of 50×100 at Namanve Industrial and Business Park, an insider has told Eagle Online.

According to the source, shareholders think the project cost Shs700 million. Roko won the contract to build the building is said to have subcontracted Kisame’s construction company to do some of the work.

The shareholders are also not happy that office space remains vacant, meaning the bank is not gaining some rental fees from it. The insider says Kisaame has been tasked to identify a tenant that can occupy it or even buy the building, having spent 3-4 years without a tenant.

The insider also says that Dfcu is doing badly on forex as most of top managers who resigned went away with customers who exchange big volumes of currency. Dfcu’s competitors like KCB, NC, Tropical Bank are said to have benefited from this shift. The banks are said to have recruited former Dfcu workers based on the number clients they were personally relating with.

The insider says Dfcu’s liquidity in Bank of Uganda (BoU) has lowered, forcing it to borrow from other commercial banks.

He says Dfcu plans to close more branches it acquired from Crane Bank to cut expenditure. DFCU controversially bought Crane Bank at Shs200 billion in January 2017.

The insider continues that BoU is worried that Dfcu has only advertised not fully advertised its services to customers as awareness stands at only 65 per cent.

He says Dfcu has failed to increase all salaries of workers as promised in the recent management meeting to prevent them from going to other banks. The insider said currently some staff in Dfcu do work of three people.

The top workers who recently resigned from the bank are now hired by management as consultants in fear of seeing them join competitors. Some workers who resigned have not had their savings paid by Dfcu.

Eagle Online has already reported on mass exodus of workers from DFCU, with at least over 70 workers in the last two months leaving the bank under unclear circumstances. They further say even the human resource department that used to announce entry and exists at the bank have this time refused to announce exist because it is alarming.

This development also comes at the time when Deepak Malik who has been a director on the board of the bank resigned and left the board.

Malik’s resignation as a non-Executive Director means the Dfcu board is now left with five other non-executive directors led by All Elly Karuhanga as Chairman. Others directors are; Albert Jonkergouw, Winifred Tarinyeba- Kiryabwire, Frederick Kironde Lule and Michael Alan Turner.

Analysts say the Malik’s decision to resign confirms reports that Arise B.V. intends to leave especially that Britain’s Commonwealth Development Corporation (CDC) Group intends to exit, following Dfcu Bank’s controversial acquisition of Crane Bank Limited at only Shs200 billion yet Crane Bank had assets worth over Shs1 trillion.

Reports indicate that CDC is leaving for various reasons which include poor economy but some sources say CDC wants to dodge paying taxes on its dividends.
Financial analysts say with the revelation by Auditor General that Dfcu acquired Crane Bank Limited and yet it was the valuer and at the same time a buyer could land top Bank of Uganda executives in trouble as big shareholders of Dfcu are spending sleepless nights. The situation is made worse as the case is also in court.

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
2 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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Tax Inspectors Without Borders: Helping developing countries raise a fair share

By
Guest Writer
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James Karanja

By James Karanja

It is now well-known that many developing countries are faced with major losses arising from their inability to tax the economic activities and value creation generated within their borders by multinational enterprises (MNEs).

The losses arise from a variety of causes, including aggressive tax planning by some MNEs. Tax administrations that lack the effective means to deal with the complexities of auditing multinationals are increasingly turning to a new international programme, Tax Inspectors Without Borders (TIWB), to ensure they get their fair share of tax.

Tax Inspectors Without Borders (TIWB) is a joint initiative of the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP). Launched in 2015, the programme is quickly gaining ground in the niche area of international tax audit assistance, addressing base erosion and profit shifting issues and abusive tax avoidance by some MNEs. Our latest annual report describes in detail how TIWB programmes are supporting developing countries in building tax audit capacity to boost development through stronger domestic resource mobilisation.

How does it work?
TIWB’s ” learning by doing” approach brings experts from OECD countries – and increasingly from emerging economies – to work with local tax officials on live audits of tax returns filed by MNEs. Host Administrations, in Africa, Asia, Pacific, Eastern Europe, Latin America and the Caribbean, are firmly in the driver’s seat, identifying national priorities, designing the programme and selecting the experts. This focus on general audit practices leads to the transfer of skills and knowledge in a real working environment.

TIWB’s low cost and high impact interventions fill a gap in technical assistance programmes, enabling Host Administration staff to take responsibility for their cases with limited and focused support from foreign experts. The outcomes of TIWB assistance are threefold: to assist the Host Administration to generate tax revenue through audits, build skills and confidence in the auditors’, and to improve overall tax compliance by MNEs operating in the jurisdiction.

TIWB programmes facilitate assistance in areas where local auditors are at a distinct disadvantage to the legal and tax teams working for MNEs, including advance pricing agreements, anti-avoidance rules, audit investigatory techniques, consumption taxes (e.g. VAT, GST), high net-worth individuals, pre-audit risk assessment and case selection, transfer pricing, and thin capitalisation.

Demand for TIWB continues to grow. There are 39 ongoing or completed programmes worldwide, and another 22 programmes are in the pipeline. The objective remains 100 programmes by 2020.
To date, US $414 million in increased tax revenues can be attributed to TIWB support offered in partnership with the African Tax Administration Forum and the World Bank Group. TIWB represents excellent value for money, with over US $100 in additional tax revenues recovered for every US $1 spent on operating costs.

The TIWB Secretariat is partnering with CIAT to expand regional and international co-operation between its member countries on the exchange of expertise in this critical area, which largely effects countries’ ability to attain the Sustainable Development Goals.
TIWB programmes are ongoing in some CIAT member countries, including Colombia, Costa Rica, Jamaica and Peru. New programmes are expected to commence in the Dominican Republic and Honduras, among others, in the near future. The growing body of TIWB partners include Mexico and Spain who are committed to sending their partners into the Latin America region.

TIWB programmes are primarily focused on audit support for transfer pricing and international tax audits as well as guidance on advance pricing agreements across a broad number of commercial sectors, including telecommunications, tourism and financial industry.

TIWB is part of a wider international movement that is increasingly calling on MNEs to pay their fair share and operates in direct support of the the OECD/G20 Base Erosion and Profit Shifting (BEPS) actions agreed in 2015 to equip governments with domestic and international instruments to address tax avoidance. The game is changing, the rules are evolving and important benefits are being reaped by countries worldwide. Help us push the ball forward by joining Tax Inspectors Without Borders.

The writer is Head of joint OECD/UNDP Tax Inspectors Without Borders initiative.

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URA, CAA clash over rent dispute at Entebbe International Airport

By
George Mangula
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The First Instance Division of the East African Court of Justice (EACJ) has allowed the Uganda Civil Aviation Authority (CAA)) to appear as an ‘Intervener’ in a case filed by the Uganda Revenue Authority (URA) challenging the government’s decision that it pays rent for the Customs Department it operates at Entebbe International Airport.

URA challenges the above decision of paying rent to CAA as being unlawful and in contravention of the Treaty for the Establishment of the East African Community (EAC) thus directly questioning the mandate of the Applicant (CAA) that wants to intervene in support of the Attorney General (AG).

URA filed a case against the AG -reference No.11 of 2017…, challenging the legality of that decision on account that it also violates the East African Community Customs Management Act ( EACCMA).
“The Court granted leave to the Applicant (CAA)to intervene in the matter mentioned above and that its participation shall be limited to such support of the Second Respondent (Attorney General Uganda) as is propounded under Rule 36(2)(e) and (5) of the Rules. The Court further took the view that it would be in the wider interests of justice that it admits the Applicant as intervener but such intervention would be to the parameters of Rules mentioned above,” reads the statement.

According to the statement, the Attorney General persuaded the Court to allow CAA to intervene as its legal interest would be substantially affected by a contrary decision by the Court. As such, CAA is expected to intervene and present its intrinsic interests in the case.

The Court also said that the outcome of the case with or without intervention of CAA, has a direct impact on the manager of the airport. “That the remedies sought by the First Respondent (URA) have a bearing and a direct effect on the Applicant’s (UCAA) supposedly legitimate expectation of payment for use of its spaces at Entebbe International Airport,” says the statement.

The Court says that “the case arose from menacing demands for rent by the CAA from the URA, for the latter’s occupancy and use of aerodromes at Entebbe International Airport for customs purposes.

On September 4, 2017, the Attorney General of Uganda rendered a decision against URA in favour of the CAA, in a dispute as to payment of rent by the former for the occupation and use of office space at Entebbe International Airport.

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Ugandan citizens uphold their right of access to information

By
George Mangula
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Radio set is used by majority of Ugandans to access government information

A new survey commissioned by Twaweza Uganda shows that majority of the Ugandan citizens interviewed believe strongly in their right to access government information, with the 77 per cent of the interviewees saying that information held by public authorities is a public resource that should be availed to them without any hindrance whenever they want it.

The research findings also show that 78 per cent of the respondents think citizens should be able to access information from government on; expenditure on public services (47 per cent), jobs available in government (14 per cent, money disbursed to district government (7 per cent), development/procurement plans (4 per cent).

The findings are found in the research brief shared by Twaweza Uganda on Friday to mark the International Right to Know Day. The brief is titled Access to Information: unlocking the flow, fulfilling the potential.

The research recognises Article 41 of the Ugandan Constitution which stipulates that: “Every citizen has a right of access to information in the possession of the state or nay other organ or agency of the state.”
However, the information may not be released to those who require it where it likely to prejudice the security or sovereignty of the state or interfere with the right of privacy of any person.

Despite strong support and desire to access information, citizens think it is hard to get. For instance, 90 per cent of citizens say it would be difficult or impossible to get information from government on the development budget. 85 per cent and 85 per cent say it would be difficult or impossible to get information on agriculture and school exam performance rankings, respectively.

However, majority say information on construction plans would be easier to come by, much as 47 per cent think that it would be difficult or impossible to do so. Not knowing where to look for this information (45 per cent) and long travel distance (32 per cent) are the main reasons given for the challenges.

The data also shows that citizens’ experiences resonate with institutions or professionals who seek information. The AskYourGov.ug website (76 per cent) and the Hub for Investigative Media (62 per cent) both show that the majority of requests in in between 2013 and 2015 are marked as pending (not yet responded to. One out of five requests or 21 per cent on AskYourGov.ug was successful.

There is concern that government institutions seemed to use different tactics to avoid fulfillment of access to information requests. For instance, providing incomplete outdated data, treating requesters with suspicion or hostility, and delaying or dismissing requests for no reason.

While seeking for information, data shows that 100 per cent prefer physical visits while 71 per cent prefer the use of phones. Other means of communication like the internet are used by less than 1 out of 10 Ugandans interviewed.
When it comes to their main source of information from government, 75 per cent of citizens unequivocally chose radio, followed by community meetings at 32 per cent.

To remove the blockages to information, citizens think government should use channels that they use, make information proactively available and accessible, promote its availability rather than waiting for citizens to request it and training all government personnel on the Access to Information Law.

Other obstacles as identified by Twaweza’s review of available literature are: That citizens have strong tendencies towards relying on the word of mouth as a resource rather than directly seeking the relevant information. There is also a fear of and deference to authority.

The findings reveal that citizens may also not be motivated to seek government information in the face of more pressing concerns around life necessities. But the Shs20, 000 cost of filling a request and low access to internet may also place practical constraints in their way.

On the government side, there are a number of laws that run counter to the spirit of the access to information law including the Evidence Act, the Official Secrets Act and some parts of the Penal Code. In addition, there seems to be a general attitude of secrecy and the fear of releasing “the wrong thing.” General restrictions on some political rights and concentrated ownership of the media outlets all play a role in restricting citizens’ access to information.

Ms Viola Alinda, Advocacy Manager at Twaweza: “Uganda is a regional champion in terms of financial transparency and our access to information law has been around for much longer than those of our peers. Yet in reality citizens are not easily able to actualize their right to information. Although some of the obstacles are entrenched and may take time to change, there are some more straight forward practical steps the government can take to address the gap between policy and practice.”

If citizens are to access information as they should, the report argues that there should be a concerted effort to allow proactive information sharing from local authorities, especially via radio and community meetings. “This makes some information available as a default and sends a signal that government business is open for scrutiny,”Ms Alinda says.

More so, it is recommended that officials in local authorities need to be trained and sensitised on the law and their responsibility in sharing information. “This again send an important signal to public servants and citizens as well as well as overcoming officials’
knowledge gaps about this law. And that instead of the Shs200, 000 request fee, seekers of information should only pay for reproduction costs like photocopying fees.

When the above recommendations are done, researchers say, they will go a long way to ensuing Ugandans can enjoy their constitutional legal right to information.

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BoU refuses to avail records of Teefe Trust Bank liquidation to Auditor General

By
Isaiah Mwebaze
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Former Deputy Governor, Dr. Louis Kasekende.

Bank of Uganda has failed to provide the Auditor General (AG) details of the liquidation of Teefe Trust Bank in 1993 as it deemed the commercial bank insolvent at the time.

“I was not availed with the Inventory report, loan schedules, customer deposit schedules and Statements of affairs of Teefe Trust Bank to enable me to fulfill the specific audit objectives. Due to this limitation, I could not assess the status of the assets and liabilities of Teefe Trust Bank from closure to date,” the AG John Muwanga says in his report he signed on August 27, 2018 and now lies before parliament for debate.

It should be remembered that in a letter ref A8:70/288101 dated November 28, 2017 the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE); requested the AG to undertake a special audit on the closure of Teefe Trust Bank and six others commercial banks by BoU.

The committee specifically requested the Mr. Muwanga to provide assurance on; the status of the banks at closure, cost of liquidation, status of assets and liabilities of the aforementioned banks from closure to date, non-performing assets, non-recoverable assets and liquidators.

The confidential report titled Special Audit Report of Bank of Uganda on Defunct Banks shows that BoU has not provided the liquidation agent and period for Teefe Trust Bank since it was closed 25 years ago, which raises some questions. Despite that, BoU has liquidated the assets of the bank.

Section 11 and 17 of the Financial Institutions Statute (FIS) 1993 and Financial Institutions Act (FIA) 2004 respectively mandate the Central Bank to revoke a licence of a financial Institution if it is satisfied that the financial institution has ceased to carry on business, declared insolvent, gone into liquidation, wound up, undercapitalization and dissolved.

In the report, the AG cries that BoU management did not give him documents related to the closure of Teefe Bank. “BoU management explained that it will continue to search in the archives to get all the information,” he says.

Mr. Muwanga’s revelation that he was denied some information is not a surprise because the Deputy Governor BoU, Dr. Louise Kasekende, tried so much to frustrate the AG’s work and sought the opinion of the Solicitor General who advised that BoU officials should not give information to the AG as there was a related case in court.

The Speaker of Parliament Rebecca Kadaga would come in to ensure the AG did investigate BoU senior staff including Kasekende and former director of supervision Justine Bagyenda who currently is under investigation by the office of the Inspector General of government and the Financial Intelligence Authority for alleged illicit accumulation of wealth.

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NWSC annual turnover improves by 20.9%

By
Our Reporter
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NWSC MD Dr. Silver Mugisha and a colleague during the presser.

National Water and Sewerage Corporation have today shared the company’s performance overview to the public at their Head Office in Nakasero.

Dr. Silver Mugisha, the NWSC Managing Director, presented performance for the past five years and mainly 2017/2018 in particular as one of the requirements of public corporations.

He says in 2013/14, they extended 470kms of water mains, 910kms of water mains extensions in 2016/17 and 2021kms of water mains extension in 2017/18, indicating a percentage increment of 122 per cent.

“Water service coverage has increased from 77 per cent (2013/14), 78.2 (2016/17), 83.7 (2017/18). This a 5.5 per cent increment in service coverage. We have extended clean safe water to serve more people. We had 66 towns in 2013/14. 218 towns in 2016/17 and 236 towns 2017/18. This an 8.3 per cent increment in water mains extensions across the country,” explains Dr. Mugisha.

“We had a total water network length of 6,994kms in 2013/14. We have increased the network length from; 12,113kms of water mains in 2016/17 to 14,166kms of water mains in 2017/18.” He added.

According to Mugisha, they have increased the number of new connections (People served). From 28,068 new connections in 2013/14, to 40,712 in 2016/17 and now 50,341 towns in 2017/18. This is an increment of 23.7 per cent. Total water connections have increased from 366,330 in 2013/14 to; 529,709 Water connections in 2016/17, 587,873 Water connections in 2017/2018. This is an improvement of 11 per cent.

Total Sewer connections have increased from 18,810 in 2013/14 to 21,072 sewer connections in 2016/17, 21,616 sewer connections in 2017/2018. This is an improvement of 2.6 per cent.
“The annual turnover has increased from 184.5 billion in 2013/14 to; 321 billion in 2016/17, 388 billion in 2017/2018. This is an improvement of 20.9 per cent annual turnover & capacity to extend services to more people.” He explains

NWSC performace overview.

Savings for re-investment in Capital Projects increased from 31 billion in 2013/14 to 71 billion in 2016/17, 92 billion in 2017/18. This is an increment of 29.6 per cent. Dr. Mugisha appreciated the customers who pay their bills promptly.

The total assets of NWSC have increased from 650 billion in 2013/14 to 1,409 billions in 2016/17, 1,746 billions in 2017/18 which is an improvement of 23.9 per cent.

Dr. Mugisha added that it is risky to put sewerage services where there is no water. They are aggressively extending their water mains to serve more people with clean safe water. They’re also working on sewage master plan that will be launched very soon.

“At NWSC, we don’t make profits! We reinvest all the surplus income we get. Our commitment to achieve 100 per cent water coverage in all corners of Uganda is total.” He concluded
National Water and Sewerage Corporation is a water supply and sanitation company in Uganda which is wholly owned by the government of Uganda.

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World Bank to investigate Bujagaali and Isimba power projects

By
Geoffery Serugo
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Contested Land: A group nine has taken the Isimba contractor and government to court demanding compensation for the land where the damn is being constructed.

The board of directors at World Bank is set to investigate allegations of harm and related potential non-compliance plausibly linked to the Bujagaali and Isimba power generation projects.

In June 20, 2016, the monetary body received a complaint related to the Bank-financed Uganda Private Power Generation (Bujagali) Project, the Water Management and Development Project (WMDP) and the Energy for Rural Transformation Phase III Project (ERT-III).

Complainants raised concerns about potential social and environmental harm caused by the construction of the Isimba Dam reservoir and the consequent flooding of the Kalagala Offset area (KOA).
While the World Bank is not financing the dam, the complainants averred that, the flooding will undermine the management of protected natural resources in the KOA, which is a requirement of an indemnity agreement between the International Development Association and the government of Uganda as part of the Bujagaali project.

The inspection Panel noted the importance of investigating the timing and adequacy of management’s actions in response to the government of Uganda’s decision to build the Isimba Dam, which threatens the integrity of the KOA in potential non-compliance with the Kalagala Offset Sustainable Management Plan under the WMDP.

It also noted that the timing, sequencing and adequacy of the ESIA addendum, financed under the ERT-III with analysis of alternatives limited to Isimba Dam’s differing heights, reservoir levels and water level regimes, could constitute potential non-compliance with Bank Policies on Environmental Assessment and Natural Habitats, among others.

The two Request for Inspection were lounged in on June 20, 2016 (case no. 110), and on September 19, 2016, the Panel received a second Request for Inspection, case no. 113, related to the same projects.

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