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Gov’t to ease social media tax payments

By
Our Reporter
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Gender, Labour Minister Frank Tumwebaze.

By Maria Nassiwa

Kampala: Very soon, you might be saved the hustle of paying your social media tax through daily mobile money subscriptions.

The ministry of finance is working on an arrangement that will see subscribers only paying either annually or quarterly a year.

Addressing a press conference at Media Centre this afternoon, the junior finance minister, David Bahati said, “We want to facilitate that access so that payment becomes more convenient.”

The minister also used the press conference to explain that the tax is not on the internet.

“Excised duty tax is not internet tax, it is for accessing specific services, if you don’t pay for OTT, you will not access social media platforms but you will access internet and send emails,” he said.

According to the ministry’s estimate, Uganda has ten million OTT tax payers and the expectation is that if each of those paid their bit enough would be realized in the collection basket to pay for other social services for the citizens.

Meanwhile cabinet approved the revision of the tax on mobile money transactions from 1 per cent to 0.5 per cent.

This was after a public disapproval of the tax imposed on all mobile money transactions.

ICT, Information and National Guidance Minister, Frank Tumwebaze said the cashless transactions are meant to facilitate development of technology in the country and therefore the tax on withdrawals is some sort of a punitive measure for those “craving for paper cash.”

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We will not give loans to distressed commercial banks-Mutebile

By
George Mangula
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BoU Governor Emmanuel Tumusiime-Mutebile.

The Bank of Uganda Governor Emmanuel Tumusiime Mutebile has said his bank will not give any credit to distressed commercial banks.

“We will not give credit support to distressed banks in the hope of the banks making money later because of poor management,” Mutebile told delegates attending the annual Uganda Bankers’ Association (UBA) conference at the Kampala Serena Hotel on Tuesday.

Mutebile’s warning comes after it recently emerged that DFCU Bank was unable to secure liquidity in form of a loan from the central bank.
It has also emerged that about six commercial banks are loss making, sending fears that they could close soon.

Sources say DFCU Bank presently does not have enough liquidity to lend out despite making net profits of Shs127 billion in the year 2017.

Major shareholders have of recent been hit by fights over the profits earned in that year, having acquired Crane Bank. Britain’s’ Commonwealth Development Corporation (CDC) is poised to exit, should they sell their shares.

Meanwhile, the Chairman of UBA Patrick Muheirwe, while addressing delegates at the conference said: “There are inefficiencies in the credit system that has given people a chance to refuse payment of loans.”

Muheirwe said it takes commercial banks almost 10 years to resolve a dispute in the courts of law, which he said drags the business as banks need the money back to continue operating.

In January 2017, BoU controversially sold Crane Bank assets to DFCU Bank for Shs200 billion, even as the central bank claimed to have spent Shs200 billion on recapitalization of the defunct bank.

Parliament would later launch an investigation into BoU regarding the sale of defunct banks, accusing BoU managers of never writing any reports concerning the transactions. The Office of the Auditor General is currently investigating BoU.

However, the governor said that despite facing criticism, BoU has been able to continue operating very well. “As a regulator, the primary objectives of the Bank of Uganda (BoU) are: to protect the interests of depositors and to ensure the overall stability of the financial system, through prudential regulation and supervision of deposit-taking institutions,” he said.

In another development Mutebile has said that BoU all banks have the potential to fail as long as they transact business. “It is not possible BoU to guarantee that no bank will ever fail because that would require the elimination of risk-taking by banks, which would in turn hinder the very purpose of financial intermediation,” he said.
Muheirwe said the sector was taking steps to review cost structures while expanding reach and penetration.

“We are partnering more with Fintechs, aBi Trust, NITA Uganda, MasterCard among others to build synergies for alternative and cost effective service delivery,” he said.

Finance minister
Finance Minister Matia Kasaija, while addressing delegates at the conference said: “The banking sector is key in collection of government tax revenue in addition to being an employer of a lot of Ugandans. This is why having a sound and stable financial sector is important and a must.”
On government paying debts to the banks, he said he has allocated Shs730 billion to settle domestic arrears which is double the amount that was allocated last financial year. “Accounting officers who accumulate arrears will lose their offices. Do not commit yourself to purchase until you have the money with you,” he said.

Prime Minister
Prime Minister Dr. Ruhakana Rugunda while addressing delegates said government would help banks prosper. “We commit to maintain some policies to enable the Banking Sector thrive,” he said adding that government recognises that technology has changed the way people do business.

He said: “The Electronic Act is in place. The Data Management and Privacy Bill is also going to become an Act. These are structures to guide the activities of the banking sector and ensure financial integrity.”

He said 33 major towns have been connected to cyber banking and that an enabling infrastructure is in place. “By the time digital banking starts, government will be ready for it. We must note that it’s projected to be a very big source of revenue to the country,” he said.

Rugunda said the banking sector was changing every day. “The digital revolution is coming and the only question is, are we ready for it? Is the central bank ready to bring about a secure and efficient macro-economic sector and expand revenue to the country?” He asked.

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Mass exodus at Monitor and NTV

By
Our Reporter
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Maurice Mugisha and Josephine Karungi.

All isn’t well with the Nation Media Group-Uganda as mass resignation hit both Namuwongo and Serena Conference based newsrooms.

Sources at the Monitor say several seasoned reporters and editors have thrown in the towel for green pastures as the economic crisis hit the unbearable levels.

Angella Nampweo

It is said the list is led by long serving Editors Flora Aduk and Angella Nampewo both from the features desk. Eagle Online couldn’t establish their next destination but given their experience, they are absolutely headed for better places.

Ismail Dhakaba Kigongo

The two ladies are accompanied by seasoned Sports writer/analyst Ismail Dhakaba Kigongo who joins the National Council for Sports as the head of Corporate Affairs while Emmanuel Ainebyoona is off to Ministry of Health joining the PR office.
OFF TO HEALTH MINISTRY; Emmanuel Ainebyoona.

At NTV, experienced head of news, Maurice Mugisha is reportedly leaving for Uganda Broadcasting Corporation (UBC) as Deputy Managing Director in the restructuring process that has seen many retired while Josephine Karungi who is serving her three months’ notice at NTV having resigned earlier her destination isn’t known yet.
Flora Aduk taking a selfie with singer David Lutaalo.

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Seven accounting firms closed in the city- police

By
Geoffery Serugo
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Luke Owoyesigire

The Spokesperson for Kampala Metropolitan police Luke Owosigire says a dozen of people were yesterday arrested and seven accounting firms closed in the city during a crackdown on quack accountants.

The joint operation of police and CPA follows public outcry from certified Accountants about the escalating numbers of accountants masquerading in and outside Kampala.

He said the clampdown by both police and the Institute of Certified Public Accountants (CPA) is expected to bring a similar crackdown in other parts of the country to weed out fraudsters.

According to Owosigyire, for CPA John Ssegendo over 5,000 individuals are holding out as accountants asserting that they most of them unqualified and practicing without license.

“We mounted a quality review Programme and established that a number of fake accountants and companies had flooded the market. We have to put to an end to this,” Mr. Ssegendo said.

Ssegendo said accountants with questionable credentials, charge lower rates to undercut the professionals and help companies to falsify business or financial records to reduce tax liability.

For CID Spokesperson Vincent Ssekatte said detectives were last evening recording statements from the 12 suspects whom they plan to arraign in court within the week if the Directorate of Public Prosecutions endorses the charge of forgery preferred against them.

“It is the mandate of the CPA to accredit the accountants and companies, hence even if one knows how to balance financial books, without the practicing license and membership certificate, they are rendered fake and we are going to deal with them,” he said.

According to Section 35(1) of the Accountants Act, 2013, a person shall not practice accountancy in Uganda without a certificate of practice. Membership certificate for an accountants costs Shs1 million, annual certificate renewal at Shs400, 000 while a practicing license costs Shs1.2 million a year.

The provision imposes a fine of up to Shs10 million or a two-year imprisonment on illegal practitioners.

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MP Nambeshe castigates Museveni, says legislators have all money to ensure own security

By
George Mangula
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MP-John-Baptist-Nambeshe.

Members of Parliament have all it takes to ensure their own security, despite President Museveni’s directive that the legislators be provided amoured vehicles, bullet proofs and sharp shooters, John Baptist Nambeshe, the Manjiya Constituency representative has said.

Nambeshe made the remarks as he appeared on NBS television on Tuesday morning. He said those who advised Museveni to direct that government spends extra money on MPs security were selfish people who have no the country at heart.

“Members of Parliament have what it takes to hire their own security,” he said, adding that the money yet to be sourced should go to projects that benefit poor Ugandans such as in disaster prone areas.

Nambeshe said that unlike MPs, the poor citizens were more vulnerable to insecurity, quoting the recent murders of Susan Magara and other women who were recently killed around Kampala and Wakiso districts.
Nambeshe categorized in the group of NRM rebel MPs said that the cost implication of the equipment and the personnel to cater for the legislators was huge for the country.

He said the issue of insecurity in the country cuts across, arguing that government should concentrate more in protecting vulnerable Ugandans especially the children, women and the elderly.
Nambeshe said the insecurity in the country is a result of a “stretched economy.”

He called for the strengthening of the country’s intelligence gathering units such as CMI, ESO and ISO. That is where that money should be focused,” he said.

Nambeshe said he would reject the amoured vehicle if it is procured and given to him. “I would reject it. Where does it leave my family members? Are we going to amour our houses?” He said when asked.

James Waluswaka (Bunyole Wes-NRM) who supports Museveni in boosting MPs’ security said the money would come from classified expenditure. He said the guards to be provided are already on government payroll.

Waluswaka in the turn of events accused his colleagues of being selfish to the extent that they don’t provide their guards and drivers launch. “Some of the MPs spend Shs100, 000 on lunch,” he said.
Museveni gave directive is in a letter dated June 29, 2018 to Minister of Finance Matia Kasaija to procure special security cars for all 456 MPs. The president said that members of parliament have been singled out for intimidation and possible attack and that he has decided to protect the MPs as the country awaits putting in place other security systems.

The president’s directive followed a call from a section of MPs to be provided with additional security following an increase in cases of kidnaps and murders of women in Wakiso and Entebbe, Muslim clerics, and a number of other prominent people over the last two years.

The latest was the assassination of Ibrahim Abiriga, the former Arua Municipality MP in June. Abiriga, who was one of the supporter of the constitutional amendment to remove the restriction on the presidential age.

Those well versed with security matters say a new pick-up as described by Museveni would cost between Shs200 million and Shs250million each. That means about Shs150 billion would be required to procure the amoured pick –ups.

The Opposition Forum for Democratic Change party recently blamed Museveni for directing that all legislators be provided with escort vehicles and snipers and implored MPs members from the opposition side not to accept the vehicles.

FDC Deputy Spokesperson Paul Mwiru said: “We don’t need the pick-up vehicles and the sharp shooters because we don’t have any threats since we have done nothing to warrant any attack from our people who voted us into our positions.”

Former Presidential Press Secretary Tamale Mirundi, when asked on Tuesday morning said Museveni was right to direct that the MPs be provided with the amoured vehicles and snipers.

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Exhibit discipline and enforce rules of engagement while in Somalia- Gen. Muhoozi tells UPDF soldiers

By
Geoffery Serugo
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Gen. Muhoozi addressing officers and men of the UPDF.

The UPDF Chief of Defence Forces Gen David Muhoozi has flagged off Battle Group XXV (BGXXV) and United Nations Guard Unit (UNGU V) at the Peace Support Operations Training Centre in Singo in Nakaseke District.

BG XXV will be charged with the responsibility of sustaining peace and stability in Somalia under the mandate of the African Union Mission in Somalia (AMISOM). UNGU V will be protecting key United Nations (UN) and Federal Government of Somalia (FGS) vital installations, UN personnel, escorting VIPs, among others.

Speaking at the Peace Support Operations Training Centre in Singo Gen. Muhoozi implored both BGXXV and UNGU V to live up to their expectations since life in the mission area is not a picnic but a mission that demands hard work and keeping keen adherence to rules of engagement.

“The Somalia Mission demands both discipline and sacrifice for one to be successful. Therefore, work hard while there and don’t let down Uganda,” Gen. David Muhoozi told BGXXV and UNGU V. He added that UPDF is in Somalia in line with its Pan-Africanist ideology of supporting fellow Africans whenever called upon.


He cautioned soldiers going for the peace keeping mission in Somalia to make sure that they come back as healthy as they have gone since UPDF as an institution has already invested so much in them.

Further urged them to avoid negative propaganda while in Somalia for the success of the mission, “Avoiding propaganda will make you winners and carry the Ugandan Flag higher,” he said.

The UPDF Commander Land Forces, Maj. Gen. Peter Elwelu who accompanied the CDF lauded soldiers of BGXXV and UNGU V for successfully completing the training and wished them well in the mission area. He reminded them that Somalia is a fighting area that calls for disciplined and professional soldiers.

Brig. Jack Bakasumba, the commandant of the Peace Support Operations Training Centre-Singo noted that the training was well done and urged soldiers to avoid excuses while in Somalia. The commandant urged them to work together whenever deployed in any mission area.

BG XXV will be commanded by Col. Paul Muwanguzi and deputized by Lt. Col. CK Asiimwe while Former ADC to the president, Col. Stuart Agaba will command UNGU V and deputized by Maj. Edward Mugisha.

The flag-off ceremony was attended by Dr Opiyo Oloya of the famous “Black Hawk Rising” a book that details UPDF activities in Somalia, Representatives from the British Training team, and other UPDF Chiefs and Directors.

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Youth power ignore IGG reply insist on Bagyenda case

By
Our Reporter
-
Embattled former Executive Director in charge of Supervision at Bank of Uganda Justine Bagyenda.

By Maria Nassiwa
Kampala: A section of youth have ignored a lengthy explanation from the government Ombudsman and insisted she investigates with intention of making public wealth details of embattled Bank of Uganda director, Justine Bagyenda.

Under their umbrella association, Youth Power Research Uganda, the youth penned a response to the IGG terming her stance in the letter as “a sign of incompetence and pride and failure to know that you are accountable to the public as per the law.”

“You seem to use the Leadership Code Act section 4C to hide and exonerate your former schoolmate and church mate and that you will only give the report to Parliament and therefore conclude by saying you cannot respond to our requests!” the youth said in a a press release to the media by their team leader, Ben Ssebuguzi.

Sometime last month, the youth wrote a letter to the IGG asking her to make public her findings from the investigations of the suspected wealth owned by Ms Bagyenda.

However, in her response, the IGG attempted to take the youth to school, dedicated a page of her three page response to educating them about the role of the office of the Inspectorate of Government.

In her response, Ms Mulyagonja advised the youth that the matter of their interest is already before the commercial court and Parliament, and that it would be in their interest to keep their ears on the ground for when the two institutions will be ready with their reports.

She also seemed to suggest that the youth are being used by Ms Bagyenda’s enemies.

“Without prejudice to the foregoing, I have noted that your demand for the alleged report in this matter does not appear to be your own free will as members of an organization rather it seems to be a result of the untiring efforts by other persons that have vested interests in the conflict between Ms Bagyenda and Crane Bank colluding with you to demand for a report.

“Your request also seems to be tainted with bad faith due to the unfounded reports that have been published before that the IGG and her staff are biased in favor of Ms Bagyenda,” the IGG’s letter reads in part.

The youth, however, asked the IGG to focus on her work methods, administration style toward the Bagyenda and Crane Bank issue as it could have cost many young people jobs.

“We know your jurisdiction as per the law and therefore we are not telling you to meddle in civil suit HCCS 493 of 2017, but all we want is the investigation report of those people that we suspect that were behind the dissolution of our banks,” the youth said.

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Uganda’s trade deficit narrows 39.3 per cent in May

By
Isaiah Mwebaze
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Uganda’s merchandise trade deficit narrowed by 39.3 per cent in May 2018 to US $131.0 million from US $215.8 million recorded in April 2018, the latest Bank of Uganda (BoU) report says.

According to the report, the reduction in the trade followed a combination of the declining import bill and increased export proceeds during that month.

However, compared to May 2017, the merchandise trade deficit widened by 2.3 per cent in May 2018 to US $131.0 million from US $128.1 million.

The merchandise exports earnings
The analysis shows that export earnings increased both on an annual basis and on a monthly basis. The total value of exports grew by 21.5 percent, from US $264.61 million in April to US $ 321.58 million in May 2018, largely due to an increase in the export receipts of maize, beans, gold, base metals and coffee.

The increase in the export receipts of coffee, gold, beans and maize is mainly attributed to the increase in their respective volumes.

Compared to May of last year, export earnings increased by US $11.8 million (3.8 per cent) in May 2018 to US$ 321.58 million from US $309.7 million. BOU attributes the performance to growth in the earnings of gold, beans, maize, fish and its products.

However, coffee earnings declined by 28.3 per cent following a decrease in both the volume and international prices. Coffee volumes decreased by 21.9 per cent whereas the prices fell by 8.1 per cent.
The decrease in coffee volumes is explained by an end of main season in the central and eastern region.

Cumulatively, from July 2017 to May 2018, the value and volume of coffee exports increased by 4.1 per cent and 10.1 per cent.

Destination of Exports during the month of May
The East African Community (EAC) remained the main destination for Uganda’s exports, followed by the Rest of Africa, and the Middle East. Exports to the EAC region increased by 13 percent from US $133.97 million in May 2017 to US $151.4 million in May 2018.

“Exports to all EAC Partner States increased save for Burundi which registered a decline of 9.5 per cent. Rwanda and Tanzania recorded the largest increases of 66.1 per cent and 47.8 per cent respectively. Table 6 shows the destination of exports,” the BOU report says.

Merchandise Imports
Merchandise worth US $452.5 million was imported during the month of May, registering a decline of 5.8 per cent from the previous month. This decline was mainly driven by a significant decline in government imports (80.7 per cent) which more than offset the 2.6 per cent increment in formal private sector imports.

Compared to May of last year, merchandise imports registered an increase of 3.4 per cent in May 2018. The increase was primarily driven by an increase in private sector oil imports that upped 12.6 per cent.

Origin of imports during the month of May
The biggest share of merchandise was imported from Asia (39 per cent), followed by Middle East (23 per cent) and EAC (16 per cent). India, China and Japan contributed 79 per cent of the total imports from Asia, while 87.2 per cent of the imports from EAC was sourced from Kenya and Tanzania.

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Two dropped, as Busoga King appoints Balunywa and Kutesa business partner in mini shuffle

By
Richard Wanambwa
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The Kyabazinga of Busoga, HRH William Nadiope(foreground) with the Chief Prince of Busoga, Samwiri Nkutu at a past function.

Just after news of his sacking leaked in several Busoga WhatsAPP groups, Mr Andrew Ntange, the outgoing kingdom’s information minister left the groups.

He, and Youth Minister, Suleiman Kazibwe Hashim, are the only two ministers the Kyanazinga of Busoga, William Nadiope IV, dropped in a mini reshuffle of the Bugembe leadership.

Mr Ntange has been replaced by veteran talkative Lusoga news reader Michael Kifubangabo with an expanded portfolio; mass mobilization, information and promotion of unity.

Mr Hashim, was probably dropped after abdicating his ministerial post for London.

Mr Kifubangabo held the information portfolio by the time of the death of the former Kyabazinga, Wako Muloki.

His appointment could be interpreted as a move by the Bugembe administration to extend an olive branch to the disgruntled Bulamogi Chiefdom who are yet to come to terms with the fact that their chief is not the Kyabazinga.

Another pick from the Muloki old hat is MUBs principal and former Busoga Prime Minister, Wasswa Balunywa who has been appointed to chair the Busoga Royal Concepts board.

Technically, Busoga Royal Concepts board is the investment and business arm of the Kingdom.

On the board are prominent business people including serial Kenya investor and business partner to Foreign Affairs Minister Sam Kuteesa, Amina Hersi Moghe.

Ms Hersi is the lady behind Oasis Mall,Laburnam apartments and the controversial land acquisition of APAA land in northern Uganda where they want to set up a sugar factor.

The Appointments

1. Mr. Mukembo James as the minister of youth and information technology

2. Mr. Kifubangabo Michael as minister for mass mobilization, information and promotion of unity

3. Mr. Samanya Godfrey permanent secretary to the cabinet

B) The following persons have been appointed to the board of directors of Busoga royal concept.
1. Prof Waswa Balunywa- Chairperson Board

2. Owek Luganda Alex- Secretary to the board

3. Owek Kirya Ivan- Treasurer

C).The following persons have been appointed as members of board of Busoga royal concept
1. Ms Amina Hersi Moghe

2. Hajji Muwanga Kisibo Badru

3. Mr. Kisubi Abel

4. Mr. Nsiyonna David

5. Mr. Mugisha Rodney

6. Mr. Nyende Williams

7. Owek. K.G. Kershwala.

D).The following persons have been appointed to the youth desk.

1. Lt Muganza Grace- Chairperson

2. Mr. Omoding Bernard

3. Mr. Makulu Mukuza

4. Ms. Nabirye Peninah

5. Ms. Tabingwa Rachael

6. Mr. Woira Machael

7. Mr. Kitimbo Joel

8. Mr. Nagayi Medi

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Honourable MPs show the country who your enemies are?

By
Guest Writer
-
HULLO: President Yoweri Museveni greets the author Mr Nabende Wamoto.

Hon. Members of Uganda`s 10th August House (parliament), I personally sympathize with your lately expressed serious fears to the effect that you are targets of criminals (in the line of fire), prompting the Head of State, Commander-in-Chief of Uganda’s Armed Forces and President of Uganda to rapidly write to his Finance Minister, Matia Kasaija instructing the latter to hunt for and find money by all means with which to procure Anti-Personnel Carriers (APCs) for the defence of you, the peoples` representatives and manned by Uganda Peoples’ Defence Forces snipers or call them sharp shooters.

Hon. Members, you have made your security concerns known to the president and yes money can be found to determine your security and protection but to us the general Ugandan population (voters) there remain glaring gaps in your whole presentation which reminds me of one of my old European Mountain Gorillas trackers who in 1998 made a Joke to me at Kabale`s White horse Inn hotel that in Africa when you find an old man eating chicken, you know that he is sick or it was the chicken that was sick:-.

Members, you have indicated that your lives are in danger especially after the ruthless and cruel murder of the late Ibrahim Abiriga then Member of Parliament for Arua Municipality on the 8th day of June 2018 but you don’t.

Show the country and more particularly your constituents (voters) on who your enemy (ies) is.
You should remember that relevant commanders will not just deploy around you members. They will need at least a basic deployment abstract to guide their charges (troops if you want) which the snipers will constantly look out for in the course of their guard duties. The commander(s) will want answers to the following questions as shown here below:-

Who is the potential enemy?, is he/she covert or overt?, what could be the enemy`s motive? And is the enemy local, national, regional or global?
Even recently His Excellency the President YK Museveni rebranded some of you as new heroes, if we the old heroes are still darlings in the community for now over 30 years why must new heroes be in this indescribable danger?

Have these threats got anything to do with erratic legislation especially regarding the controversial, “smuggled” money and social media (OTT) tax bill that has proved infringing on the social, economic wellbeing of the same people you were called to defend? Are you, your own worst enemies, for if the shepherd limps, the flock shall definitely not reach the pasture?

Nabendeh Wamoto S.P (0776-658433)
Email: simonwamoto@yahoo.co.uk

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