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Donations from Dutch embassy will improve community policing- IGP Okoth Ochola

A police officer tries out one of the bikes donated by the Dutch Embassy to the force

Kampala: The inspector general of police (IGP) Martin Okoth Ochola has received two double cabin pickups and eight motorbikes from Dutch funded refugee law project with a motive of stepping up security in the refugee settlement areas.

Currently Uganda is one of the top three countries that opened its doors for refugees. The country is hosting over 1.4 million asylum seekers form Rwanda, Burundi, Somalia, south Sudan fleeing due to country’s escalating civil wars that have left hundreds killed and displaced. Of over 1.4 million refugees, it is averred that an estimate of 950,000 people are expected to come from South Sudan.

Speaking at the function, Ochola said donations will be used in policing refugee settlements in Adjumani, Lamwo districts and other parts of northern Uganda that hosts the highest numbers of refugees in Uganda.

“As Police, we are happy to secure and make contributions to asylum seekers, refugees, deportees, and host communities, it is an important milestone in our collective effort to secure life and property in a committed and professional manner in partnership with the public in order to promote development,” Ochola said at Naguru police headquarters.

Ambassador of the Netherlands to Uganda Henk Jan Bakker said, it was a logical choice to team up with refugee law project in order to fill gaps that had emerged due to influx of refugees into Uganda and in terms of security in their settlements.

Bakker remarked that Netherlands is convinced that investments will make a difference since they have been rested in well trained and equipped police officers ready to serve in any communities.

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Fighting smuggling requires collective effort

Trucks carrying goods

By Herbert Ssempogo

Polythene bags strapped onto their bodies, and covered by clothes, the three women seemed like ordinary travellers. Were it not for “intelligence”, they could have successfully smuggled their items.

However, because of a tipster, the Uganda Revenue Authority (URA) enforcement team at Busitema, Eastern Uganda, netted them.

Such is the smugglers’ ingenuity. They create hard-to-see compartments in buses, hide banned cosmetics under sand and in sacks containing matooke.

Ambulances and other government agency vehicles have severally been netted over smuggling. Despite the risk-arrest and prosecution, forfeiting goods and vehicles used, like all bad acts, somehow it continues to lure people.

It is most rampant in Eastern Uganda-Busia & Malaba, South Western-Mpondwe & Kasese, Southern-Mutukula and West Nile-Arua among other areas.

Top on list of most commonly smuggled goods is cigarettes, phones, rice, wheat flour and banned cosmetics due to harmful ingredients.

Surprisingly, out of ignorance, sometimes people smuggle items that tax exempt. For example, human drugs are smuggled from Kenya.
As it is with other offences, often we know the perpetrators. But we protect and or encourage them because we are beneficiaries.

This was evident in a recent Facebook post in which a woman boasted about her husband’s activities.

According to her, her husband was a habitual smuggler, crimes that made him rich. She boasted about his invincibility. Unfortunately, many women (the post was in a women’s group on Facebook) supported the man’s actions (smuggling).

Incidentally, those, who supported her, routinely comply with tax obligations directly or indirectly while the man was amassing wealth with no contribution to public goods-services arising from the collected revenue. Moreover, they could be proprietors, whose businesses are affected by the unfair competition caused by the smuggled goods. With no “levelled playing field” some businesses are ejected.

And worse still, they could be ‘consumers’ of the smuggled items like the banned cosmetics said to cause cancer due to hydroquinone and other harmful ingredients. Often, smuggled items are counterfeit and, therefore, not good to use.

From the foregoing, as is the case with other criminal activities, the public ought to work with the authorities including URA to arrest smugglers and prosecute them. This is because communities know them.

Merely looking on because smuggling does not affect you directly is defeatist. In the long run, one selfish person’s actions have a ripple effect on the perpetrators, beneficiaries and those who turned a blind eye.

As an institution mandated to collected revenue, URA is at the forefront in the fight against smuggling. Indeed, routinely, the aforementioned top most smuggled goods are impounded in enforcement activities across the country.

Enforcement is a dangerous activity as the criminals will do anything to avoid detection. This involves speeding and its attendant consequences and moving in the wee hours of the morning and at night.
However, the fight against the vice requires collective effort-informing authorities like URA about the people involved, their consolidation centres, means of conveyance (vehicles) and market. Additionally, we should not buy smuggled items for example cosmetics namely Coco Plus, Carol Light, Beautyon smuggled from Democratic Republic of Congo.

The Writer works for URA -Media Unit, Public & Corporate Affairs

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Nine leadership styles that will define your new venture

Martin Zwilling

By Martin Zwilling

Entrepreneurs inherently understand that they have to be the initial leader of their startup, but often they don’t have the experience or the training to know where their leadership competencies lie, or how to build a leadership team. For new entrepreneurs, leadership development efforts may be more valuable for achieving startup success than business skills development.

Very few people know their own leadership style, or strengths and weaknesses, despite their many years of living and working in the real world. To assess where you are, and to unlock your full potential, there are many courses available, as well as seminars and gurus, but a good place to start is a book on the subject, like the classic one from John Mattone, “Intelligent Leadership.”

Mattone has a wealth of insights, based on years of helping Fortune 500 leaders overcome their self-imposed limiting leadership habits. He identifies and distinguishes between nine distinct leadership styles that I see in all entrepreneurs to some degree. The most effective entrepreneurs know their own predominant style, and how to build a team with all the rest required:

Helper. Mature Helpers are considerate and genuinely the most sensitive and caring of all the leadership types. They are excellent mentors and coaches, but have a strong need to be admired and respected in return. Strengthen this trait by being more conscious of your need to be liked, and don’t be possessive or controlling.

Entertainer. Entertainers gain the respect of others with drive, determination, hard work, and the ability to win over people. But they can become fixated with appearing successful, showing more style than substance, or undermine themselves by exaggeration, inflating their importance, or trying to win or one-up all the time.

Artist. Artists are perhaps the most creative and innovative leaders. They tend to move people deeply, and bring out the most in people. As they become more mature, they draw less inspiration from themselves, and more from others. Improve your artist side by avoiding negativity, procrastination, and focus on self-discipline.

Thinker. Thinkers like to analyze the world around them, and may prefer thinking to doing. Mature Thinkers quickly understand problems, can explain them to others, and make sound and logical decisions. Strengthen this trait by not jumping to conclusions, seeking advice, and working cooperatively with others you trust.

Disciple. Disciples are able to form strong and cohesive work groups, but sometimes appear incapable of action without permission of an authority figure or belief system, and don’t seek out leadership positions. This trait can be strengthened by accepting accountability, reducing reaction to stress, and cutting ties to authority.

Activist. Activists are good at lifting the spirits of team members and managers, and are usually optimistic and confident. They tend to bury themselves in activities, but can be impulsive and select quantity over quality. Improvement efforts would include listening more to people, thinking about details, and learning to say no.

Driver. Drivers are the most openly aggressive leaders, who enjoy taking charge, and can make things better with their immense self-confidence. Unfortunately, they may feel the need to dominate every situation, and make every decision. Mature ones act with more self-restraint, let others win, and work with others.

Arbitrator. Arbitrators tend to be the most open of all types. What you see is what you get. They find ways to bring people together, and ways to involve everyone. To be a better Arbitrator, you need to be more assertive, more open, share your feelings, and work on developing your listening skills.

Perfectionist. Mature perfectionists are capable of being highly noble leaders, with their deep sense of right and wrong and ethical principles. They are usually highly critical of themselves and others, and often frustrated by reality. To improve, they need to learn to relax, listen to others, and remember that no one is perfect.

In all cases, to reach your highest leadership potential, you have to stay true to yourself, rather than trying to conform to other people’s images of the best you. If you truly commit to learning more about yourself and becoming the best that you can be, while possessing a great attitude, you will discover that all challenges are really the seeds of opportunity.

Most recognized entrepreneur leaders admit that their biggest challenge was to break through their self-imposed limiting thoughts, emotions, and habits, to reach the next level. How many of these leadership traits have you mastered, how many are you working on, and how many of the other strengths have you built into your team to help you? That’s intelligent leadership.

The Writer is a veteran startup mentor, executive, blogger, author, tech professional, and Angel investor. Published on Forbes, Entrepreneur, Inc.

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Gen. Kayihura to Gen. Saleh: I am ready to be tried than ask for forgiveness

Gen.Kale Kayihura

Former IGP, Gen. Kale Kayihura, has flatly rejected a proposal for him to plead guilty and be forgiven.

Sources say the proposal has been mooted by Gen. Salim Saleh. It is Gen. Saleh who was assigned the duty of arresting and interrogating former Police chief Kale Kayihura.

When Military Police and Chieftaincy of military Intelligence went to search Kayihura’s home for incriminating evidence, it is reported Gen Saleh was remained in a tinted army car in the compound monitoring and coordinating the search.

At Makindye, sources say, he has been a routine guest to Kayihura persuading him to share whatever he knows and also publicly apologize to the commander in chief and the public.

An inside source has told Eagle Online that the former police chief has out rightly rejected the idea of apologizing and pleading guilty to any accusation.

“He has told the general that he would rather stand trial than waiver under pressure to plead guilty and ask for forgiveness,” said a source who is involved in interrogating the former president’s blue eyed boy.

Giving insights in the happenings in the Makindye grilling room, the source said that whenever Kahiyura is called in for questioning, Gen Saleh always sits on the side mollifying and encouraging his former aide de camp to open up and answer the questions from the low rank military police interrogators.

“Gen. SS (Salim Saleh) is ever here trying to make inroads but KK (Kale Kayihura) has remained steadfast insisting if he has a case(s), he must be tried rather than be intimidated by pleading. It seems the law in him is finally out and we are likely to see a showdown,” the source said.

Unlike the rest of the detainees who were made to wear the yellow prison uniform and move around bear feet, Kale, the source says, was give exception and is allowed to wear sandals and buggy blue jeans but without a belt.

Sources further revealed that the whole of yesterday afternoon Gen. Saleh and the chairman of the court martial, Lt. Gen. Andrew Guti spent a considerable time in Makindye barracks together perhaps trying to finalize the charges against the former police chief.

It is expected that Kayihura’s accomplice and former head of crime intelligence in Uganda police under Kayihura’s reign, Atwooki Ndahura,will join the state as key witness after pleading guilty of kidnap and repatriation of Rwandan nationals.

Kayihura and host of other former top police officials under his reign are under detention at Makindye waiting to be charged with a variety of charges that could include espionage and several murders.

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EAC, SACU push dairy, vehicle tax negotiations to December

Fresh Diary milk products

The East African Community (EAC) partner states and the Southern African Customs Union (SACU) have failed to reach a deal on taxing sensitive items such as motor vehicles and dairy products under the Tripartite Free Trade Area (TFTA) framework, pushing discussions to December this year.

The EAC comprises six countries-Uganda, Kenya, Tanzania, Rwanda, Burundi and South Sudan while SACU comprises five countries — South Africa, Botswana, Lesotho, Namibia, and Swaziland.

The member countries could not reach a consensus at a tripartite Council of Ministers meeting in Cape Town on June 18 and suspended negotiations to allow more time for consultation with stakeholders, said a Ugandan delegate that attended the negotiations.

But the two sides have agreed to immediately liberalize 66-67 percent of the items and to move to about 90 percent in five years, he said.

He said the negotiations on motor vehicles and dairy taxes were postponed to allow members consult their respective private sectors.

The EAC is coy to open up its motor vehicles market to imports from SACU, to protect the Kenyan and Rwandan assembly plants, while SACU, which is largely controlled by South Africa, one of the top two African economies wants to export vehicles to the EAC.

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Uganda’s annual quarterly GDP rise 6.4 per cent

Finance Miniter Matia Kasaija denied ever granting permission for the tax.

The year-on-year quarterly gross domestic product (GDP) for the third quarter of 2017/18 stood at 6.4 per cent compared to the growth of 4.5 per cent registered in the same period in 2016/17, the Uganda Bureau of Statistics says in the latest report.

In value terms, the report says, the economy expanded to 14,438 billion shillings in third quarter of 2017/18 from 13,573 billion shillings estimated in the same period for the fiscal year 2016/17.

According to the report, the year-on-year value added in the agriculture sector is estimated to have upped by 0.8 per cent in the third quarter of 2017/18 compared to a growth of 4.7 per cent in the same quarter of 2016/17.

UBOS attributes the increase to the increase in the agricultural support services activities that grew by 6.6 per cent as a result of favourable weather conditions.

Meanwhile, year-on-year, the industrial sector grew by 9.7 per cent in the third of 2017/18 compared to a growth of 2.0 per cent in the same period in 2016/17. The better performance was driven by the increase in crude oil/mining explorations as well as construction activities which grew by 27.7 per cent and 10.2 per cent respectively.

On the other hand, the services sector year-on-year value added grew by 8.2 per cent in the third quarter of 2017/18 compared to the growth of 6.0 percent in the same period of 2016/17. UBOS attributes the growth to the information and communications activities that grew by 15.6 per cent.

However, real GDP grew in third quarter of 2017/18 by 1.1 percent compared to 1.1 percent in second quarter.

Value added in agriculture sector in the third quarter of 2017/18 grew by 0.1 per cent from a decline of 0.4 per cent. In the second quarter. The growth was boosted by the food crop growing activities although the same report shows that the value added for cash crop growing activities declined by 9.1 per cent and fishing activities by 4.9 per cent.

In addition value added in industry sector increased 3.0 per cent in third quarter of 2017/18 compared to an increase of 1.4 per cent in the previous quarter. The growth was boosted by manufacturing and construction activities which grew by 1.7 per cent and 5.7 per cent respectively.

The services sector value added grew by 2.5 per cent in third quarter of 2017/18 compared to 1.7 per cent attained in the second quarter. The growth, according to UBOS, was supported by the growth in financial, insurance (5.7 per cent), information and communications activities (5.7 per cent).

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CDC exits DFCU after controversial Crane Bank takeover

dfcu bank

CDC, Britain’s oldest Development Finance Institution has announced it is quitting its business partnership with the Development Finance Company of Uganda.

CDC owns 9.97 per cent of DFCU

CDC on June 14, 2018, wrote to the DFCU’s board, indicating its intent to sell its stake. According to sources, exist of CDC is more connected to the way Crane Bank was acquired. It is said that after Crane Bank Limited shareholders protesting the takeover of branches by DFCU, it unsettled the board after CBL insisted that branches weren’t part of the bank as they fall under Meera Investment. CDC and other two partners opposed the deal and accused DFCU bosses especially Juma Kisaame for not carrying out enough due diligence.

Accordingly, CDC’s Investment Director in charge of Financial Institutions, Irina Grigorenko, said it 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.”

CDC said in its letter to DFCU that with the knowledge of the company and Arise B.V., “we have held preliminary discussions with a small number of potential investors” which include Cranemere Africa Limited and responsAbility Investments AG.
Cranemere is a holding company for outstanding businesses in the United States and Europe. Its shareholders are major families and institutions from the United States, Europe, the United Kingdom, Latin America, and the Middle East.

Cranemere’s chairman and founder is Vincent Mai who previously led AEA Investors, a private equity firm founded to make investments on behalf of Rockefeller, Mellon, and Harriman families.
The company’s CEO is Jeffrey Zients who previously served in Barack Obama’s government as the acting director of the Office of Management and Budget.

On the other hand, responsAbility Investments AG describes itself as an asset manager in the field of development investments and offers professionally-managed investment solutions to private, institutional and public investors.
A private Swiss enterprise, founded in 2003 and headquartered in Zurich, responsibility says its investment solutions supply debt and equity financing predominantly to non-listed firms in emerging and developing economies.

DFCU is accused of conniving with some top Bank of Uganda executives to takeover CBL at a throw away price and this has resulted into legal battles as CBL shareholders insist that the transaction wasn’t transparent.

dfcu financial analysis
The bank’s total assets increased to a record Shs3 trillion, up from Shs1.7 trillion in 2016, like explained the boost in assets was a result of the acquisition of its rival Crane Bank. There is a pending case in court where former owners of Crane Bank are seeking recovery of assets, more so fixed assets.

The statement shows that DFCU’s core capital increased to Shs362 billion in 2017, up from Shs188 billion in 2016.
The management has earmarked Shs51 billion for dividends compared to Shs18.5 billion in 2016, meaning each shareholder will more cash on account.

So who are the shareholders? Dfcu is partly owned by the Commonwealth Development Corporation (CDC) a British government-owned company, together with other foreign firms like Rabo Development from the Netherlands and NorFinance from Norway who are shareholders in Arise B.V together with Norfund, a Norwegian government owned Private Equity firm and FMO, the Dutch Development Bank.

BoU transferred the liabilities (including deposits) of Crane Bank to DFCU Bank in 2017.

The leaked agreement between Bank of Uganda and DFCU indicated that the external owned bank got Crane Bank with assets valued at Shs1.3 trillion for just Shs200 billion (payment for liabilities).
The Agreement did not state the amounts of money paid by DFCU as a net purchase price; or the payment terms for monies, or the assets (outside branches) that DFCU was taking over.

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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USAID, Think Tank launch investment survey to boost investment in Uganda

Ugandan currency

The East Africa Trade Investment Hub in partnership with the United States Agency for International Development (USAID) has launched an online survey aimed at improving Uganda’s trade and investment environment.

The purpose of the survey is to identify investment opportunities and challenges in the Ugandan market as well as quantifying the potential and real investment/trade losses to both Uganda and the United States, says a brief statement.

The survey is also aimed at improving Uganda’s investment environment as a means of promoting increased two way trade and investment between U.S. and Uganda.

“Your experiences and insights are extremely important to help us reach our ultimate goal – to create a more attractive and sustainable investor environment in Uganda,” says the statement to the targeted respondents-investors.

The survey is meant to make respondents point their views on issues that they consider to be important in enabling a conducive business environment in Uganda. Some of the issues are; low tax rates, access to credit, supportive policy and regulatory environment, political stability and reliable security.

Other issues to be commended on are; skilled workforce, low labor costs, good infrastructure, and reliable power supply.

The survey targets investors with capital ranging from US $9 million to over US $100,000. It targets those who have already invested in Uganda, considering to invest in Uganda and those who have failed to do business in Uganda or left Uganda.

The survey is further meant to establish which of the following factors influenced their decision to invest or consider investing in Uganda. They include; enabling environment on policies towards foreign direct investment, incentives for industrial investments, ease of doing business, political stability, ideal climate and fertile soils for agricultural sector investment.

Others presented for choosing are; Affordable and skilled work force, discovered oil and gas, independence in judicial and legal systems, low tax rates, reliable security, ease of starting business, bilateral investment protection treaties, free trade agreement and economic partnership agreement, transparency of the regulatory system, reliable power supply, intellectual property rights laws and good Infrastructure.

The survey also wants to know whether the targeted investors are; considering expanding their investment portfolio, intending to maintain current investment portfolio or considering leaving the market, based on prevailing conditions.

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Social Media Tax is inconveniencing— Minister David Bahati

State Minister for Finance in charge of General Duties David Bahati

Kampala: State Minister of Finance, Planning and Economic Development David Bahati has said government has realized how inconvenient it is to pay social media tax adding that better ways will be sought with time.

With a motive of widening the tax base in the country, government introduced social media and mobile money tax. Social media platforms such as WhatsApp, Twitter, Facebook, You Tube, Viber and Skype among others have been subjected to a daily levy of Shs200 and mobile money transactions have been subjected to a 1 per cent excise duty.

Commenting on the implementation of Excise Duty Amendments for Telecommunication 2018/2019, Bahati said Excise Duty is a small contribution of citizens towards development of Uganda.

He said when government proposes a tax it must be affordable and reasonable, “I don’t think Shs70, 000 a year for Social Media Tax is unreasonable,” he said at Media Centre.

He vowed that government will account for resources generated from tax collection, “Social media tax is a small but affordable contribution, it is not a punishment, we should finance our budget 100 per cent,”

Bahati said government has directed Uganda communications commission(UCC) one of its institutions to work around the clock to block usage of VPNs to access social media that people are using to evade the paying of tax.

He further said, “the other good opportunity is that virtual private networks (VPN) is more expensive compared to paying tax of shs200 per day.”

Since the blocking of social media, various activists have petitioned constitutional court seeking for annulling of both mobile money and social media tax contending that this tax is a double taxation of Ugandans.

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You didn’t consult us about 15 per cent fees increment-MAK students

Makerere University main building.

Makerere University students have opposed the 15 per cent fees increment that was recommended by students elect committee saying student’s leadership was not consulted.

Being the route cause of massive strikes at Makerere University, this year, University leadership constituted students elect committee to study and analyze the fees structure at the mighty learning institute and compare it we the other high institutions in the country and east African region.

Yesterday, committee led by Polly Bandora recommended for fees increment of 15 per cent effective from the forth coming semester. Bandora said the 15 per cent increase will only be paid by new students for only one semester and the process will be examined in a period of five years.

Speaking to journalist at Makerere University Lubega Pius student’s leader from Mitchel hall said, committee leaders were compromised and sold their trust to the University, “after the institution of the committee we didn’t tell them to report findings before discussing with students leadership,” He added.

However guild representative in the school of psychology Sulait Kamukama said the committee has no justification of recommending for the 15 per cent increment. “The committee had to come to us as students leaders for confirmation of whether we are comfortable with their recommendations,”

Sulait said it was a mistake to make recommendations in comparison to Kenya that has a higher GDP than Uganda and unemployment rates among the youth and then come up with a conclusive report recommending fees increment.

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