Stanbic Bank
Stanbic Bank
24.9 C
Kampala
Stanbic Bank
Stanbic Bank
Home Blog Page 265

MPs question PS Ggoobi’s caliber as finance slashes their budget

Ramathan Ggoobi, the Permanent Secretary, Ministry of Finance

Members of Parliament have questioned the Secretary to Treasury, Ramathan Ggoobi’s caliber following his decision to reduce Parliament’s budget by 50%. 

Nathan Byanyima (Bukanga North) wondered what had befallen the Ministry of Finance because in the previous years, the occupants of the office of Secretary to Treasury were people of high caliber and wondered why Ramathan Ggoobi, the current Secretary to Treasury would announced a 50% budget cut to Parliament and also make statements that Parliament has no powers to alter budgets submitted by the Ministry of Finance.

“I have seen a paper that the Parliamentary budget will be cut by 50%. Where does such a person (Ggoobi) get powers? There is a rule that we must respect each other, treat other people the way you want to be treated. We have been demeaned to nothing. But when the Secretary to the Treasury goes to a Committee of Parliament and says that we have no role to play in the budget & appropriation, it defeats my understanding, has this country changed? I don’t see why we are wasting our time going into the budget. It doesn’t make sense,” said Byanyima.

The development comes at the time Parliament has been in the spotlight over alleged corruption and wasteful expenditures, although, it is not known whether Finance’s decision was informed by findings from these social media allegations.

Speaker Anita Among described the decision as humiliating and demeaning to the Legislature.

“Our deduction of 50%, shall we be paid salary? You even have the courtesy to put it in bold, on a statutory vote that Parliament shouldn’t get money,” Among said.

Sarah Opendi (Tororo DWR) also claimed that while appearing on NBS TV this morning, Ggoobi alluded to the same sentiments, saying that Parliament has no power of budgeting that this is an executive function.

“He said Parliament has no powers to move money from one vote to another because budgeting for this country isn’t our responsibility. That it is the executive that knows the priority of this country. So, what is our role as Parliament? And the challenge we have in this country is picking people who haven’t grown in public service and placing them in such sensitive positions because a Secretary to Treasury used to rise from the bottom and when you pick someone from somewhere, they don’t respect leaders,” remarked Opendi.

However, Henry Musasizi, Minister of State for Finance has asked Parliament to disregard statements made by Ggoobi about Parliament not having powers of appropriation saying such statements are not representative of the Ministry of Finance.

“To the best of my knowledge and experience, appropriation powers rest with Parliament. If the Secretary to Treasury expressed his views and opinions, I am not privy to what the Secretary to Treasury said, but I know and I know the Secretary to Treasury doesn’t have a chance to speak on this microphone. I would like to invite colleagues to disregard what the Secretary to the Treasury said. We should always take what we say as the Ministry of Finance on this microphone. If whatever he said, wherever he said offended the Committee of Parliament or Parliament in general, I would like to apologize on his behalf,” said Musasizi.

Previous holders of that docket include former Auditor General James Kahoza, late Governor Emmanuel Tumusiime Mutebile, late Chris Kasami and late Keith Muhakanizi.

This website failed to obtain Mr Ggoobi’s response to the legislators over his caliber status.

Stories Continues after ad

UPDF, Makerere University launch Arabic and Chinese Languages at School of Military Intelligence

CIM Chief, Maj. Gen. Birungi talking to Director of the Confucius Institute – Makerere University, Dr Gilbert Gumoshabe and others during the launch.

The Chief of Military Intelligence, Major General James Birungi, has launched the languages wing and officially opened the Arabic and Chinese courses that will be conducted in partnership with the Makerere University School of Languages at the School of Military Intelligence in Nakasongola district.

Maj Gen Birungi lauded the Dean School of Languages, Makerere University for partnering with the Uganda Peoples’ Defence Forces on the noble cause for the country.

“This is indeed an important milestone for the entire UPDF fraternity and the country,” said Maj Gen Birungi.

He observed that the course comes at a time when the new world order, globalization and advances in technology have brought new opportunities and challenges that require effective communication skills to avoid ambiguities and the possibility of being misunderstood and navigating through multicultural and intricate partnerships.

Maj Gen Birungi implored the participants to be focused and have a positive attitude to be able to harness as much knowledge as they can to succeed in the course.

 “This training will prepare you to become certified linguists on your job specification especially interpretation, translation, and being subject matter experts on cultural Issues, among others.”

Col James Muhumuza the Commandant of the School said that the course aims to produce trainees who can effectively read, listen, write, speak and translate.

He cited from the historical perspective the power of language as a power of unity in the Bible during the building of the Tower of Babel which the same was used as a defensive tool to disintegrate the people and save God’s kingdom.

The Director of the Confucius Institute – Makerere University, Dr Gilbert Gumoshabe expressed gratitude for entrusting Makerere University in the formation of the new language curriculum adding that there is a need for knowledge of other foreign languages besides English.

Stories Continues after ad

Cases worth Shs77t trapped in Commercial Division Court over inadequate funding 

Pius Bigirimana, the flamboyant PS to the Judiciary.

Pius Bigirimana, Secretary to the Judiciary, has revealed that cases worth Shs77 trillion are trapped in the Commercial Division of the High Court as backlog because of lack of adequate funds to adjudicate them.

He said that if the funding was available and these cases were disposed of, Uganda wouldn’t even need to borrow money from the World Bank to finance its national budget.

“I have got a list of case categories which come to a total of Shs83 trillion as of December 2023 but now, they have reduced to Shs77 trillion because of the Judges who were put in Commercial court, and it has reduced a bit. This money which is tied up in the Commercial court, we don’t even have to go and borrow money from the World Bank. These are cases in construction, banking, insolvency positions, intellectual property and loans. All this is money tied up there, but I think Finance also has some issues,” Bigirima said.

While appearing before the Legal and Parliamentary Affairs Committee to defend the Judiciary’s Ministerial Policy Statement for financial year 2024/24, Bigirimana informed the lawmakers that if this backlog is to be reduced, more Judges have to be recruited to hear the cases and also promote alternative dispute resolution.

Documents available to the Legal Committee indicated that as at February 2023, case backlog stood at 42,907 cases against a caseload of 179,984 pending cases.

Bigirimana also protested the decision by the Ministry of Finance to reduce the budget for the Judiciary from Shs392 billion to Shs362 billion in the coming financial year. He said that in the medium term, the Judiciary had requested for a budget increase to at least Shs600 billion.

“The Ministry of Finance gave us a budget ceiling of Shs362 billion and we thought that that was very unfair and unreasonable because you cannot reduce the budget for the Judiciary when actually, you are supposed to be adding on. I am under strict instructions from the Chief Justice that he has never broken the law, he doesn’t intend to break the law now and in future and therefore, what the Ministry of Finance has done is to try trap him in the trap of breaking the law, so he isn’t about to do that, said Bigirimana.

The Secretary to Judiciary added that the protest being put up by the Judiciary has seen the institution being locked out of the System put in place by the Ministry of Finance.

“This morning, I had a phone call with Secretary to Treasury, he was asking me, why we haven’t submitted our budget details I told him that I don’t want to break the law and he said if you don’t submit to us and we submit to Parliament we shall leave you out, and I told him, if that is your choice go ahead.  So, I have left him because in the system, you can’t make budget estimates proposals when you don’t follow the ceiling they have given you. You can’t submit because the system can’t allow me in,” said Bigirimana.

Bigirimana also revealed that President Yoweri Museveni is expected to commission the newly constructed Supreme Court and Court of Appeal buildings in Kampala on April 12, 2024.

“We are waiting for President Museveni to come and commission. I have already communicated in writing that we shall invite you on the April 12, 2024,” Bigirimana noted.

Stories Continues after ad

MPs regret decision of imposing taxes on diapers

Members Parliament have expressed regrets over their decision to impose a tax on diapers, which they initially claimed were being used to promote homosexuality in Uganda and are now admitting that the tax has instead made diapers expensive for the elderly and people with disabilities who rely on diapers in order to protect their dignity in society.

In June 2023, Parliament passed into law the Value Added Tax Amendment Bill 2023, approving an 18% VAT levy on all diapers, despite the proposal from Government limiting this tax to only baby diapers that were described as a luxury, as opposed to adult diapers whose exemption was sought on medical grounds.

Although some MPs opposed the tax saying it would push women into spending more time in unproductive labour, or washing nappies, other MPs argued that adult diapers are mostly used by homosexuals, so imposing a tax on adult diapers would reduce homosexuality in Uganda. A decision was reached to end the tax exemption on all diapers, so 1st July, 2023, the cost of diapers went higher due to the 18% tax levy.

Flavia Kabahenda (Kyegegwa DWR) has noted, “On the World Disability Day in Mbarara, I realized that the people with hydrocephalus and spina bifida are living on pampers and these pampers have become expensive from the time we slapped a tax on pampers. I think we made a mistake as Parliament to impose taxes on diapers because we thought we would help parents to reduce use of diapers in order not to spoil their children, but we have discovered that there are elderly people who need to use diapers and there are also people with disability that rely on diapers in order to protect their dignity in society. So, I want to implore my fellow MPs to allow that we rescind the tax on pampers.”

Prosper Muhumuza, Commissioner in Charge of Disabilities at the Ministry of Gender, Labour and Social Development, 12.4% Ugandans are living with disabilities and of these, over two million are children living with Hydrocephalus and Spina bifida and families of these children spend 39% of their income on caring for these children.

Rose Obigah (Terego DWR) asked MPs not to go back and forth with the diapers tax, arguing that the tax was imposed because diapers are a luxury & there was need to reduce their excessive use because diapers had started to impact on fertility of men in Uganda.

“People from Karamoja and my village (Terego District), they perform well, their fertility lasts longer but you see these men brought up in good homes, they have challenges with sperm count. It was on that ground that we wanted to reduce this excessive use of pampers. Diapers are a luxury, we would prefer to use nappies,” said Obigah.

Stories Continues after ad

Museveni says census will influence the well-being of all Ugandans

President Museveni.

President Yoweri Museveni has urged political, cultural, and religious leaders, private sector players, and civil society to comply with and support the execution of the fourth national census scheduled to take place in May.

The national census is scheduled to take place on May 10, 2024. Currently, Uganda is estimated to have over 41 million people. The estimates can, however, only be verified after the national census.

Currently, the Uganda Bureau of Statistics (UBOS) is conducting the geo-mapping of household and enumeration area boundaries for the creation of an interactive map that shall be used in the enumeration exercise. 

“I would like to announce the 6th National Population and Housing Census (NPHC) that will start on May 10, 2024.” Museveni said.

Museveni said the information from the National Population and Housing Census will support the government, the private sector, cultural and religious institutions, civil society, and development partners in service delivery. It will also provide the basis for planning the provision of social services such as education, health, and transport, among many others, at the national and local level.

“When data collectors come to your homes during the census, please avail yourselves and provide them with honest answers to their questions. This is in order to enable them to process the most accurate information about you, your household, institutions, and community,” he said.

He noted that the successful execution of the census will influence the well-being of all Ugandans and progress the country towards the desired socio-economic

economic transformation.

Stories Continues after ad

BoU orders ABC, Opportunity, Guaranty Trust Banks to transition to Credit Institutions

The Bank of Uganda (BoU) has authorized ABC Capital Bank (U) Limited, Guaranty Trust Bank (U) Limited, and Opportunity Bank to transition from a Tier I Commercial Bank License to a Tier II Credit Institution License effective July 1, 2024.

These three institutions have been granted a transition period of three (3) months, starting from April 1, 2024, to June 30, 2024, during which they will make adequate arrangements to phase out products and processes that require a Tier I License.

Michael Atingi-Ego – Deputy Governor says this is intended to ensure a smooth service transition for their customers and to mitigate any disruption to financial sector stability.

“The change of status of the three commercial banks to credit institutions follows decisions by the respective boards of directors, to adopt a strategic shift and reposition these institutions to serve their core customer base better. The institutions are adequately capitalized and meet the minimum capital requirements for a Tier II License,” he said in a statement.

The BoU reassures the public that it remains committed to ensuring stability of the financial system. 

Stories Continues after ad

Meet Samuel Mwogeza, the new acting CEO of Stanbic Bank Uganda

Mr Mwogeza.

Samuel Frederick Mwogeza has been appointed the interim Chief Executive Officer of Stanbic Bank Uganda.

He replaces Anne Juuko who has been appointed to a regional role within the Standard Bank Group.

He has been working with Stanbic Bank Uganda Limited as the Executive Head: Personal and Private Banking.

 Immediately prior to this he worked as the Global Chief Financial Officer (CFO) for Vision Fund International and prior to this as the CFO of Stanbic Bank Uganda Limited.

He has also worked in other countries with time spent in Uganda, Zambia, Tanzania and the Democratic Republic of Congo while working for Citibank and Standard/Stanbic Bank respectively; where he was central to strategy formulation and leading and managing change leading to improved sustainability.

Samuel has received multiple individual accolades. He was recognized as the top CFO in Uganda at the Deloitte-ACCA awards in 2018 and the Certified Public Accountant (“CPA”) of the year 2019 by the Institute of Certified Professional Accountants of Uganda. He was further awarded as top contributing CFO to the financial services industry by the Uganda Bankers Association in 2019. He has also been recognized as Best Chief Financial Officer; Strategy Execution – 2018 and Best Chief Financial Officer; Finance transformation – 2017 by ACCA Uganda & Deloitte Uganda.

Samuel also led the finance team to “Best Finance team of the year” by Institute of Certified Public Accountants of Uganda (“ICPAU”) in 2019 and under his leadership as Executive Head for Consumer and High-Networth, the bank also won the 2021 and 2022 Consumer Choice awards in “best Commercial and development bank” category.

Samuel has contributed as a non-executive director (NED) in various organizations as below;

Uganda Securities Exchange (NED and Chairman Audit and Risk Committee)

International Coaching Federation-Uganda Chapter (NED; Chair Finance Committee)

The Leo Africa Institute (NED)

Stanbic Properties Limited (Board Chairman)

Liberty Life Insurance Uganda Limited (NED)

Stanbic Pension Fund (Chairman)

He has also served on voluntary basis on the entities below;

ICPAU-Finance, Planning and Administration Committee (Member)

Uganda Bankers Association-CFO Executive Committee (Lead Technical matters)

Samuel is a Harvard Business School – Executive programme alumni, an MBA (Edinburgh Business School) and Bachelor of Commerce degree honors (Makerere University).

Mwogeza’s interim appointment comes after Bank of Uganda rejected the proposal by Stanbic Bank Board of Directors to appoint the CEO of Stanbic Bank Eswatini in Southern Africa as the replacement for Anne Juuko.

Anne Juuko was recently transitioned to another leadership role as Global Markets Regional Head for East Africa, effective April, 2024.

Presently the Executive Head of Compliance, Dokoria’s interim appointment follows Emma Mugisha’s resignation as Executive Director and Head of Business & Commercial Banking, to pursue opportunities outside of the Standard Bank Group.

Kitabire congratulated the incoming leaders and thanked Juuko, and Mugisha for their notable contribution to the sustained success of the organisation over the years.

“On behalf of the Board, I thank Anne, and Emma for their leadership over the years and contribution to the sustained growth of Stanbic Bank Uganda; we wish them success in their next respective assignments,” said Kitabire.

Stanbic Bank is the country’s largest commercial bank by assets, profits, and deposits as of December 2022.

Stories Continues after ad

Minister Musasizi asks parliament to waive off Shs13.313b in taxes owed by individuals

Henry Musasizi, Minister of State for Finance made a case for the loan.

The Minister of State for Finance, Henry Musasizi, has asked Parliament to waive off taxes to the tune of Shs13.313 billion owed by several individuals in the country.

Musasizi said the decision to waive off tax is in accordance with Section 40(2) of the Tax Liabilities Act. The waive-off tax comes at a time when the Uganda Revenue Authority (URA) has a deficit of over Shs1 trillion in terms of revenue collection, three months before the close of the financial year. 

The beneficiaries include Nkumba University, Makerere Business Institute, and businessmen Peter Lokwang and Donati Kananura, among others. 

Appearing before the Finance Committee, the MPs on the Finance Committee wondered how the list of beneficiaries increased from three to seven, contrary to an earlier list tabled before Parliament.

The list includes: income tax liability amounting to Shs239,306,340 owed by Makerere Business Institute; pay-as-you-earn (PAYE) liability amounting to Shs4,479,421,1902 owed by Nkumba University; and value-added tax (VAT) liability amounting to Shs2,718,116,5923 owed by J2E Investment Corporation. 

Others are VAT and Rental Income Tax amounting to Shs2,080,641,683 and Shs1,695,713,952, respectively, owed by Donati Kananura; Value Added Tax Liability amounting to Shs931,935,420 owed by Nicontra Limited; Holding Tax amounting to Shs385,145,772 owed by Peter Lokwang; and Pay as You Earn Tax amounting to Shs783,180,494 owed by Busoga University.

Stories Continues after ad

Health Ministry decries Uganda’s over reliance on foreign donor funding

Minister Aceng consulting a colleague.

The Minister of Health has decried Uganda’s over reliance on foreign donors in funding Uganda’s health sector budget, saying that in the 2024/25 national budget the Ministry of Health has been allocated Shs1.328Trn, of which 85% of this total budget is being financed by donors.

“In the 2024/25 national budget, the Ministry of Health has been allocated Shs1.328Trn. We take note that external financing takes a greater percentage. The budget under the Ministry of Health is highly subsidized by external donors at 85% and these funds are earmarked for health commodities like Global Fund and GAVI that benefit the entire health system. There is a need to mobilize domestic resources in a phased manner in the mid-term,” said Aceng.

The decry comes shortly after Minister of Health Ruth Aceng revealed that the international donors announced plans to end funding malaria projects in Uganda and the government has to raise its own funds to fight against malaria, because the donors have now turned their focus on other global issues like wars in Ukraine and Gaza as well as climate change activities.

“Our partners are no longer willing to increase any more funding for malaria, they have all leveled off.  We were invited to Cameroon recently, I was there in person and we were told the world has moved on to climate change issues, global health, and security and to wars in Ukraine and Israel. So, we were told to sign a declaration that each of the 10 high burden countries will look for their own domestic resources and bring their malaria pandemics or epidemics to an end by themselves. So, we are not looking for any additional increase of resources for malaria, it has to be domestic resources,” said the Minister.

Jane Aceng, therefore declared that all organ transplant activities in Uganda have been halted until Shs5Bn is availed for the training and operations of the Human Organ Transplant Council.

The Minister explained that the Shs5 billion is required for functionalization of the Human Organ Transplant Council of which, Shs3.6 billion will be for training and benchmarking, whereas Shs1.4 billion will be spent on operations of the Council.

“We have halted all transplant activities because we need a Council in place. Yesterday as you were touring the surgical exhibition, you saw the facilities that are ready, they cannot operate unless we have a Council and the Council has to be trained because it is virgin land in Uganda,” Aceng said.

Stories Continues after ad

UNDP Report: Uganda has met requirements for lower-middle income status

Photo by Ninno JackJr on Unsplash

According to the most recent United Nations Development Programme (UNDP) Human Development Report, Uganda has met the criteria to graduate to a lower-middle income economy. The authors said the country had elevated its human development indicators across income levels, health, and education and reduced inequalities.

The highly anticipated 2023/2024 report, launched at Makerere University in Kampala, painted an encouraging picture of Uganda’s development trajectory. The country now ranks 159th out of 193 countries and territories assessed, a big jump from its previous ranking of 166th in the 2021/2022 report.

“In the 2023/2024 Human Development Report, Uganda has for the first time moved to the category of medium human development,” announced Ms. Nwanneakolam Vwede-Obahor, the UNDP Resident Representative in Uganda. “This is something we need to recognize and celebrate the progress the country is making on the human development front.”

A Multifaceted development journey

The UNDP report sheds light on several human development areas where Uganda has made notable progress between 1990 and 2022. During this period, the country’s Human Development Index (HDI) value increased by an impressive 67.2 percent, rising from 0.329 to 0.550.

One of the most notable achievements is the significant increase in life expectancy at birth, which rose by 17.2 years. The authors of the report attributed it to enhanced access to healthcare services, better nutrition, and targeted public health programmes implemented by the government.

Education has been another area of remarkable progress, with the adult literacy rate (ages 15 and above) climbing by 5.8 years during the same period. The report commends the government’s efforts to promote lifelong learning and expand educational opportunities, often in collaboration with private and charitable sector partners.

Economic growth and income levels

The most striking indicator of Uganda’s development strides is the substantial increase in Gross National Income (GNI) per capita, surging by an impressive 153.1% between 1990 and 2022. This robust economic growth has been fueled by various factors, including increased foreign investment, diversification of industries, and the promotion of entrepreneurship.

According to the World Bank’s classification, lower-middle-income economies have a GNI per capita between $1,086 (Shs4.2 million) and $4,255 (Shs 16.4 million) as of 2023. Uganda’s achievement in crossing this threshold is a testament to the country’s dedication to fostering an enabling environment for sustainable economic growth.

Implications, opportunities, and policymaking

Attaining lower-middle-income status is a significant accomplishment for Uganda, as it signifies the country’s integration into a new era of development opportunities. This classification opens doors for increased access to international funding on more favourable terms, advantageous trade agreements, and enhanced cooperation with global partners.

“Uganda’s transition to the medium human development category aligns with an exciting message that I got a few days ago. The UN committee for Development Policy has announced that Uganda has now fulfilled the criteria for graduation from the least developed country to the lower-middle-income country category for the first time,” remarked Ms. Susan Ngongi Namondo, the UN Resident Coordinator in Uganda.

With its newfound economic status, Uganda will enjoy more favourable loan borrowing terms and grants from institutions like the World Bank, African Development Bank, and other multilateral development banks. This increased access to financial resources, coupled with an influx of international trade and foreign investments, is expected to support the country’s ongoing development and economic expansion in the coming years.

Of course, as with many nations in the medium human development category, Uganda must implement regulations to foster growth in sectors beneficial to public welfare while restricting potentially harmful industries. Just like they banned primetime TV ads for companies that sell cigarettes, promote alcoholic drinks, or allow citizens to demo roulette casino online, lawmakers will pass a raft of incentives to encourage development partners, private sector, and civil society organisations to help solve challenges outlined in the report.

Challenges and the road ahead

While the report highlights Uganda’s move to a higher economic tier, it also points to areas that require continued attention and strategic policymaking. Income inequalities and disparities in access to healthcare and education remain pressing concerns, as the top 10% of earners receive 35.7% of national income, compared to just 2.5% for the bottom 10%.

“We have the opportunity, as we move into that lower-middle-income category, to plan for it because it will cause short-term disruptions in the budget. Some things will disappear. So, we need to plan and make sure that we can adequately handle the move smoothly into lower-middle-income countries categories,” cautioned Ms. Namondo, the UN Resident Coordinator.

To address these challenges, the Ugandan government has pledged to increase investment in initiatives like the Parish Development Model (PDM) to ensure no citizen is left behind. Prime Minister Robinah Nabbanja called upon all stakeholders, including government agencies, development partners, civil society organisations, academia, and the private sector, to join hands in addressing the issues outlined in the report.

“We must combat divisions and strengthen service delivery to address the common needs of our population and pave the way for a more equitable and sustainable future,” she said. “As we work on this journey, let us draw inspiration from the progress we have so far made. As a country, we are remaining firm in our commitment to human development.”

As Uganda embarks on this new chapter, sustained efforts and strategic policymaking will be crucial to consolidating the gains made thus far and propelling the country towards even greater heights of development. The UNDP report serves as a beacon of hope, highlighting the vast potential for Uganda and its people.

Stories Continues after ad