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Bank of Uganda offers Xente Tech with Issuer of Payment Instrument

By
Simon Kabayo
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Xente Tech, a Ugandan-based financial technology platform that offers business payment solutions, has obtained the Issuer of Payment Instrument – Class A (Payment Cards) from the Bank of Uganda.

“I am very happy to announce that we have acquired the Issuer of Payment Instrument – Class A (Payment Cards) under the National Payment Systems Act issued by the Bank of Uganda,” said Mr. Allan Rwakatungu, the CEO & founder of Xente Tech Ltd.

“We thank the Central Bank for their diligent support, tireless effort, adherence to process, and their ability to identify us as an issuer of payment cards to businesses in Uganda. We believe that this achievement is another major step for Xente towards providing world-class financial technology solutions to businesses in Africa,” he added.

The National Payment System Act-2020, implemented under the National Payment Systems Regulations, aims to drive the digitization of Ugandan entities, and streamline payment systems operators in Uganda.

Mr. Rwakatungu explained that acquiring this license is a commitment to Xente customers, partners, and other stakeholders that they are offered with a safe and compliant service.

With the Xente platform, businesses and their teams can make simple payments to teams, suppliers, and other beneficiaries using cards, mobile money, domestic and international bank transfers, pay bills, send airtime & data, and more. Furthermore, businesses and organizations are also able to control and monitor this spend in real-time, which empowers them to manage accounting and finance complexity in a one easy-to-use digital platform.

Xente recently partnered with Visa, a global leader in payments, to launch a corporate card. The partnership aims to enable Ugandan companies or businesses to make online and offline payments to vendors globally, disburse money, and manage business expenses using the Xente Visa card.

“The Xente Visa card, both virtual and physical, not only allows businesses to pay, but also allows them to set payment policies to control when, where and how the cards are used. The physical cards can work online but also offline. We believe we are solving a real-world problem. Today, 90% of businesses still rely on cash, checks, and paperwork, and that needs to change,’” said Lyn Tukei, the Communications & Marketing Lead at Xente.

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Man shot dead while trying to burn down Masanafu police post

By
Our Reporter
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Luke Owoyesigyire, KMP Deputy police publicist.

A man has been killed as he attempted to burn down Masanafu police post. The incident happened on Tuesday January 10th at about 11:30 pm.

The man identified as Charles Bazil Kintu, was shot by officers on duty while he was trying to set up a fire at the police post. He was however rushed to Mulago Hospital for treatment but succumbed to the injuries sustained, according to the Kampala metropolitan deputy police spokesperson Luke Owoyesigyire.

“It is alleged that our officers were manning the station for the night shift when they noticed a man approaching with a 2-litre water bottle containing an unknown substance. One of the officers then asked the man what was in the bottle and what had brought him to the Police station but he responded by pouring the substance and setting a fire,” Owoyesigyire said.

“Unfortunately, got burnt in the process, and started running towards the officers, prompting one of them to shoot at him. The fire was later put out and the man was rushed to Mulago Hospital for treatment. He has since succumbed to the injuries he sustained at Masanafu Police station.”

Owoyesigyire said a team of investigation officers arrived at the scene and picked up the 2-litre bottle and exhibited it for analysis to ascertain the contents. The team also picked a matchbox he used to start the fire.

He said investigations into the matter have commenced to establish the attacker’s motive and whether he is part of the gang that has been attacking Police stations or not.

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URA captures bus smuggling in goods from Kenya

By
Our Reporter
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Uganda Revenue Authority (URA) enforcement team received intelligence about an inter-state bus (KCL 054A) that plies the Nairobi-Kampala route involved in a smuggling scheme.

It had a special compartment modified within its chassis area to conceal smuggled items between the two East African cities.

The bus of interest delivered its rightfully manifested cargo stored in the sealed trunks to the customs-gazetted area of the Kampala bus terminal as the team watched from a safe distance.

After, it set off to also offload the “LOOT” tucked away in the secret compartment.

“As soon as the bus approached the terminal’s exit gate, Team One officers cornered it and asked its crew to drive it to the URA HQ, Nakawa NIP for thorough intrusive inspection. Two secret compartments were discovered with each containing contraband,” URA said in a statement.

“In total, 162 packages of assorted contraband were recovered. The Bus driver, conductor and turn boy were all detained to assist with investigations into the smuggling scheme. Offence management procedures ensued immediately.”

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Gov’t starts payment of Shs2.5 trillion matured securities

By
Our Reporter
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Chairperson of the Finance Committee, Hon. Keefa Kiwanuka

The government is to pay Shs2.5 trillion to the Bank of Uganda (BoU) in matured securities after its repayment was disrupted by the advent of COVID-19.

The money is a domestic loan acquired by the government through the Bank of Uganda as an intermediary for individuals and companies’ payable within a specific period. The securities are usually paid within a specified timeframe and at a given interest.

The Deputy Governor of the Bank of Uganda, Michael Atingi-Ego made the revelation on Tuesday, 10 January 2023 while appearing before the Committee on Finance on Uganda’s economic performance outlook.

He told MPs that there is an outstanding Shs2.5 trillion for matured securities that the government has not reimbursed to the Bank of Uganda.

The Deputy Governor told the committee that the Central Bank had agreed with the government that the money is to be repaid over two financial years and this explains the Shs1.25 trillion reflected in the Budget Framework Paper for Financial Year, 2023/2024.

This followed an inquiry from the Chairperson of the Committee, Keefa Kiwanuka and his vice, Jane Pacuto Avur in regards to the domestic debt payment reflected in the Budget Framework Paper.

“The government owes the Bank of Uganda and this is believed because the minister by law is allowed any one time to run to you for cash but they have taken this money and for two financial years running, it has not been paid. What do you have to say?” Pacuto asked.

Keefa Kiwanuka said that the money is not clearly described in the Budget Framework Paper for the next financial year.

Atingi-Ego said that it was not true that the government took any advance from the Bank of Uganda in the last two financial years under the Public Finance Management Act provision of accessing 10 per cent of revenue.

“There were initial plans to take that advance in the 2021/2022 financial year but that did not materialize. What we are aware of, is when the government securities that have been issued mature, Bank of Uganda immediately redeems those securities and then makes a claim and waits for reimbursement from the government,” said Atingi-Ego.

He emphasized that the only money that the Bank of Uganda is expecting from the government is on account of matured securities that have been redeemed by the bank.

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Beto Bianchi is new Vipers head coach

By
Our Reporter
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Vipers Sports Club on Tuesday unveiled Brazilian-Spaniard tactician Roberto Luiz Bianchi Pellister as their new head coach for the next two years.

The experienced coach has taken over from Brazilian Roberto Oliveira aka Robertinho, who sought a new home at Tanzanian giants Simba SC two weeks ago.

The 56-year-old has penned down a two-year employment contract at Kitende that will run until 2025.

He will be deputised by fellow countryman Roberto Martinez with two Ugandan tutors; Richard Wasswa as the second assistant coach and former Uganda Cranes goalkeeper Ibrahim Mugisha as the goalkeepers’ coach.

In his rich history, Bianchi has been at Ciudad de Murcia B between 2004-2007, Atlético Ciudad (2007-2009) and at Zamora from 2009 to 2010.

He also coached at Lorca Deportiva (2011), Batavia Union (2012-2013), Pro Duta (2013–2014), RRFC (2014–2015), Kazma (2020-21) and GD Interclube in 2021.

To cap his well-written Curriculum Vitae (CV), the versed tactician has worked with African giants Petro du Luanda of Angola from 2016-2019 and the Angolan national team – The Palancas Negras in 2017.

The UEFA A Pro license holder will be tasked to successfully steer the Venoms through the Confederation of African Football (CAF) Champions League group stages to the knockout stages and also re-ignite the champions StarTimes Uganda Premier League (SUPL) title defence.

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Heart Institute seeks Shs129 billion for staff recruitment

By
Our Reporter
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Uganda Heart Institute Executive Director, Dr. John Omagino

The continued delay in approval of appropriate staffing structure at the Uganda Heart Institute (UHI) is putting lives of 500 children and several other patients with heart related complications at risk, according to the Executive Director, Dr. John Omagino.

He made the revelation while presenting the Budget Framework Paper of UHI for the Financial Year 2023/2024 before the Committee on Health on 10 January 2023.

Omagino said that while renovation and equipping of the Intensive Care Unit for the treatment of patients with heart complications has been completed, there are no specialists.

He asked the legislators to support the Institute’s request for Shs129 billion for recruitment of specialised doctors, saying that heart related complications require super specialised services.

“We cannot keep transporting our people abroad. If you get a heart attack, it must be sorted out in the next few hours. All of us need this facility,” Omagino said.

He urged the Public Service Ministry to expedite the approval of the new human resource structure for the Institute, since it was established by an Act of Parliament with a mandate of providing super specialised services.

“Public Service dismissed our request and yet the heart institute offers super specialised services. We need the specialists to run the hospital and they must be given titles that conform to international standards,” said Omagino.

He added that, ‘Public Service Ministry wants to call cardiologists, medical officers and special grade consultants after they trained for 10 years’.

Committee Chairperson, Dr. Charles Ayume said that the committee will engage the Ministry of Public Service to prioritise approval of the staffing structure.

The Shadow Minister of Health, Dr. Timothy Batuwa called on his counterparts to ensure that the Public Service Ministry recognises the importance of including super specialists in the government structures.

“We must find specialists in all health facilities. It is a very dangerous situation to have only beds without specialists. Human resource should be priority and MPs should start driving government to that angle,” he said.

Buyende District MP Mary Nakato said that human resource ought to be prioritised across the health sector as well as local governments.

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URA to lose Shs2.8 trillion in tax exemptions

By
Our Reporter
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URA Commissioner General, John Musinguzi

The Uganda Revenue Authority (URA) may lose Shs2.8 trillion to tax exemptions, credits and deferrals for the financial year 2022/2023.

This was revealed by the URA Commissioner General, John Musinguzi while presenting the entity’s Budget Framework Paper for the financial year 2023/2024 on Tuesday, 10 January 2023.

According to Musinguzi, over time they have been losing money in form of tax exemptions, allowances rate reliefs and credits and deferrals.

In the summary of the tax exemptions for the financial year 2021/2022, the major category for entities receiving tax exemptions are 1, 810 and of these, savings credit and cooperative societies (SACCOS) are1,289, 33 are religious institutions, 188 charitable organizations, 188 deemed under Value Added Tax (VAT) and 25 under strategic projects among others.

Some of the entities that have requested tax exemptions are, Zenitaka-Hyundai Joint Venture for Pay as You Earn (PAYE) of Shs725 million and withholding tax (WHT) of Shs11 billion, Brookside Limited Shs8 billion in corporation tax and St Mary’s Hospital withholding tax of Shs282 million.

Others are FINASI-International Specialized Hospital Uganda (Lubowa), Uganda Broadcasting Corporation (UBC), and China Nanjing International Limited among others.

Musinguzi added that the revenue authority also registered 147,000 new taxpayers hence growing the tax register to 2,765,900 taxpayers representing a growth of 5.65 per cent against a targeted growth of 3.75 per cent.

The entity also collected Shs286 billion in surplus revenue.

“The net revenue collection was Shs5.4 trillion, posting a surplus of Shs286.44 billion and performance of 105.58 per cent. The collections accounted for 21.54 per cent of the annual target. A growth of Shs957 billion was realized compared to the first quarter of FY 2021/22,” Musinguzi said.

According to the Minister of Finance(Planning), Amos Lugolobi, government seeks to collect Shs29.7 trillion with tax revenue of Shs27.7 trillion and non-tax revenue of Shs2 trillion for the financial year 2023/2024.

He however, said that they are not introducing new tax measures, but will concentrate on enhancing tax administration measures.

Tororo North County Member of Parliament, Geoffrey Ekanya said that Parliament is supposed to be engaged in the approval of tax exemptions, but this has not been happening.
“We have the right to examine each item in this Shs2.8 million to establish whether the minister presented the report and complied with the act. It is the prerogative of Parliament to accept or reject it, but many times we sleep on our rights,” Ekanya said.

Kashongi County MP, Herbert Tayebwa said that some of the companies asking for tax exemptions are shocking, with many cases seeking an exemption from pay-as-you-earn (PAYE).
“And to my surprise, some of the exemptions relate to pay as you earn; it would be important that we have another engagement with URA over these exemptions,” he said.

Otuke County MP Paul Omara hailed URA for collecting surplus taxes amid a tough economy.

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Uganda to be declared Ebola-free tomorrow

By
Our Reporter
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Ebola contact tracers

World Health Organization (WHO) is set to declare Uganda Ebola-free tomorrow since the country has not registered a single case for more than a month.

The decision is expected on January 11, 2023. WHO requires 42 consecutive days of no case for a country to be declared to have ended an epidemic.  

The Minister for Health Dr. Jane Ruth Aceng tweeted; “Fellow Ugandans, Happy New Year to you all. Today, 10th January 2023, marks 42 days since we began the countdown to Ebola free Uganda. I want to thank you all for your vigilance and a good job done. Together we can!”

Dr. Josephine Okwera, Uganda Red Cross Society Director for Health and Social Services said; “Today is day 42 from the last confirmed Ebola case. Uganda will be declared Ebola free tomorrow. Congratulations to all the responders who have made efforts in fighting Ebola out of Uganda.”

Since the disease broke out in September last year, the country has registered 142 cases and 55 deaths.

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Pastor Semanda sentenced to two and a half years in prison for fraud

By
Our Reporter
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Pastor Sirajje Semanda of Revival Church Bombo & lawyer Arinaitwe Jimmy

Pastor Sirajje Semanda of Revival Church Ministries in Bombo has been convicted and sentenced to two-and-a-half years in prison and payment of a fine worth Shs405 million.

Pastor Semanda, who was sentenced with lawyer Jimmy Arinaitwe, defrauded over 400 private school owners and parents of vulnerable children of over Shs4 billion.

The convicts used their ‘Organisation Hands Across the World Initiative’ to defraud over 5,000 victims promising to get them scholarships, trips abroad and connections to Operation Wealth Creation which was not true.

He is also said to have connived with other two others who together allegedly promised to connect the victims to President Yoweri Museveni.

On realization that the promises weren’t maturing, the victims petitioned Col Edith Nakalema, the then State House Anti-Corruption Unit Head accusing Pastor Ssemanda and the co-accused of fraud.

Ssemanda was arrested in November 2020 at Mutukula as he attempted to flee the country.

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Scared: Low profits force Katamba to leave Dfcu MD job

By
Simon Kabayo
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Mathias Katamba

The Managing Director of dfcu Mathias Katanaba has come out to say he is leaving the financial institution at the end of this month, having been fished from Housing Finance Bank and appointed to that job on October 31, 2018.

However, Katamba’s news of his imminent departure from dfcu is not surprising to those who have been watching events unfold, especially from the time the bank controversially acquired assets of its rival, the then Crane Bank Limited (CBL).

It should be remembered that Katamba replaced Juma Kisaame, who among other dfcu executives controversially acquired CBL assets in January 2017, paying only Shs 200 million to the Bank of Uganda (BoU), which had in October 2016 taken over CBL on allegations of mismanagement and undercapitalisation.

dfcu’s Crane bank acquisition immediately boosted its profitability only in 2017 with net profit nearly tripling to Shs127 billion, up from Shs46. 27 billion in 2016 and Shs 37 billion in 2015.dfcu acknowledge this in financial statements published in the local media.

In fact, watchers said then that the profits Dfcu made after acquiring CBL showed the former badly needed CBL businesswise, even as some of its officials during COSASE probe claimed that they were sort of forced to buy CBL by BoU.

In acquiring CBL, dfcu had also illegally acquired 48 branches CBL was operating in. The assets belonged to CBL sister company Meera Investments Limited, all under the Rupareria Group owned by Kampala tycoon Sudhir.

An analyst said what motivated dfcu to buy CBL assets as offered by BoU, was also indeed the 48 properties that belonged and still belong to Meera Investments Limited as per the Supreme Court ruling that dealt dfcu a financial blow and public shame as it exited the branches for the rightful owner to take over, but a huge cost, having lost the legal battle to Sudhir and Meera Investments Limited.

That aside, the controversial acquisition of CBL had also caused a crisis within dfcu that some shareholders such as CDC Group, the UK’s development finance institution, had to leave, putting its 9.97 shares on sale. Senior staff were also fighting, especially as Kisaame left, each hoping to replace him.

The instability at the time could only be solved by hiring an outside Katamba to steer the team at dfcu as it thrived on CBL assets, which some analysts say excited dfcu to the extent that the bank ended up mismanaging them, leading to a significant reduction in profits.

NEW BLOOD: Incoming MD, William Ssekabembe.

After hiring Katamba whose banking experience is rivalled by a few in Uganda, dfcu bank’s net profit fell 46 percent for the year 2021 to Shs13.2 billion due to the increase in non-performing This was the lowest profit ever recorded in more than a decade since 2008 when it earned Shs13.1 billion.

The lender’s NPL increased from Shs 94 billion in 2020 to Shs274 billion in 2021 as a result of negative impacts of the coronavirus pandemic.

In addition, the bad debts written off rose to Shs37.b billion from Shs13.9 billion as loan exposures increased from Shs 351 billion to Shs 480 billion during the same period.

The above statistics sent shockwaves within dfcu and the local financial sector. And as a top technocrat, Katamba’s days at dfcu started to be counted as the figures were embarrassing to the shareholders.A top BoU executive who talked to this writer on condition of anonymity said Katamba tendered in his resignation after realising he can never push back dfcu profits near those earned in to 2017 when it acquired CBL.

Despite being hired by the board, Katamba further had a cold reception at Dfcu as it was revealed that some authorities had sidestepped William Ssekabembe who it was rumoured to be line of leadership at the bank after the exist of Kisaame. However, it was a time that Ssekabembe would assume the CEO role which Katamba had been assigned to during the crisis which crisis persist to date.

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