Members of Parliament have approved a request by the government to borrow $464 million (about Shs1.7 trillion) to finance infrastructure and development needs of the budget despite objection from the opposition, who say the loan terms are unfair.

Referred to Parliament’s Committee on National Economy on Tuesday, the loan is to be sourced from Standard Chartered Bank, which will serve as “the lead arranger and agent” for Nippon Export and Investment Insurance (NEXI), a Japanese insurance firm, and the Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC), who will actually provide the money.

Committee Chairperson, John Bosco Ikojo and Hassan Kirumira (NUP, Katikamu South) who presented the majority and minority reports respectively, were both uncomfortable with a clause that required Uganda to waive her sovereign immunity for assets at home and abroad, which implies that the lenders can go for the country’s assets in case of default.

“The committee recommends that the Ministry of Finance should renegotiate the provisions relating to the waiver of sovereign immunity to avoid exposing critical government assets to creditors in case of default,” said Ikojo.   

Kirumira also tasked the Attorney General with the same. “Attorney General needs to renegotiate the terms for Uganda so that we don’t sacrifice the country’s sovereignty and key national assets into the hands of the lender; the terms are unfavorable in their current state for a county like Uganda,” he said.

Shadow Finance Minister, Muhammad Kivumbi questioned the interest payment on the part of the loan supplied by ICIEC, which according to Islamic traditions does not accept interest on loans.

Finance State Minister, Mr. Henry Musasizi, however, dismissed the fears and said the government will ensure the final terms are negotiated in a manner that cushions Uganda’s assets.

On the interest payment for the ICIEC part of the loan, Musasizi said that, ’the government of Uganda is dealing with Standard Chartered Bank as the lead arranger; all loans will be from Standard Chartered Bank (SCB) and in effect debt service payment will be to SCB because ICIEC did not make a specific request to Ministry of Finance’.

He also responded to the question on waiver of sovereign immunity. “The Attorney General will bargain and conclude; what we are looking at are the financing terms and conditions and all of them have been presented to Parliament,” Musasizi said.

Kinkizi West MP James Kaberuka said since the Attorney General will renegotiate the terms touching on sovereignty, the loan should be approved. “Hon Members, you are the ones who will be raising matters of national importance on the state of roads and infrastructure in your area, how do you want the government to finance those projects?” he said.

Defending the loan request before Parliament’s Committee on National Economy yesterday, Musasizi said critical projects must be completed and that the releases of quarter two should be supported by cash flow, saying the loan offers the best terms compared to other available options.

Stories Continues after ad

Al Warsan immigration center has been emptied of all stranded Ugandans, Eagle Online can reliably report.

According to a source at Uganda’s Embassy in Abu Dhabi, the center had 70 stranded Ugandans including 50 men and 20 women.

“All of them are at terminal 2 at Dubai airport ready to go home. There are about 45 of them without travel documents and our team is going there to supply them with emergency travel documents right now,” the source said.

Currently, there is a crisis in the labor externalization business in the UAE where several Ugandans are turning into conmen, sleeping on the streets and doing other inhumane activities. Since September, the UAE government has deported over 700 Ugandans who were detained at Al Aweer immigration center and 20 other centers.

The Ugandans had accumulated fines and expired visas. It is reported that most of the Ugandans accessed the UAE through visit visas with the hope of getting jobs during and after the six months Dubai Expo which ended in March 2022.

Last week, Minister of State for Labour, Employment, and Industrial Relations, Okello Charles Engola Macodwogo Engola blamed the huge number of stranded Ugandans on inadequate information about formal channels of getting employment abroad, many youths are lured by human traffickers. Traffickers through false representation, deploy workers into unknown destinations with hostile working conditions.

“Exploitation of Ugandan migrant workers by illegal Ugandan recruiters who are resident in host countries through false promises for better pay. They persuade workers to abscond or run away from their jobs,” he said.

The illegal recruiters place these workers into illegal shelters under poor hygienic conditions. In cases where the illegal recruiters succeed to find employment for the migrant workers, it is the former who get paid and not the latter.

He said there is a lack of an efficient and reliable rapid-response system for protecting migrant workers. Violation of the rights of especially domestic workers who sometimes are denied access to their travel documents, communication gadgets and even medical care.

Currently, there are about 100,000 Ugandans in UAE, 95% doing skilled work and 5% having challenges.

From migrant workers, the government annually collects US$1.2 billion (Shs 4.5 trillion) globally, the Middle East alone sends in $600 million (Shs 2.2 trillion) and $200 million (Shs 762 billion) from UAE.

Stories Continues after ad

King Charles III has joined celebrations at Buckingham Palace to commemorate the 50th anniversary of the Resettlement of British Asians from Uganda in the United Kingdom.

On 4th August 1972, some 60,000 Ugandan Asians were given 90 days’ notice to leave the country by former Ugandan President General Idi Amin. Almost half of these people arrived and settled in the UK.

Sixteen temporary resettlement and reception camps were set up around the country with 63 voluntary sector organisations mobilised to provide humanitarian support for the evacuees. Thousands of private individuals also volunteered, providing warm clothes, activities for children, English language teaching and other support.

Presented by broadcasters Jon Snow and Jonathan Dimbleby, today’s ceremony reunited many of the refugees and volunteers whilst offering thanks to over 60 voluntary organisations, including the Royal Voluntary Service, British Red Cross and Oxfam, who mobilised to provide timely humanitarian assistance 50 years ago.

In 1997, a Service of Thanksgiving was held at Westminster Abbey to mark the 25th anniversary of the Resettlement and was attended by the former Prime Minster, Sir Edward Heath. A letter from His Majesty, then The Prince of Wales, featured in the Order of Service programme, which read:

“You are today commemorating not an expulsion but an arrival; not a trauma, but a magnificent recovery. Twenty-five years on, the Ugandan Asian Community in Britain have proved to be one of our great successes and a tremendous asset to this country to which you fled.

“As you give thanks to Westminster Abbey, I too give thanks – that Britain had the wisdom and generosity to offer a home to the Ugandan Asians in 1972, and that you have so thrived and contributed so much since. I send you my heartfelt wishes on this important day.”

Stories Continues after ad