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BoU raises CBR to 9% in August to contain rising inflation

Bank of Uganda

Bank of Uganda (BoU) has increased the Central Bank Rate (CBR) by 50 basis points from 8.5 per cent to 9 per cent for the month of August 2022 to contain the rising inflation and stabilize the economy.

According to BoU Deputy Governor, Michael Atingi-Ego, the economy continues to face strong cost-push inflation pressures from the external environment, dry weather conditions, and exchange rate depreciation amidst weak domestic demand. 

The annual headline and core inflation rose to 7.9 per cent and 6.3 per cent in July 2022 from 6.8 percent and 5.5 percent in June 2022, respectively. Annual food crop inflation continued to rise from 14.5 per cent in June 2022 to 16.4 per cent in July 2022 and annual Electricity, Fuel and Utilities (EFU) inflation rose from 14.2 percent to 17.2 percent in the respective months.

Atingi said the BoU forecasts show that inflation for 2022 remains in the range of 7.0 to 7.4 percent, adding that inflation outlook is driven by the lagged impact of higher exchange rate depreciation, dry weather that has resulted in the sharp rise of food crop prices and a complete pass-through of  global inflationary pressures.

Quarterly GDP estimates by the Uganda Bureau of Statistics (UBoS) indicate that the economy contracted by 1.6 percent quarter-on-quarter in March 2022.

“All sectors of the economy contracted with the services sector taking the biggest hit. In addition, the Composite Index of Economic Activity (CIEA) has continued to signal a slowdown in economic activity. The growth of the CIE A reduced from a quarter-on-quarter growth of 2. 1 percent in December 2021 to 1.4 percent in March and June 2022. The growth of the CIEA slowed down to 3.9 percent year-on-year in June 2022 front 4.6 percent in March 2022,” he said.

Overall, the Deputy Governor said economic growth prospects have been dimmed further with increasing risks of a global recession, and weaker consumer and business sentiments as high inflation and commodity prices, continue to erode households and business incomes and financial conditions tighten. “Economic growth is now projected in the range of 2.5-3.0 percent in 2022, partly reflecting the effects of higher costs of production arising from fuel and transportation on activity, but will rise to 5.0-6.0 percent in 2023, in part supported by public investments and recovery in demand as inflationary pressures begin to wane.”

He added that the risks to the growth outlook are tilted to the downside, including the emergence of global recession, escalation of geopolitical conflicts, heightened global economic uncertainty, and higher inflation. Other downside risks are a further decline in consumer confidence, heightened exchange rate volatility and extended weakening of investor optimism. In the medium tens, the economy is projected to grow in the range of 6.5-7.0 percent, supported by public and private investments in the oil sector.

“In the near term (12 months ahead) BoU forecasts that, inflation pressures will continue to rise. While the current increases in the CBR are meant to bring back inflation to its medium-term objective of 5 percent, these have had the indirect effect in lowering the pace of depreciation of the exchange rate, which is expected to cushion the inflation pressures.  In addition, the Committee noted the recent support from the tightening of fiscal policy to address the current inflationary pressures. The committee therefore decided to raise the CBR by 50 basis points to 9.0 per cent,” Atingi said.

Going forward, the Monetary Policy Committee considered that the monetary policy stance will have to be tightened even further if inflationary pressures persist to ensure that inflation reverts to its medium target of 5 percent.  

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Ambassador Paul Amoru presents his credentials to President Cyril Ramaphosa

Paul Amoru presents his credentials to President Cyril Ramaphosa

High Commissioner designate Paul Amoru has presented his Letter of Credence to Cyril Ramaphosa, President of the Republic of South Africa at Sefako Makgatho Presidential Guest House in Pretoria accrediting him as Ambassador Extraordinary and Plenipotentiary of the Republic of Uganda to the Republic of South Africa.

In his remarks, Mr. Paul Amoru the High Commissioner, expressed gratitude to his host for the immediate opportunity granted to him to present his Letter of Credence to which would fully operationalise his duties in Pretoria, South Africa.

He underscored to his host the existing excellent and cordial bilateral relations between Uganda and South Africa which are anchored on a blood bond that dates far back before South Africa got her Independence.

Amoru highlighted to his host that Uganda provided a sanctuary for the South African freedom fighters of uMukonto Wesizwe the military arm of ANC after the UN Security Council Resolution 435 that led to withdrawal of ANC from Angola to the Camp in Kaweweta- Luwero, which later in 1998 became the Oliver Reginald Tambo School of Leadership and Pan – African Centre of Excellence and a home and training ground for the ANC freedom fighters. This shared history of struggle for the freedom and progress of our people remains the umbilical cord that connects our two great countries.

The High Commissioner emphasized that this gesture remains a key building block for the foundation of friendship between the two countries and added that his government and the people Uganda take pride in the support shared by the two countries for the uMukhonto Wesizwe team during the struggle for freedom and democracy for the Republic of South Africa.

Mr. Paul Amoru, Uganda’s High Commissioner expressed to his host the need for the two countries to augment the outcomes of the recently concluded Joint Commission of Cooperation(JCC) meeting hosted by Uganda in Kampala between 7-11th August, 2022.

He observed that economic cooperation is another significant part of the relationship between the two countries. He highlighted that during the last 25 years the exports of South Africa to Uganda have increased at an annualized rate of 6.82%, from $36M in 1995 to $187M in 2020, while exports of Uganda to South Africa in the same period increased at an annualized rate of 12.8%, from $1.01M in 1995 to $20.7M in 2020.

 “The main products that South Africa exported to Uganda are Gold ($58.4M), Delivery Trucks (ZAR20.8M), Hot-Rolled Iron ($9.76M) Uncoated Paper (ZAR10.9M), Pesticides (ZAR8.58M), Laboratory Reagents (ZAR3.91M), and Processed Cereals (ZAR3.69M) while the main products that Uganda exported to South Africa were Packaged Medicaments ($13.1M), Coffee ($2.88M), Raw Tobacco ($1.28M), other live plants, cuttings and slips; mushroom.” he said

The two exchanged views on topical matters on the continent such as Pan-Africanism, impact of Covid-19, socio-economic and security issues, politics, climate change and its impact, collaborative exchanges in various fields, among others.

On behalf of Gen. Yoweri Kaguta Museveni President of Uganda the High Commissioner commended his host for the role he played in ensuring the equitable distribution of the Covid -19 Vaccine on the African Continent as the Champion of the African Union Covid-19 Response Fund.

The High Commissioner pledged his commitment to work with his host to deepen and expand the scope of cooperation in advancing the common goals of serving the people of both countries to the best of his abilities.

He committed to focus on the agenda of the Abuja Treaty of 1991 which is anchored on accelerating intra-African trade and enhancing coordination with regional and international organizations.

“President Museveni and the government of the Republic of Uganda believe that the future of Africa in this new global environment lies in deeper economic integration, continent  wide that will strengthen Africa’s common voice and policy space in the global trade negotiations.” he said

Ramaphosa welcomed Ambassador Amoru Paul, pledged to offer him support during his tenure. His host wished President Museveni good health and the people of Uganda and South Africa lasting friendship and cooperation.

“I wish you the very best in your new assignment as the High Commissioner of the Republic of Uganda to the Republic of South Africa,” he said.

The Uganda High Commission in South Africa is responsible for five other countries in Southern Africa which include; Botswana, Eswatini, Lesotho, Namibia and Zimbabwe.

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Bunyoro sugarcane outgrowers decry inhuman conduct of Sugar manufacturing plants

sugar-cane

Sugarcane out growers in Bunyoro sub-region have decried continuous torture and mistreatment orchestrated by the police and other security agencies. The out growers accused Hoima Sugar Limited and Kinyara Sugar of using security officials who man roadblocks to stop trucks, arrest and threaten and block them from selling their canes to other dealers in the region.

The latest incident happened in Kikuube where three Hoima Sugar Limited officials were dragged to Police on allegations of assaulting a businessman, Fred Bakyali. Bakyali, sugarcane supplier for Kyejonjo Sugar Factory lodged an assault case against the three individuals at Kikuube Central Police Station Vide: SD REF 38/21/07/22.

He accused Dhamodharah Murugan and one suspect only identified Veketi (both are managers in charge of out growers) and another suspect only identified as Matovu, the company’s sugar field supervisor. Bakyali, who was days discharged from Kikuube health center IV, Kikuube District, joins a list of other complainants who preferred anonymity.

“The trouble started after they found the victim Bakyali loading trucks with sugarcane from the farm of Amos Byarugaba in Mukabara in Kizirafumbi Sub-county, whom Hoima Sugar Ltd officials claimed was their registered farmer,’’ said a source.

The Albertine region Police spokesperson Julius Hakiiza confirmed the incident, adding that police had launched an investigation into the matter. It is averred that Hoima sugar employees attempted to impound the Lorries but Bakyali and his colleagues resisted since they had been contracted to load the canes.

Bakyali noted that they were overpowered as his colleagues ran away for safety adding that the suspects and others beat him to pulp.

“They accused me of harvesting sugarcane from their alleged registered out grower yet the farmers who sold him sugarcane are independent and can supply to any buyer,” he said.

However, Veketi denied the allegation of assaulting the Bakyali, saying that claims are aimed at tarnishing their names. He noted that they only tried to block Bakyali and his group from loading sugarcane from their registered farmer.

He accused the Bakyali of conniving with Kyejonjo Sugar Factory to illegally buy sugarcane from their registered suppliers.

However, some of the Hoima sugar out growers said that several farmers are running away from the sugar manufacturing company due to persistent mistreatment.

 “We are asking the Parliament and President Museveni to intervene because we are sited on a time bomb. This is a very critical moment when we can’t afford to recover even the money we invested in growing canes. They should allow us have freedom to supply canes where we want since we incur in a lot and if we find good prices elsewhere why should Kinyara or Hoima Sugar block us?’’ one of the farmers said.

Mesach Asab, one of the farmers said that delayed payment for their sugarcane, low prices, delaying to harvest sugarcane, and refusal to buy burnt sugarcanes as some of the factors forcing farmers to sell sugarcanes to Kyenjojo sugar factory and other companies.

Sugarcane farmers in Masindi district under their umbrella Masindi Sugar Cane Out growers Association Ltd -MASGAL have been at war with Kinyara Sugar Limited protesting the price for sugarcane offered by the factory.

The Association is the biggest supplier of sugarcane to Kinyara Sugar Works Limited situated in Masindi district. On July 1, 2021, the Kinyara announced the new price for cane at Shs 88,400 for the 2021/2022 financial year. The new price indicated a reduction from the previous financial year’s price of Shs 91, 586 per ton which left many farmers in huge losses and alleged mistreatment by factory authorities.

Cosmos Byaruhanga, chairperson for Masindi Sugar Cane Out-growers Association Limited and also the Masindi district chairperson said many decisions like new prices are announced without consulting and considering farmers.

Byaruhanga noted that they’re in total disagreement with Kinyara’s actions, saying sugarcane farmers do not benefit from anything. “There is no convincing reason which is given to farmers as to why the price reduces”, he said.

John Abigaba, an out grower says the mistreatment including unfavorable price by Kinyara sugar limited is not effective and they will not accept to supply their cane to the company, adding that they cannot accept a cut in the price of sugarcane when the cost of producing sugarcane has shot up.

Alice Alinaitwe, another out grower said Kinyara sugar limited management can’t determine the cane price without the consent of the out growers and wondered why the company uses local authorities including security to harass out growers who have decided to look for better prices outside Bunyoro Sugar Mills.

Over the years, the Hoima Sugar and Kinyara Sugar Ltd companies have been feuding with the out growers over cane prices and blocking them from supplying canes to other factories. The out growers have always accused the two sugar companies of exploitation and hiring security to harass, threaten and torture them over inexcusable agreements.

In March 2018, Kinyara Sugar Works Company Limited cut the price of a ton of sugarcane from Shs141, 000 to Shs 82,000.

This led to protests among the out growers forcing them to suspend sugarcane supply to Kinyara, but still many decried harassment by a section of police officers on various road blocks.

Kinyara Sugar Ltd then indicated that the new cane price for the 2020/2021 financial year would be Shs 91, 586 per ton of sugarcane sold by the out growers, down from the previous price of Shs108, 200 shillings per ton which angered the out growers.

This has prompted many to supply canes to other factories in the country amidst alleged threats and torture by the former.

Ms. Caroline Amongin, the spokesperson of Kinyara, dismissed the entire allegation claiming that out growers who have contracts with them have an obligation to meet.

“We they try to sell sugar cane to other dealers, of course when we find them, we get our cane.  We don’t beat or mistreat them; our supervisors and security personnel stop them, and bring the cane to the factory. That is the simplest way instead of going to the police and other courts of law,” she said.

“The company advances money to most of the out growers to prepare their farms/ fields promising to sell their cane to none other than us. When they sell this cane they suffer losses,” she said.

The manager of Hoima Sugar said he is in India and is not informed about what is on ground.

“I am in India now and. I have not been updated about what is at the factory. So hold on till next month,” the manger who didn’t reveal his identity said.

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Stanbic Bank bids farewell to Executive Head for Consumer and Affluent Banking

It was an emotive affair, one that confirms the saying that ‘goodbye is the saddest word’ as Stanbic Bank Uganda bid farewell to their decorated Executive Head for Consumer and Affluent Banking, Sam Mwogeza, who is leaving after 12 illustrious years with the lender.

 Mwogeza who joined Stanbic Bank, a member of the Standard Bank Group, in 2010, served in different senior managerial roles before being appointed Chief Finance Officer in 2015 until he switched roles in March 2021, becoming Executive Head for Consumer and Affluent Banking.

 In 2019, Mwogeza was awarded CPA of the Year at the Accountancy Service Awards (ASA) in recognition of his role in founding the Accountants Convention at Stanbic Bank, a platform which provides the opportunity for accounting students and members to discuss the latest updates in accountancy and excellence in financial reporting at Stanbic Bank.

Under his leadership as Executive Head for Consumer and Affluent Banking, the bank won the 2021 and 2022 Platinum Consumer Choice Awards in ‘best commercial and development bank’ category.

Speaking at the farewell party organised by the Bank in his honour, Mwogeza said, “My time at Stanbic has been a ride of a lifetime and I am grateful to everyone who has made it such a worthwhile experience. The fantastic leadership of the various Chief Executives over the years, including our current leader, Anne (Juuko), the teams I worked with in different capacities, the entire staff community and our customers, it was an honour working with all of you.”

 In her farewell remarks, Chief Executive Anne Juuko said, “at Stanbic, we say that once a blue, always a blueSam is leaving but he will always be a dear member of our blue family and the fruits of his work which was fully dedicated to creating value for our customers and shareholders will always be remembered and honoured by the Bank. On behalf of everyone, I wish you good luck and success in your next undertaking.”

Mwogeza has not revealed his next career move but reliable sources say he is taking a break from banking we shall keep you posted.

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Gen Tumwine flown to Nairobi for treatment

Former Security Minister Gen. Elly Tumwine.

The former security minister Gen Elly Tumwine has been flown to Nairobi for further treatment after he was admitted at Nakasero Hospital last week.

According to security sources, the bush-war hero has been unwell until last week when he was admitted at Nakasero for treatment.

The UPDF Spokesperson, Brig Gen Felix Kulayigye told Eagle Online on Tuesday that he doesn’t discuss health issues of individual army officers in the media.

“I don’t discuss one’s individual health conditions [in the media]” he told Eagle Online.  Gen Tumwine was until last year in June the security minister who oversaw the election security.

Gen Elly Tumwine joined the army in 1979 after undergoing a cadet course at Tanzania Military Academy, Munduli. He trained with officers like Gen Katumba Wamala, the late Lt Gen Pecos Kutesa, Gen Joram Mugume, the late Napoleon Rutambika and Maj Gen Steven Kashaka.

After his training, he joined President Yoweri Museveni to launch the National Resistance Army armed struggle against the government of President Milton Obote in 1981.

He has been credited for firing the first bullet during the attack on Kabamba barracks on February 6, 1981 which launched the armed struggle that brought President Museveni to power in 1986.

 When NRA captured power in the same year, he became the first NRA Army commander and had been in parliament representing the army since then until last year, making him the longest uninterrupted serving Member of Parliament. 

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Corporate demand keeps the shilling on the backfoot trading

Ugandan currency

The continued demand from Corporates that outweighed the supply side has kept the shilling on the backfoot trading at the 3880 or 3890 levels, just shy of the 3900 psychological level, Absa bank revealed.

Mid-month tax remittances are expected however if demand remains robust, then the unit is still likely to remain weak trading within the Shs 3860 to Shs 3930 trading range unless healthy flows filter into the market.

According to Catherine Kijjagulwe, Head of Trading at Absa Bank Uganda global factors such as inflation rates, trade deficits, and political stability continue to support a strong dollar.

“Money Markets are still relatively tight with overnight yields trading between the 9.50 per cent to 10.75 percent levels. Bank of Uganda held a Shs 285 billion Treasury Bill auction on August 3rd, 2022 and the 91 day, 182-day and 364 day tenors cleared at averages of 8.774 percent, 10.250 percent and 13.503 percent. Bank of Uganda also held Shs 550 billion 2-year and 10-year Treasury Bond auction on Wednesday last week, yields cleared at averages of 14.000 Percent and 16.250 Percent respectively,” she said

In the run-up to the Kenyan elections, the Kenya shilling continued to depreciate to trade above the 119.00 level from Corporates who were purchasing for dividends on the back of limited dollar supply. The unit is anticipated to remain weak within the 119.00 to125.00 trading range.

“The dollar lost some ground during Thursday’s session as the market awaited the Non-Farm Payroll data, also on the back of recession woes. The Euro touched highs of $1.0253 (Shs 3910) on Thursday and closed the day at $1.0243 (Shs 3906) as the dollar lost some of its gains during the session.”

The Bank of England had its sixth consecutive rate hike of 50bps on Thursday as it attempts to curb inflation. The pound sterling ended the session at $1.2158 (Shs 4637) after it touched lows of $1.2065 (Shs 4601.74).

She said the Crude oil prices edged lower during the week due to a build-up of oil inventories in the US and a global economic slowdown with Brent Crude trading at $93.79 (Shs 357726) a barrel and West Texas Intermediate trading at $88.14 (Shs 336176) a barrel and $1784.77 (6807335) an ounce of gold.

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Gov’t to establish regional centres to manage disasters

Minister for Relief, Disaster Preparedness and Refugees, Hon. Hillary Onek,

Government has developed a robust disaster risk management plan that will mitigate impending disasters across the country, the Minister for Relief, Disaster Preparedness and Refugees, Mr. Hillary Onek, has said.

Onek said that the Office of the Prime Minister (OPM) is set to establish five regional centres to manage disasters. This according to the minister will cost government about US$234 million.  

“As government, we have developed a disaster risk management plan which was recently approved by Cabinet. We intend to confront the impending disasters by positioning ourselves regionally so that response does not only come from Kampala,” Onek said.

According to Onek, government has already committed US$50 million to establish these systems of responses to disasters in the country.  

He said this on Thursday, 11 August 2022 while appearing before the Committee on Presidential Affairs to provide response on government’s interventions on the distressing famine and hunger situation in Karamoja sub region.

“We plan to have about five regional centres to manage disasters across the country. We shall have regional centres in the East, North, South, West, and Central and will enable us to respond very quickly to any disasters that occur,” Onek said adding that, “those regional centres will enable us to prepare our population in terms of advocacy and to prepare them to respond to those risks”.

In order to quickly respond to disasters, Onek is rooting for an independent Ministry for Relief and Disaster with a stand-alone vote and budget.

The Directorate of Disaster Preparedness and Management is managed under OPM.

“Our department doesn’t have a Permanent Secretary who is specifically for disaster preparedness. I am not independent and we cannot plan adequately without interference from the conglomerate of ministers [in OPM]…We don’t have a budget; what is put in our name is contingency fund which is three percent of the national budget, but we don’t even see that money,” he said.

According to the Acting Commissioner for Disaster Preparedness and Management, Catherine Ahimbisibwe, government has since March 2022 distributed 2,562,000kgs of maize flour and 1,281,000kgs of beans as relief food to affected districts in Karamoja sub region.

She however, decried inadequate funding towards disaster preparedness and management and lack of a new fleet of motor vehicles to ease relief food distribution due to the rising number of disaster victims.

Moroto Municipality MP, Francis Adome (Moroto Municipality) called for sustainable intervention in Karamoja that involves empowering the people to engage in agriculture.

“It is disturbing that the ministry does not have money; it should be empowered. Karamoja is rich in terms of fertile soils; all that the people need is to empower them into agriculture,” Adome said.

Adjumani East MP, James Mamawi, also urged government to invest in production as a long term plan to mitigate famine and hunger in Karamoja and reduce the dependence syndrome on relief food.  

The Chairperson of the Committee on Presidential Affairs, Jesca Ababiku, called for a mindset change in Karamoja where political and cultural leaders engage local communities and shape their mindset into productivity and self-reliance.

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Brig Busizoori takes over as deputy 3rd Div. commander

Brig Gen Balikuddembe (C) witnesses Brig Gen Mugisha (L) handing over a report to Brig Gen Busizoori (R)

The Commander of the UPDF 3 Infantry Division Brig Gen Joseph Balikuddembe presided over the handover/takeover of the office of the second in command of the 3 Division from Brig Gen David Mugisha to Brig Gen Felix Busizoori.

The function was held at the Division Headquarters in Moroto on Wednesday 10th August 2022.

This follows recent appointments, promotions and transfers made by the President and Commander-In-Chief of Uganda Peoples’ Defence Forces (UPDF) H.E Gen Yoweri Museveni last week

Brig Gen Balikuddembe welcomed and congratulated the incoming Second In Command.

“I warmly welcome you, Gen Busizoori to 3 Division to add positive energy towards disarmament operations in the Karamoja sub-region,” he said, adding that he knows Gen Busizoori as a hard working and knowledgeable officer.

The Division Commander recounted that it’s only this current government under the stewardship and visionary leadership of President Museveni and the professional UPDF that disarmament operations were launched that have registered a number of progressive phases.

“We must work hard, jointly with all stakeholders to create more conducive conditions and transform Karamoja to greater levels,” Gen Balikuddembe remarked.

He implored the Commanders to maintain the visible strides so far made, in terms of arms, livestock recoveries and scaled down livestock raids which has caused relative calmness in the sub-region.

He further told officers to maintain operational momentum especially in Kotido district for peace to prevail in other districts.

“The ongoing simultaneous cordon and search operations are a tested simultaneous and approach that we must relentlessly double our efforts to decisively deal and defeat all criminal elements,” emphasized the Division Commander and also Commander of Operation ‘Usalama Kwa Wote’, translated to mean ‘Peace for All’ in Karamoja sub-region.

He commended the outgoing Deputy Division Commander Brig Gen Mugisha for being a result oriented person.

“You are reliable, disciplined and a performer. Maintain the same caliber, be our ambassador in your next tour of duty,” he urged.

The Outgoing Second in Command and now Special Forces Commander Brig Gen Mugisha thanked the President and Commander-In-Chief of the UPDF for entrusting him with the new responsibility.

He also expressed his sincere gratitude to both officers and men for the cooperation and hard work they exhibit and requested them to do the same to his successor.

In his acceptance remarks, Brig Busizoori thanked the President and C-I-C for recognizing his contribution towards building a modern, efficient and professional force, which has prompted the current appointment.

He commended the subordinate Commanders for doing a good job that has created relative peace in Karamoja Sub – Region and entire 3 Division.

“My predecessor has oriented and briefed me. I’m ready to join other Commanders and team players in the operational theatre to totally pacify Karamoja Sub region,” Brig Busizoori noted.

The new Deputy Division Commander promised to perform oversight and supervisory roles to strengthen the edge with the people through training to build more troops’ capacity and combat readiness, accountability of personnel and equipment serviceability, welfare and ideological orientation.

He urged the Commanders and staff officers to continue embracing teamwork, cooperation, discipline and have integrity to accomplish the desired tasks.

The hand and take over ceremony was attended and witnessed by Brigade, Battalion Commanders and key staff officers of the Division.

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Court of Appeal quashes an order directing NSSF to refund Shs14bn to UTL

Mr. Richard Byarugaba.

The Court of Appeal has quashed the High Court order directing the National Social Security Fund (NSSF) to refund Shs14 billion, being the 10 employer contribution for over 900 employees of Uganda Telecom Limited (UTL).

In 2015, UTL wrote to the Fund demanding a refund of the 10 per cent employer contributions claiming that the contributions had been made in error for their employees who initially worked under Uganda Posts and Telecommunications Corporation (UPTC) and were members of Uganda Communication Employees Contributory Pension Scheme (UCECPS).

The Uganda Communications Employees Union sued both the Fund and UTL in the Industrial Court challenging any refund of the contributions. They secured a temporary injunction blocking any payment.

However, before the case in the industrial court could be determined, UTL filed an application for judicial review in the High Court, seeking an order to compel the Fund to refund the Shs 14 billion, and obtained judgments in its favor.

The Fund was dissatisfied and filed an appeal in the Court of Appeal on grounds that the contributions belonged to a section of former workers of UTL, and not to the employer. The High Court had also not distinguished between two categories of UTL employees that were affected, that is, former employees of UPTC who transferred services to UTL with terms of service remaining unchanged, and the recruits by UTL who contribute to UCECPS.

In a ruling delivered by Justice Cheborion Barishaki, court quashed UTL’s application and ordered it to bear all costs NSSF incurred in this matter.

“UTL’s application in the High Court was wrongly instituted as an application for judicial review yet instead it challenged the correctness of the Fund’s decision to collect statutory contributions from certain UTL employees,” he ruled.

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“The judgment means that the Fund is under no legal obligation to refund the employer portion of the contributions directly to UTL and the 10 per cent social security contribution belongs to the employees.” the Managing director of NSSF Richard Byarugaba said.

“We welcome the Court of Appeal’s judgment because it affirms our position that once contributions are remitted to the Fund, they belong to the employee for whom they have been paid. Regarding this particular case, we are confident that as an employer, UTL erred in seeking a refund of the employer contributions on the basis of an alleged exemption that was never subjected to interpretation by the Courts of law.” he said

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CAF launches 24-club Africa Super League

CAF President Patrice Motsepe launched the Africa Super League during the confederation’s General Assembly in Arusha, Tanzania, on Wednesday.

The new league will offer prize money of $100 million — over five times more than Africa’s current Champions League — and that each club in the inaugural season of the cross-continent competition would receive $2.5 million at the start to help fund its preparations and participation.

“The Africa Super League is one of the most exciting developments in the history of African football and the objective in terms of what we are trying to achieve is very clear, number one is to make sure African club football is world class and competes with the best in the world. This about the future of African football, this is about African taking charge of its future. To do this, we need money,” Motsepe said.

Twenty-four clubs, yet to be decided, will take part in the first edition, which has the backing of world governing body FIFA and will be played between August 2023 and May 2024.

 “Football is about finance. It is about having a product and the commercial backing for it. We believe we can change the face of African football,” Motsepe said, repeating there was huge interest from sponsors and commercial partners to be connected with the new African league.

Motsepe said CAF will use some of the 50 million dollars from the Super League to make football attractive and ensure the best players remain in Africa and improve the quality of the sport on the continent which has lagged behind other parts of the world.

Motsepe appealed to African governments to help with the construction of CAF-approved stadiums to ensure every club play their football in their own countries.

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