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Clubs to receive prize money for cancelled 2020 Uganda Cup

Uganda cup trophy

Among the key decisions taken by FUFA last week was to cancel the 2019/20 season of the Stanbic Bank Uganda Cup declaring it null and void with no winner due to the continued COVID-19 restrictions on sports.

A subsequent press conference held at FUFA House in Mengo on Tuesday, October 13, 2020 indicated that despite the Cup cancellation, the main sponsors Stanbic Bank will honour its commitment by paying prize monies to clubs that had progressed to the Round of 16 and the Quarter Finals.

The press conference was attended by the FUFA CEO Edgar Watson, FUFA Executive Committee Member Hamid Juma, FUFA Deputy CEO- Football Decolas Kiiza, communications director Ahmed Hussein and Daniel Ogong, the Stanbic Bank Marketing Manager.

Ogong recommitted Stanbic Bank’s desire to associate with FUFA and the Stanbic Uganda Cup in particular.

“As an organization, we do believe that football and sports in general is part of the society. We therefore believe in financing businesses and impressions, education and sport. Sport in general has potential to employ millions. The Stanbic Uganda Cup is the oldest football competition in the country as it has had its ups and downs. Because of the Coronavirus pandemic for this edition, the money will be issued to the clubs at the earliest time possible,” Ogong said.

Edgar Watson, FUFA Chief Executive Officer (CEO) was excited for Stanbic Bank to pay the clubs at such a material time when most clubs have been affected by the Coronavirus pandemic.

“I wish to extend my appreciation for this gesture from our sponsors Stanbic Uganda. At this time when all clubs are struggling for incomes, we really appreciate for this gesture. We intend to upgrade the Uganda Cup competition with other partners and broadcast live,” Watson remarked.

Decolas Kiiza, Deputy CEO – Football confirmed that there will be no winner because of the pandemic, and KCCA was picked by the Executive Committee to represent the country at the 2020 CAF Confederation Cup.

“The prevailing conditions brought by the COVID-19 pandemic fought the Stanbic Uganda Cup to the cancelled. The decision of KCCA Football Club to represent the country at the CAF Confederation Cup was purely based on the powers granted by the FUFA Executive,” Kiiza stated.

According to FUFA President Eng. Moses Magogo, the Federation had hoped to complete the season but due to the continued restrictions on sports, the Federation reluctantly decided to declare the 2019/20 season of the Stanbic Bank Uganda Cup null and void with no winner.

Prize Money for the Cancelled 2019/20 season will be paid out as follows:

The 6 teams that qualified for the quarter finals will each receive UGX 6 million. The teams are; Proline FC, KCCA FC, Kyetume FC, Light SS FC, Kitara FC and Kataka FC.

The 6 teams that were knocked out at the Round of 16 will each receive UGX 3 million: Kiboga Young FC, Dove FC, Maroons FC, UPDF FC, Tooro Utd FC and Free Stars FC.

And the 4 teams that were yet to play their Round of 16 matches will share the prize money for their ties. Each will receive UGX 1.5 million: URA, Wakiso Giants, SC Villa and Mbarara City.

The details for Corporate Social Responsibility (CSR) attached to the 46th Stanbic Uganda Cup will be communicated.

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Ham Enterprises vs Diamond Trust Bank Uganda case: Ministry of Finance and Bank of Uganda must show they care for the financial sector

By Stephen Hardings Massa

 

The Ministry of Finance Planning and Economic Development (MFPED) as well as Bank of Uganda (BoU) are key agencies whose activity among others is to ensure a healthy financial sector that can help boost the country’s private sector by availing credit to fund projects that pay taxes to government but also provide employment to the citizens. It is important to note that MFPED supervises BoU which in turn supervises the business activities of commercial banks and other small financial institutions in the country.

As such, the recent court ruling delivered by Judge Henry Peter Adonyo brings the two institutions into play as they are also expected to monitor the financial inflows and outflows out of Uganda through the Financial Intelligence Authority (FIA). Much as Judge Adonyo ruled that it was illegal for Diamond Trust Bank Uganda in partnership with Diamond Trust Bank Kenya to provide a syndicated loan to businessman Hamis Kiggundu’s company Ham Enterprises, MFPED and BoU, are aware that commercial banks in Uganda have been doing that business especially in the country where private sector credit is not readily available locally to fund big infrastructural projects.

Much as Adonyo held that by lending to Ham Enterprises, Diamond Trust Bank Kenya contravened the Financial Institutions Act, 2004, the reality is that it was not direct lending since the Kenyan domiciled bank worked with its affiliate Diamond Trust Bank Uganda that arranged that syndicated loan to Ham Enterprises. Analysts have said that such loan transactions in Uganda cannot happen without the knowledge of MFPED and BoU unless the officials were sleeping over their job tracking the money coming into the country.

Of course MFPED and BoU have come out to say that they are waiting to go through the detailed written ruling to respond appropriately, this should not just be mere words. This is because chief executive officers of all commercial banks in the country are scared by the ruling that outlaws syndicated loans which they say stand at a tune of about Shs5.7 trillion, minus other monies that were being arranged to arrive in the country for use. If that happened, they cry, it would be a disaster for the local banking industry and the Ugandan economy at large.

The two affiliated commercial banks availed over Shs39.7 billion for Ham Enterprises but has defaulted on paying back the loans. Kiggundu acquired the loans in four tranches; US$6.2 million, US3.2 million, US$458, 604 and Shs2.8 billion from Diamond Trust Bank Uganda and Diamond Trust Bank Kenya. The loans were consolidated later over two years ago and were to run from five years, ending August 23, 2023. Instead Kiggundu turned around to sue Diamond Trust Bank Uganda for fraud, alleging that the bank has been deducting his money from his bank accounts to the tune of Shs120 billion.

The above money that Kiggundu claims was fraudulently deducted from his bank accounts was audited by Kiggundu himself, which Diamond Trust Bank Uganda challenged, creating the need for an independent audit by professional firm and Judge Adonyo indeed favoured the latter audit. Why he ignored it after accepting that it be halted for some time to allow time for Kiggundu to validate his loan, is a question that many are asking since he now concentrated on the legality of the loan, and ended up with poor judgement.

Legal expert view of syndicated loans

A legal expert who has written about syndicated loans says the case should not have finally determined at the preliminary application level as there were other considerations to be made.

The short formulation, according to the expert, is that the court applies the system of law with which the contract has the closest and most substantial connection. “The question then becomes, which transaction and what are the circumstances of the case?”

He says Ham Enterprises Ltd v DTB case had six key connections:

§ the lender was in Kenya,

§ the loan contract was made in Kenya,

§ the location of the debt (situs) was Kenya;

§ the mortgaged property was in Uganda and the registration of the securities happened in Uganda,

§ the collection agent was in Uganda;

§ the borrower was in Uganda.

still, he says, there are some generally agreed principles. First, he says, the solution adopted by the court should encourage the economic and social development of the country. “That is usually achieved by promoting certainty in commercial transactions, and in turn, respecting the expressed intentions of the parties. Where there is no express choice, the court should not disappoint the parties and should apply a system of law that preserves the contract, rather than striking it down. In other words, the court should endeavour to hold the contract as valid because that is the presumed intention of the parties.”

He further says that: “Without the benefit of knowing what the parties expressly agreed upon and, therefore, what was documented in the choice of law and choice of jurisdiction clause in the Ham Enterprises Ltd v DTB case, and without any evidence displacing the general approaches to the subject, the case was governed by Kenyan law and should have been decided by the appropriate court for the Kenyan city where the loan was made. Further, on this analysis, the court should have been disinclined to apply Ugandan law since that application resulted in the loan contract being declared invalid.”

“To add a qualification to the above, that there will readily be a case where the cross-border lender (DTB (K)) accepts the law and jurisdiction of the borrower (Uganda) for ease of access to, and enforcement of, the security in the borrower’s jurisdiction. This possibility cannot be ruled out in the instant case since the borrower’s relationship bank was DTB (Uganda), the borrower’s counsel were in Uganda, and, to buttress those two elements, the legal systems of Uganda and Kenya are similar.”

He says that some information was not considered by Judge Adonyo. “Regardless of one’s preferred analysis, it is evident that some crucial information was not considered by the court and that this was a complex matter that required a detailed consideration by delving into the merits of the case.”

 

The writer is a retired banker, certified economists and auditor.

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URA registers Shs1 trillion surplus in the first quarter of revenue collection

URA's John Musinguzi

The Commissioner General of Uganda Revenue Authority (URA) John Musinguzi has revealed that the tax body registered a surplus of Shs1 trillion in the first quarter of the financial year 2020/2021.

This financial year 2020/21, URA is expected to collect Shs19.6 trillion, compared to last financial year target of Shs20 trillion.

During the First Quarter, the net revenue collections were Shs4 trillion against a target of Shs2.9 trillion performing at 135.69 per cent. A significant surplus of Shs1 trillion was posted.

“As a tax administration, we recognize that this year has been particularly difficult due to the Covid-19 pandemic. We are doing all we can within our means to support businesses to remain afloat,” Musinguzi said.

According to Musinguzi, despite Covid-19, URA registered Shs64.80 billion revenue growth during the period July to September 2020 compared to July to September 2019. The growth registered in September (8.27 per cent) and August (1.40 per cent) shows a resurgence from the impact of Covid 19. Declines in revenue were posted in April, May, June and July 2020.

“Domestic taxes collection during the first quarter Shs2.4 trillion was collected, performing at 131.66 per cent and Shs590.75 billion above the target. Domestic Taxes registered a growth of Shs51.01 billion (2.12 per cent) during the period compared to the same period last financial year,” he said.

International trade tax collections were Shs1.7 trillion, performing at 138.87% with a surplus of Shs479.79 billion. Compared to the same period last financial year, customs tax collections grew by Shs23.93 billion (1.42 per cent).

“In a special way; I thank taxpayers who continuously fulfill their obligations amidst Covid19 impact. Because of your commitment, we have been able to register great revenue results in the first three months of the financial year.”

He applauded taxpayers who have continuously fulfilled their obligations amidst the impact of the Covid-19 pandemic. “Because Of you, we have been able to register great revenue results in the first three months of the new financial year,” he said.

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Museveni insists Maj. Katabazi is the new Deputy DG ISO

Newly promoted Lt.Col. Emmy Katabazi.

President Yoweri Museveni has moved the settle the impulse around the appointment of Deputy Director General of Internal Security Organisation by reaffirming that Maj. Emmy Katabazi is the new deputy boss at the spying agency.

In a communication to the Minister of Security Gen. Elly Tumwine who doubles as the political head of ISO, Museveni has appointed Katabazi as Deputy DG and also promoted him from the rank of Lieutenant to Major.

President museveni had earlier appointed Katabazi together with Lt. Col. Charles Oluka  as Director General but the army Spokesperson Brig. Flavia Byekwaso dispelled the appointment of Katabazi by saying Maj. Katabazi had merely been promoted to the rank of major as Taban Amin was the Deputy Director General.

Col. Oluka replaced troubled Col. Kaka Bagyenda who the president sacked after numerous mistakes and complaints against him. He was accused of authoring  false intelligence and kidnaps.

Katabazi replaces Lt. Col. Don Mugimba who has been serving on contract after retiring several years ago.

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Tooro Kingdom, Ministry of Health partner to enhance disease prevention in the region

Ministry of Health, Tooro Kingdom partner to enhance disease prevention in the region

Ministry of Health has signed a Memorandum of Understanding with the Kingdom of Tooro to enhance disease prevention and health promotion in the region.

This partnership comes against the background that religious and cultural institutions are paramount in steering communities to adopt healthy lifestyles and behaviour change in order to have a healthy and productive population.

Addressing the delegation from Tooro, Dr Diana Atwine lauded King Oyo Nyimba Kabamba Iguru Rukidi IV for his initiative to set up a School of Public Health in the region aimed at training and empowering communities to take responsibility for their health. It will among others, ensure people to test and treat to know their health status.

“We can see Tooro not just as the hub for tourism, but the hub for good health,” Dr Atwine said.

The Director General Health Services, Dr Henry G. Mwebesa appreciated the Kingdom for supporting a number of health projects and noted that signing the MOU will greatly improve service delivery in the region.

His Majesty Oyo Nyimba Kabamba Iguru Rukidi IV welcomed the partnership with the health sector to promote health, increase disease prevention and pledged his support and commitment to the sector.

Earlier, the team also held a meeting with the Queen Mother of the King of Tooro, Her Royal Highness, Best Kemigisa to strengthen partnership to address teenage pregnancies, maternal and child health in the region.

The Ministry is engaging the various cultural institutions across the country to strengthen health service delivery and improve health outcomes.

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MTN, Airtel resume mobile money services after Shs10 billion loss

an mtn mobile money outlet

Mobile money services between the leading telecom service providers MTN Uganda and Airtel Uganda have been restored following the hacking into Pegasus Technologies.

Last week, unidentified thugs hacked Pegasus Technologies, information and technology (IT) service provider of MTN Uganda, Airtel Uganda and Stanbic Bank took over Shs10 billion.

According to a statement signed by the Chief Executive officers of the companies; Anne Anne Juuko Stanbic Bank Uganda, Wim Vanhelleputte MTN Uganda and VG Somasekhar Managing Director Airtel Uganda, the system incident has had no impact on any balances on both Bank and Mobile Money accounts.

And yesterday, they revealed that mobile money services between the two networks have resumed.

“Customers can now send and receive money across both networks. We apologise to all customers for any inconvenience this may have caused and reiterate our commitment to delivering secure and seamless mobile money services,” the statement reads in part.

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2021 General Elections: NUP to begin nationwide consultations next week

nup

The National Unity Platform (NUP) is next week expected to carry out a nationwide tour peddled at meeting various party leaders to protract ways on how they will conduct their campaigns ahead of the 2021 general elections.

The revelation was made by the party president who doubles as the Kyadondo East MP Robert Kyagulanyi Sentamu aka Bobi Wine. Over the past few days, NUP electoral management team has been conducting various events which culminated into the vetting of party flag bearers for various elective positions in the country.

“I want to congratulate all party flag bearers for making it. Let not only be a flag but a representation of the people of people power, a symbol of discipline, I know it was a tough decision but I want to tell you that we stand for values and we shall continue to support you.”

He said that through tough campaigns the state will try to ascend to them, but the people of Uganda should support them and their decisions will be reflected in the 2021 elections.

“Next week, we shall start national wide consultations, open up NUP offices allover the country. I encourage you to have tough skins. This is the time we have been waiting for to converse for support and people will be making decisions on which kind of Uganda they want to live in,” he said.

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Ismail Watenga joins Onyango at Mamelodi Sundowns

onyango with watenga

South African giants Mamelodi Sundowns FC have signed Ugandan goalkeeper Ismail Watenga as a free agent.

Watenga is expected to sign a three year deal with the Premier Soccer League (PSL) champions having left Kenyan Premier League side Sofapaka FC after a short stint with them in January as injuries denied him enough playtime.

The 25-year-old is expected to be loaned out by Mamelodi for the upcoming 2020/21 season as he continues his development in South Africa, according to football256.

Watenga will follow the footsteps of his senior compatriot Denis Masinde Onyango who has achieved legendary status with Masandawana since joining the club in 2011.

The highly-rated custodian left Vipers at the end of 2018 after he failed to renew his contract to join Ethiopian side Bunna FC. Watenga’s seven-year stay at Vipers saw him win two UPL titles and a domestic trophy before his exit.

Posnet Omwony is another Ugandan goalkeeper who made his name in the PSL at Bloemfontein FC and at Black Leopards.

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COVID-19: Standard Chartered bank extends $50M loan to Flex

Standard Chartered logo

Standard Chartered has announced that Flex, a global technology, supply chain and manufacturing solutions company, tapped into the bank’s USD1 billion financing commitment to help companies tackling COVID-19.

The shortage of ventilators and other critical care equipment is partly due to the limited number of companies that can manufacture at scale, globally. With capabilities to scale production and a global footprint, Flex has seen an uptick in critical care equipment demand from customers as a result. The USD50m loan will support Flex and its efforts to accelerate production of essential healthcare equipment.

Simon Cooper, CEO of Corporate, Commercial and Institutional Banking at Standard Chartered, said: “Flex has been actively addressing the supply chain issues facing the manufacturers of medical equipment, and we’re very pleased to be able to help accelerate the speed and scale of their response. This is a great example of how our commitment to lending specifically for the COVID-19 response has benefitted everything from small companies that require USD500,000 to produce or procure masks or hand sanitiser, to multinationals such as Flex who, with USD50 million of financing, can make a significant impact on the supply of equipment such as ventilators and other critical healthcare equipment.”

This drawdown by Flex follows recent disbursals from the programme in markets including Uganda, Kenya, Sri Lanka, Vietnam, Singapore, the U.S. and China, with more transactions in the pipeline.

Standard Chartered has been part of a number of transactions this year that help the fight against COVID-19, and launched this additional USD1 billion programme to provide financing on a non-profit basis to companies making products and services that help the front line fight the virus and its impacts.

The programme requires specific use of proceeds, in this case for the purposes of unlocking the ability to maximise impact and speed of delivery. Products and services being financed under the programme include diagnostic equipment and ventilators, masks and other personal protective equipment, antiviral medicines and conversions into emergency facilities.

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The journey of independent Uganda 1962 – 2020

Ambassador Henry Mayega.

Amb. Henry Mayega

The statehood and story of Uganda birthed on October 9, 1962 as an independent country are a mixed grill of ups and downs. Yet that journey presents a myriad of noteworthy achievements. It should be recalled that before 1962, our country was ruled by British colonialists who at one point in time referred to us in 1894 as a “protectorate,” none of us knows against whom they were protecting us! Like a child grows from infancy to adulthood, Uganda, after the lowering of the Union Jack (the British flag) on October 9, 1962, has soldiered on under similar circumstances.

Some have suggested that the cultural, economic and political gulf created between the colonized and colonizers was indestructible; their intuition and axiom was faulty. We have come a long way because before 1962 it was not possible for indigenous Ugandans to copiously tread Kampala road; they loitered in Katwe and other lowly places. With that background, this column will, mainly, look at the political direction of Uganda since independence.

Firstly, after attaining independence, Uganda was admitted to the UN and OAU, a milestone that placed Uganda at the international scene; as a result, Uganda was particularly instrumentally convoluted in supporting the admission of China to the UN (a matter that had been resisted by some in the western hemisphere) and the independence struggles of southern Africa.

Secondly, the period from 1962 – 1986 was largely dotted by political instability, a phenomenon that had far reaching consequences for independent Uganda. Nevertheless, the country registered two important epochal milestones after 1962 namely: the country became a sovereign state and it simultaneously obtained self-determination. Whereas before these two were achieved Uganda used to be ruled from London, UK, the times after 1962 saw self- government based in Kampala and by Ugandans not British governors appointed by the Queen’s government. That also meant we had our own three independent and indigenous arms of government namely the executive, legislature and judiciary, un-encumbered by the colonial yoke!

Thirdly, there was an attempt at entrenching democratic practices in 1962 but a couple of things colluded to immobilize that; the pedigree of inexperienced and untried hands of independence leaders both at the national and federal echelons plus the ever overarching and intrusive former colonial masters betrayed that attempt! Whereas those independence leaders were akin to apprentices operating without instructors, the former colonial masters continued with their meddlesome games.

It was much later that a man who many under-rated and cold-shouldered in equal measure, Yoweri Museveni, repudiated the undemocratic practices of the period between 1962 – 1986; the times after saw greater involvement of all and sundry, the youth, women, PWDs, workers and the general populace who were mobilized to participate in the governance of their country; never before had we seen that level of inclusion. The west has always had a tendency of defining democracy for the rest of the world but Yoweri Museveni set a different pace, pulse and tone by establishing countrywide local council committee structures; that form of democracy was unprecedented because it replaced the repressive and monolithic colonial political configuration.

The Yoweri Museveni administration for the first time created an environment of good governance based on constitutionalism and truly democratic principles. Initially, Uganda had layers of repressive chiefs (at parish, Gombolola, Saza and district levels plus the all-powerful British governor at the helm) with a colonial mindset purposed to serve masked imperialists, their agents and the parasitic British Empire. This column can confidently argue that the bigger part of the achievements of independent Uganda have been made during the tenure of the Yoweri Museveni administration.

Fourthly, the post-independence administration of Apollo Milton Obote inherited a largely colonial army in 1962, the Uganda Army, which morphed into UNLA in 1979. That outfit, apart from changing names, comprised of the same old guard who were particularly semi illiterate and, and as usual, purposed to serve the colonial administration. Elements of it were imported from Sudan and they owed it all to their pay masters, the British colonialists, not the Ugandan citizenry! The Yoweri Museveni administration disbanded that old guard and it simultaneously created a truly modern national army, the UPDF. That prodigious and awesome post-independence achievement has seen the UPDF participate in peace keeping and enforcement operations outside our national borders. Their stellar performance has, for instance, been exhibited in Somalia where the Americans intervened and failed.

This column can confidently argue that the UPDF is a disciplined security organ of the country compared to its predecessors. It is because of that regimen that we have been insulated against coup d’etats and take overs for a cool thirty four years to the yonder.

Relatedly, the NRA and its successor, the UPDF have collectively been the precursors of the restoration of peace, security and stability in Uganda; never before did Ugandans luxuriate and bask in tranquility like during the Yoweri Museveni administration; that unprecedented equanimity has permitted the growth of indigenous business personages, corporate class, political class and others giving them the requisite dexterity in managing national affairs. Those achievements by indigenous people have concomitantly led to the growth of the national economy employing millions of citizens.

Fifthly, whereas the first twenty or so years of independence dispersed all sectors of Uganda, citizens can bombastically boast of the renaissance of our country since 1986. This administration restored traditional leaders that had been banned in 1966 by the Milton Obote government (because states could not be accommodated within a state) and enacted a law to insulate them from the manipulative opposition that had always sought to malignantly wallow them in the heaving political waters after 1986. That restoration calmed the nerves of regions that yearned but were deprived of their cultural direction; relatedly, this administration has attained a level of restitution by returning kingdom assets hitherto confiscated by the central government in 1966 to rightful owners thereby promoting harmonious co-existence between the state and cultural institutions. It will be hard for anyone to fathom banning those institutions in the future because they are apolitical now.

Sixthly, whereas the 1962 independence constitution was negotiated outside our national borders and the “pigeon hole” constitution of 1966 was pushed down peoples’ throats, the 1995 constitution was a culmination of popular nationwide consultations at the behest of the Yoweri Museveni administration rendering the infamous mode of legislating by decrees of Idi Amin in the 1970s a thing of the past. Relatedly, the lack of rule of law and extra judicial killings were back-yarded never to be part of our body politic anymore.

Lastly but not least, this administration implemented the decentralization policy under the local government act of 1997; this unprecedented measure enacted in 1992 devolved a host of powers from the center to local governments. The local government further entrenched those entities as bodies corporate with powers to enter into contracts including investment ventures with individuals or other corporate bodies as well as sister local governments.

The policy of decentralized service delivery institutions and their governance for purposes of improving access to services for the rural poor.

Amb. Henry Mayega

Deputy Head of Mission

Uganda Embassy

Beijing, China

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