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Budget Cut to Severely Affect Elderly Persons Under SAGE

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Matia Kasaija

The Parliamentary Forum on Social Protection has warned that thousands of older persons benefiting from the Social Assistance Grants for Empowerment – SAGE programme across the country will be severely affected following a significant budget cut.

Flavia Kabahenda, the Chairperson of the Forum says that a position paper on Social Protection Financing in the National Budget Framework Paper for the Financial Year 2023/24 reflects extreme finding shortfalls of up to 80 per cent towards social protection interventions.

The Senior Citizens Grant is Uganda’s largest cash transfer programme that started in 2010 targeting older persons aged 80 years and above. Currently, a total of 306,516 older persons are enlisted to benefit from the grant with a monthly grant of 25,000 Shillings for each.

Kabahenda pointed out that the number is expected to increase given the ongoing registration of eligible beneficiaries and the correction of 43,559 potential members’ details by the National Identification & Registration Authority – NIRA.

The current budget requirement for the 306,516 beneficiaries is 121 billion Shillings. But the Ministry of Finance, Planning and Economic Development – MoFPED has approved and allocated 24 billion Shillings only, about 20 per cent required financing.

Bugiri Municipality Member of Parliament Asuman Basalirwa criticized the Government for failing to meet its obligation of taking care of the older persons yet the composition of the Executive is typical of the elderly.

Due to inflation, the grant value has since been eroded from the initial 25,000 Shillings to 14,500 Shillings. In their report on the National Budget Framework Paper, the Budget Committee of Parliament recommended increasing the value to 30,000 Shillings.

In FY 2022/2023, Parliament adopted a recommendation to have the age of eligibility reduced from the current 80 to 75 years. It would require an additional budget of 71 billion Shillings to meet the target.

Also, in the current financial year, a total of 962 Persons with Disabilities groups benefited from their Special Grant which reached out to 7,377 individuals out of which 5,752 were males and 4,265 females across 66 Local Governments in the country.

From the 16.6 billion Shillings provided in the Financial Year 2022/23, the current Budget Framework Paper shows an allocation of only 3.32 billion Shillings. It is estimated that about 2,600 children aged 7-17 years across live on the streets, denting the country’s human capital development strategies.

While the Ministry of Gender, Labour and Social Development requires five billion Shillings for their withdrawal, rehabilitation and resettlement, no allocation was made for the purpose.

COSASE Orders Forensic Audit of Entebbe Express Highway Maintenance Costs

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Entebbe Express Highway

The Committee on Commissions, Statutory Authorities and State Enterprises – COSASE has recommended a forensic audit of the 918 million Shillings’ monthly maintenance for the 51.5km Kampala-Entebbe Expressway.

The recommendation stems from a probe report of COSASE conducted in November 2022 following the report of the Auditor General for the Financial Year 2020/2021.

The Committee Chairperson Joel Ssenyonyi noted that the 918.47 million Shillings contract awarded in May 2021 to M/S EGIS Road Operation S.A, a French engineering firm to undertake a 60-months performance-based management contract valued at 122 billion Shillings per month, exclusive of Value Added Tax – VAT and other contingencies is excessive.

According to the contract terms, in the first six months, EGIS was expected to provide road safety facilities that include; expressway lighting, security services, axle-load control/monitoring system, routine road maintenance, and emergency maintenance works at all times.

But Ssenyonyi revealed their finding discovered that since the commencement of usage of the expressway, lights have never been installed rendering it dark at night causing insecurity, and accidents to motorists, and impacting negatively revenue collections.

Further, COSASE discovered that EGIS through the tolling collection system that commenced on January 8, 2022, currently fetches an average of 2.8 billion Shillings out of which Uganda National Roads Authority – UNRA is obliged to release 900 million Shillings and sometimes one billion Shillings to the company for maintenance.

Maurine Osoru, the Arua City Women Representative raised concerns that guardrails on the Kampala-Entebbe Expressway are being vandalized and urged UNRA and the Police to provide regular patrols on the road and trace the criminals.

The Committee also faulted the expressway contractor China Communications Construction Company – CCCC for failure to fix the defects within the required three months and directed UNRA to provide an update to Parliament.

Construction of the 51.4 km road kicked off in 2012 courtesy of a $350 million from the Exim Bank of China loan credit while $126 million was a contribution from the Government of Uganda. The credit loan is repayable over a period of 40 years.

UNRAs Director of Maintenance Eng. Joseph Otim disclosed that the money generated from toll collections is expected to meet Uganda’s loan obligations. Recently, Eng. Otim revealed that they have surpassed the initial two billion Shillings they set out to collect 2.9 billion Shillings per month.

He added that originally, the traffic was estimated at about 14,000 vehicles per day but now about 21,000 vehicles daily. This money is banked in an escrow account and part of that money is used for maintenance of the road and other improvements.

Attorney General Asks BOU to Explain “Illegal” Sale of Co-operative Bank Assets

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Bank of Uganda

The Bank of Uganda – BOU has been tasked to explain how it seized and sold off assets of the Co-operative Bank of Uganda, without liquidating the institution.

According to the records available, the Co-operative Bank was registered in 1964 under the Cooperatives Act and has never been liquidated or abolished.

Following the turbulent economic and political times, its operations were disrupted and it virtually collapsed with the collapse of the Cooperative Movement, as privatization and economic liberalization took root.

In 1997, an attempt to revive the bank, which was mainly benefiting farmers, resulted in the formation of the Uganda Cooperative Bank Ltd, a limited liability company, under the Companies Act.

However, this lasted just two years and allegations of mismanagement and corruption led to its closure by the Bank of Uganda in 1999 under the then Governor Nyonyintono Kigonyogo.

The Attorney General has given the Bank of Uganda up to January 23, 2023, to explain which of the two companies was closed.

In an email statement, the Bank of Uganda insisted that it closed Cooperative Bank which was formed in 1997 under the Companies Act, replacing the old bank.

“The Cooperative Bank was established under the law in 1963 and was transformed into a corporate entity in 1997 under the Company Act, as a precondition to receiving USAID funding. This transformed entity is what was closed in 1999 and whose liquidation was concluded on 25th July 2020,” says the statement mailed by Charity Mugumya, Director of Communications at BOU.

It is not clear then, how the new company’s liabilities extended to the 1964 bank that the BOU got the mandate to sell them off, yet the bank has never been deregistered.

The Minister of Trade, Industry, and Cooperatives, Francis Mwebesa’s petition to the Attorney General says by the time the 1997 Cooperative Bank was closed, “the process of turning the bank into a company had not been completed, neither had the ‘original’ Cooperative Bank’ been deregistered.”

“Which cooperative bank did BOU close? If it was the latter bank, why were the assets of the former seized and sold instead?” the letter signed by JBR Suuza on behalf of the Solicitor General reads in part.

The letter also asks for “any other relevant information on the subject” pertaining to the winding up of the Cooperative Bank.

“We will appreciate your response, preferably by Monday 23rd January 2023,” says the letter to BOU’s Legal Counsel. The Bank was closed on May 1999.

The matter also came up in the 2018/19 parliamentary probe into the closure of seven banks by BOU.

One of the contentious issues was the price paid for the assets of the bank.  The report by the Committee on Statutory Agencies and State Enterprises, COSASE, noted that the assets were sold at a discount of 93 percent, which was described as a giveaway.

Ivan Asiimwe, a former shareholder said the bank at the time had 25 branches and dive agencies around the country. “The committee in the course of interaction with the Uganda Co-operative Alliance (representing the cooperators that formed the Cooperative B in 1964), established that in 1992, the Government together with USAID made attempts to recapitalize the distressed Co-operative Bank,” says the COSASE report.

They complained that in the process a new company (the Cooperative Bank Ltd) was incorporated with the same name with a set of directors and subscribers.

“This was done without deregistering or liquidating the previous co-operative Bank Ltd of 1964 registered under the Cooperative Societies Act.”

Registering a new bank with the same name without liquidating/winding up the first resulted in having two banks duly registered, according to COSASE.

“The committee, therefore, recommends that BoU, the Ministry of Trade, Industry and Co-operatives, and the Ministry of Finance, Planning and Economic Development resolve the concerns of the Uganda Co-operative Alliance and assets of the Co-operative Bank. It is further recommended that Government reports on the matter to this House within six months,” the committee led by MP Abdu Katuntu recommended.

“As far as we, the cooperators, the Cooperative Bank formed in 1964 still exists, we just want it revived,” said Asiimwe, the Uganda Co-operative Alliance chief executive.

He says the farmers, who are the main beneficiaries of a Cooperative Bank have been suffering under the current banking regime which offers no tailored products for them.

MPs to Debate Namuganza Censure Motion on Monday

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Uganda Parliamentary Building

Parliament will on Monday debate the censure motion against Persis Princess Namuganza, the State Minister for Lands, Housing, and Urban Development.

The motion is the third item on the order paper issued on Friday by the Clerk to Parliament, Adolf Mwesige Kasaija.

The seven-member Select Committee of Parliament chaired by Mwine Mpaka, the Mbarara City South Division MP which was appointed by Deputy Speaker Thomas Tayebwa on January 6, 2023, to investigate Namuganza over alleged transgression against Parliament will present its report.

The committee summoned Namuganza three times to defend herself against the accusations levied against her but failed to appear and only sent her lawyer, Norman Pande to present a letter in which she cited sub judice and short notice as reasons for not appearing.

While meeting the Committee last week, the lawyer argued his client was not served the pieces of evidence of the allegations levied against her in the motion which could not enable her to prepare her ground to make a defense.

MPs led by John Amos Okot, the Agago North Member of Parliament tabled before the Committee newspaper articles, video footage extracted from a YouTube channel, and clips that aired on NTV and NBS news bulletin pinning Namuganza for attacking Parliament.

Dan Kimosho, the Kazo County Member of Parliament one of 200 MPs who signed the petition and also presented evidence to support the censure motion against the Minister reiterated that the only action that should be taken against Namuganzais censure.

In December, Okot moved a motion seeking a resolution of Parliament to censure Namuganza, who also doubles as the Bukono County MP in Namisindwa district for contempt of Parliament after 200 legislators signed a petition to support the process. Trouble for Namuganza started in May after an ad-hoc Committee implicated Namuganza for unlawful involvement in the 142-acre Nakawa-Nagura Housing estate land giveaway to some investors purportedly on the President’s directive for a satellite city.

The Minister walked out of the meeting convened by the ad-hoc Committee and later made public comments that Parliament, which vetted her appointment after being seconded to the Ministry by the President, does not have the right to investigate her.

She has since denied any wrongdoing and declined to apologize insisting that she is innocent but only witch hunted by Speaker Anita Among who wants to satisfy a personal vendetta and ego against her.

Kabuleta Sectarianism Case Pushed to March

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Kabuleta Joseph

The Nakawa Chief Magistrate Court has pushed the case where the former presidential candidate and president of the National Economic Empowerment Dialogue party (NEED) Joseph Kabuleta is charged with promoting sectarianism to March.

In November 2022 Kabuleta was arrested on allegations of refusal to honor Police summons at the Criminal Investigation Directorate at Naguru to record a statement on charges of promoting sectarianism.

Police allege that during a press conference, Kabuleta and others still at large on May 2022, alleged that service delivery at Mbarara district is based on ethnic belongings of the Tutsi, Bahima, Bakiga, and Banyankole which created dissatisfaction and promoted feelings of ill-will.

Ritah Newumbe Kidasa the Chief Magistrate of Nakawa court adjourned the case to March 15 because Doreen Erima the prosecutor in the case was not present in court.

Joseph Kabuleta says that the state is free will to carry out all the necessary investigations in the matter.

Investigations of Former NSSF MD Will Not Affect Your Savings-Finance Minister

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The ongoing investigations into the conduct of the National Social Security Fund-NSSF former Managing Director, Richard Byarugaba will not in any way affect the members’ savings, Finance Minister, Matia Kasaija has said.

This comes almost three weeks after the president, Kaguta Yoweri Museveni on December 22, 2022, directed the Minister of Gender, Labor and Social Development-MGLSD Betty Amongi, to investigate the alleged mismanagement of the fund by the MD.

This followed a 22-page petition to the president, signed by more than 100 workers citing mismanagement and contract procurement issues. With an investment portfolio of up to 17 trillion Shillings, NSSF is Uganda’s largest retirement benefits scheme, overseen by the two ministries, though directly under MGLSD.

Following the president’s directive, Amongi instructed the NSSF board of trustees to conduct investigations, which they handed to the Inspectorate of Government and the Auditor General’s office. The investigations commenced on Thursday last week, and are expected to last for two months.

As a result, the Inspector General of Government-IGG halted any financial transactions at the fund, which aroused concern among the members about the safety of their savings and payment of their benefits within the investigation period. However, Finance Minister, Matia Kasaijja told journalists at the government-owned media center that the investigations are a normal process that takes place in all entities.

“Such investigations take place everywhere, and probing is not criminalization so there is no cause for alarm for whatever reason because your money is still intact and safe,” Kasaijja said. He said that his ministry agrees with the efforts of the MGLSD for the re-orientation of NSSF, such that it can expand its membership, and ensure more compliance.

On her part, Amongi said that MSLD has already submitted all the relevant documentation to the IGG and the Auditor General to facilitate the investigations.

“The operations at NSSF are going on normally, and nothing has changed except that there are investigations about the former MD, whose outcome is not yet even known at the moment. So fellow Ugandans do not panic, we are doing the right thing and protecting your money,” said Amongi.

According to Amongi, the outcome of the investigations will only determine the managerial agenda, but not the operations of the fund, which involve paying out benefits and investments.

Martin Nsubuga, the Chief Executive Officer of Uganda Retirements Benefits Regulatory Authority, said that as the sector regulators, they are closely following the events at the fund with the interest of protecting the members’ interests.

The NSSF Deputy Managing Director, Patrick Ayota, said that members are free to apply for their benefits as and when they need them as it has always been done and they will receive them in time.

“Our operations are going on very well, and we have so far paid up to 13 billion Shillings this month, both in midterm access and the matured benefits.”

ADF Survivors Ask Government for Financial Support

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ADF Survivors

Two people who were shot in last year’s attack by the rebel Allied Democratic Forces –ADF in Ntoroko District have cried for financial assistance from the government to help settle their medical bills. The two were injured when about 50 ADF rebels crossed River Semliki into Uganda from the Democratic Republic of Congo on December 13, 2022, and attacked Kyobe, Kayanja, and Kyappa villages in Bweramule Sub-county Ntoroko district.

The ADF rebels killed two civilians and injured three others. Arkwright Musana was shot in the stomach as he tried to help his family members flee from the attack while Robert Mike was shot in the left jaw when the rebels raided his house. After the ADF attack, Musana was rushed to Fort Portal Regional Referral Hospital for treatment but days later he was referred to Mulago National Referral Hospital for further management.

While speaking to URN, his sister, Jenifer Kabasemeza said that they didn’t even have money to transport the patient to Mulago National Referral Hospital until well-wishers came to their help. She explains that when they reached Mulago Hospital, the costs increased and she had to borrow Shillings 5 million from a bank to cater for her brother.

Musana says that most of this money was used to buy medicine and other sundries for his treatment. He adds that even the Shillings 5 million was not enough because he still has to buy drugs on a daily basis, which is now a burden to him and his family. He has appealed to the government and other well-wishers to come to his rescue and give him financial support to help him settle the loan and support his family.

He says he was the breadwinner of his family but with the gunshot injuries, he is now unable to cater to his family’s needs. On the other hand, Robert Mike who was shot in the jaw says that after the attack, he was admitted to Fort Portal Referral Hospital but was discharged after a few days. He explains that after being discharged, his condition deteriorated and he was admitted to a private medical facility in the Ntoroko district.

He says that his medical bill has accumulated to Shillings one million at the facility. He explains that although a local Non-Governmental Organization helped him to pay some of the money, he has remained with a debt of 450,000 shillings, which he has failed to pay off. He says that he has been receiving some little resources from relatives and friends but these cannot help him pay off the medical bill or sustain him for long and thus appeals to the government for support.

UWA Starts Hearing Compensation Claims from Victims of Human-Wildlife Conflict

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The Uganda Wildlife Authority-UWA has started hearing compensation claims from persons who have been affected by wildlife.

In 2021, President, Museveni assented to the amended Wildlife Act in 2019.  The new law provides for a compensation fund for persons who suffer bodily injury or are killed or suffer damage to their property by wild animals.

According to the law, the government will affect the compensation when the person’s legal representative submits a claim to the wildlife compensation verification committee.

The committee shall then verify a claim and submit it to the board together with its recommendation.

John Makombi, the Director in charge of Conservation at UWA says that the ultimate goal is to compensate for every case so that people are positive about wildlife management.

Makombi says that the authority will start with 20 cases after regulations under the new Wildlife act came into effect on 5th August this year.

Makombi however said the verification committee is facing a challenge of poor case presentation where some of the claimants lack sufficient evidence to sustain their compensation claims. He said UWA is soon starting awareness of the new law.

Dan Kahungu, a farmer in Kasese town says the new law will safeguard from wildlife acts since UWA was initially extending compassionate contributions which often were less than the value of life or property someone losses.

Communities in Kasese District that neighbor Queen Elizabeth National Park have several times lost their livelihoods to wildlife and blamed the government for delaying operationalizing the new law.

In August, the Ministry of Tourism, Wildlife, and Antiquities said that it had earmarked more than 900 Million Shillings to compensate victims of human-wildlife conflict.  The funds are a cumulative 2 percent of the total annual revenue being generated by UWA.

Malende Out of ICU in Agha Khan Hospital

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Hon. Shamim Malende

Kampala Woman Member of Parliament, Shamim Malende is out of the Intensive Care Unit-ICU at the Agha Khan Hospital where she was rushed Tuesday evening hours after undergoing abdominal surgery.

James Mubiru, the Lubaga North Councillor, who is with the legislator in Nairobi, says that doctors invited the caretakers at around 11 am on Thursday morning to receive Malende after being taken out of the ICU and returned to the general ward.

By Hon Shamim Malende

From ICU to general ward. Honorable Shamim Malende steadily recovering.
Thank you all for your prayers. pic.twitter.com/9Pu3qJnD6u
— Hon James Mubiru (@HonMubiru) November 24, 2022

Malende who was rushed to Agha Khan Hospital in Nairobi on Sunday morning underwent abdominal surgery on Monday during, which doctors found that she had ingested a chemical that affected her intestines. The operation was successful, but on Tuesday evening Malende developed severe stomach pain and was rushed to ICU.

Mubiru says that Malende is currently recuperating in the general ward as doctors continue monitoring her. “She can now recognize people, but she still cannot talk and is weak,” said Mubiru. Malende was first admitted at the Uganda Martyrs Hospital in Lubaga Division, Kampala after she reportedly suffered a seizure while at her Kawempe residence on November 13th, 2022.

While in Lubaga, she was placed on oxygen but her condition worsened, prompting her transfer to the Aghakhan hospital on November 20th, 2022. She was accompanied by Mubiru, her mother Jane-Francis Nassuuna, and fiancée Shamiru Ssebunya. “The doctors were seeing nothing so they referred us to a bigger hospital. It was decided that we bring her to Aga Khan Hospital,” said Mubiru in a phone interview with the Uganda Today.

Malende’s last public appearance was about four days before she was reported sick and rushed to a hospital in Lubaga. On November 9th, she had been arrested by the Police in Kawempe where she was found distributing reflector jackets to Boda Boda riders. She was intercepted by Police and taken to Kawempe police divisional headquarters where she was detained for at least three hours, questioned, and released without charge.

Malende has been at the forefront of demanding justice for the detained supporters of the opposition National Unity Platform – NUP party and would spend most of her time in court. She is also part of the legal team representing her jailed colleagues Makindye West Member of Parliament Allan Ssewanyana and Kawempe North Member of Parliament Muhammad Ssegirinya who are facing charges related to terrorism before the International Crimes Division of the High Court.

FDC Shall Never Surrender to NRM-Besigye

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Dr. Kiiza Besigye, former President of the Forum for Democratic Change- FDC has said that there are members of the party who are advocating for negotiating a surrender to the ruling government.

Besigye revealed this on Thursday while delivering a keynote address at the party’s two-day 15th National Council meeting at the party’s headquarters in Najjanankumbi, Kampala. The two-day meeting is the first of its kind after the 2021 general elections.

Besigye noted that over time he has heard the voices of some members of the party who are asking to negotiate a surrender to the ruling government, claiming that they cannot succeed in overthrowing the government but these he said are free to join the NRM.

“There are some people amongst us who advocate for a form of surrender, saying that we shall not manage this, let us give up, those voices are there, I hear them, you can discuss them here whether as FDC we can negotiate a surrender,” Besigye said.

Besigye further said that many members have since started complaining that the struggle has taken too long and along the way have joined the government which Besigye says he will not demonize because of their decision. He said many of these are exhausted mentally, and financially.

However, while he says he has no problem with former FDC party members and opposition in general who join the government, he asserts that this cannot be a long-term solution.

“But I have told you that whether you surrender or not surrender, the struggle is bigger, yes your life may be a little better for a few months when you negotiate a surrender, but in the end, you will go in the same direction,” Besigye said.

Ambassador Wasswa Biriggwa the Chairman of FDC said that the primary role of the meeting is to restore public trust in FDC as well as find means to end political thuggery in the country.

In the 2021 general elections, FDC lost ground to the National Unity Platform. For 15 years, FDC was the biggest opposition political party in and outside parliament. With 57 MPs, NUP won the prize of the biggest opposition political party followed by FDC with 31 MPs.

The NUP Presidential candidate Robert Kyagulanyi also defeated the FDC Presidential candidate Patrick Amuriat Oboi who garnered 300,000 votes against 3 million votes.

Since then, Kyagulanyi and his party cemented themselves as the undisputed leaders of the opposition in Uganda.