The Independent Uganda: You get the Truth we Pay the Price
Mega infrastructure projects
Over the recent years, the Uganda government has relied on foreign borrowing to bridge the country’s infrastructural deficits. Some of these infrastructure projects include; the 600MW Karuma Hydro Power Project, the 183MW Hydro Power Project, the 250MW Bujagali Hydro Power Project, and the 51km Kampala-Entebbe Expressway among others. Also in the pipeline are projects such as the Kabale International Airport in Hoima, the oil refinery, the Kampala Oil Storage Terminal, the East African Crude Oil Pipeline and the Kampala-Jinja Expressway.
Francis Kamulegeya, the country senior partner at the global audit firm, PricewaterhouseCoopers told New Vision days after the judgment that the huge capital infrastructure investments that Uganda requires for industrialization, import substitution and transforming the economy from an agro-based subsistence economy to an industrialized one is so huge that local financial institutions alone are unable to provide.
“Any policies or legal pronouncements that appear to halt our country’s integration in the global financial system and limit us to our very small, shallow, underdeveloped banking and capital markets will not only hurt our economic development but will also scare away investors and development partners,” Kamulegeya said.
In this regard, the Ministry of Finance, Planning and Economic Development has since come out to re-affirm the government’s commitment regarding its position on syndicated financing arrangements and public debt obligations (external and domestic).
Don’t kill EAC spirit
Meanwhile, a union of money lenders has petitioned the East African Court of Justice asking the court to rescind the Commercial Court ruling. The lenders under their umbrella association, the Money Lenders Union Limited, have filed their case before the Kampala Sub Registry of the East African Court of Justice.
In their petition, the money lenders argue that the decision by the Commercial Court can better be described as “robbery from a lender by the borrower while being supported by the court.”
They further noted that if left unchallenged, the decision could interfere with internal arrangements of sister-companies trading in the EA Community thereby defeating the purpose of free trading in services protected by the Common Market Protocol where Uganda is a signatory.
“The above decisions and orders are anti-East African Community and anti-Common Market as the Judge views Uganda as an island yet Uganda is a signatory to the Treaty as well as the Common Market Protocol which opened her borders to goods and services of people and entities from partner states,” reads the petition in part.
The petition notes that the decision implies that Uganda has failed to protect Kenyans’ cross border investments and also restricted movement of services which infringes on the principles of the East African Community.
The lenders want the East African court to quash the decision by the commercial court, declare that Kiggundu is still liable to pay the loans he obtained from the banks and also award them general damages for the inconveniences caused to them arising from Judge Henry Adonyo’s decision.
The lenders also want a permanent order restraining Ugandan courts from implementing and or enforcing the decisions and orders by Justice Adonyo as they will have a great bearing onto the financial and business sector.
As a journalist you should at least show some pretence of impartiality when reporting or feigning analysis & not merely regurgitating the talking points of oneside of a dispute i.e UBA,DTB etc.
The sustained media smear campaign against Justice Dr. Adonyo & Ham Kiggundu won’t substitute the need to appeal & provide compelling legal arguments for reversal of Justice Adonyo’s rulling i.e the illegal operations of DTB-Kenya on Ugandan territory.
Repeatedly quoting the Governor Bank of Uganda’s recent press release won’t change the facts that DTB-K was declared to be illegally operating on Ugandan territory.
And besides you miss the point that powers of interpretation of the law or the powers of declaring what is or isn’t illegal are a monopoly of the Judiciary hence the governor was merely sharing his layman opinions of legal matters.
As for the threats of Uganda being blocked from accessing kenyan capital, you do forget that most of the bank loans are denominated in Uganda shillings. Consequently if need be, Uganda Govt could print the needed capital (Uganda shillings) & lend it to the commercial banks or even Uganda Development Bank for onward lending negating the need for foreign capital.
As for demands that the East African court stops Ugandan courts from making further judgements on the dispute after DTB-K is declared the winner of the dispute, …….
DEAR BISASO, DO YOU EVEN KNOW THE IMPLICATION OF BOU /GOVERNMENT PRINTING MORE MONEY ON THE ECONOMY? LOOK BACK AT WHAT HAPPENED TO MUGABE’S REPUPLIC.
Congratulations Ronald Musoke on a well researched article.
You have collected and summarized opinions on the topic from educated stakeholders for your readers.