Friday, 14 March 2014


The Minister for Kampala wants a Bill on Patriotism tabled.   It is surprising that the NRM Government believes that it can use a law to force people to love their country when in actual fact it is them that don’t love their country.

It can be recalled that prior to the 2011 General Elections, the people of Uganda through various representatives wanted the Electoral Commission disbanded so that it is constituted in a representative way given the different political shades in the country under the chairmanship of an equivalent of a Justice of the High court, the NRM under President Museveni could not see this implemented.  Now you wonder who loves his country.

The NRM Government change of goal posts to suit own ends is not being patriotic as it has potential to get the country into instability.  We are aware that the Identity cards project was funded prior to the 2011 General elections.  What happened to this money to the extent that new funding is sought?  If the money  went to fund the 2011 General elections in favour of NRM, how does Government now come up with a Patriotism bill?  

Refer to the Cheeye revelation below.  Is this patriotism?
The Source: The Uganda Confidential No. 542 of November 2009
Editor Teddy Sseezi – Cheeye

(Much of the content in reference to the title can be got from the source – The Uganda Confidential No. 542 of November 2009, however, briefly the editor; Cheeye points out that the companies in power business used a ‘deceitful mentality,’ in which they black mailed Uganda Government into giving them billions of shillings in subsidies – given that it is easier to collect billions of shillings deposited by Government into an account than collecting from thousands of consumers and or cheaters). 

One of the many sad cases in the energy sector was the $20 million Uganda Government contract with a Canadian Company called Acres International, in 1993, to supervise the construction of the $300 million power extension project at then Jinja Owen Falls Dam.  The project, which was supposed to be built under the sole advice of Acres International, was to be completed between 1994 and 2000.  The project had raised high expectations in a country that experienced frequent power cuts.

The story started in 1945 when the colonial British Government appointed British Consultant firms Kennedy and Donkin and Sir Alexander Gibbs to do a feasibility study for the construction of Jinja Owen Falls Hydropower Dam, which was built at a cost of British Pounds 7,418,971.  The dam was commissioned in 1954.  One of the issues that Sir Gibbs and Kennedy and Donkin established was the historical data of the water levels of both Lake Victoria and River Nile.  The establishment of water levels was important.

The average historically guaranteed water to Egypt was quoted at 660 cubic metres per second, based on water levels in Lake Victoria at 11.04 meters high.  If water levels in the lake went to 10 meters, then Egypt would get a minimum 550 cubic meters per second.  But if the water levels went up to 12 meters high, then Egypt would get 880 cubic meters per second.

In 1962, Uganda received abnormal heavy rains; between 1962 and 1968, Lake Victoria levels shot up 13 meters high, causing cracks in the dam, and forcing the opening of the sluices, which allowed excessive water to flow down river, all the way to Egypt.  The sudden increase in water levels surprised the British Government. The latter then sponsored a study to come up with a solution to further increases I water flow threats.  

In 1986, Sir Gibbs, Kennedy and Donkins (1986) advised the NRM Government that an extension to the old Owen Falls Dam be built, at horizontal levels, to be used during ‘peak period’ when water levels suddenly shot up.  The expected station was supposed to generate an additional 80 MW only.  It was never meant to be a fully – independent hydro power station.  Unfortunately, by 1990 when Uganda borrowed $84 million from the World Bank to construct the second power dam, a lot of political water had passed under the bridge: The British Government had lost its political grip on the prudent management of Uganda’s power sector.

The then Managing Director of Uganda Electricity Board (UEB), Mr. A. R. Rutta had studied Construction Engineering in Canada where he came to know the Canada based Acre International.  So, when time came for Uganda to contract a Consultant to design and oversee construction of the 2nd Extension Power Project, he successfully lobbied for the job to be given to Acre International.  When Acre International won the contract, they maintained that the 1962 – 1968 high water levels would remain the same forever.  This led to wrangles between the companies (British and Canadian Acres International), funding was frozen to Uganda after Kennedy and Donkin wrote to World Bank that Acres International had fed them on lies.  World Bank appointed one Cassidy to arbitrate.  In his judgment, Mr. Cassidy exonerated Acre International.  He said that there were 99% chances that the high water levels would remain unchanged forever.  On their part, Kennedy and Donkin argued that the changes in water levels were a result of global warming, and that the raise in water levels was therefore temporary.  Over the years, the British companies were proved right.

Armed with what eventually turned out to be a false verdict, Acres International went ahead and designed a new fully fledged second Jinja Power station with expected capacity of 200 MW.

Uganda Government went ahead and borrowed $300 million in a bid to increase power generation from 60MW to 180MW at the Owen Falls Dam, and construction of the Extension of the Second Hydro Power Project which was supposed to generate 200MW.

As soon as the two dams were completed, both Acre International and the World Bank realized that actually the water was not enough to generate the promised total 380MW.

At a period when construction of hydro-power stations averaged $1.2 million per MW, Bujagali inflated their cost to $2.5 million per MW.  It is now (2009) well over $3.4 million per MW, while elsewhere, the cost is only $1.6 million.  At the end of it all, Ugandans will pay the highest electricity tariffs in the world.    
The Source: The Uganda Confidential No. 542 of November 2009
Editor Teddy Sseezi – Cheeye

“Big lessons for Uganda from the Confessions of an Economic Hit Man”
Author – John Perkins
When an IMF team visited Uganda shortly after NRM had just taken over power in 1986, and found that Uganda did not have economic figures it needed as a pre-requisite for borrowing, a friendly leader of the IMF team, a Kenyan, advised his Ugandan brothers to cook up some nice economic figures, because there was no way the global institution could lend Uganda money without figures.

The Ugandan team retreated in the kitchen and did wonderful statistical spicing up of figures.  Economic growth was put at a pleasing percentage. (Teddy Cheeye)
In “Confessions of An Economic Hit Man: The shocking inside story of how America REALLY took over the World,” John Perkins reveals the shocking truth: Exaggerated economic projections are falsely given in order to justify why poor countries should be lent huge credit loans which in return are used to award big jobs to companies from donor countries, and which consequently enslaves the borrowing countries and their people, to the lender countries.

Economic Hit Men (EHM) are highly paid professionals, who cheat countries around the globe out of trillions of dollars.  They funnel money from the World Bank, USAID and other foreign donors into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s natural resources.  Their tools include fraudulent financial reports, sex and murder.

In Uganda for example, foreign consultants earn more than 95% of the $300 million in annual technical assistance, while local consultants get only 5%!     

The Source: The Uganda Confidential No. 542 of November 2009
Editor Teddy Sseezi – Cheeye

In 1986, two revolutionary groups took over state power; one in Uganda and the other Vietnam.  Both countries have troubled history of wars and destruction.  Both were subjected to the IMF conditionalities.  However, Vietnam refused some of this global money lender’s policies, for instance they refused to lose grip of their national banking sector.  Uganda however implemented wholesale the privatization.  As a result, twenty three years down the road, Vietnam had made it to a Middle Income Country – and is the second leading country after Thailand.  According to the World Bank’s World Development Report (2009); Reshaping Economic Geography, Vietnam’s GDP for 2006 – 2007, was a cool $71.2 billion while Uganda’s stood at a $11.2 billion.

While Vietnam’s exports stood at $48.3 billion those from Uganda were a miserable $1.5 billion.  Further more, while Ugandans had a higher GDP per capita of $260 in 1986; more than Vietnam’s $220 in 1994, the latter’s figure has since then jumped four-fold, to $1,020 by 2008.  But Uganda’s GDp per capita failed to increase by even one fold, her GDP per capita in 2008 was a mere $280. (Source, USA Department of State, October 2009).

Similarly, when the NRM took over power in 1986, Malaysia was at about the same level of development as Uganda.  Both were subjected to the economic policies by IMF and World Bank.  Malaysia refused wholesale capital liberalization which move enabled Malaysia to survive the 1998 financial crisis in Asia.  However, Uganda accepted the liberalization policies wholesale has since suffered from the ills of capital flight in addition to having a dwarf reserve account.  Twenty three years down the road, Malaysia is a Middle Income country while Uganda is a Least Income country.  The World Bank report cited Malaysia’s GDP in 2006 – 2007 at $180.7 billion as compared to Uganda’s $11.2 billion.  Malaysia exported goods and services worth $176 billion, compared to imports of only $146.9 billion; meaning that it had a $39.8 billion trade surplus.  In the same period, Uganda exported goods and services worth only $1.5 billion against imports of $3.3 billion; meaning that her deficit was $1.8 billion.

Uganda’s official rate of GDP is suspect.  While Ugandans are told that economic growth has averaged 8% for the last many years, the World Bank report, page 353 put Uganda’s GDP economic growth for 2006-2007 at an average of 2.9%, compared to that of Vietnam which was 7.2%.


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