Ministers Clash Over Economy
As Ugandans gang up on Mutebile
Prime Minister Ruhakana Rugunda has called a crisis meeting today (Thursday) to reprimand Ministers, Permanent Secretaries and heads of government agencies who are acting in a floppy way regarding the President’s written directive on the Buy Uganda Build Uganda (BuBu) policy.
In his two page letter dated 28th March, 2017, Rugunda wants all the concerned officials to report to his OPM Board room today 30th March 10am without fail. He reminds his addressees that BuBu is the only way to provide market for locally produced products and thereby create employment which is why the big man from Rwakitura won’t tolerate any elusiveness regarding his directive urging all government MDAs to consume local products in all their procurement decisions.
Among those Rugunda wants to attend without fail include Executive Director UNRA, URA, PPDA, NPA, UMA, Private Sector Foundation and Eng Kasingye the Coordinator Standard Gauge Railway among others.
Among ministers, Rugunda’s letter shows the following must attend: Amelia Kyambadde of Trade, Matia Kasaijja of Finance, Attorney General William Byaruhanga, Irene Muloni of Energy, Jane Ruth Aceng of Health and the one of Works among others.
CABINET CONFUSION
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Rugunda’s letter calling for a crisis meeting comes on the heels of another one by Presidency Minister Ester Mbayo directing the same MDAs to do something that will clearly correspond with BuBu and what it seeks to achieve-increasing market for local products for all Ugandan firms.
In her undated letter of two pages, Mbayo gives directives aimed at making government-owned Uganda Printing & Publishing Corporation (UPPC) a monopolist in the printing industry. She directs all government MDAs to ensure 40% of all their printing jobs are given to UPPC yet BuBu, which she claims to be implementing, requires support to all local firms which must compete without necessarily ring-fencing opportunities for some firms while crippling others.
Mbayo quotes a directive the President gave in 2007 and was strongly supported by UPPC MD Irene Muwanguzi in arguing that ring-fencing 40% is the only way UPPC, which is supposed to be the government security printer, will grow with other printing giants in the region. The President’s directive Mbayo quotes is dated January 15th 2007.
Mbayo says even when it was issued 10 years ago, the president’s directive is still in force because “it has never been rescinded.” By copy of her letter, Mbayo directs all cabinet colleagues to ensure accounting officers heading MDAs under their respective dockets give 40% of the jobs to UPPC or else risk being in trouble for defying the President’s 2007 directive.
However, critics among cabinet colleagues have faulted her for not being realistic because the UPPC she is promoting doesn’t have production capacity and equipment to handle that volume of work. There are fears on getting such big jobs, capacity-deficient UPPC might end up subcontracting foreign firms to do the work and dupe MDAs as if it’s done at UPPC offices Entebbe.
It’s also argued by MPs that such a blanket directive will cripple the private sector which BuBu primarily seeks to grow. We failed to get Mbayo as she never took our calls but UPPC MD Irene Muwanguzi insisted UPPC has the capacity to print 40% of the government work.
“We have new machine and we have equipment and can perform once we get work. It’s like a chicken and egg what comes first: This is a scenario one depends on the other; once there is work there will be equipment. We have equipment which are lying idle and we really need work. It’s one of the avenues for UPPC to recapitalize itself and grow again,” said Muwanguzi whose headship of UPPC was recently reinstated via court order.
MUTEBILE ATTACKED
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Meanwhile, for opposing BuBu painting it as contrary to ideals targeted under EAC and other regional economic integration initiatives, BoU governor Emmanuel Mutebile has come under strong criticism. This was on Tuesday during a consultative meeting MPs organized to consult private sector leaders on the Local Content Bill now before Parliament where it’s being spearheaded by MPs Muyanja Mbabali and Patrick Nsamba of Kasanda.
The meeting was at Imperial Royale Hotel where speakers bashed Mutebile like there was no tomorrow. Ex-Minister Daudi Migereko wondered how a whole Central Bank governor can publicly contradict a government policy and asked the Finance Ministry represented by David Bahati to call him (Mutebile) to order. Bahati, while closing the meeting, confirmed that Mutebile was clearly out of order in attempting to discredit a government program which was agreed to by cabinet as one of the ways to achieve Vision 2040.
The vision 2040 envisages manufacturing sector to grow by 50% in the next 23 years remaining to reach 2040. This can only be achieved in the objectives of BuBu and other similar initiatives are achieved fully. Amelia Kyambadde told the meeting the governor’s utterances are clear testimony the frail man from Kabale lacked correct appreciation of what EAC and COMESA partners states have so far done regarding local content inside their own borders.
She cited examples of Kenya, Tanzania, Rwanda, South Africa, Egypt and Ethiopia as some of the countries already implementing the equivalent of BuBu. Agaba Raymond, who is the commissioner for internal trade, said the commitments contained in EAC, COMESA and other protocols don’t deter Uganda from developing own policies like BuBu to protect growth in certain sectors against exposure to foreign competition.
Prof Victoria Sekitoleko, who has previously worked for international organizations, wondered why any sane human being would question why Uganda needs BuBu, an intervention she maintained was even long overdue. She argued that Uganda is actually late and called for the fast tracking of the local content legislation MPs Nsamba and Mbabali are championing in Parliament.
Price Water Coopers Uganda Country Director Francis Kamulegeya disputed Mutebile’s brand of economics and declared his organization’s support for the bill saying it’s the only way we can consolidate what BuBu and PPDA Reservation Schemes seek to achieve. He pledged PWC technical support to the two MPs sponsoring the local content bill currently underway in Parliament.