M7 Disapproves 11 Loans, Faults Parliament for Contracting Less-Value Loans

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Pres­i­dent Yow­eri Mu­sev­eni has re­jected 11 loans which he says do not add any value to the Gross Domes­tic Prod­uct (GDP) of the coun­try.

In a let­ter writ­ten to the Speaker of Par­lia­ment, Re­becca Kadaga, Pres­i­dent Mu­sev­eni noted that Parliament has aban­doned the coun­try by con­tract­ing many loans which do not add value to the country’s eco­nomic de­vel­op­ment.

Among the 11 loans which the Pres­i­dent re­jected in­clude $13.77 mil­lion for the Is­lamic Uni­ver­sity In Uganda (IUIU); $30 mil­lion from Ko­rea for agri­cul­ture; $100 mil­lion from Is­lamic De­vel­op­ment Bank for poverty erad­i­ca­tion; $200 mil­lion for fis­cal trans­fers and fis­cal man­age­ment and $40 mil­lion for gen­der based vi­o­lence.

“I re­ject the $40 mil­lion for the vague tar­get of gen­der based vi­o­lence. How will you know which women fought with which hus­band? Let us equip women groups to do maize milling, wine mak­ing etc, equipment for value-ad­di­tion, not sem­i­nars. The sur­vivors of vi­o­lence, if con­firmed, can be sup­ported by our own bud­get,” Mu­sev­eni said in his let­ter.

Other loans re­jected in­clude $60 mil­lion for nu­tri­tion, in­comes, cli­mate change for East­ern and Cen­tral Africa; $60 mil­lion for hunger, erad­i­ca­tion of poverty, qual­ity of ed­u­ca­tion; $101 mil­lion for house­hold in­comes, food se­cu­rity and sus­tain­able nat­ural re­sources; $200 mil­lion for the Kam­pala-Jinja Ex­press­way; $60 mil­lion of farm­ing on comput­ers and $50 mil­lion for en­hanc­ing value chain of agri­cul­ture.

Re­gard­ing the $60 mil­lion of farm­ing on com­put­ers, Pres­i­dent Mu­sev­eni said, “This is too much mari­dadi (fancy). The farm­ers need good farm­ing prac­tices, fer­tilis­ers, ir­ri­ga­tion, bush clear­ing, plough­ing and not com­put­ers be­cause, even with­out them, we know how much to pro­duce”.

In his let­ter read by Speaker Re­becca Kadaga, the Pres­i­dent pro­posed that in the fu­ture, all loan requests have his en­dorse­ment be­fore they are pre­sented in Par­lia­ment for ap­proval.

Among the loans the Pres­i­dent ap­proved in­clude $14.4 mil­lion for nav­i­ga­tion on Lake Vic­to­ria; $9.54 million for elec­tric­ity in­ter-con­nec­tion; $50 mil­lion for refugees; $49/​9 mil­lion for com­ple­tion of the new Nile bridge; $125.1 mil­lion for elec­tric­ity trans­mis­sion; $44 mil­lion for trans­mis­sion for Masaka-Mbarara; an­other $39 mil­lion for electric­ity for Mbarara-Masaka; $2.9 mil­lion for Stan­dard Gauge Rail­way (SGR)and $45 mil­lion for tech­ni­cal education among oth­ers loans.

Pres­i­dent Mu­sev­eni said there should never be a loan con­tracted for ad­min­is­tra­tion or for so­cial sciences in education.

“Any loan to be con­tracted should be for some el­e­ments of the in­fra­struc­ture, for sci­ence and tech­ni­cal ed­u­ca­tion, equip­ment for value ad­di­tion and funds for soft loans through Uganda De­vel­op­ment Bank. Any­thing else we should re­ject,” he wrote in the let­ter, adding, “We should fund ed­u­ca­tion, health and skills de­vel­op­ment by our­selves because the de­mands here are con­tin­u­ous.”

 

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