Debts choke NRM
CHRIS OBORE
The ruling National Resistance Movement is grappling with a huge post-election debt burden that insiders say is fuelling discontent in its ranks and pitting its top chiefs on a war path.
Reliable sources familiar with the situation have told Inside Politics the partys long list of debts includes overdrafts worth Shs650 million at the Arab Libyan Bank, unpaid fees to hotels and small time traders for services procured during the election campaign. The partys National Treasurer, Mr Ndawula Kaweesi could not comment on the total debt, but admits that NRMs debt portfolio is high.
Reliable sources familiar with the situation have told Inside Politics the partys long list of debts includes overdrafts worth Shs650 million at the Arab Libyan Bank, unpaid fees to hotels and small time traders for services procured during the election campaign. The partys National Treasurer, Mr Ndawula Kaweesi could not comment on the total debt, but admits that NRMs debt portfolio is high.
He, however, shrugs off the lack of resources as business as usual.
Yes, there is that overdraft which is a normal business transaction. We are credible, that is why we were given the overdrafts, Ndawula said when Daily Monitor spoke to him last week from Arusha where he had gone on party business.
He is not alone. The partys Vice Chairman, Al Hajj Moses Kigongo told Inside Politics that far from a crisis, NRM activities in the districts were going on uninterrupted.
However, other sources in the party say the situation is worse than it appears. There is reportedly tension among some of hotels the party engaged for its activities but have not been paid. NRM also has an unpaid bill with Speke Resort Munyonyo, which hosted a meeting of the partys Central Executive Committee.
The scarcity of money, sources say, is stocking turf wars in the partys top hierarchy, with several members openly resentful of NRMs dependence on its chairman, President Yoweri Museveni, for all its cash.
The party admittedly spent large sums of money on facilitating the presidential and parliamentary campaigns of February. It is not clear how much the party spent in total because, for example, officially each party candidate for the parliamentary elections received at least Shs3 million, but this does not mirror the realities of vote seeking in rural areas.
What is clear, however, is that the debate about money in NRM threatens to bring into focus the financial relationship between its chairman and the party on one hand, and between the party and the government on the other hand.
Yes, there is that overdraft which is a normal business transaction. We are credible, that is why we were given the overdrafts, Ndawula said when Daily Monitor spoke to him last week from Arusha where he had gone on party business.
He is not alone. The partys Vice Chairman, Al Hajj Moses Kigongo told Inside Politics that far from a crisis, NRM activities in the districts were going on uninterrupted.
However, other sources in the party say the situation is worse than it appears. There is reportedly tension among some of hotels the party engaged for its activities but have not been paid. NRM also has an unpaid bill with Speke Resort Munyonyo, which hosted a meeting of the partys Central Executive Committee.
The scarcity of money, sources say, is stocking turf wars in the partys top hierarchy, with several members openly resentful of NRMs dependence on its chairman, President Yoweri Museveni, for all its cash.
The party admittedly spent large sums of money on facilitating the presidential and parliamentary campaigns of February. It is not clear how much the party spent in total because, for example, officially each party candidate for the parliamentary elections received at least Shs3 million, but this does not mirror the realities of vote seeking in rural areas.
What is clear, however, is that the debate about money in NRM threatens to bring into focus the financial relationship between its chairman and the party on one hand, and between the party and the government on the other hand.
Purse strings control
Party sources say the constriction of finances begun during the campaigns ahead of Musevenis re-election in February.
It appears from various interviews with those involved that the formal organs of the party were not involved in sourcing for money for the partys activities, a job retained by Mr Museveni himself.
A few voices in the partys top echelons are reportedly un-amused by NRMs reliance on the President because it ultimately determines what the party can or cannot do.
We depend on the President for everything as our chairman. He gave money for the partys Local Council election primaries and also financed the recent elections in the new districts, a senior official said on condition of anonymity. The party always requisitions money from the chairman and if he delays to give, the activities also delay.
Insiders say that aside from his financial control, the fusion of the State and the party in the management of NRM can be seen from the fact that the Presidents Principal Private Secretary Ms Amelia Kyambadde handles much of the correspondences of the organisation.
Museveni reportedly injected Shs300million into Local Council primaries. Inside Politics could not, however, independently verify this. But several party officials admit that they do not know exactly how much money the party has spent on the various elections.
In the past NRM has admitted raising money by fundraising, but its financial management remains opaque because there are no public records on who its contributors are, or how much money they have given the party.
It is also not clear why Mr Museveni is seen as the financial controller of the party even if formal administrative structures exist. What is clear is that among his troops, the feeling is growing that his control of the purse strings is essential to his grip on the party itself.
[Museveni] thinks when the party gets money, he will have no power. But some of us want the party to move on, a source said.
With no strong internal organisation, the formal structures of the party are literally turned on or off depending on availability of cash from the President. Some of the reported rivalries arise from a fight for position and therefore access to money and the other way round.
In one case a rift has reportedly emerged between NRM Vice Chairman Moses Kigongo, and the Minister for Security, Amama Mbabazi who is the partys Secretary General.
Sources affirm that NRM workers employed at Plot No 10 Kyandondo Road but who have been under Kigongos charge have been unpaid for several months.
The Secretariat was restructured after the February elections, but despite cutbacks in the staff, Kigongo retained four extra employees. Word is that Mbabazi is opposed to cash for the extra employees and consequently the matter is referred to Museveni to mediate between the two big men.
A view is being expressed by some members, who could not comment in the open for fear of repercussions, that the party be allowed to run a business so as to become financially independent. However, Museveni reportedly opposed this because of the dismal record of cadre-run businesses, which like Danze Enterprises ground to a halt because of poor management and corruption.
According to its constitution, NRM can only rise money through five ways.
They include membership and subscription fees to be determined by NEC, contributions or donations by members, well-wishers and organisations.
Others sources include funds raised through activities or undertakings by any organ with approval of NEC, funds generated by investments undertaken by NRM; and contributions from government in accordance with the law.
But the NRM, like many of the other parties, has not started collecting membership fees, runs no known business and has not conducted any publicly known fundraising activities. It entirely relies on donations from the chairman who is also the head of state.
In October 2004, NRM members of Parliament were paid Shs1.2 billion (Shs5 million each) ahead of a crucial vote on whether to lift term limits on the presidency. The source of the funds has never been explained.
Party sources say the constriction of finances begun during the campaigns ahead of Musevenis re-election in February.
It appears from various interviews with those involved that the formal organs of the party were not involved in sourcing for money for the partys activities, a job retained by Mr Museveni himself.
A few voices in the partys top echelons are reportedly un-amused by NRMs reliance on the President because it ultimately determines what the party can or cannot do.
We depend on the President for everything as our chairman. He gave money for the partys Local Council election primaries and also financed the recent elections in the new districts, a senior official said on condition of anonymity. The party always requisitions money from the chairman and if he delays to give, the activities also delay.
Insiders say that aside from his financial control, the fusion of the State and the party in the management of NRM can be seen from the fact that the Presidents Principal Private Secretary Ms Amelia Kyambadde handles much of the correspondences of the organisation.
Museveni reportedly injected Shs300million into Local Council primaries. Inside Politics could not, however, independently verify this. But several party officials admit that they do not know exactly how much money the party has spent on the various elections.
In the past NRM has admitted raising money by fundraising, but its financial management remains opaque because there are no public records on who its contributors are, or how much money they have given the party.
It is also not clear why Mr Museveni is seen as the financial controller of the party even if formal administrative structures exist. What is clear is that among his troops, the feeling is growing that his control of the purse strings is essential to his grip on the party itself.
[Museveni] thinks when the party gets money, he will have no power. But some of us want the party to move on, a source said.
With no strong internal organisation, the formal structures of the party are literally turned on or off depending on availability of cash from the President. Some of the reported rivalries arise from a fight for position and therefore access to money and the other way round.
In one case a rift has reportedly emerged between NRM Vice Chairman Moses Kigongo, and the Minister for Security, Amama Mbabazi who is the partys Secretary General.
Sources affirm that NRM workers employed at Plot No 10 Kyandondo Road but who have been under Kigongos charge have been unpaid for several months.
The Secretariat was restructured after the February elections, but despite cutbacks in the staff, Kigongo retained four extra employees. Word is that Mbabazi is opposed to cash for the extra employees and consequently the matter is referred to Museveni to mediate between the two big men.
A view is being expressed by some members, who could not comment in the open for fear of repercussions, that the party be allowed to run a business so as to become financially independent. However, Museveni reportedly opposed this because of the dismal record of cadre-run businesses, which like Danze Enterprises ground to a halt because of poor management and corruption.
According to its constitution, NRM can only rise money through five ways.
They include membership and subscription fees to be determined by NEC, contributions or donations by members, well-wishers and organisations.
Others sources include funds raised through activities or undertakings by any organ with approval of NEC, funds generated by investments undertaken by NRM; and contributions from government in accordance with the law.
But the NRM, like many of the other parties, has not started collecting membership fees, runs no known business and has not conducted any publicly known fundraising activities. It entirely relies on donations from the chairman who is also the head of state.
In October 2004, NRM members of Parliament were paid Shs1.2 billion (Shs5 million each) ahead of a crucial vote on whether to lift term limits on the presidency. The source of the funds has never been explained.
Michael BWambuga wa Balongo
Talk is cheap. Use Yahoo! Messenger to make PC-to-Phone calls. Great rates starting at 1¢/min.
_______________________________________________ Ugandanet mailing list Ugandanet@kym.net http://kym.net/mailman/listinfo/ugandanet % UGANDANET is generously hosted by INFOCOM http://www.infocom.co.ug/
The above comments and data are owned by whoever posted them (including attachments if any). The List's Host is not responsible for them in any way. ---------------------------------------
