Some once called this M7 a sick thug and i thought he was joking. Now here this man is caught stealing and he brings in irelevancies like Obote etc. This man is a looter 3.1.1!
Read and shake your head at this day light looting!
gook
Uganda must give incentives to investors, says Museveni
By Monitor Reporter
Feb 16, 2005
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President Yoweri Museveni has said Ugandans should be ready to offer extraordinary incentives to international investors if it is to develop and create wealth for its poorest citizens because the country is a fairly unknown and low ranking destination for foreign direct investment. Museveni was speaking for the second time in two days to The Monitor's Managing Director, Mr Conrad Nkutu in defence of his decision to lease the state-owned Dairy Corporation to a Thai company, Malee Sampran Public Company Ltd for a 3-year period at the nominal fee of only one US Dollar. The Monitor yesterday published Museveni's explanation, the thrust of which was that he offered the Dairy Corporation to Malee, who are a major player in Thailand's agro-processing sector, as an incentive to them to acquire interest in the Ugandan market. Following The Monitor's publication of the President's request yesterday, a dozen MPs criticized Museveni's decision. With the exception of MP Bright Rwamirama (Chair of the Parliamentary Finance Committee) who said he would invite Privatisation Minister Peter Kasenene to explain the deal, all the MPs spoken to poured criticism on the deal in respect of its implications for the Dairy Corporation.
However none of them extended their analysis of Museveni's decision to the macro-economic stimulus objective of getting Malee to set up a milk and fruit processing plant in Mbarara. The Monitor put various questions concerning the transaction to President Museveni, excerpts of which are detailed below. Question: Your explanation of the future strategic benefits for fruit farmers (arising from the expected investment by Malee in the fruit processing plant) is understood but why can't they pay a market rate for the lease of Dairy Corporation during the 3-year "market testing period?" Answer: Uganda is a fairly unknown and comparatively unattractive investment destination. The critics should understand that we are leasing the Dairy Corporation for a nominal fee to incentivise this Thai investor to come and give us the benefit of that larger factory which will stimulate farming of fruits in Busoga and parts of Buganda and Kigezi, in addition to the dairy benefits. In future, if the Dairy Corporation picks up, he can pay a market rate for it. But let us get exports and get employment. Question: But why must this investor lease the Dairy Corporation to get market confidence to set up his plant? Museveni is in beef ranching. Did you first lease a government farm? Why doesn't the Thai investor do a feasibility study, take an entrepreneurial risk and set up the Mbarara factory? Answer: This is a foreigner who might not even have heard of Uganda until I went there and persuaded him to come. They could not simply plunge in. They were cautious about the market and that is why they gave us the recommendation on school milk feeding. They are testing the seriousness of the government. It is good enough that such an investor comes to Uganda at all. Question: Your strategic goals may be correct but the procedural approach is highly questionable. You are handling everything personally from State House. It would appear you are suffocating the ability of institutions like the Uganda Investment Authority and the Privatisation Unit to function and develop independently of presidential interference. You are vulnerable to accusations of personal interest in such transactions. For example there has been speculation that you have personal interests in Tri-Star and Garden City, where you made aggressive interventions on behalf of foreign investors. Answer: Suffocating them how? We have been crying for these investors for a long time. But Uganda is less attractive than many other investment destinations. The Investment Authority are doing their best. But there is no harm in the President supplementing them. Unless you are saying I should have no role at all, as the Presiding Officer of the government! About private interest, let me tell you. On January 22, 1973, during the Fronasa struggle, two of my colleagues and I were surrounded by Amin's army in Mbale. I fought my way out but lost the two colleagues, who were killed. Other people, the Obotes, later said, "But how come Museveni survived alone? He must have killed his colleagues." Can you imagine! I am not bothered by such allegations if I am doing something for the good of Uganda. Question: But the procedures� there was a competitive bid for the Dairy Corporation, which was scuttled� Answer: The Thai company had gone through the processes� DRIC (the Divestiture Reform and Implementation Committee). They wanted to give Malee a management contract. I said "no." He is not working for us as an employee, give him a lease. Question: But have you properly vetted this company and established its financial capability for the Mbarara project? Answer: But the privatisation officials were ready to sign a management contract with them. They had been vetted� Question: You seem to assume no risks against your decision� Answer: There are two crucial points: First, if this man does not freeze our investment in Dairy Corporation for a long time, for example if he takes more than a year to do what we have agreed - to put in all that is necessary to run the company well. Second, if he was to convert the use of the civil works for another purpose without government permission. For example if he turned the premises into a godown for imported goods. Question: Malee seems pretty disinterested in Dairy Corporation. Your common focus is on the Mbarara plant. What will the fate of Dairy Corporation be after Malee's 3-year lease expires? Answer: The main problem we will need to solve is the bad construction. We either correct that or relocate the equipment to another factory elsewhere. We are zoning the country for milk production. You could end up with plants in Kampala, Tororo, Mbale e.t.c. Question: What about the shs2 billion we have just invested in the recapitalisation of Dairy Corporation? Answer: The price of Robusta coffee has fallen from about $3.50 to about $0.50 since 1986. While our export volume has grown from 2 million to 4 million bags, we are now earning only $100 million, down from $500 million. The problem is exportation of unprocessed raw materials. The shs2 billion invested in Dairy Corporation for this small local market is not a big deal. We need to attract investors to break into large export markets. Question: You seem to lack an agreed policy framework for agro-processing that is understood and agreed on institutionally with Parliament and concerned ministries. Even if you are correct on the stimulus strategy, you have procedural problems and have not invested in achieving broad political consensus on the policy, within which your decision on Dairy Corporation could be situated. Why don't you call the MPs for a meeting and sell your vision to them? An elected president should be accountable. Answer: Since we came to power in 1986, our policy has been to build an independent, integrated, self-sustaining national economy� Point No. 5 in the original 10-Point Programme. What the Thai investor is going to do for the integration of dairy and fruit production and processing is superior to what we have now. For the MPs, okay, I am going to talk to them. |
� 2005 The Monitor Publications.
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