President Museveni is reported to have abandoned his much loved State House Entebbe after several people were flocking his home for political favors.

Top sources in NRM informed us that the latest action by Museveni is arising from the ongoing fracas caused by the race for EALA.

Museveni has thus lessened on the number of hours he spends at State House and instead he spends much of his time upcountry especially in Rwakitura and on tours.

The president made the decision a few days ago according to sources. Alternatively, he has also intensified his upcountry tours in order to avoid such people.

“Some of the candidates were using historicals to go and lobby the president for political anointment. They wanted him to influence the voting pattern. He has refused and he doesn’t allow any person to come to Entebbe in relation to EALA,” sources said, adding that these days he sometimes commutes to his upcountry homes to avoid such people.

“He says this matter of historicals ended,” sources said.

“He wants everything done transparently. He has even directed the caucus bosses not to allow any meetings related to EALA in Entebbe,” sources said.

“He wants the caucus to sit at parliament conference hall and finish everything there at parliament. He is willing to meet only those who will be elected.”

This development comes at a time when the house is involved in a deadlock over sharing of EALA seats. The NRM caucus sitting at parliament on Tuesday resolved to fight for six slots out of the available nine and also surrender one seat (seventh) to an NRM-leaning independent.

BESIGYE,  MAO EALA CANDIDATES TO LOSE

Meanwhile, we have confirmed that the NRM has finalized a plan to ditch all EALA candidates who will be fronted by FDC, DP and CP.

The NRM, according to top caucus bosses, wants UPC and JEEMA represent the opposition at the regional assembly. Voting for EALA is due on May 30 and that all candidates will be voted for by the entire parliament not caucuses.

“We are ditching CP because it is involved in a move to impeach Museveni,” caucus bosses said.

“We are ditching FDC because of walk to work and DP because it is causing political acrimony in respect to EALA,” they said.

“We have decided to support candidates who will come from JEEMA and UPC using our numbers.”

UPC and NRM seem to share the same ideology,” caucus sources said, adding that FDC will not get any candidate.

The campaigns for EALA have so far attracted over 30 candidates. They include Sarah Kagingo, Lydia Wanyoto, Kwame Rugunda, Peter Mashate, Mike Sebalu, Dan Kidega, Ambrose Mulangira, Susan Nakawuki, Anite Among, Salaam Musumba, among others.

The campaigns have left MPs divided on the number of seats each party should take. Although NRM wants seven seats, the opposition led by Nandala Mafabi wants four seats leaving NRM with five including an independent.

“The law doesn’t talk about numerical strength but political parties. If they talk about numbers, then they need to amend the treaty. We want four seats as opposition and NRM takes the rest,” Mafabi told us at his office.

Legal experts we contacted over the issue of sharing said the treaty is silent about numbers.

MEDARD SSEGGONA

To talk about numbers; that is illiteracy. The treaty has to be amended if they talk of numerical strength. We cannot amend our rules that violate the decision of the court.

ODONGA OTTO

The court deleted the issue of numerical strength. I want to assure you that the Uganda delegation (EALA) will never be constituted if NRM insists on six people. Our EALA members will never be received in Arusha until when we agree. They will remain here in Kampala yawning.

LYDIA WANYOTO

The court ruling was about two things: the principle of participation (everyone) and having a vote (secret). The issue of numbers is not a legal matter but rather apolitical aspect reflecting the politics of the country that; NRM has got the majority in the national parliament. Sharing was left to partner states basing on their national constitution.

TASO executive director, Robert Ochai said that the organization faced a down side after USAID, its main funders, stopped funding them.

USAID was TASO’s main funder and after contracting another organization, Strengthening TB and AIDS, they ran out of funds. According to Robert, phasing out of the outreach centers started in 2011 when USAID stopped their funding of the organization.

TASO has been providing medicines to AIDS infected people, counselling, psychosocial support and food.

“We have handed over the facilities. Our services are now concentrated in our core centers,” Ochai said. Treatment will be given to patients from government centers or get private health facilities. This will affect many people who have been receiving help from TASO.

TASO started operating in 1987, one year aftyer the first case of AIDS was reported in Rakai District. TASO has been operating 11 major centers in several districts across the country including Kampala, Entebbe, Masaka, Mbarara, Rukungirir, Masindi, Jinja, Tororo, Mbale, Soroti and Gulu. Each center in the above districts had outreach centers which served patients staying far from the main centres.

Kaaya, who was admitted Wednesday morning, owns Nana Hostel in Kikoni, Kaki refilling station in Mengo, Global Concern Uganda Limited, the biggest money lender in Kampala and a string of other businesses.

Kaaya owns a 4.7 hectare ranch in Luweero. He inherited it from his father, mzee Kaya. The mzee used to donate hundreds of cows to Idi Amin for every Duwah.

Notably, former Prime Minister Pierre Celestin Rwigema, who returned from self-exile in the US last year, is one of the 18 candidates whose names were delivered by the National Electoral Commission (NEC) to Parliament on Monday.

Apart from Claire Kayinangwa, all the other eight incumbents are in the race.

Some candidates who spoke to The New Times spoke to yesterday were cagey about their chances, but said they were eager to represent the country.

The law stipulates that campaigns should only take place in parliament on the Election Day.

Rwigema, 59, is among eight candidates fronted by the Rwanda Patriotic Front (RPF)-led coalition, which also includes PSR, PDC, UDPR, PPC and PDI political parties.

The list also includes aspirants from two opposition parties, the National Youth Council, National Women Council, and proposed representatives of people with disabilities.

Opposition political parties are the Liberal Party and the Socio-Democratic Party, which are each allocated one seat, while each of the above special interest groups will also have a representative each.

“I’m an economist by training and have enough experience in politics and socio-economic issues. If I get the opportunity to represent my country in EALA I will advocate for the effective implementation of (the EAC) common market and customs union protocols, and the fast-tracking of the negotiations on monetary union and the realisation of a political federation,” Rwigema told The New Times yesterday.

Upon arrival in Kigali, he told journalists he was willing to take up “whatever available opportunity” to serve the country. He blamed his flight into exile on what he called “machinations and intimidation from certain individuals.”

Other candidates fronted by the coalition include, incumbents Christophe Bazivamo, Abdul Karim Harelimana, and Patricie Hajabakiga Mugorenejo.

The new faces on the RPF-led coalition list are Pierre Celestin Rwigema; Laetitia Nkunda; Anne Gahongayire; Jennifer Wibabara and Agnès Mukabacongo.

The Liberal Party picked Barnabe Nyamuganza and incumbent Odette Nyiramirimo as their candidates, while (PSD chose Clement Musangabatware and Jacqueline Muhongayire, one of the current EALA members, as their flag bearers.

Incumbents here are Nyiramirimo and Muhongayire.

On the youth ticket, incumbent Straton Ndikuryayo will fight it out with radio presenter Cynthia Umurungi.

Valerie Nyirahabineza, one of the current EALA members, and Aquiline Niwemfura will battle for the women slot, while the quota for the disabled will put

Dr James Ndahiro (incumbent) against Sharon Tumusiime.

Umurungi, 27, also a physiotherapist by profession, promises to champion youth development, especially for those in the villages who she said are sidelined.

“I will lobby for the projects that would help to increase the economic growth among the youth especially in rural areas,” she said.

Niwenfura pledged to focus on empowering women, particularly, to ease their access to credit facilities, once elected.

“Women suffer in East Africa because there are no special clear cut channels through which they can acquire capital to start businesses. With all the financial institutions in this region, it should be made easy, and that is my target if I am elected,”

Valerie Nyirahabineza, vying to retain her seat said: “I will ensure that resolutions made in the EAC Women’s Forum that [was took place in Kigali recently] are implemented for the empowerment of the ordinary Rwandan woman.”

The EALA elections were meant to be held before April 14 in all member countries. However, the process was delayed for different reasons such as amendments in national legislations.

In Rwanda, elections were delayed due to the process to adopt new electoral procedures.

Rwanda will be the third EAC country to elect the new members after Tanzania and Burundi. Ugandan MPs are set to pick the country’s representatives next week; it is not clear when Kenya will hold the elections.

Rwigema, who was the country’s prime minister between 1995 and 2000, returned from 11 years of self-imposed exile in the US last year.

Housing Finance Bank has dragged former Luweero woman Member of Parliament (MP) Rebecca Nalwanga to court over failing to clear debts.

The bank, through AF Mpanga & Co advocates, accuses Nalwanga of failing to clear a loan totaling to Shs222,104,523 which she acquired while still as an MP.

The bank alleges that on May 19, 2011, Nalwanga applied for a loan worth Shs230m through the bank’s swift loan scheme.

She was then given this loan on May 24, 2011 upon an under taking by the clerk to parliament that he would directly debit and remit to the bank an agreed installment of Shs6,825,559 per month from Nalwanga’s account. In its documents filed at the High Court Commercial division, the bank says that it was shocked to receive a letter on December 2, 2011 from parliament notifying it that parliament was no longer responsible for servicing Nalwanga’s loan since she had lost her job as an MP.

Upon receiving this letter, the bank wrote to Liberty Life Insurance Uganda Limited that had insured Nalwanga’s loan which in turn advised her to clear the debt. She however refused.

“The plaintiff (Bank) shall aver and contend that the defendant (Nalwanga)’s continued refusal to pay has occasioned and continues to occasion financial loss to the insurer, the bank and she is liable,” reads in part the plaint filed Wednesday. The bank wants court to order Nalwanga to pay the outstanding balance of Shs222,104,523 at an interest rate of 16% per annum from the time the insurance paid till full payment is made.

The court’s registrar Margret Tibulya has given Nalwanga 15 days to defend herself or else the matter will be heard in her absence.

 The investment body registered 29 new projects with a planned investment value of US$ 122 million. This went up by almost 54%, with an estimated planned investment of US$ 408 million in February.

Looking at the just concluded quarter, UIA licensed 78 projects with a planned investment value of US$ 604 million compared to US$ 210 million and 13,000 jobs in the same quarter last year.

It is envisaged that these new licensed projects will create some 21,841 jobs for Ugandans once they actualise.

With regards to the sectors, the highest source of planned investment recorded is in the Financial, Insurance and Real Estate Sector, US$ 231 million

Manufacturing registered a planned investment of US$ 172 million while Agriculture recorded a planned investment of US$ 116 million.

As is usually the case, the highest source of investment will come from Ugandan projects, with 26 projects registered in this period, and a planned investment value of US$ 265 million. The top 5 sources of investments licensed between January and March are as:

Country    Planned Investment    Planned Employment   Projects

 Uganda    264,681,282                   15,898                                26

 UK            108,978,500                    524                                       6

 Norway    67,931,140                       810                                       2

 Kenya       56,300,170                      577                                        6

 India         23,052,000                     1,006                                    12

Large investments from traditional investors, India and the United Kingdom were realised, while Kenya maintained a strong position as one of the top investors from the East African Region.

Relatively new entrants, Norway have licensed a US$ 64 million electricity project that will create over 300 jobs and supplement the current electricity supply on the National grid.

As we mentioned in our February Report, the civil unrest in North Africa and the Middle East does not seem to have deterred investment in Uganda nor caused any major problems amongst the investments from Libya, Tunisia, Egypt or the United Arab Emirates that are already in Uganda, although no new investments have been recorded from those areas in this period either.

On the local business scene, however, the increasing rate of inflation remains of grave concern.

The results released from the Uganda Bureau of Statistics at the end of March put inflation at 11.1%. With the rise in food and fuel prices, and the weak Ugandan shilling, both the ordinary Ugandan consumer and the Manufacturers importing raw materials for their factories are beginning to feel the pinch.

On the other hand, however, we need to see this as an opportunity to invest in commercial farming and agro-processing, and of course, value addition to local raw materials.

The other issue that has also caught the attention of the private sector these last couple of days has been the lifting of the moratorium on investment in the Petroleum industry.

The deal now paves way for Tullow, CNOOC and Total to proceed with the development of the oil and gas resources, which we are confident, will be a major boost to the Ugandan economy.

Studies already show that, in order to benefit greatly from the sector, it will be important that a Refinery be put in place in Uganda. This will also create jobs, better infrastructure and skills transfer for the Country.

In addition to this, early production of heavy diesel and gas will be used to supplement the current energy demands, thus reducing the dependence on hydro-electric power.

Our highly educated human resource and increasing entrepreneurial population; together with the enviable deposits of both minerals and hydrocarbons; coupled with the agricultural potential; make Uganda an easy location to sell.

The private sector is also very involved with the government of Uganda through dialogue on intervention policies and actions into the remaining constraints that make our production costs high.

1^st Quarter Report On Emerging Markets

The investment landscape in the last quarter, January to March 2012, showed how the source of Foreign Direct Investment (FDI) to Uganda was increasingly flowing from emerging markets.

Among the country sources of investment that Uganda Investment Authority (UIA) licensed, were companies from Turkey, Lebanon, Trinidad & Tobago and Sweden, as non traditional sources.

The total planned value of investment recorded during the period was US $ 806.6 million from 62 licensed projects from which it is hoped 6,237 jobs will be created.

The top ten country sources of FDI included, in descending order: Sweden, India, China, Lebanon, UK, Trinidad & Tobago, Pakistan, Netherlands, Kenya, and South Korea.

The two projects from Sweden are in the Forestry and Mining sectors. UIA continues to register a lot of foreign interest in the mining sector since the release of the results of the geological survey that showed commercial deposits of a wide range of minerals. Lebanese companies, which have traditionally invested in the trade and services sector, have in the last quarter, registered two (2) projects planning to invest in manufacturing and mining.

The Energy / Oil and Water sector recorded the highest value of planned investment from four (4) projects, followed by Mining; Real Estate & Business Services; Agriculture & Forestry; and Manufacturing of consumer goods.

Most of the investment missions that have visited Uganda in the last two quarters have been mainly from China, Turkey and India. Individual business missions have come in from South Africa, Italy, Netherlands, Thailand and the UAE. At the end of May 2012, on the 28th and 29th, UIA will maximise the opportunity for investment promotion in the country’s priority sectors and facilitation of joint ventures, as well as green field investment, at the first ‘Uganda GCC Investment Conference’ hoped to attract 70 to 100 business people from Qatar, Bahrain, Saudi Arabia, Kuwait, UAE and Oman. These are the six countries that comprise the Gulf Cooperation Council (GCC).

It is evident, that as that as different parts of the world economy go through recession, recovery, expansion or risk, Uganda is among the countries in Africa with vast and under exploited resources, therefore the best suited for viable investment. Uganda is well positioned to benefit from this if sufficient infrastructure is in place. The government of Uganda has prioritised infrastructural development and the UIA is committed to attracting investment in the area, as a basis for all other investment to take place.

“We lost one of the victims, a lady who was a security guard at the club, she died in hospital,” regional police chief Aggrey Adoli said.

Three others wounded in the attack are still in hospital, one in a serious condition, following the attack by gunmen late Tuesday.

One gunman opened fire when guards at the restaurant prevented him and two accomplices from entering the Bella Vista restaurant, before the attackers hurled two grenades and fled, Adoli added.

One of the grenades exploded near the entrance to the restaurant and the other near a car parked outside.

“I was having a drink nearby and then I saw people running after a loud blast,” said witness Oscar Ndambuki, speaking shortly after the attack.

The restaurant sits on one of the most popular avenues in Mombasa and is a popular gathering spot mainly for domestic tourists.

There was no immediate information on who was behind the attack.

Since Kenya sent tanks and troops into Somalia late last year, a whole series of grenade attacks and explosions have taken place, both in Nairobi and in northern towns and camps housing Somali refugees close to the border.

Targets have ranged from police vehicles to local bars to churches. The Kenyan authorities often blame such attacks on Somalia’s Al Qaeda-affiliated Al Shabaab rebels.

Last month the hardline Shabaab warned Kenya of retribution and revenge attacks for joining the African Union force battling the insurgents.

Earlier on Tuesday, a policeman was killed and two others seriously wounded when a landmine exploded beneath their vehicle as they escorted aid workers near the sprawling Dadaab refugee camp in northern Kenya.

The development comes on the heels of a May 7, 2012 published in the Daily Monitor: “Police quiz Mbabazi over NRM party cash money problems.”  After the story run.

The Inspector General of Police, Lt. Gen. Kale Kayihura, who the story said had quizzed Mbabazi, told the newspaper he was nowhere near CID headquarters on the said day of questioning. He distanced himself from the story and said he was up country at the time the purported questioning took place.

Mbabazi has consequently demanded an apology prominently published on the front page like the “malicious” article which reportedly projected him as “a criminal who engages in fraud” and not worth to be “trusted with public resources.”

A letter of  intention to sue was delivered to the defendant by Mbabazi’s lawyers, Mugisha and Co. Advocates on May 9.

“We wish to categorically state in the strongest terms that the allegations contained in your said newspaper article in as far as they relate to our client are completely untrue and in their ordinary and natural meaning are defamatory and constitute libel of our client,” the lawyers wrote.

They pointed out that the offending publication discredited the PM’s national and international standing and he has been “brought into public scandal, ridicule and contempt” to the extent of being “ostracized, suffering damage as a consequence.”

Mbabazi declared he would use the law to get redress. “This is my new stance regarding all publications and electronic media. I have been silent for long and taken for granted. I have decided to fight back,” Mbabazi told the New Vision in an interview.

Witnesses say a KK traveller’s bus and a Nile Coach had a head on collision, claiming the driver of the former, identified only as Toko. More details coming