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CANADA CUTS UGANDA AIRLINES FUNDING OVER BOBI AS HIS US LAWYER BEGINS BITING UGANDA

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CANADA CUTS UGANDA AIRLINES FUNDING OVER BOBI AS HIS US LAWYER BEGINS BITING UGANDA

by Mulengera
8 years ago
in NEWS
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CANADA CUTS UGANDA AIRLINES FUNDING OVER BOBI AS HIS US LAWYER BEGINS BITING UGANDA
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By Our Reporters

During Bobi Wine’s international news conference in Washington last week, his lawyer Robert Amsterdam vowed to undertake actions aimed at internationally isolating the Uganda government to protest poor human rights record and mistreatment of political opponents. In what some will perceive as the beginning of the lawyer’s threats beginning to take effect, the government of his home country Canada has withheld significant funding to the Uganda government for what remains unclear reasons. “We had a high level meeting with the finance ministry technocrats last week and apologetically communicated to them we won’t be funding the procurement of four Bombardier Aircrafts meant for Uganda Airline’s regional passenger flights,” a diplomatic source at the Canadian diplomatic consulate based at IPS Building near Parliament told this news website. These four birds are meant to facilitate the conduct of regional flights within the region once the fast-revamping Uganda Airlines returns to the skies flying again. The GoU plan was to purchase an initial four from Montreal-based Bombardier Transport Company each at $27m. Because countries always finance entities, especially governments, buying from their manufacturers, the Canadian Export Credit Bank was to fund the purchase of the 4 aircrafts by Uganda Airlines under very flexible credit terms. The idea behind such arrangements is export promotion; the purchasing government is availed cheap credit on condition that it purchases from a manufacturer in that country. In total, the GoU was to be supported with $108m to be able to buy the four aircrafts from Bombardier in Montreal and the procurement plan was in advanced stages. However, on converging for a follow up meeting at the Finance Ministry mid last week, the Ugandan officials were shocked when Canadian counterparts told them “we are sorry the financing offer has been cancelled because our commitment has been withheld.”

This was at a time the Bobi Wine saga was escalating in the news locally and globally with the Kyaddondo East MP telling an international audience that he was tortured while in military detention. He first made these allegations, which government officials including the President have since dismissed, in a long facebook rant and later corroborated on them during an international news conference in Washington that was widely broadcast by influential channels like the BBC, Al-Jazeera and CNN. Whereas the Canadians were vague as to the reason for withholding funding, promising to subsequently put their reasons in writing at a future date, officials at the Finance Ministry suggest this could be aimed at protesting the angry rhetoric Kampala has lately directed at Bobi Wine and his international backers some of whom government ministers like Beti Kamya say are renowned sympathizers and promoters of homosexuality. Canada is renowned for its liberal tolerant approach towards gay marriages, a practice our government officials are using to demonize Bobi Wine through social and conventional media.

PSST Keith Muhakanizi

GOV’T NOT BOTHERED

We separately spoke to Finance Minister and his PSST Keith Muhakanizi who said Uganda wouldn’t be moved and would never determine its approach to any contemporary issues, including governance and human rights, basing on what foreigners want. Whereas Muhakanizi confirmed the Canadian funders’ discomfort and declared intention to withhold funding, he said “we shall move on and get that funding from other sources.” He said besides the Canadian arrangement, there are many sources from which the GoU can source the $108m required to procure the four aircrafts. Kasaija, whom we interviewed at Grand Imperial Hotel where he just addressed a conference on cooperatives, said “I haven’t been around. I have just returned to office and I’m yet to be briefed but even if that turns out to be true, that they are withholding funding, that’s their business. Such people ought to know Uganda is at take off stage and is unstoppable. We shall miss the Canadian funding but I can assure you we shall immediately get from another source and carry on because reviving Uganda Airlines is a matter of great urgency which we can’t miss out on.” But speaking anonymously, reliable sources in the same Finance Ministry said whereas there are many alternative sources of funding from which the required cash can be obtained, Uganda would incur $40m per aircraft as opposed to the Canadian funding that was cheap and would end up costing GoU $27m for each of the aircrafts. “It comes to $27m per aircraft because the Canadian credit arrangements are aimed at increasing export promotion otherwise no one can facilitate our purchase of those same Bombabier aircrafts so cheaply,” asserted one of the knowledgeable officials we spoke to for this article.  Kasaija was emphatic and unrepentant when prompted on this variation. “It doesn’t matter whether $27m or $40m; what is important for you to note is that Uganda is unstoppable and we shall revive Uganda Airlines whether they like it or not,” he said as jumped into his vehicle after representing Premier Ruhakana Rugunda to close to the cooperatives conference. Week long efforts to get comment from Uganda Airlines CEO Ephraim Bagenda were futile as he never took our calls. Neither did respond to text messages for three days.

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