GOVERNMENT’S CONTINUED INVESTMENT IN KIIRA MOTORS IS VITAL FOR NATIONAL ECONOMIC DEVELOPMENT

BY MOSES SSERWANGA

As the country’s vehicles production flagship, Kiira Motors ,continues to champion mission cars  made in Uganda , public interest has increased with many commentators coming on board.

It is a mixed  bag with some commentaries lacking facts while others are coached in political rhetoric to advance selfish interests geared at  sabotaging  a government program of  strategic economic importance .

The latest to comment on Uganda’s prospects to produce cars is the- old man around town, John Nagenda, who in his latest article questioned government’s decision to invest in the automotive industry .In his typical rhetoric style he did not provide any researched  data to back up his argument.

However , available data shows that all the top economies of the world have  budding automotive industries .  From America 's automobile  heartbeat in Michigan (General Motors ) ,  China’s Shanghai General Motors, Malaysia’s Proton, Japan’ s Toyota ,  South Korea’s Hyundai  to   South Africa 's Honda,  the automotive sector has played a leading role in the development of these countries respective economies .

It is not a surprise therefore , that for all the top world biggest economies in 2019 to 2020  which include the USA, China, Japan Germany, United Kingdom, India , France and South Africa ,governments have invested heavily and continue to support their automotive industries . Governments in other relatively small economies like Vietnam, Ethiopia, Nigeria, Morocco, Algeria, Turkey are funding their car producers.

In Asia, governments of major vehicle production countries such as China, South Korea, Malaysia, and Japan have played a virtual role to ensure that their automotive industries, do not only grow and survive the global economic turbulences but that such industries are at the center of growth for these now dubbed economic tigers.

In these countries, several policy interventions have been engineered from provision of affordable financing, to infrastructure development, provision of investment incentives, encouragement on innovation at all level of high learning and industry development to local content development programs.

When the global economy mired in an economic slowdown with global vehicle production dropping more than 10 million units in 2009 from a record high of over 72 million units built in 2007, governments put in place radical economic stimulus packages that boosted their failing automotive industries. Again these were government led interventions to support and prevent their automotive industries, which are the engines of their respective economies from collapsing.

It was not long before the positive impact of such initiatives was seen. A clear example is that of China, following the stimulus package from the Chinese government, China’s auto industry registered a rapid growth in 2009 and 2010. In 2009, China produced more than 13.6 million vehicles, overtaking USA to be the world’s largest car producer. In 2010, the growth momentum continued, bringing China’s vehicle production to nearly 18.3 million units, almost doubling its 2008 production registered before the global economic meltdown.

The Chinese government had opened up its auto market to international companies but only with the understanding that its domestic manufacturers would not be able to compete with the more sophisticated and experienced foreign rivals. Foreign automakers were allowed to enter the Chinese market only through joint ventures with local partners, oftentimes state-owned companies (SOEs)just like Kiira Motors , each with no more than 50% controlled by a major foreign nameplate automotive manufacturer.

Some of these joint ventures have seen VW joining forces with Shanghai Automotive Industry Corporation (SAIC) and First Automotive Works Corporation (FAW). SAIC is also a joint venture partner of GM, while FAW is also a partner of Toyota. Honda and PSA Peugeot Citroen have both formed partnerships with Dongfeng Motor Corporation.

It is the same story with Malaysia which used a state led auto development approach by building national champions (read Kiira Motors)  before eventually commercializing and privatizing.

All this shows that the automotive industry which is going to be a major force for economic emancipation in the East Africa region and on the African continent will require infant industry state funding and  policy interventions for sustainability and ultimately competiveness.

And for the record, Uganda government ‘s funding of the state owned Kiira Motors has not come out of the blue. Due diligence has been made over the years and a blue print prepared and presented making the case that investing in the automotive sector is a viable venture of national strategic nature.

The Uganda government should not be cowed by the nay-sayers who are quick to praise our neighbours for carrying out similar investments while criticizing anything that is Ugandan.

The writer is a Media and Communications Consultant /Trainer and Advocate of the High Court of Uganda

msserwanga@gmail.com

KIIRA MOTORS Vs. BAKAYIRA ARE MPs’ PLANS TO FUND BOTH RATIONAL ?

By Moses Sserwanga

The Observer newspaper has this week reported that some MPs are not satisfied with the performance of Kiira Motors hardly six months into the financial year. These same MPs are also  fast-tracking their weird ideas of cutting funding to Kiira Motors a government owned   company that is setting up a car production plant at the Jinja industrial park  and give the money  to an obscure private company called Bakayira. 

The debate about Kiira Motors  vs Bakayira is now gaining momentum as a section of MPs for self interests  are engaged in machinations to strip Kiira Motors of its funding in an effort to promote a private company whose viability in the automotive sector has not been documented anywhere.

The MPs' strategy is to divide the 44bn asked for by Kiira Motors  in the next financial year and give it to Bakayira where it can easily be misappropriated . But remember that it has taken Kiira Motors well over 10 years to prove its  competences and capabilities in order to attract this initial Uganda government funding of  Shs. 15bn out of the 24bn for the development /production phase of this project the current financial year and another 44bn for the  next financial year .

 Kiira Motors has deployed these funds to set up a vehicles production plant at  the Jinja Industrial Park. The construction work which began barely two months ago , is being carried out by the UPDF Engineering brigade under the National Enterprise Corporation (NEC) - the business arm of the army headed by an impeccable lawyer Lt. Gen. James Mugira . Before government agreed  to fund the  Kiira Motors development/production phase , the company had  to make a detailed business case to prove the commercial and business viability of the mission to make cars in Uganda while championing the green mobility technologies (electric cars) .

Kiira Motors management has over the years, in its pursuit to be funded , made several high profile presentations to Parliament, Ministry of Finance and even cabinet.  The initial funding to  Kira Motors of  about 15bn out of the 24 bn budgeted for this financial  year was made after cabinet studied the Kiira Motors business case and approved it with the support of  parliament.

The company  has not only made a viable case for the mission cars made in Uganda but  has also tested and proved it's competencies , capabilities in technological innovations by producing three  electric vehicles ; the Kiira Ev, the Kayoola Solar bus , and the Kiira EVS  also know as "The Beast" .  Kiira Motors is the Pioneer of green mobility  technologies in the automotive industry not only in Uganda , the East African region but the African continent . Kiira Motors is an award winning technology  innovator  in Uganda's  automotive industry and this is  well documented .

It is bizarre therefore,  that hardly six months after the initial release of funds for  for the development and production phase of this  national project of strategic importance , some Members of Parliament want to sabotage it even before it gets off the ground . These  MPs must be stopped in their tracks . Politics and self interest should not be promoted at the expense of national projects of strategic nature .The Kiira Motors project if well funded and well managed will bring enormous economic opportunities in the fields of  technology innovation, the job market , value addition and foreign exchange earnings .

And this is not to say that Bakayira  shouldn’t be funded but their funding should not come from the kiira Motors vote. Let them prepare and submit a viable proposal to government for approval be funded on merit.

Otherwise, Kiira Motors needs the support of every Ugandan. Let government fund this project until it can sustain itself and the business case shows that will break even .

The writer is a Media and  Communications Consultant/ trainer and Advocate of the High Court of Uganda.

msserwanga@gmail.com

A NEW KIIRA EVS “THE BEAST”HITS THE ROAD TO BE EXHIBITED AT PARLIAMNENT

By Moses Sserwanga

Kiira Motors Corporation, will exhibit a new version of one of its products dubbed the Kiira EVS also known as “The Beast”

LAKE VICTORIA BOAT TRAGEDY:THE NEED TO OVERHAUL THE NATIONAL MARITIME LAW

By Moses Sserwanga

The tragic boat accident that left at least 32 Ugandans dead on lake Victoria  was a case of total negligence and recklessness by the parties  responsible for the safety of people travelling on our national water bodies . The proprietors of the boat and its crew exhibited no duty of care for their clientele when they deployed a dilapidated vessel for a social cruise .

This national tragedy also showcased the growing tendency by many public servants not to commit to the execution of their respective  mandates for  fear of political ramifications and this is most manifested among security agencies especially police officers at various ranks . Take for example the case of the marine police officers  who even after being in possession of incriminating evidence that the  ill-fated boat was  not only in poor mechanical condition but was also not registered nor licensed ,still allowed it to carry revellers on the fateful day .

The police’s failure to stop the cruise could perhaps explain the state of their mind at the time- given that  many of the revellers were  people of influence  who were hell bent at getting on with the cruise . As fate would have it ,the vessel capsized just under one hour of take off .  This accident further  illustrates the sheer lack of disaster preparedness in this country even when we have a fully- fledged ministry in charge of the disaster docket.

Otherwise ,how do you explain the slow response by the rescue teams when the victims sent out numerous distress calls while still on the boat which was within just 10-15 minutes ride off the docking point .Some survivors have since been quoted in the mainstream media that when they contacted police it was the usual embarrassing story of no fuel! It were the abavubi (ordinary fishermen) on their rudimentary-rickety boats who responded and actually rescued the so much talked about 26 survivors. As such- there was no visible government machinery at a critical time of need to conduct a grand rescue mission the kind we saw when a team of young boys was trapped in a cave for several days somewhere in Malaysia .

And this national misery could not be complete until  when State Ministry in charge of the transport docket stated of course when not prepared, that GOVERNMENT was looking for the ill-fated "boat" because it was not licensed nor registered . What a tragedy !
As if that is not bad enough , a  closer look at the legal framework that governs the water transport sub –sector  shows something of a bizarre nature . On our statute books we have the 20^th century  Maritime transport law- such an outdated piece of legislation . The Marine Insurance Act of 2002 only deals with issues of insurance policy coverage . So unlike the Traffic and Road Safety Act of 1998 , there is no updated specific law to deal with a modern water transport system with all its attendant challenges .
This means that apart from criminal negligence under the Penal Code, the perpetrators of felonies on our water bodies cannot be brought to book for violation of a specific code of conduct .In otherwise, there are no updated specific duties and obligations , defined offences and penalties for the water transport sector .
The National Transport Master Plan 2008-2023 barely covers anything significant about the water transport apart from lamentations of poor enforcement of operator safety procedures, since services are often characterised by gross over-loading, use of defective vessels, and absence of basic safety equipment such as lifebelts and jackets.
In the Plan ,it is also indicated that navigation routes are archaic and need to be re-surveyed; navigation aids are often damaged or missing and there is severe capacity constraints in both the Transport Licensing Board and the Marine Police resulting in poor enforcement of water transport standards.
There is therefore, an urgent need to  update or enact a new water transport law and  operationalize the proposed new Multi-Sector Transport Authority (MTRA). The authority must be equipped with sufficient resources and staff to carry out vessel inspections regularly, with powers to prosecute and suspend licences where owners persistently flout the legal safety requirements.
 Lastly , let us as Ugandans , allow public officials to serve our country and enforce the rule of law without fear of any political ramifications . Enough said .
The Writer is Media and Communications Consultant/ Trainer and Advocate of the High Court of Uganda
msserwanga@gmail.com

LET UGANDANS UNITE AGAINST TORTURE BY SECURITY FORCES

LET UGANDANS UNITE AGAINST TORTURE BY SECURITY FORCES

BY MOSES SSERWANGA

The rising number of cases of suspects being tortured by police officers and other security operatives while in detention centers have convulsed the country and whipped up unprecedented public outcry .  Television and radio interviews of torture victims have been recorded  while  video clips of victims narrating their ordeal have gone viral on the social media.

And yet this new worrying trend is against the NRA/NRM long held doctrine against torture and political assassinations dating back to the bush war days spanning from the early 1980s. When President Yoweri Museveni  launched the NRA/NRM revolution and the bush war some 36 years ago , he maintained a zero tolerance for torture as a means of extracting  intelligence information or illegal confessions from suspects .

It is therefore, surprising and utterly disreputable that in the recent past ,some police officers have taken it upon themselves to torture suspects  while in police custody and other un-gazetted detention centers .  A special committee of the police force  led by the Director of Legal and Human Rights  Erasmus Twaruhukwa and whose other members included Dr. John Kamya, James Kushemererwa and Emilian Kayima recently recommended the closure of Nalufenya after it found that the detention facility did not meet minimum standards required of a holding place for suspects .

And whereas, the new police administration led by the Inspector General of Police , Martin Okoth Ochora should be commended for their brave action to close the Nalufenya detention facility following  wide public protests -that it was one of the most recognized torture chambers in the country ,special investigations should be instituted to bring to book all the police officers who  have been  involved in  gross violation of human rights including the torture of suspects .

The Uganda constitution 1995,in Article 24 under the bill of rights provides for  human dignity and protection from inhuman treatment .It states thus :” no one shall be subjected to torture ,cruel ,inhuman or degrading treatment and punishment. “

The Prohibition and Prevention of Torture Act read together with other international legal instruments interalia, the United Convention Against Torture also- outlaws torture in any form including but not limited to physical and psychological torture, holding suspects incommunicado and denying them adequate medical care .

The courts of Uganda have gone ahead to uphold these principles that govern the fundamental human rights of suspects and one of the recent cases being  the 19 suspects in the Kaweesi murder case . The High Court held that there was gross violation of the suspects human rights when they were subjected to various forms of torture while in detention at Nalufenya .

The court observed  and rightly so that  the rule of law is not a self-effecting doctrine where it’s enforcement is a function of the will of people but rather has institutions charged with enforcing it, especially the police and the  judiciary.

The practice of torture, therefore, is in stark contrast to the doctrine of the rule of law. All suspects in the custody of the state should be accorded their fundamental human rights as enshrined in our constitution . Under our criminal  justice system suspects are presumed innocent until proved guilty by a court of competent jurisdiction. The Uganda police and other security  agencies should not be allowed a  free hand to torture suspects because anyone can fall victim any day .

And in its continued effort to clean up a badly tarnished police image , the new police administration  should carry out regular independent inspections of all detention facilities across the country to stamp out human rights violations. It  is in the best interest of  society that police cells and other detention facilities meet the intentionally acceptable standards to ensure the observance of human rights and promotion of the rule of law.

We  need a robust human rights protection mechanisms involving both the rights holders and duty bearers. All is not lost on us.

The writer is an Advocate of the High Court of Uganda

And Media, Communications Consultant/trainer.

msserwanga@gmail.com

GOVERNMENT GIVES KIIRA MOTORS 144 BILLION TO MAKE ELECTRIC VEHICLES

By Moses Sserwanga

The Uganda Cabinet has approved the commercialisation of the Kiira Electric Vehicle Project where government will invest Ugs.144billion in a phased approach , Minister of Science Technology and Innovation Dr. Elioda Tumwesigye has said.

While addressing the media in Kampala , Dr. Tumwesigye said that Kiira Motors Corporation (KMC) will assemble vehicles including electric ones in partnership with reputable vehicle manufacturers . “This  should progressively position the Kiira Vehicle plant for growth prospects in cutting-edge vehicle technology innovation ,” he stated.

Tumwesigye added:  “ this  landmark Cabinet decision builds upon the work started at Makerere University with support from the Presidential Initiative for Science and Technology Innovation to champion value addition in the domestic automotive industry for job creation and diversification of the economy.”

The decision was informed by a comprehensive appraisal and approval of the feasibility study for setting up and operating the Kiira Vehicle Plant by the Ministry of Finance, Planning and Economic Development.

During the four year start up phase, (2018/19-2021/22), the government will give Kiira shs. 143.7bn. The Kiira Vehicle Plant facility shall be set up at the Uganda Investment Authority (UIA) Jinja industrial and Business park.  The funding will also help Kiira Motors Corporation to enter into partnership agreements that will lead to the assemble of vehicles this year.

Cabinet also mandated the Ministry of Science a, Technology and innovation   to provide policy guidelines and oversight for the implementation of the project .  “This is an opportunity for us to realize our vision of making vehicles in Uganda. We are grateful to the president, cabinet, and government for trusting us. We want to encourage the private sector to start looking at investment opportunities in the automotive value chain,” says Paul Isaac Musasizi, the Kiira Motors CEO.

 How Ugandans Will Benefit

As Uganda moves  to put locally made cars on the market for the first time by end of this year ,,many Ugandans are wondering how they  could benefit from a budding automotive industry when it finally takes off.

Automotive experts have intimated that  cars just like any other locally manufactured products will have many components or parts that should ideally be sourced locally  and therefore  offer huge economic benefits to the local parts fabrication suppliers . At least on average , a car has over 30,000 parts by the time  it leaves the  production line and this will not be any different when Kiira Motors Corporation (KMC)’s  much anticipated Vehicle Production Plant is set up in Jinja . 

While major  car makers  the world over ,  source car  parts from a broad range of global automotive suppliers overseas , in Uganda with the availability of abundant natural raw materials for   car production  , enterprising  Ugandans  should be prepared  to cash  in on the economic opportunities that will be created across the country’s nascent automotive industry .

This is because the country is endowed with a variety of rich minerals that are key to the successful implementation of the car manufacturing sector .Among the minerals that are abundant across  the country include ,copper and cobalt deposits in the border district of Kasese, gold in the areas of Mbarara, Kabale,  Kisoro, Rukungiri,Kanungu ,Busia , MubendeHoima and parts of West Nile ,Iron ore in Mityana and lead in Kamwenge .

Other raw materials needed for car manufacturing like lithium  can be found in Kabale, Mukono, Mbale and Mubende; tin,  zinc, kaolin , glass and sand are all locally available. The challenge will be how the government will facilitate the business minded Ugandans to benefit from these natural resources across the automotive value chain .

There is  no doubt that promotion of local automotive value chain enterprises  will be a very important government  intervention that will lead to the  creation of  jobs and spread wealth among a wide section of the population which presently is unemployed . Car body builders, vehicle canopies for pick-ups, fiber glass components manufacturers , leather seats makers ,after sells car service providers like  garages , fuel stations should all prepare to seize and benefit from the economic opportunities that will come with the development of the automotive sector .

Dr. Tumwesigye said that the assembly plant will initially employ 900 people but in the long run 2,000 direct jobs and 12,000 indirect jobs will be created.

Vehicles Made in Uganda

KMC championing green mobility in Uganda and Africa

For the last 10 years , Kiira Motors Corporation  has also been at the forefront of  championing  green mobility technologies in Uganda and on the African continent producing the  first electric solar bus, the Kayoola Solar Bus in 2016 that won the company international accolades . KMC engineers led by Prof . Sandy Steven Tockodri the KMC Executive Chairman and Mr. Paul Isaac Musasizi , the Chief Executive Office (CEO) , have also produced the Kiira Electric Vehicle (EV) SMACK hybrid in 2014 and the Kiira EV in 2011.

ENDS

UGANDA REVENUE AUTHORITY’S MOVE TO OBTAIN PEOPLE’S BANK ACCOUNTS DATA IS UNCONSTITUTIONAL

UGANDA REVENUE AUTHORITY’S  MOVE TO OBTAIN

PEOPLE’S BANK ACCOUNTS DATA IS UNCONSTITUTIONAL

BY MOSES SSERWANGA

The Uganda Bankers Association has come out strongly and rightly so to reject machinations by the Uganda Revenue Authority (URA) to obtain private information of the banks’ customers data for taxation purposes.

At least 30 commercial banks have since petitioned the Constitution Court to declare section 42 of the Tax Procedures Act 2014 under  which URA issued the notice to obtain banks’ clients data , unconstitutional. For starters , the Uganda Constitution in article 27 provides for the unfettered right to privacy of personal information including but not limited to the unauthorized disclosure of personal identity information and photographs .

Although parliament is yet to enact an enabling law about personal data protection including the right to privacy of an individual’s photographs , it is an internationally accepted legal principle that banks owe  a fiduciary duty to their clients irrespective of their standing in society . This is the same duty that applies to a doctor and lawyer to clients relationship. The fiduciary relationship is premised on the internationally established understanding  that whatever information comes in the possession of the said professionals in course of their professional duty about their clients is treated as being confidential and cannot be passed on to third parties without the express permission of the affected individual or by court order in criminal and civil cases.

This same principle is encapsulated in the Bank of Uganda Consumer Protection  Guidelines 2011 which among others compel commercial banks to treat their customers fairly and reasonably by not being aggressive , humiliating and or  intimidating .

Therefore , URA’s attempts to compel banks to disclose their clients banking information was in total contravention of the constitution,   banking law and principle as we have come to know them. It should also be noted that Uganda is a signatory to the East African legal framework on the protection of personal information and the cyber laws which was put in place in 2010.

Banks are not at liberty to disclose without court order and if they go ahead to release personal data of their clients they do so in breach of trust and confidentiality and can be sued for specific and general damages .

This same procedure applies to the notorious practice of banks running full page notices where they publish photographs of  people who have defaulted on loans in national newspapers.  This practice is not only humiliating to the  affected  individuals whose photographs are put in the public domination and therefore exposed to third parties but it is also fundamentally flawed and illegal.

The loan contract is between the bank and the individual or entity to which the loan is extended .  That contract is never intended for the knowledge of third parties even when there is a breach by either party .  The banking law and civil procedures accord banks many legal channels through which they can recover a loan from a defaulting customer without breaching their right to privacy .

The banks can do so by either foreclosing a mortgage or  through court processes where they can obtain court orders for specific cases .  In decided cases courts have stated that there is nothing immoral if an individual failed to repay a loan due to circumstances beyond their control and that the practice of exhibiting a photograph of a person and shamming them in public for the sin of being in an impecunious condition cannot be encouraged in civilized societies.

Banks also have a duty to adequately inform and  educate their clientele about the implications of taking out loans especially salaried loans which are pegged on an individual’s “guarantee” to remain in employment . The practice by banks now is that once such an individual loses their job the loan balances automatically fall due . The question then is , how can such a person who has lost their job automatically pay up for their loan balances ? This is the same problem that brought the USA economy to its knees in the mid 2000s.

The aggressive marketing of loans has dire ramifications for the banks , their clients and  the wellbeing of the national economy . Banks being in a superior position must at all times act judiciously.

The  writer is Media and Communications Consultant /Trainer

And Advocate of  the High Court of Uganda

msserwanga@yahoo.com