CHEEYE’S ANALYSIS OF UGANDA’S FAILED MACRO ECONOMICS
The Source: The Uganda Confidential No. 542 of November 2009
Editor Teddy Sseezi – Cheeye
In 1986, two revolutionary groups took over state power; one in Uganda and the other Vietnam. Both countries have troubled history of wars and destruction. Both were subjected to the IMF conditionalities. However, Vietnam refused some of this global money lender’s policies, for instance they refused to lose grip of their national banking sector. Uganda however implemented wholesale the privatization. As a result, twenty three years down the road, Vietnam had made it to a Middle Income Country – and is the second leading country after Thailand. According to the World Bank’s World Development Report (2009); Reshaping Economic Geography, Vietnam’s GDP for 2006 – 2007, was a cool $71.2 billion while Uganda’s stood at a $11.2 billion.
While Vietnam’s exports stood at $48.3 billion those from Uganda were a miserable $1.5 billion. Further more, while Ugandans had a higher GDP per capita of $260 in 1986; more than Vietnam’s $220 in 1994, the latter’s figure has since then jumped four-fold, to $1,020 by 2008. But Uganda’s GDp per capita failed to increase by even one fold, her GDP per capita in 2008 was a mere $280. (Source, USA Department of State, October 2009).
Similarly, when the NRM took over power in 1986, Malaysia was at about the same level of development as Uganda. Both were subjected to the economic policies by IMF and World Bank. Malaysia refused wholesale capital liberalization which move enabled Malaysia to survive the 1998 financial crisis in Asia. However, Uganda accepted the liberalization policies wholesale has since suffered from the ills of capital flight in addition to having a dwarf reserve account. Twenty three years down the road, Malaysia is a Middle Income country while Uganda is a Least Income country. The World Bank report cited Malaysia’s GDP in 2006 – 2007 at $180.7 billion as compared to Uganda’s $11.2 billion. Malaysia exported goods and services worth $176 billion, compared to imports of only $146.9 billion; meaning that it had a $39.8 billion trade surplus. In the same period, Uganda exported goods and services worth only $1.5 billion against imports of $3.3 billion; meaning that her deficit was $1.8 billion.
Uganda’s official rate of GDP is suspect. While Ugandans are told that economic growth has averaged 8% for the last many years, the World Bank report, page 353 put Uganda’s GDP economic growth for 2006-2007 at an average of 2.9%, compared to that of Vietnam which was 7.2%.
CHEEYE HAS CASE TO ANSWER, SAYS JUDGE
Thursday, 19th February, 2009
By Charles Ariko and Brian Mayanja
THE Anti-Corruption Court ruled that Teddy Ssezi Cheeye had a case to answer in the misuse of sh112m from the Global Fund.
Justice John Bosco Katutsi made the ruling after the 15th witness had testified.
Although Cheeye’s lawyer, Peter Kabatsi, was present, Katutsi insisted on Cheeye choosing the options available for him to make his defence.
These included Cheeye making his defence on oath where upon he would be subjected to questioning, keeping quiet or giving unsworn defence where he would not be cross-examined.
Cheeye, also the director of economic monitoring at the Internal Security Organisation, opted to keep quiet.
Prosecution led by Principal State Attorney Andrew Odiit is today expected to make their submissions.
Cheeye was on December 15 last year charged with one count of embezzlement, nine counts of making false entries, eight counts of forging documents and eight counts of uttering false documents.
He denied all the charges.
The offences for which Cheeye was charged revolved around the misuse of funds he received through his company, Uganda Centre for Accountability.