Muntu slams 'reckless borrowing', proposes long term concessional financing

KIBUKU - As Uganda’s public debt increases to over sh116.2 trillion ($32.3 billion), a 26.2% jump in one year, presidential candidate Maj. Gen. (rtd) Mugisha Muntu has promised to settle the crisis, prioritising transparency, debt restructuring and growth.

Addressing a campaign rally at Lyama trading centre, Lyama parish, Kakutu sub county, Kabwre county in Kibuku district, Muntu, who is the Alliance for National Transformation (ANT) party flag-bearer, slammed “reckless borrowing” by the current government, vowing audits and cuts to non-essential spending.

Muntu suggested long-term concessional financing for infrastructure, saying that if adopted in his government, it would offer the country lower interest, longer grace periods, which would slash immediate repayment pressure, freeing up funds for healthcare and education. (All Photos by Isaac Nuwagaba)

One of the locals welcoming Maj Gen rtd Mugisha Muntu in Butebo town council, Butebo district. (Credit: Isaac Nuwagaba)

“The country’s shift toward domestic borrowing could push it from moderate to high-risk debt distress, limiting options for restructuring, insisting that this will squeeze Uganda’s capacity to offer healthcare services, put drugs in health centres, education services, build road infrastructure, among other public services,” Muntu said.

What Muntu suggested to curb down rising debt

Muntu suggested long-term concessional financing for infrastructure, saying that if adopted in his government, it would offer the country lower interest, longer grace periods, which would slash immediate repayment pressure, freeing up funds for healthcare and education.

“Money acquired through loans should be invested in productive investments like funding roads, railway lines, energy transmission, which he says boosts growth and generates export revenue,” he said.

Preference will be on using long-term concessional financing for infrastructure of let's say in health, education, building houses for police officers, the army, so as to preserve resources for business growth and wealth creation that is necessary to actualise the potential value in the hardware.

Asuman Kadugala, the defence secretary for Butebo trading centre, decried sub-standard products that are circulating in Ugandan markets.

Checking corruption

“Checking corruption will be our game changer in this through enforcing strict government audits, cutting wasteful administration expenditure and investments in agriculture that is engaged in by the majority Ugandans,” he said.

As ANT, we shall engage in strict project selection, and we shall first prioritise no ‘salary loans’ for government officials for a certain period until the public debt is settled, Muntu suggested.

"The ANT will not establish a transport network that largely serves political rather than economic gains. The plans to upgrade roads will be embedded in the broader economic transformation programme that targets enabling increased production and productivity in the country.”

Concessional loans shall ease Uganda’s burden if funds build revenue-generating assets and not consumption, but vigilance shall be key because our society is bedevilled by the corrupt.

Products quality question

Muntu pledged to strengthen the Uganda National Bureau of Standards (UNBS) to ensure that the ongoing dumping of poor-quality goods is immediately stopped because they keep people trapped in constant debts and unable to work.

“If we refer to let say, motorcycles imported here, some are of poor quality yet they are acquired by the youth who are still energetic to work but get frustrated when these motorcycles they acquired through loans lose value before even the loan payments are done,” he insisted.

We shall ensure that import quality is guaranteed for the safety of our citizens. People first, a new future, he yelled at the top of his voice.

Voters speak out on community issues

Asuman Kadugala, the defence secretary for Butebo trading centre, decried sub-standard products that are circulating in Ugandan markets when the government is watching the masses being exploited.

“We recently heard adverts on radios and televisions that there were electricity motorcycles selling on the market, but their batteries do not last even half a day, and these are imported in Uganda when we expect them to be original,” Kadugala said.

Hamza Nsubuga, a resident of Butebo A, Butebo village in Butebo district, revealed that unemployment and poverty are affecting mostly the youth who finish school at a young age due to lack of school fees.

Patrick Akol, a health practitioner at Butebo A village, speaking out about frustrations in the health sector during a campaign rally in Butebo district.

“We pay bribes to join the Police and the army up to the tune of shillings five million, which I highly believe will help this country fight corruption that is seen infiltrating the security of the country,” he said.

Emmanuel Oyebe asked Muntu to look for the markets of agricultural products to help farmers earn a living, arguing that many are stranded with their unemployed youthful children at home, Muntu explained.

“When we are planting, a kilogram of maize seeds is at sh1000, but when harvesting starts, a kilo drops to sh500, which we want addressed,” Oyebe suggested.

At Kadama township village, Kadama town council in Kibuku district, Patrick Akol, a health practitioner, cried to Muntu to reduce taxes on the importation of drugs, licence for setting up drug shops to help the poor access medical services.