Museveni calls for tough law on fake goods

Feb 19, 2009

PRESIDENT Yoweri Museveni yesterday called for a law that provides for harsh punishment for dealers in counterfeit goods.

By Sylvia Juuko

PRESIDENT Yoweri Museveni yesterday called for a law that provides for harsh punishment for dealers in counterfeit goods.

“The law must link punishment to the value of goods that have been counterfeited,” he said. “Because they will not have this kind of money, they will go bankrupt or be locked up.”

“Counterfeiters damage the economy, the image of this country, the livelihood and health of the people,” the President said.

Referring to the Chinese way of handling counterfeiters, Museveni said: “China has some good solutions.” “The man who sold milk that killed children was put on the firing squad.”

The President said Uganda would, however, not apply this measure. “I can see my liberals from the West shaking their heads,” he argued. “So we can use other ways like money (fines) to catch counterfeiters.”

Museveni was speaking at the opening of a workshop on how to fight counterfeits. It was organised by the Government and Africa Matters Ltd at Protea Hotel in Kampala.

Baroness Linda Chalker, the chairperson of Africa Matters, Ugandan ministers and MPs attended the workshop.

Museveni called for a nationwide anti-counterfeit campaign, noting that the public can be a useful source of information. It was also critical, the President added, to collect evidence to help trace the perpetrators.

Museveni said during the Commonwealth heads of government meeting in Kampala in 2007, he saw cracks at the renovated Entebbe Airport.

He said he asked his aides to photograph the dents and to take samples, which were tested and found to have inadequate cement.

“With this kind of evidence, we can trace these thieves,” he explained.

He said trade from counterfeit goods had grown from $200b in 2005, representing 2% of global trade, to $400b.

“This evil trade has moved from luxury products to edibles and drugs,” he said. “We must act now, fast and decisively to end this.”

The law, he noted, would allow the Uganda National Bureau of Standards (UNBS), the Police and other agencies to detect, investigate and crack down on the practice.

On suggestions of hiring a pre-shipment company for inspection, the President said reliance on one company was unwise.

“You are assuming that Europeans are more Christian than others,” he said. “The collapse of the economy in the West is partly due to corrupt tendencies.”

He called upon the business community to cooperate with agencies to provide information to enable them end the crime.

“The task is huge but we can’t watch silently as farmers buy fake pesticides or people’s health is injured due to fake drugs,” he stressed.

Janat Mukwaya, the new minister for general duties, said the Counterfeit Bill of 2008 will be tabled to Cabinet soon.

It will impose a fine at least five times the market price of goods seized or imprisonment of not less than five years. It will also provide for the closure of the premise
where the crime took place.

Data on the amount of counterfeit products or the revenue lost from this practice is scanty. However, newspaper reports have documented a general rise in the sale of counterfeits, thereby strangling genuine business.

Elly Karuhanga, the president of Tullow Oil, said in the last five years, UNBS and URA had intercepted 3,000 consignments of fake goods worth $50m (about sh100b).

“They have seized and destroyed 5,000 tonnes of dangerous chemicals, expired food stuff and fake electrical products from the market,” he noted.

Syda Bbumba, the finance minister designate, said Uganda “continues to be a dumping ground for counterfeit goods from China, Taiwan and India”.

Victims of counterfeiting include Nice House of Plastics, Unilever and cable manufacturers.

Human medicines, cement and car spare-parts are among counterfeited products.

Sander Baker, the brand integrity manager of Sara Lee International, said the company closed operations in Uganda because the market was flooded with fake shoe polish products that hit their operations.

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