Kingdom grapples with Shs 12bn debt

The Buganda Kingdom government is saddled with a Shs 12 billion debt almost 11 months after its main income earner, CBS radio was forced off air in a central government media clampdown. Buganda Kingdom Treasurer Mukasa Nagawa announced last week that Mengo, the seat of Buganda government, is running a deficit budget.
Kingdom officials say an estimated Shs 31 million is lost everyday the radio continues to be off air.
Nagawa, reading the Shs 30 billion budget for the financial year 2010/2011 in the Buganda Lukiiko on July 20, said that the kingdom was promised Shs 9billion from the central government last financial year, but this was not disbursed.
She said the kingdom demands another Shs 21 billion from the government. But she assured the Lukiiko that the central government had shown willingness to pay in installments. The Shs 21 billion is owed by the Ministry of Defence at Makindye—Shs 170 million, Kigo prison rent arrears for 16 years (1993-2007)—Shs 18 billion, ground rent at Kigo—Shs 1 billion and building rent at the same prison, Shs 960 million.
This, she said, coupled with the closure of CBS, forced the kingdom to run its affairs on a 40% deficit budget—Shs 12 billion less. For example, in the financial year 2009/2010, Nagawa said the kingdom had planned a budget of Shs 19 billion but a clampdown on its major financial muscle—CBS left them with a meager Shs 7 billion.                                                               
Nagawa added that the closure of CBS further crippled one of the kingdom’s huge income-generating projects—sale of certificates.  
“We cannot now air announcements calling on people to buy Buganda certificates,” she said.
The kingdom had expected to get Shs 347m from the sale of certificates before CBS was closed compared to the Shs 197m eventually realised.
Nagawa further explained that even the famous Kabaka Education Fund (KEF) has had to slash its intake, despite overwhelming numbers of applicants for bursaries or scholarships. The same problem has affected the Muteesa I Royal University, where Baganda students on Kabaka’s scholarship may drop out due to inadequate resources.
“The administrators of Muteesa I Royal University have already communicated to us problems related to Baganda students who have failed to pay tuition fees. This might retard the university,” she reported.
Nagawa, however, told the Lukiiko that the kingdom is determined to use its limited budget to elevate key pro-people sectors such as education, agriculture, construction of roads within the kingdom, promotion of youth projects, and creation of jobs for Baganda.
She also told the Lukiiko that the kingdom needs Shs10 billion for the reconstruction of the Royal Kasubi Tombs, a UNESCO-listed mausoleum of kings that was torched in March this year. The kingdom has only raised Shs 4 billion.


During the Lukiiko, the Katikkiro, Eng. JB Walusimbi told members that dialogue with the central government over reopening CBS broke down.
“On CBS we have tried talks [with central government] but we have failed and court will settle this. Let’s wait for court; talks have failed,” Walusimbi said.
Relations between Buganda and the President Museveni’s government reached an all-time low last September when the government blocked the Kabaka from visiting Kayunga, a district in his kingdom, resulting in bloody three-day riots.
At least 30 people were killed in the riots and several radio stations were closed, including Buganda’s CBS. Other stations were however re-opened shortly thereafter.
CBS staff have since gone to court, protesting the radio’s closure. Through Katende, Ssempebwa & Co. Advocates, they want court to declare the revocation of CBS radio’s licence “unconstitutional, illegal, unlawful, null and void”.
Recent reports had indicated that the President had agreed to re-open CBS at the urging of Amelia Kyambadde, his out-going Principal Private Secretary, who is eyeing a parliamentary seat in Buganda. However, sources have told The Observer that the formation of Ssuubi 2011, a Mengo-leaning political pressure group whose main goal is regime change, has now complicated matters.
According to political intelligence sources, if the radio were opened today, it would give momentum to Ssuubi 2011, which NRM says is likely to “confuse” its voters in Buganda.
Former Katikkiro, Joseph Mulwanyamuli Ssemwogerere is the patron of Ssuubi 2011.
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0 #1 Jim Kamezza 2010-07-26 13:02
The Rwandese who over Uganda , want to cripple Buganda so as to take over Uganda and steal all the land and mineral resources , NO Ugandan should sleep from Now and on , How many lies and raw brutality do you want m7 to to tell u or subject you to before you wake up , they have left farms full of cows to come and steal land in Buganda and spoil Kampala
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0 #2 kizito 2010-07-26 18:04
Never again give a chance to a nyarwanda to hold high office the thug should be deported.
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0 #3 Cb.. 2010-07-26 22:23
I ask this question and here's why:

From the story: "This, she said, coupled with the closure of CBS, forced the kingdom to run its affairs on a 40% deficit budget—Shs 12 billion less."

But from the title: "Kingdom grapples with Shs 12bn debt."

Mr. editor; this sounds like a deficit. Governments including Uganda's run deficits all the time. Please be serious.
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0 #4 Cb.. 2010-07-26 23:08
I ask this question and here's why:

From the story: "This, she said, coupled with the closure of CBS, forced the kingdom to run its affairs on a 40% deficit budget—Shs 12 billion less" (sounds like a deficit).

But from the title: "Kingdom grapples with Shs 12bn debt."

Mr. author, which is which? Governments including Uganda's run deficits all the time. Buganda's is probably no different. Please be serious.
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0 #5 Collins 2010-07-27 10:25
Buganda has seen and gone through the thick and thin at the hands of bad bred pigs.We have seen them all come with gun fire ahead and go with gun fire behind them.They have stepped, spat and insulted us. Some have attacked the Kabaka's palace and gone on to kill him hoping that they would destroy Buganda. Unfortunately for them and fortunately for Buganda it took more than 600 years to build this great kingdom for one to dream that he can destroy it in 24 years.Such wishful thinking needs psycological treatment.1966- 1993 there was no King, no palace, no mengo, but more so to note,there was no CBS. Buganda still stood like a rock unshaken by the winds and floods simply because of the seeds(genius cultural architectural designs) that were planted by our fore fathers centuries ago.What a dark period that was that even now that we are back in similar days of gloom,our spirits are not shaken.Was CBS there to call upon baganda to morn the destruction of Kasubi tombs? So our haters need to be reminded that Buganda loses battles but not wars.Awangaale SSABASAJJA, MPOLOGOMA YA BUGANDA.
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0 #6 kabayekka 2010-07-27 13:24
Well then who is fooling who that his government or political party does not need money to run business of these days. Is this why The King of the State of Buganda by NRM ideology must never involve himself in politics as others run down his ancestors Kingdom. One reckons if one has territory one has to own and rule that territory before anybody else does. Mengo wake up.
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0 #7 joe 2010-07-27 17:54
Kamezza, Kizito,and the likes bashing Banyarwanda, will never solve Buganda's problems or Ugandas problems for that matter. Banyarwanda,hav e nothing to do with what is hurting Buganda and Uganda.You come across as very childish angry people, who do not know who to be angry with.Ugandan Banyarwanda are a reality you cannot wish away.They are very hard working and very progressive and contibute to the wealth of the nation,like all other tribes.You like to dress in Kiganda names and say things in the name of the Kabaka, are you authentic Baganda? Authentic Baganda are well reasoned and polished.Your diatribes against Banyarwanda in most of your submisions,sugg est you are from a lowly stock, it will not solve Buganda's problems nor will it deliver her wishes.Buganda' s problems are not necessarily because of other people alone, think out of that box.Why don't you look at the man in the mirror.
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0 #8 Joseph 2010-07-27 18:21
A good muganda does use polite language, may be that is why we are who we are today. I therefore wonder whether all this language being used to abuse those oppress us is from our culture or the culture of street kids.
Pliz let us politely fight for our rights without turning our land into somalia.
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0 #9 Henry K.Ainebyona 2010-07-28 08:17
Buganda is blessed by God.
Come what may,it will survive.
Time will tell weather it will be either be NRM(Museveni)OR Buganda to stay.
Am very sure that this is Just a temporary situation for Buganda.
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0 #10 Atamba 2010-07-28 10:00
I think most of you have forgotten that its NRM government that has given most of you freedom of speech i wonder how the issue of Banyarwanda comes into this context,we should only look at the means of working with the media to avoid the incidence of Rwanda genocide
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0 #11 NDAGIRE HADIJAH 2010-07-28 12:35
every thing has its time lets wait every thing will be fine
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