This morning the residents of Zanna on Kampala Entebbe road were shocked to see Issa Kikungwe’s (Kyadondo South) pajero run out of fuel in the middle of the road.

 Good enough, the car run out of fuel when it was near a petro station. People immediately came and pushed it to the petrol station where the mp refueled it with only 15, 000 shillings. Now just imagine the MP’s car is running out of fuel what happens to other less earning Ugandans?

 By Maureen Nakyanzi 

MP Kikungwe’s car runs out of fuel

With the rate at which fuel prices are being hiked in Kampala and across the country, it is now common to find VIPs pushing their cars, using public transport or walking on foot because their car has run out of fuel.

This morning the residents of Zanna on Kampala Entebbe road were shocked to see Issa Kikungwe’s (Kyadondo South) pajero run out of fuel in the middle of the road.

Good enough, the car run out of fuel when it was near a petro station. People immediately came and pushed it to the petrol station where the mp refueled it with only 15, 000 shillings. Now just imagine the MP’s car is running out of fuel what happens to other less earning Ugandans?

By Maureen Nakyanzi 

The post MP Issa Kikungwe’s car runs out of fuel first appeared on Uganda Multimedia News & Information.

According to Nuwagaba, the economists warned of severe long term effects arising from this policy but government 20 years ago chose to continue with privatisation.

He told a public lecture on economic transformation in Kampala that the current economic crisis in the country is as a result of what he termed as a rotten foundation of Neo-liberalization adopted by government which in turn has now crippled the economy.

He says the government was warned against putting everything on market but paid deaf ears to the advise by economists.

Prof. Nuwagaba says the NRM government should not to bother anybody seeking for advice unless they change the economic policy.

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Lawmakers including Theodore Sekikubo, Vicent Kyamadidi, Wilfred Nuwagaba, Mohammed  Nsereko and Henry Musasizi say that scrapping off sugar is not enough  to rescue Ugandans from the current crisis.

The criticisms come only a day after President Museveni meet with the cabinet over the economic situation in the country.

Lwemiyaga County Member of Parliament Theodore Sekikubo says that though the gesture is welcome, government need to take serious and sustainable economic strategies to reduce the cost of living for the ordinary poor Ugandan.

Members suggested that there should a holistic approach to the economic provide that includes reduction of taxes on fuel which determine prices of other commodities.

Rwampara County Member of Parliament Vincent Kyamadidi said that government must also refocus on its expenditure patterns which have also drained the country’s economy.

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Addressing reporters today in Kampala, Omach states that they will keep a close watch on how prices for sugar will move but notes that the current high sugar price has been as a result of low local production with most of the consumed sugar now coming from overseas and highly taxed.

But the minister notes that even when they have slashed imported taxes on sugar by100%, this might not directly cause change in sugar prices at retail level for the local man.

He also adds that in the cabinet meeting, they resolved to revitalize the economy by cutting government expenditure, injecting more in the fish, agriculture and production sectors of Uganda.

 The junior finance minister also confirms to the nation that Uganda’s economy is healthy.

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The call comes following announcement by government to reduce taxes on sugar imports by 100%.

Addressing journalists at Parliament today, the Kampala Central MP, Nsereko Mohammed said it is not enough to cut taxes but this should be extended to other commodities such as fuel and salt.

Lwemiyaga County MP, Theodore Sekikuubo also called on government to break the monopoly of sugar manufacturing companies, which may use the scarcity to sell their products at exorbitant prices.

Ssekikubo says the rural population will continue to suffer the effects of the hard economic times more unless government comes out with lasting solutions to curb the running inflation.

The State Minister of Finance, Fred Omach earlier today announced the government was waiving all taxes on sugar imports in a move expected to ease the current shortage as some of the local manufacturers solve their productions shortfalls.

Omach also announced that government is freezing purchase of vehicles with a few exceptions, as a way of checking expenditure.

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The meeting slated for Thursday this week is to find ways on how the government can work out plans to effect reduction in sugar prices as well as discuss the state of the country’s economy.

Okurut also confirms that currently the country is facing a sugar shortage and wants to start importing sugar from EAC member states.

She says Uganda has written to the EAC secretary general asking for a tax waver on sugar coming to Uganda from her neighbors and outside EAC.

She also adds that the government has set up a team to investigate those holding sugar waiting to hike prices during times of maximum scarcity.

Karoro also confirms that the scarcity is resulting from stopped production at Kinyara who are doing maintenance work and Lugazi whose production has been slashed due to power shortage.

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According to the information minister in the shadow cabinet who doubles as the party spokes person, Philip Wafula Ogutu, the government should think of investing more agriculture, education and production and stop blaming the opposition for triggering the current crisis with the walk to work protests.

FDC Spokesperson, Wafula Oguttu

Ogutu alleges that the current crisis was partly caused by the government stealing money from public coffers to finance the party during the February 2011 elections.

He also the opposition is planning to organize massive resistance to compel the government to immediately come up with a solution to the current economic crisis.

Ugandans are currently experienced the worst inflation in over 25 years, and the worst performance of the Uganda shilling against the dollar and major currencies which has seen a huge increase in prices of goods and services in the country.

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