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Special Report

How A World Bank Multibillion Funded Project Could Go Into Flames

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In 2020, the Auditor General, Obadia Biraro, had heavily worded statements in his annual report.

In one of his statements Biraro observed that despite the descending trend, public funds and resources management in some public entities are still weak and need improvement.

“Unnecessary, unlawful and wasteful expenditure should be avoided if public entities exercised due care in their operations, coupled with prudent management of public resources,” he said in his report released in May 2021.

For years, the Auditor General’s recommendations have barely been implemented primarily due to inadequate coordination of efforts, according to him.

“This is more so on irregularities that do not fall under the purview of a single public institution,” he says.

Under these circumstances, implementing audit recommendations requires, Biraro insists, “concerted efforts and absolute dedication from the management of government agencies and those entrusted with governance.”

Eighty-one (81) public entities had long outstanding creditors and debtors’ balances up to Frw13 billion and Frw50.5 billion in their financial statements respectively.

These balances have been outstanding without movement for up to 10 years. “Financial statements for these entities are not fairly stated,” the AG noted.

Bank reconciliations for twenty (20) bank accounts with balances totaling Frw254 million had unreconciled differences without explanation.

In addition, bank reconciliations for five (5) bank accounts with balances totaling Frw129.3 million had irregular reconciling items. This is an indication that the reported bank balances were not accurate.

A review of the budget execution report revealed that internally generated revenue and expenditure of Non-Budget Agencies were not included in the national budget approved by parliament.

Disclosures made for NBAs revealed that a total of Frw108 billion of internally generated revenues and expenditure of Frw170 billion were omitted from government expenditure for the year ended at 30 June 2020.

However, the current year audits found 62 cases of delayed contracts worth Frw216 billion in 38 public entities and projects. 

These consist of 50 delayed contracts worth Frw195 billion identified during the year under 12 contracts worth Frw21 billion from previous audits. Delays were up to 2,721 days.

These are just a few picks from the report. In the AG’s view, each oversight body, stakeholders and accountability institutions must play a role and lend total support to resolving this concern.

In response to these recurring challenges, the Ministry of Finance (MINECOFIN) is seeking the help of a qualified consultancy firm to assist in the migration to accrual accounting based on International Public Sector Accounting Standards (IPSAS), under the Public Finance Management Reform Project (RPFMR). The three-year project is funded by the World Bank.

Five international audit firms have been preselected from which one of them shall be awarded the tender to offer the services mentioned.

The firms, Taarifa has learnt, include CCM (Belgian), with a quotation of Rwf2.3 billion, ADP (Kenyan) seeking Rwf1.6 billion, BDO (UK) quoting RwfRwf4.2, KPMG (Anglo-Dutch) with Rwf4.4 billion and PwC (UK) quoting Rwf4.5billion.

These firms, according to our sources, were preselected from a total of nine who had submitted their bids. The scrutiny is now projected on the remaining five.

Scrutiny, however, according to our sources, should have been conducted earlier before a mere shortlisting because of a long list of concerns surrounding these particular firms in question.

The nature of due diligence conducted against the preselected five firms is being questioned due to their previous records working in Rwanda with various public institutions on a number of sensitive and heavy projects.

Taarifa has learnt that there was no in-depth analysis conducted to ascertain the reputation of these firms and specifically three of them that have been operating in Rwanda for the last decade.

Fears have been expressed that even though some of the firms are aiming at the big four, they have a troubling track record with various institutions.

Taarifa has gathered details on each firm.

ADP’s offer is believed to be a low quotation signaling a lack of full knowledge on the scope of work. Sources privy to this tender say the fee quoted by ADP is below expected threshold to execute such an assignment if MINECOFIN goes by the lowest bidder.

CCM is also seen through the same lens as the Kenyan firm, and the only difference is that the Belgian has indeed handled major projects in several fields, and with no known records of contractual failures in Rwanda yet.

The remaining three are in the same range with minor differences in their financial offer with a disparity of Rwf0.3 between the lowest and highest bidder.

BDO is as large as the other two, and operating under a franchise arrangement except that in the bid, BDO UK was the bidder and not BDO Rwanda. 

However, BDO Rwanda, according to sources, might be the one to execute the tender with assistance from BDO UK, if they win. 

BDO Rwanda has had several contractual faults. For example, the firm has not fully completed the contract to rebuild WASAC’s opening balance sheet after it was split from ELECTROGAZ in 2010.    

KPMG is one of the Big Four international accounting organizations, however, KPMG Rwanda is a franchise. They have operated in Rwanda for over a decade. 

Prior to opening their office in Rwanda in 2010, KPMG had already begun working with the government to implement the privatization program and modernizing Rwanda Revenue Authority among other institutions. 

Our sources did not speak well about KPM’s previous assignments. We learned about contracts such as that of RRA to reconcile tax accounts that were meant to be completed in one year, but went on for three years now. 

“We have a historical issue that we are now cleaning up,” a source in RRA told Taarifa. 

“But they are progressing.” KPMG is also accused of failing to complete their contract of separating pension schemes for RSSB, giving the institution a burden to explain itself every year to the Auditor General.

PwC is also among the big four. It was the first among the big four to expand its African network by opening an office in Kigali, Rwanda. PwC had first served Rwanda for a number of years on a fly-in, fly-out basis from neighbouring African countries.

Sources say PwC has had a whirlwind of errands with several institutions for years, including a bad experience with MINECOFIN itself where a five year contract to assist in consolidating public accounts went bad.

An anonymous source in MINECOFIN testified to Taarifa that these institutions are on their watch list for unethical behaviour and antagonising experiences in the market, “unfortunately they are the big ones we have and we don’t regulate them. Go ask the regulator.”

The regulator is the Institute of Certified Public Accountants of Rwanda (iCPAR).

In defence of the firms

The CEO of iCPAR, Amin Miramago, was very categorical when Taarifa sought his comment. He defended the firms.

He said that what’s said about these firms should be looked at in many dimensions with careful considerations.

First, he noted that most of the public institutions these firms serve, have legacy issues that are too complicated. 

“They do this and then do that and you find them in constant situations that are hard to fix,” Miramago said, adding that, “When you implement a reform, you need to give it time to assess the results before you bring in something new.”

He blamed contracting institutions for failing to implement advisory work offered by the firms they contracted. “They are always playing victim cards,” Miramago said. 

That in the event of knowledge that the firms are hiring unqualified staff or subcontracting others for example, as it is said out there, “why give them contracts and cry crocodile tears later? ..it is the negligence of those institutions, it is their responsibility to follow up and see if the contractor is meeting contractual obligations or not, if they aren’t meeting their obligations, they should take actions against them.”

Despite Miramago’s defense, Taarifa has learnt that major firms have another game they play to survive in the market. 

Sources that couldn’t provide tangible evidence for fear of losing their jobs, say the firms offer kickbacks to secure contracts. 

And by doing so, those who take the kickbacks and are responsible for holding the firms accountable, eventually lose the moral authority to hold the firms accountable.

This did not sound well in Miramago’s ears. He revealed to Taarifa a different practice, without refuting the corruption allegations. He said the problem he is aware of in the market is malice.

“I regulate all firms; big, medium and small. The most malicious firms are the big ones because they are in a small market,” Miramago confessed and gave an example of a scenario where a certain firm he didn’t want to mention, backstabbed another and sent the contracting institution into a panic mode so that the contract could be awarded to them.

Nevertheless, the auditing practice, an independent auditor told Taarifa, “has become a commodity…truth be told, they are doing whatever they want in the market because of connections to powerful individuals in government, unfortunately it’s the economy that suffers.”

But Miramago doesn’t buy this argument. He says that’s not something as a regulator he can tolerate, instead, he said, “the firms you mentioned are internationally recognised brands that have a reputation and they add value to our economy especially that we now attract global institutions that will need their services.”

And that’s not what everyone thinks. “The only thing international you have there is the name,” an auditor in one of the four firms confessed.

Whether that is considered during tendering or not, remains known to those who sign contracts in closed doors.

As we await the final announcement this June, may the best bidder win, if not, for Obadia, we could be seen as the Somali camel rotating around the well thinking it is on the move.

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RWANDA SUMMER GOLF II

Rwanda Summer Golf 2nd Edition Kicks Off On Lake Muhazi Shores

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On a quiet sunny Saturday morning, golfers and other merry makers drove to Rwamagana district in Rwanda’s Eastern Province to usher in the second edition of the prestigious annual Summer Golf tournament.

This day has coincided with the countrywide grassroots elections that also kicked off much earlier at about 6AM and ended in about three hours to allow people move on with daily routines.

Taarifa team is on site to provide you with prompt and live coverage both on the publication’s main websites and social media platforms.

The event held at Falcon golf and country club is being conducted under strict guidelines aimed at preventing the further spread of Covid-19.

A massive team of youth volunteers and health experts are on site from the entrance and  into the golf course. 

You need to arrive at the site after testing negative to Covid-19 otherwise health experts at the gate will ask you to return to Rwamagana town and get tested.

Keep hooked to Taarifa for more updates

 

Click to take a tour of Rwanda Summer Golf 1st Edition

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Special Report

Pandora Papers Expose Mega Fraud By Zimbabwean Tycoon Billy Rautenbach

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In 2013, one of Zimbabwe’s richest men and arguably one of the most controversial business figures in southern Africa, Muller Conrad “Billy” Rautenbach, donated multimillion-dollar financial investments in his coal and ethanol businesses to his wife.

This restructuring was explained by the need to “compensate” her for her role in building the family’s wealth.

It would kick off a process in which Jenny Lynn Rautenbach, who also uses her maiden name, Noon, would take the lead in establishing a complex offshore family trust fund meant to preserve and grow the family’s assets for generations to come.

With the assistance of Singapore-based trust specialist Asiaciti and other advisers, by 2015 Noon was the settlor of the family’s Bonsai Business Trust which owned a non-tradeable family investment fund listed on the Singapore Exchange (SGX).

The main assets of the fund were intercompany loans (at punitive interest rates) repayable by Rautenbach’s businesses in Zimbabwe.

But a closer look suggests that the donation was just a formality and Rautenbach, who was under United States sanctions at the time, was still in control.

As one administrator clarified in an email, Noon was a “very indirect passive investor into the fund [and who does not even have direct profit entitlement or any kind of investment say]”.

The donation had the effect of distancing Rautenbach at a time when he was still under sanctions – and positioning the family to suck maximum benefit from the Zimbabwe operations should they ever be profitable enough to service the loans.

Records of the Rautenbach marriage settlement and family trust fund are amongst a batch of 1,8 million files leaked from Asiaciti’s computer servers.

The data provides a partial window into Rautenbach’s more recent business exploits – including details about the significant financial losses sustained by his company Green Fuel, a U$300-million ethanol joint venture company with the Zimbabwean government that has been described as “his greatest achievement”.

The files form part of the Pandora Papers, an anonymous leak of more than 11,9 million documents from the databases of 14 corporate service providers that set up and manage shell companies and trusts in tax havens around the globe.

The International Consortium of Investigative Journalists (ICIJ) is leading the investigation and has shared these files with over 600 journalists across the world in the biggest journalistic collaboration in history.

The leaked documents mainly consist of Word and PDF files, images and email conversations from 1996 to 2020, and in some instances as far back as the ’70s.

amaBhungane analysed a number of company documents and a trail of email communication beginning in 2013 when the Rautenbach trust fund structure was constituted.

Detailed questions were sent to Green Fuel and to Rautenbach’s personal assistant, but received no response.

Asiaciti explained in its email response that it worked with clients across the world and its services were “subject to stringent regulation by the relevant authorities in each jurisdiction in which we operate”. (See their detailed response below.)

Fifteen years in southern and central Africa

Rautenbach’s controversial reputation flows from allegations that he used his proximity to government leaders to gain favourable access to business opportunities.

The compliance and risk documents seen by amaBhungane show that Asiaciti consistently rated the family’s trust fund structure as “high risk” – primarily due to Rautenbach’s status as a politically exposed person (PEP), his influence in Zimbabwe, the negative reports around his businesses and the substantial debt exposure the fund had to his businesses.

He spent the period between 1999 and 2009 as a fugitive from South Africa after he fled the country when he was charged with corruption and customs tax fraud.

His company, SA Botswana Hauliers (Sabot) would later pay a fine of R40-million but Rautenbach never admitted any personal liability and charges against him were withdrawn as part of the 2009 settlement.

Rautenbach’s controversial ties to leaders of former Zimbabwean President Robert Mugabe’s Zanu-PF regime eventually landed him on the United States and European Union sanctions list in 2008.

The US called him one of Mugabe’s “cronies” and accused him of providing “support to senior regime officials during Zimbabwe’s intervention in the Democratic Republic of the Congo”.

Both Noon and Rautenbach submitted letters to Asiaciti declaring the source of funds for the assets which would be placed in the trust.

 

In his letter, Rautenbach states the family’s wealth was a result of “financing and equity investments I have made over the past 15 years in southern and central Africa, mostly Zimbabwe”.

“The origin of the capital used to finance and develop these activities stems from the original family transport and logistics business Sabot, as well as from the mining operations in the DRC which were sold to the AIM listed Central African Mining and Exploration Company Plc (Camec) in 2006, in exchange for cash and shares”.

Camec was sold to Eurasian Natural Resources Corporation (ENRC) in 2009 and, while Rautenbach was under sanctions, it is reported that he made an estimated $50-million from the sale.

Motivating the transfer of assets to his wife in 2013, Rautenbach wrote: “This donation was made in order to compensate for the effects of the default marital regime under which we were married in 1984 and which today does not reflect or adequately provide for all the support and hard work she has contributed over the years to help growing our investments”.

Documents show that Noon, who in one email was described as a “lady who has more of an ‘old style Europe’ family wealth background”, also transferred her own “traditional family wealth” into the trust structure – but the main assets were loans Rautenbach made to his businesses, the most significant chunk flowing to Green Fuel.

Green Fuel is a biofuel company that produces ethanol from sugarcane

It’s owned by Rautenbach’s Rating Investments and Macdom Investments in partnership with the Zimbabwean state’s Agricultural and Rural Development Authority which pledged the use of its land leases where Green Fuel operates in exchange for a 10% stake in the company.

Zimbabwe introduced mandatory blending of all fuel with ethanol in 2011, a policy which created a monopoly for Green Fuel which until 2019 was the only licensed company that could supply ethanol for blending.

Rautenbach has been accused of paying government and Zanu-PF officials to maintain Green Fuel’s dominance and increase the percentage of ethanol blend because, as the company’s leaked financial documents show, this was critical for the plant’s sustainability.

He did not respond to amaBhungane’s questions about this, but has previously branded his most vocal accuser, former Zanu-PF fixer Temba Mliswa, as “an extortionist”.

Over the years the percentage of ethanol that must be blended with fuel has increased and is now set at 20%.

Pandora’s box

It is against this backdrop of alleged cronyism and corruption that Asiaciti agreed to administer the private family trust fund even before Rautenbach’s sanctions were fully lifted.

While Rautenbach was removed from the EU and United Kingdom sanctions list in February 2012, the US and Isle of Man only lifted theirs in April 2014 and July 2014 respectively.

In an initial client review form dated May 2013, Asiaciti states that the firm sought legal advice from a “US law firm” on the implications of Rautenbach’s US sanctions and they confirmed Asiaciti’s “ability to act”.

Asiaciti is a trust specialist firm that offers “wealth structuring and asset preservation” services for ultra-wealthy individuals and their families. The company is headquartered in Singapore and also has offices in low tax jurisdictions such as the Cook Islands, Nevis, Panama and Samoa.

While it is not illegal for wealthy individuals or corporations to hold assets for succession planning in offshore trusts, a recent report by the Organisation for Economic Co-operation and Development (OECD) on the enablers of tax and white-collar crime notes that trusts and other offshore structures can be misused to obscure beneficial ownership through complicated ownership layers often in several jurisdictions.

This reality is demonstrated in ICIJ’s previous investigations such as the Paradise Papers and Panama Papers that have unearthed how wealthy individuals, world leaders and corporations – aided by major banks, legal firms and asset management companies – have exploited murky offshore structures to launder money, circumvent sanctions and dodge taxes.

Enforcer

Asciaciti did not respond to specific questions sent by amaBhungane, including a question on why it engaged the family while Rautenbach was under sanctions.

Even though Noon was the settlor (the person who transferred the assets into the fund), the leaked documents reveal that Asiaciti’s administrators identified Rautenbach as the “effective controller… from the onset due to his donation of assets to his wife”.

A 2017 risk PEP form says that he “continues to have significant influence in the structure”.

The structure is made up of a family trust called the Bonsai Business Trust in Singapore, which holds the White Orchid Fund, a private family investment fund listed on the Singapore Exchange (SGX).

The layer under the fund consists of holding companies in Hong Kong, the British Virgin Islands and the Bahamas through which loans flow to Rautenbach’s Zimbabwe businesses.

At the top of the pyramid is the Blaze Purpose Trust which is the ultimate family ownership structure set up in the Cook Islands, a notorious trust destination favoured by those who want to protect their assets from litigation.

The sole enforcer and ultimate beneficial owner of the Blaze Purpose Trust is none other than Rautenbach, represented by his corporate alter ego Kogo Universal Holdings.

In other words, there is a convoluted line of control starting with Rautenbach’s Kogo Holdings and ending with loans to, and equity investments in, operational Zimbabwean companies, among other things.

These assets were primarily made up of debt funding that had been extended to around five SPVs in the Bahamas and British Virgin Islands. Namely: Elloway, Jefton, Marigold, Lostworld and Bartlow who were intermediary lenders to Rautenbach’s Zimbabwe companies: Green Fuel, Zim-Bio Energy, Ratings Investments, Clidder and Macdom Investments.

Buried in debt

The primary debt that the White Orchid Fund holds in Rautenbach’s businesses amounts to approximately $120-million, with the greatest exposure being to Green Fuel.

But it is not clear how much of an asset those loans really are.

At the time the loans were placed in the fund in 2015 they were all in default and in 2016 auditors assigned them a net-asset value of just under $20-million; by December 2018 this value was registered by Asiaciti at around $18-million.

A look at Green Fuel’s financial statements at the time (drawn from the leaks) shows that the company was making substantial losses and its future prospects were being buried under the weight of the debt.

In 2016, the company’s auditors raised concern about its ability to continue as a going concern due to it suffering $12,8-million losses in that financial year and its current liabilities exceeding current assets by $229-million.

The bulk of the liabilities stemmed from interest-bearing loans which Rautenbach made to himself at interest rates of between 8% to 20% per annum.

At least four companies, which are a part of the trust fund structure and can be linked to Rautenbach, accounted for $173-million of the $186-million debt which was due for repayment.

The debt, however, seems to be highly discretionary.

In a 2015 email thread where the payment projections of the structure are mentioned, one of the administrators says, “As per the loan agreements there is complete possibility left to the debtors to voluntarily pay accrued interest and principal during the term of the loan, but they are under no obligation to – which is why the management of the companies may decide to vary at will their payment schedule.”

In the end, the fact that “major financiers to the project continue to provide support by extending the loan repayment periods” is listed as one of the mitigating factors to Green Fuel being classified as a going concern by its auditors.

Just as important was the ethanol monopoly.

The company admits that this is central to its future prospects stating that its dismal financial performance and cash crunch are due to the delays in government implementing the mandatory blending policy introduced in 2011 but only gazetted in 2013.

“In light of the fact that the company is the only registered licensee for mandatory blending, such mandatory blending policy mitigates against any current material uncertainties and reaffirms that the C company will be financially viable going forward,” the 2016 financials read.

During a 2016 trip to Green Fuel’s operations in Zimbabwe, the Rautenbachs placed the blame for the company’s financial challenges on the “disastrous economic policies” of the government and the liquidity crisis the country was facing.

“They confirmed [Green Fuel] had been continuing to lobby the central bank very hard in relation to allowing them to make US dollar payments on the loans outstanding as ‘operationally essential funding’ but so far, have not succeeded,” wrote one of the administrators in a file note.

Meanwhile, the Zimbabwean state – which has the option of increasing its shareholding to 51% of the business [according to a parliamentary committee report] – will have to wait for that mountain of debt to be cleared before expecting any return on its contribution into the joint venture, particularly the extensive land holdings it has provided for cane production.

For the Rautenbachs, the proceeds from the loans are meant to be  “temporary investments to seed the [WOF], providing the capital for the making of actual private equity investments which will be in line with the fund’s investment objectives”.

Which is what administrators told the SGX when the fund was applying to be listed.

High Risk

In general the loan agreements – at very high interest rates – appear designed to strip cash, alternatively equity, out of the operating companies, effectively rendering operators, other creditors and minority shareholders completely hostage to Rautenbach’s offshore interests.

At the same time the prospects for the family to cash in appear to depend heavily on Rautenbach’s ability to retain political support in the tottering Zimbabwean regime.

For instance, a 2014 report by the portfolio Committee on Youth, Indigenisation and Economic Empowerment noted that Green Fuel was given a blending licence despite not fulfilling the 51/49% ownership split as was stated in the country’s indigenisation laws.

(The Agricultural and Rural Development Authority, has an irrevocable option to acquire up to 51% shareholding, but the company’s debt burden must act as a significant disincentive.)

Green Fuel also depends on a favourable ethanol pricing regime, set by the Zimbabwe Energy and Regulatory Authority.

In addition, an improvement in Green Fuel’s performance and likelihood of future profitability is also highly dependent on being able to expand its harvestable sugarcane so that the plant can operate at its installed 100-million litre capacity: in other words, getting access to more land.

Will Billy’s bet succeed? Or will the White Orchid whither?

Time will tell.

Asiaciti responds

Asiaciti explained in an email response that it worked with clients across the world and its services were “subject to stringent regulation by the relevant authorities in each jurisdiction in which we operate”.

“We maintain a strong compliance programme and each of our offices have passed third-party audits for anti-money laundering and counter-financing of terrorism practices in recent years.

“However, no compliance programme is infallible – and when an issue is identified, we take necessary steps with regard to the client engagement and make the appropriate notifications to regulatory agencies,” it said.

Asiaciti further stated that the information amaBhungane presented regarding the establishment of the Rautenbach trust fund structure “had many inaccuracies and instances where important details were missing” but did not clarify what those were.

DMaverick

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Special Report

Why Rwanda Beats Uganda In Espionage Games

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On October 1, 1990, Maj. Gen. Fred Rwigyema, a Rwandan refugee serving in the Uganda army, led thousands of fellow Rwandan refugees across the border to topple the government in Rwanda.

”We have been attacked, and we have not identified the invaders yet,” Colonel Rusatira of Rwanda Defense Ministry told Radio France International three days after the attack on Kagitumba Border. ”All we know is that they are wearing uniforms looking like those of the Ugandan army.”

A communique issued by Kampala condemned this act by refugees saying, “The escape and re-entry into Rwanda was done without our knowledge or support.”

The escape of refugees was a climax of years of their careful and clandestine mobilisation, and training. The Rwandan refugees had for years suffered under previous regimes in Uganda. Because of their torture, humiliation and denial of inaleanable human rights, the refugees had learned the benefits of surviving clandestinely.

Infact when Mr. Yoweri Museveni rebelled against his boss President Apollo Milton Obote, the Rwandan refugees saw a loophole and chance to advance their decades long held plans of returning home.

The Rwandan refugees joined Museveni’s Resistance movement armed wing of course as the easiest means of gaining realtime war theatre experience that would later be instrumental in launching a protracted armed struggle against the racist regime in their motherland.

After the Rwandan refugees helped bring President Museveni to power, Gen. Rwigyema had risen in ranks as once deputy commander of the National Resistance Army and later deputy defense minister. Such military operation and leadership skills coupled with excellent ideological orientation and a shared objective among the Rwandan refugees was enough to facilitate their return back home.

Indeed the first test of the refugees’ level of excellence was the element of surprise on the day of invasion.

President Yoweri Museveni of Uganda and President Juvenal Habyarimana of Rwanda were away in New York for the conference on children.

This desertion of excellent warriors of Rwandan origin in the National Resistance Army has always given sleepless nights to Museveni and held nearly all Rwandans with suspicion.

These former Rwandan refugees sucessfully toppled the Habyarimana regime in Kigali in 1994 and single handedly ended a genocide against Tutsi that claimed over a million lives.

Rwanda has been restored to a functional and progressive state with an enviable position in various global rankings and this triggers more envy from Rwanda’s northern neighbour.

According to analysts of Relations between Kampala and Kigali for the past 27 years, Kampala has always wanted to prove it is superior and that it could influence internal functioning of the regime in Kigali.

Through numerous attempts, Kampala has not grown past petty old school squabbles against the Kigali leadership.

The Uganda government now facilitates anti Rwandan elements, possibly dreaming of toppling Kigali. However, Kigali has grown its capabilities in nearly all fronts and can take on challenges both home and abroad.

Closing Gatuna, Kagitumba Borders

Repeated torture and humiliation of Rwandans legally living in Uganda forced Rwanda to close its borders and protect its citizens from harms way since March 2019.

The Kampala regime which has lost touch with Kigali believes that any Rwandan on Uganda territory must be a source of valuable information on Kigali- the reason many Rwandans are rounded up in a non selective manner, tortured and detained. Kampala thinks at least every Rwandan must be on a spy mission in Uganda.

In March 2018, President Museveni refused to attend the African Continental Free Trade Area Treaty meeting in Kigali. Three days after the meeting, President Paul Kagame flew to Kampala with a delegation to meet Museveni for discussions.

During a joint press conference Museveni was tasked to explain the harassment against Rwandans in Uganda. “I think there needs to be close cooperation between intelligence services,” he said.

“There is no fundamental conflict between Rwanda and Uganda,” Museveni said.

However, Museveni still maintains a bullyish attitude towards Kigali and heaps blame on Kigali for the frosty relations between the two countries despite attempts of mediated talks to normalise relations.

In a recent interview with foreign press, President Museveni was pressed to explain the border closure politics.

President Museveni has blamed President Paul Kagame of Rwanda for shutting the border two years ago.

Museveni denied claims by Kagame that he was acting like the master of the region and a bully.

On Rwanda Spying on Uganda, he laughed it off saying the secrets are in his head therefore their effort is a waste of time.

In a July Interview with Financial Times, President Kagame was also tasked to explain espionage claims.

President Kagame was asked to respond specifically to allegations of spying on Ugandan officials.

“Our country, like any other country, does intelligence. In fact they even monitor people’s communication. For us to know our enemies and what they do wherever they are is something we have always tried to do within our rights like it is in the rights of all the countries we know in this world,” Kagame said.

He added, “of course there are rules that govern all these things we do. Probably more things happen discreetly than those that happen in the open. That is why some people will pretend and accuse people of doing certain things that they do even more than the people they are accusing.”

“We have done intelligence and we are going to do it for the future because that is how countries operate,” Kagame said.

“I don’t think Rwanda would be an exception. That is how we get to know about our enemies and those that support our enemies. We know a lot about them but we use mainly human intelligence. We are very good at that for your information. We really do a good job of that,” Kagame told the FInancial Times Journalist.

When Museveni and Kagame Meet, Our Theories Become Useless

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