Electric Pius! UMEME AGM 2018 20th May 2018

Electric Pius! Economic hitmen and the watershed moments at Uganda’s Stock Market. PART ONE I am not a shareholder of UMEME Limited, for the same reason others abhor shares of British American Tobacco Uganda (BATU) owing to its cancer role. UMEME Limited held its end of 2017 Annual General Meeting on the 17 th day of May 2018. What transpired there regarding NSSF’s Director Nominee Mr Pius Bigiriman got me thinking about economic hitmen and the watershed moments at our stock market. Of recent; I have read two books, first by Economists Acemoglu and Robinson about the role of economic and political institutions on sustained prosperity and poverty alike and second Dr Aliker’s ‘The Bell is Ringing’ in regards to corporate governance showing how corporate Uganda has evolved in a period spanning 50 years plus. Likewise I have listened to absorbing music: Mafia by Fik Fameica, Beera Nange by Sheebah and This is America by Childish Gambino. This literature and poetry is excellent food for thought on patriotism, exclusivity and the unique ability of our distractions. First let me share a blow by blow account of the noticeable events around nominee Mr Pius Bigirimana, the NSSF (National Social Security Fund) nominee’s Directorship journey. 

2013, Mr Pius Bigirimana is appointed Permanent Secretary Ministry of Gender which is the mother Ministry of the NSSF. This guarantees him a position on the NSSF Board- which he occupies.



2014, Mr Bigirimana is nominated to the New Vision Limited Board to represent the NSSF and he never becomes board member they NSSF nominate another person instead. After years of back and forth the current Deputy MD is nominated and accepted as Board member of the New Vision Limited representing the NSSF.



2015, upon Ivan Kyayonkya’s death who represent s the NSSF on UMEME’s Board, Mr Pius Bigirimana is nominated as a replacement , he is rejected as the opinion of Attorney General is sought on whether he is allowed to serve on Board as a civil servant , in a typical smoke screen move and the NSSF is asked to nominate another person instead. Florence N. Mawejje is accepted nominee and the only NSSF Board member at UMEME. By Andrew Muhimbise muantus@ gmail.com

Electric Pius! UMEME AGM 2018 20th May 2018



2016, NSSF purchases UMEME’s founding shareholder Actis British Fund’s shareholding to take its holding to a majority 23% and that opens up for a second NSSF Board seat, Mr Pius Bigirimana is nominated to the UMEME Board, he is rejected and NSSF is asked to nominate another person instead.



2017, NSSF as 23% shareholder has one board seat vacant and again Mr Pius Bigirimana is nominated to the UMEME Board, he is rejected and NSSF is asked to nominat e another person instead.



March/April 2018, Mr Museveni writes a tough letter to UMEME questioning the excessive power tariffs and voila! Mr Bigirimana who is said to be close and has easy access to the President is duly appointed Casual Director only awaiting ratification at the Annual General Meeting (AGM). This appointment is just forty two days to the AGM.



17th May 2018, Mr Bigirmana’s Director Ratification is roundly rejected by rowdy shareholders at the UMEME AGM. Mr Bigirimana t hereafter immediately attributes it to the work of the ‘mafia’ but the pattern of events point towards the lackluster UMEME board leadership support and members (Ugandan citizens) spontaneous reaction to a perceived corrupt civil servant. So who is the mafia!?

Sequence of events at the AGM: The Chairman, Mr Bitature, asks board members up for re-election and ratification to make their case to the shareholders’ which is basically the reading of their profiles printed out in the annual report. The Chairman asks Directors up for re-election and ratification to leave the AGM room to allow for free and fair voting, which they do. Board discards commonly used omnibus voting which is preferred board voting system to avoid surprises and instead uses individual ‘board member’ merit voting system. All others are smoothly elected and Mr Bigirimana is the last member to be put to vote. Mr Bigirimana has 89 votes for and an overwhelming majority against, so Chairman reverts to voting by shareholding strength. By Andrew Muhimbise muantus@ gmail.com

Electric Pius! UMEME AGM 2018 20th May 2018 NSSF proxy Mr Marvin Galiwango Nkugwa and Ms Roselyn Ochola of Stanchart Custodial services holding proxy for several Top ten shareholders both combined representing more than 60% at the meeting all confirm their vote for Mr Bigirimana. Momentum against Mr Bigirimana is building and is further sparked by a young gentleman asking the Chairman, ‘Why Bigirimana should be Director?’ The Chairman replies that he can easily access UMEME to the President. This incites the UPC stalwart Mr Yona Kanyomozi to add his voice saying there are several able people other than Mr Bigirimana who can access UMEME to the President. The meeting is heating up and another young gentleman buries the argument by saying Mr Bigirimana is a spoiler in whichever Ministry he has worked in. To return sanity to the meeting, the Chairman withdraws the ratification of Director Bigirimana to members’ applause. The spontaneity could have been sparked by Mr Bigirimana’s recent interactions with the ongoing Land commission where he effortlessly flipped a 50m land investment into 500m and the still in memory Office of the Prime Minister Mbabazi saga where he whistle blew technically against himself as the accounting officer. Shareholders in UMEME happen to be attentive Citizens of Uganda and it is one of those spontaneous public displays of rage against ‘perceived’ mismanagement and theft of government property by those entrusted with service delivery to the citizenry. End of Part One

By Andrew Muhimbise Investor at the Uganda Securities Exchange muantus@ gmail.com 20th May 2018

Part TWO: 

What makes the UMEME Board so attractive? $80,000 per Director annual fees!



Economic hitmen: South African Allan Gray et al



Was Bigirimana hanged out to dry by the UMEME board leadership?



Bigirimana the President’s man in the eyes of corporate Uganda vis a vis purging of the Mbabazistas!



UMEME shareholders missed opportunity in this shareholders have succeeded in similar watersheds.



Why NSSF is always bullied in corporate leadership! And What can be done



What next for Electric Pius! Will the injured Lion still want to roar?

watershed

and

where

By Andrew Muhimbise muantus@ gmail.com