Tribute to Mr. Godfrey Rwakitarate-Seeking First the Kingdom

There is a part of every visit to Mbarara that I always look forward to-the stop over at the Rwakitarates' home a short distance (about 4 Km) after Mbarara town. I've known Mzee Rwakitarate for almost all my life and he is one person that I love and admire greatly. I am a second-generation fan of his because my parents love him too and I guess he has that effect on everyone he meets. 


For as long as I can remember, Mzee. Rwakitarate has lived by the words of  Matthew 6:33, which is about seeking first the kingdom. In fact, the most prominent thing on the wall of his living room is a hanging with the words  "Mubanze Musherure Bukama bwe n'Okuhikirirakwe nebindi Muryabwongerwaho". It is not surprising, therefore, that he named his children Mubanze, Musherure, Bukama and Okuhikirirakwe. 


Mr. Rwakitarate is about 84 years old and has been saved for over 60 years. He worked in  telecoms for the early part of his career. It was during the second year of his tertiary education that he came to Christ, ending a period he refers to as a "riotous time" in his life. He later retired and became a full time evangelist, which has been his life for about 60 years. He has preached the word not only in Uganda, but regionally and internationally. Even though his health is failing as a result of advanced age-there is still alot of life and youth in his eyes and he has not allowed his age or illness to deter him from his mission. I remember a time when he was ill and we thought he was coming to Kampala to see a doctor, only to learn that he had come to attend a conference. Now that he doesn't leave his home very often, his church members come to his home and worship every month.


Mzee Rwakitarate always has a nice word to say to all who meet him and is quick to give his testimony and gently urge all who listen to follow Christ. He is wonderful with kids-I have loved his company since I was a child, and I now see him mesmerizing my little nieces and nephews with stories and songs and telling them how much God loves them. I often hear him talking about how futile chasing after money is. He speaks about having first hand experience when it comes to doing God's work, and having the faith to let God take care of him. Indeed God has provided-he has a lovely home, which he built without borrowing any money and his children are very successful in their respective fields. He is very content and clearly has everything that he needs.


I've often wondered how he and my parents became friends. As a child, I would often see him-a "born again" product of the Revival, sitting with my father and chatting with him while my Dad drank a beer. There would be no judgment or condemnation in his speech or conduct, but he would always manage to preach the word to my parents. I know he played a part in my getting saved and suspect that my Mom would say the same thing. I guess if my Dad ever gives his life to Christ, Mzee Rwakitarate will be responsible.


Even though I have visited him many times, I always feel like I should spend more time with him. He is one person who greatly enriches anyone who comes into contact with him and I see him as the example of what a Christian should be like. He is one person I'd very much want to be like "when I grow up".


I know many people who have their own stories of how he makes them feel, and I'm sure their stories will be even better than this one.

I'm a Christian

I'm a Christian-or so I've been told. 

In 1997, I believed that Christianity was a trick to fool people into being accountable to an invisible-all seeing authority and a good idea for enforcing good manners and proper behaviour in society. I applauded the person who came up with this well intentioned lie. While I can't say that everything I did was bad, I did not do anything "Christian", save for the occasional church visit, which was a hangover from my upbringing. However, I later traded in my "realism" and decided to believe that God actually existed and played a big part in our lives. I still believe that today. 

While I don't have too many questions about God's place and effect on Christianity (I believe he knows what he is doing better than we do), and I am very happy that I decided "to follow Him" (though at times, I'm not too sure what that means), I still don't know what it is that makes me a Christian.

Was it because I was born into a Christian family and I go to Church? I didn't have a say in this, but could this "fluke of fate" determine my faith? Since my parents were Christians and made us go to church as kids, do I have to do anything else-or should I just consider my work done? In any case, a roll call of my church will show that I don't have a perfect attendance record so on this standard, I can't claim to pass.

Some say that I am a Christian because I was baptised as a Child. Again, I didn't really have a say over this since this decision was taken by my parents-I was just happy to get new clothes and have a baptism party thrown for me. This begs the question-is baptism enough? Don't we have to do more?

Maybe I'm a Christian because I said a prayer asking God to come into my life. However, I have said this prayer so many times and then broken so many promises that I made to Him that I often wonder whether our Holy God still believes me and can actually still be in my filthy heart.

I could be a Christian because I do not drink or smoke. I know a number of people that don't drink or smoke, but are not Christians and I find it hard to imagine that a person's faith can come down to what he or she consumes, as opposed to what the person does.

Is it because I don't cheat on my wife and I try to be truthful and generous? If we are to look at Jesus' definition of faithfulness which includes not having impure thoughts, I must confess that I'm failing miserably in the fidelity stakes. As if that isn't enough, I feel like I'm not as truthful or generous now as I was before I got saved, and I don't think I was very truthful or generous then.

I'm not saying that I'm a bad person (though I don't think I'm qualified to judge that)-and I think I have my good days. However, Isaiah 64:6 clearly states that all my righteousness is as filty rags. Nothing I do on my wn can make me a Christian. This is frustrating, because after all those questions I still don't know what to do to "earn" my Christianity.

The most convincing idea I've heard is that I am a Christian because God forgave (and still forgives) me-or at least I hope He did. This is a more comforting concept because while I am failing miserably, God is infallible, and I would trust him more with my Christianity than I trust myself. Clearly, the greatest weapon in my Christian arsenal is faith/hope-and not righteousness, which I can't attain on my own. 

For this reason, I have every reason to be humble in my Christianity and not think of myself as being better than the next person. Nothing I do can make me holy-but even if I fail miserably, I will keep trying because that is all God expects of me. My Christianity thereore requires me to be more compassionate and understanding and tolerant because I have received the same treatment from God. If I view others who are not "acting" Christian, I expose myself to judgment on the Christian merit standard, and I already know that I am severely wanting.

To all my friends, if I have acted like my being a Christian makes me better than you-I apologize. I'm really doing badly anyway so I don't have the moral authority to judge you. To my Chrstian friends, there is no difference between the things you do and the "unbeliever" you keep criticizing. We still have alot of work to do on our own walk with God on earth, so let's not act like we're already in heaven. I should be known not for my superficial "righteousness" or "piety" (whatever that is) but for my charity (which is the real Christianity) by everyone I interact with. That way, we can finally be relevant in our society and not merely be seen as "that iritating Mulokole!"

To those that don't agree with what I just wrote, thank you for reading this far. I clearly don't have all the answers (I probably am just rambling anyway) and I'm sure I'll benefit from your constructive feedback. However, one thing I am sure of, is that I will not allow "Christian pride", or my feeble attempts at goodness to validate or justify me-I am better off standing on my God's credentials than mine.

Surviving Price Hikes

For those who do not live in Uganda or have been asleep for the last two weeks there have been a number of public demonstrations (well mostly riots) in parts of Kampala and some other towns over the rising food and fuel prices. Many people have asked the Government to step in and either put in place price controls or lower the taxes to reduce the prices, but the Government has declined to do so, insisting that Uganda is a free-market economy. Unfortunately, the riots resulted in many people losing productive workdays, several business owners complained about looters taking advantage of the chaos to rob or vandalize their property. 

This article is not intended to address the riots or their causes or merits or drawbacks (too many people have given their opinions) but to provide my two cents worth of how we can make our own personal financial adjustments and survive the price hikes that are not just in Uganda, but all over the world. I'm sure you've all heard these tips before-I'm trying them and I hope they'll work for me and I'd appreciate any other suggestions that you might have:

Face it-prices will always go up: We need to accept this fact, especially with regard to essential goods like food and fuel. It was not very long ago that a litre of fuel cost UGX 900/= and with OPEC planning to cut supply again, we can expect the fuel price to rise further in the near future. While I'm not too pleased with the cost of living (I'll probably never be happy until everything is free), I'm not surprised by the price hikes. I think price controls may have a short term benefit, but ultimately curtail the free-market forces of demand and supply, choke enterprise and lead to high prices in the long run. Also, while we complain about the cost of food, farmers (who have often gotten a raw deal from the market), are happy when there are high prices. 

I think it is more prudent to prepare for price hikes and find ways to live within our means than to expect someone else to cut prices. 

Budget and set financial targets: It is said that you cannot hit a target if you don't have a target to hit. Budgeting is the first step towards financial freedom and it gives you the power to plan for and allocate your limited resources. A budget acts as a financial guide and enables you to control your finances instead of having your finances control you. It also helps you to meet your saving goals and plan for unexpected financial emergencies

Keep a record of your expenditure:  Tracking your expenditure is universally recommended by financial advisers, but unfortunately often rejected by people who find it tedious and don't really worry about monitoring their expenditure.  Keeping a record of expenses helps you identify your spending habits and weaknesses. Not recording expenditure keeps you blissfully unaware and safe from the perceived tedium, but exposes you to the risk of eventually asking "where did my money go?"  

Earn More: I don't mean to emphasize the obvious, but using our free time to engage in business and using our time, gifts and talents can actually lead to more income (some ideas don't even need capital). We should use internet to look for or create business opportunities (there are many success stories of such companies), find items to sell to workmates and friends, if you can sing, join a band (they usually play after working hours anyway) or create and sell art pieces if you have the talent. 

Keep more: It is generally accepted that prosperity does not come from earning more, but from spending less and living within our means. Carry a packed lunch to work, reduce the number of times you eat out and don't buy too many rounds of drinks for your friends when you go out. Avoid retail therapy and the designer label craze, cut your shopping list to remove unnecessary/luxury items, compare prices from shop to shop, eat less (God knows many of us need to go on a diet anyway). Cut back on the contributions to graduation parties or weddings-or if you are throwing a party or organizing a wedding, don't spend too much money. Mow the lawn and wash your car yourself-you could save alot of money and work out in the process. Give up your expensive gym membership and take up a sport that is free or less expensive. 

Don't give away what you can sell: Ensure that you can get value for your time and skill. Unless you are doing charity (which has a value), ensure that you do not volunteer your time unless you can see a financial or career benefit to doing so.  If someone asks you to give them time or do them a service and you don't intend to do it for free, ensure that you tell him or her in advance that you expect payment. 

Invest wisely: When you save money, find a sustainable investment that will guarantee you income on a long-term basis. This could be on your own or with like-minded friends. You could invest in securities, real estate or other merchandise. Ensure that you do not  give your hard earned money to a shady people who promises you quick returns as they could steal your hard earned money.

Study and take calculated risks: Learn about investment and what money making options there are out there. Learn how to read financial statements and prospectus and ensure that you can understand the material information and assess the risk and viability of any potential or actual investment. Discuss your investments with friends who are accountants, lawyers and entrepreneurs and don't be afraid or too proud to ask questions or take advice. This will enable you to take calculated risks, and make informed investment decisions.

Overall, I'm learning to take my money, time and skill seriously and treat them like the assets that they are. It is only when we learn to respect our resources that we can get the full value from them.

The Difference Between What's Right and What's Legal

Someone once asked me why lawyers are always controversial and don't seem to think the same way as everyone else. Below is my favorite part of Robert Bolt's play "A Man for all Seasons". It basically shows that there is a difference between what is "morally" right (a moving target) and what is legal. Morality is subjective and emotional and people often condemn you before hearing you out. The law, on the other hand, is objective and based on empirical evidence. The objectivity and predictability of the law provides stability and ensures that we do not only follow the law when it suits our convenience-which is a shortcut to anarchy.

  

Even though it is generally agreed that the law is not infallible and at times we don't agree with certain parts of the law, we should follow every law strictly. The law is not only a spear, but also a shield-if we are selective in what laws we follow, we shouldn't be surprised if other people bend the law to our detriment.

Alice: Arrest him!

More: Why, what has he done?

Margaret:: He's bad!

More: There is no law against that.

Roper: There is! God's law!

More: Then God can arrest him.

Roper: Sophistication upon sophistication.

More: No, sheer simplicity. The law, Roper, the law. I know what's legal, not what's right. And I'll stick to what's legal.

Roper: Then you set man's law above God's!

More: No, far below; but let me draw your attention to a fact -- I'm not God. The currents and eddies of right and wrong, which you find such plain sailing, I can't navigate. I'm no voyager. But in the thickets of the law, oh, there I'm a forester.I doubt if there's a man alive who could follow me there, thank God.

Alice: While you talk, he's gone!

More: And go he should, if he was the Devil himself, until he broke the law!

Roper: So now you'd give the Devil benefit of law!

More: Yes. What would you do? Cut a great road through the law to get after the Devil?

Roper: I'd cut down every law in England to do that!

More: Oh? And when the last law was down, and the Devil turned round on you, where would you hide, Roper, the laws all being flat? This country's planted thick with laws from coast to coast -- man's laws, not God's -- and if you cut them down -- and you're just the man to do it -- do you really think you could stand upright in the winds that would blow then? Yes, I'd give the Devil benefit of law, for my own safety's sake.

Louis Majwara: Unlucky Forex Trader or Fraudster?

On 18 August 2010, in the Weekly Observer Newspaper, Patience Akumu wrote, in an article titled "Online forex trade: a gamble or goldmine?" "Louis Majwala, who admits to leading a relatively comfortable life thanks to forex trade, is a good example of how you can turn your life around just by buying and selling forex." 

Fast forward to 3 February 2011-  the same paper carried a story titled "Ugandans lose Shs 11bn in forex scam" showing that over 300 Ugandans are trying to recover $4.5m from Mint Consult, which is owned by Louis Majwala's. The article states "A task force representing the interests of the duped clients has already attached assets belonging to Louis Majwala, the boss at Mint Consults Limited. However, the value of the attached assets – two car log books and a land title to roughly 20 acres of land outside Kampala – does not come close to what the clients are seeking."

The position of trader, created an implied trust between Louis and each client and imposed the following fiduciary duties on him

1. To act prudently/diligently and with reasonable care

2. To act impartially and avoid conflicts of interest

3. The duty to put the investors first and not to unfairly benefit from the trustee position

4. The duty to segregate his personal funds from the funds under management and provide accountability to the clients

5. The duty to provide information in a timely basis

6. The duty to preserve the confidence of beneficiaries

In the end, Louis breached each and every one of his fiduciary duties and it is said he created a ponzi scheme. I expect that he'll be bankrupt and probably in prison for fraud and obtaining money by false pretences soon (as a disclaimer-Louis is innocent unless/until proven guilty).

In an ironic twist, Louis says he can recover the money if investors give him $2m dollars more. I would be very surprised if the "duped clients" who were eager to give him their money last year give him one shilling.

Hearts of Lambs, Feet of Cheetahs and Memories of Elephants

Yesterday, I got a call from a gentleman I had not heard from in a while. He started off pleasantly enough, asking when I left CMA and how business was. I almost laughed when he proceeded to tell me about how his boss a Tullow Oil wanted to send him to Germany to buy some expensive spare parts, but he knew someone in Industrial Area who had them (but he couldn't approach him because they had been competing for the same job). He was therefore giving me the opportunity to make $20,000 per part by investing some of my money (USD 5,000). I was telling a friend about how ridiculous and unimaginative these people were, when he told me that he had fallen for the same confidence scam.


Emerging markets are the destination of choice for investment because their growth potential and investment return expectations are much better than most of the returns in Europe. Also, because our issuers are not highly leveraged by securitization, most of the companies are recession-proof. Uganda is one such country, as evidenced by the over-subscription of IPOs and additional issues in our market. Unfortunately, while this market is a great destination for investors, it has also attracted a number of fraudsters. The investor is the first line of defence against such fraud


There is an old saying "Investors have the hearts of lambs, the feet of cheetas and the memories of elephants". This could be interpreted to mean many investors do not take time to study the market or get equipped to take calculated risks. Instead, they are driven by the emotions of greed and fear, fall prey to unscrupulous characters who steal their money and destroy their confidence even in legitimate investment vehicles.


Before you invest, seek professional advice. Make sure you read everything that is given to you and don't be rushed into a get-rich-quick scheme that requires you to put money up without any guarantees. remember, if it seems too good to be true, it most probably is.

Is your Forex Trader Legit?

Forex trading is the new craze to hit Kampala. For many speculators, this could be a profitable if they land on the right side of a transaction. However, there is no doubt that this is a very risky investment vehicle, which, of late, has been used to perpetrate fraud all over the world. The risks herein are two-fold:

i) The first risk is the ordinary market risk that every investor bears-if you are on the wrong side of a transaction, you could lose your entire investment. 

ii) The second risk, which is the focus of this note, is the risk of market abuse or fraud by the broker or trader. Since the Traders in Uganda are mostly unlicensed, the investor is the first and last line of defence.

A potential, or actual investor must conduct a due diligence and know his or her Trader. 

I recently received a proposal and a contract from a forex trader, who promised a potential investor a return of 20% per month for an investment of USD 2,500. Apart from the fact that this return seemed to be too good to be true, and the trader had not bothered to clearly declare the risks to the potential client, I noticed a number of things that made me suspect that the trader was not looking out for the interests of the client or worse- was probably operating a ponzi scheme and would defraud the potential investor. 

I would like to share afew tips on what you should look for and how  to identify red flags to avoid being ripped off.

1. Is the trader licenced? For one to be authorized to take deposits from the public, he should be licenced by Bank of Uganda. Alternatively, for one to act as an investment advisor, with discretion to invest funds on behalf of clients, he must have an investment advisor class (a),(b) and (c) licence from the Capital Markets Authority. If one is not licenced, he is unregulated and any clients that lose their money as a result of the malfeasance of the trader have no recourse to the CMA or BOU for compensation. However, CMA and BOU can take action against such traders to prevent loss.

2. Does the Company have Sound Corporate Governance Practices? Have you seen its incorporation documents, particulars of directors, company filings, audited accounts, procedures manual, investment policy. The trader's failure to meet its legal and regulatory obligations is a red flag. 

3. Do the contract documents reflect the intent of the transaction? I noted that the documents relied on were investor or preference share agreements which transferred the risk from the trader to the client. I also saw some clauses that were to the effect that "the trader has no obligation to give the investor information relating to the investment." This lack of transparency is very suspicious since it does not give the investors an opportunity to assess the suitability of the investment, and in effect, renders them blind. This could also allow the Trader to carry out fictitious trades and do a "Bernie Madoff" without being checked by the client.

I also noted that the contract did not expressly state that the "Investor" was entitled to the 20% return promised, but rather to dividends. In my experience, dividends are tagged to profits and paid on an annual basis and not monthly as promised by the trader. The investor would therefore not be able to prove his/her entitlement to the monthly returns. 

4. Are you satisfied with the resources and financial capability of the Trader: Traders are trustees of their clients' funds and "a necessitous man cannot be a trustee". Check your trader's assets because you might need to liquidate them to recover your money in case of a loss and his bankruptcy. Please note that the money you give the trader is a liability and therefore does not fall within his assets. If the Trader mixes the funds (e.g. by using one account for his operations and client funds) this is already a breach of trust.

5. Are you satisfied with the skill levels or experience of the Trader: Traders should provide you with proof of capability. Why would you trust an amateur with your hard earned money?

If you have been cheated out of your hard earned money by any unregulated Forex Traders, please contact BOU or CMA or the Police. You could stop the loss of money and prevent large scale fraud