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Thursday, April 4, 2013

Uganda’s endless encounter with classic commission agents


Sam Mwaka-karama

To take Uganda’s economic dilemma into perspective is difficult due to land-locked implications! Mostly those who write on the various aspects and fragments of what constitute the ‘economy’, only tackle the discussions from a premise based solidly on what were the ‘norms’ of the whole matter – like, what might normally be applicable in the understanding and practices of a particular aspect of consumerism - And there are so many aspects and factors of an economy.
However, the ‘norm’ as it were might [actually] also turn-out to be what is considered practicable – in as far as ‘regulations’ and ‘guidelines’ were concerned. Critical factors might more often get construed by cosmetic analysts to mean unworkable views. Negative viewpoints or even dismissed as isolated thinking.
 In the various fields of consumerism, there is always a common denominator which in this case might be seen as commission-driven. In the more modern language deemed as ‘consultants’. The consultants are otherwise known to be commission-driven in a polished kind of way.
Yet, these more and more might actually be the driving factors that critically influence economic performances. Downwards or upwards. Simplified one might say that commission agents market their expertise on short term contracts, for a price.
In this article, I am trying to visualize as rationally and fairly as possible from outside of the [box] ethics (a white woman once commented that some of us have not experienced a [Box] of our own – so I asked – what is ‘Open Courseware?’: my experience). To sort of try and place the pointer of arguments, onto the actual problem-spots where the many-many question-marks ought to be. My theme here is critical view on ‘Classic Commission Agents’.
Classical Commission Agents  
In thinking outside the box, as it were, I would in my own words define them as [foreign] political business venture companies that commonly operate as ‘high profile’ corporate here in the third world. The classical commission agents always existed in Uganda under various names and titles or organ types.
In the 1960/70s these included trade companies fronting for the likes of ‘The Old East’ colonial founded multi-national for far East trade with East Africa or ‘The Old Mutual’ (based in Kenya) the often [cold] company that was reputed to secretly represent (then Apartheid) South Africa even in the heavily embargoed SA pre-independence years or ‘Tywensche Overseas’ the import/export company that operated under the ‘Crown Agents’ where the company enjoyed political protection status with tremendous British influence; shipping in supermarket supplies and exporting tea and coffee with questionable tax anything – if at all!
The classical commission agents were a phenomena all by themselves, in the age of ‘Multi-Nationals’ even competing with Tiny Roland’s LonRho. Actually and certainly ironically the classical commission agents in the twists and turns - exited the multi-nationals. As the World Economic Order of the 1980s and 90s were ushered-in, to be crowned by the century and millennium change over. Mercantile Trade in the third world has since shifted downwards into the hands of the myriads of the lesser even local companies. The old naturally de-functioned, while the millennium also brought about the ICT and Hi-tech to create even more complex Trans Nationals hybrid digital online companies that re-defined commission agent-ism.
The Oil Explorers
Though compared to Gabon, Uganda was [not very surprisingly] indeed, thirty plus years late to get to the point of exploiting its oil reserves – the business end mostly quagmire(ed) in dire and very blind politics – always confused by that ancient rule of the [trade] game... both Heritage and Tallow being actually white-collar  ground-breaker commission agents! To me these companies in the Oil business weren’t like Total or for that matter Shell, who are long time established oil exploration (even deep sea) and vending entities.  
Frankly stated the speculators generally and wheeler-dealers have been Uganda’s biggest problem since colonial times; being a perennial market and a most lucrative ground for financial and commodity speculation and now even oil production wheeler dealing.
Even outright big game hunters and smugglers of game trophies have curved enormous wealth in Uganda. Problem was, they, the international commission agents never left much in their wake – whenever they left Uganda.
Now Tallow’s one arbitration court case is still on in Britain [January 2013 as I wrote this article], another one has reportedly already been triggered in the USA – the revolving-door between Heritage and Tallow is classical commission agent stuff, diplomatically politicized though.
 The bottom-line is; between the two companies the take-over deal just got caught-up and entangled in the widespread tentacles of Uganda’s Direct Foreign Investment DFI and URA taxation statutes, actually the taxation cutting rather thickly into the commission...
Heller’s catch double-double! The terribly imaginative English had once upon a time designed an extra cuff and collar set out of it creating affordable executive shirts [Double Two] ‘stuffed shirts’! - So that the pinstripes and charcoal gray lawyers might sweat it out under the collar in arbitration court rooms - while the commission agents nervously wait it out.
The politicians are at each-other’s throat locally – with oil bribe money accusations - even delaying and actually postponing exploitation of the oil. It all makes no sense! Arguing over who got a bit of the revolving door money! When actually the bulk of the oil reserve is intact deep in the bowel of the Earth, waiting to be accessed, processed and sold for National Wealth and gain of individuals as well... and eventually the Ugandans at large.  
In appraising development it is often misleading to make quotation of experts in short two liner comments – explaining the ‘Norm’ of how things should be! The real life is unlike the ‘Text Book’, things often work themselves differently in reality! The ‘norm’ cannot guide you! ***
The Author is a Free Lance Writer. Book Author.
Mob: 077 7 164787 Email: mwakarama@gmail.com