Writer: Edward Makobore. PHOTO/FILE
A story is told of a rich man who was guarded and hesitant to pass on his vast business empire to his only son. A pressing concern lingered in his mind: his son’s penchant for extravagance and lack of financial acumen. Despite the father’s toil to amass wealth, his son recklessly squandered it on frivolous pursuits, leaving the father distressed.
Determined to instil fiscal responsibility in his heir apparent, the father devised a test. He offered his son an initial sum of $2,000 (Shs7m), challenging him to double it through business acumen. Success in this endeavour would signify the son’s readiness to inherit the family estate. He also hoped that through the rigorous process to double the amount, his son would appreciate how hard it was to make money and would, therefore, spend it wisely.
Eager to prove himself, the son embarked on different business ventures to try and double the amount. Yet, despite his efforts, he fell short of doubling the seed capital.
The mother, having pity on her son, secretly provided the needed funds to enable the son pass the test. Excitedly, the son presented his apparent success ($4,000) to his father, who promptly cast the money into the nearby fireplace, revealing the deceit.
Seeing that the lesson had not yet been picked, the father granted him one last chance. With renewed determination, the son embarked on a rigorous journey, toiling tirelessly until he doubled the $2,000 through diligence and perseverance. He did not want to disappoint his father for the second time.
Yet again, the father subjected the earnings into the fireplace, leaving the son bewildered. However, as the father tossed the money into the flames, the son acted very quickly and without thinking twice went after the money. The son, in an attempt to salvage the money, got some minor burns but was able to save about 90 percent of the funds.
The father then unveiled his true intention—to test his son’s resilience and appreciation for hard-earned wealth.
This tale resonates with a broader lesson for us as Ugandans. In the privatisation wave of the 1990s, under the guidance of World Bank and International Monetary Fund, the Government of Uganda relinquished control of numerous enterprises, citing inefficiency in management.
Uganda Commercial Bank, Uganda Railways Corporation, Uganda Telecommunications, among others were privatised. The Government of Uganda held onto a handful of companies that it deemed strategic like the National Enterprise Corporation.
While this move had its merits, it inadvertently fostered a culture of profligacy among government officials. This was because government stopped participating in the generation of revenue and subsequently did not appreciate how hard it is to make money.
It is disheartening to witness how, despite the financial challenges we are facing as a nation, hundreds of millions being forked out of the national treasury and spent in a profligate manner and in most cases with little to show in terms of value for money.
We have been treated to stories of lab rats being purchased at a Shs8m each. The latest hair-raising incident was purchase of two generators for residences of two senior legislators at a value of nearly Shs600m.
In all these cases and many others, it is obvious that the spenders do not feel any “pain” because they have not participated in generation of the revenue from where these expenditures are drawn.
It is likely that if government participated in raising revenue through state-run enterprises, it would probably be more frugal in its expenditures. It could also promote a culture of fiscal prudence among officials.
The writer, Edward Makobore, is an afronomist and farmer.
