The Budget Committee has rejected the consideration of the supplementary budget request worth 108 billion shillings as additional funding to Atiak Sugar Factory in Amuru district
The Budget Committee has rejected a consideration of the
supplementary budget request worth 108 billion shillings as additional funding
to Atiak Sugar Factory in Amuru district.
The MPs say Government has heavily invested in the company and yet the shares remain stagnant. They say that until business woman Amina Hersi Moghe proves
her contribution to the investment, they will not provide the funding.
Minister of State for
Industry, David Bahati had led the team from the Ministry of Trade and
officials from Uganda Development Corporation (UDC) to defend the supplementary
request for additional funding for the sugar factory.
Patrick Birungi, the Executive
Director of Uganda Development Cooperation (UDC) told the Budget Committee that
the multi-billion factory is lying idle because there is no sugarcane to kick
start production and the Shs108Bn would be channeled towards mechanization to
steer sugarcane production.
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However, Mwine Mpaka, the Mbarara
South MP warned the Committee against approving the supplementary funding revealing
that although Clause 5 of the Shareholders agreements states that the day to
day controls of the company shall be managed by an experienced and independent
firm and not individuals. , he Amina is the CEO,
operations Manager and Board Member, while her son is a shareholder, board
member, and chairperson audits committee with no proper management.
Information before the
Committee indicates that Uganda paid 81 billion shillings as share capital for
the 40% shares, while another 75.1 billion shillings was sunk into the factory
as non-equity and the factory is seeking for 108 billion that would bring total
capital injected in the factory to 263 billion shillings.
Moghe who owns 60% shares has injected
119 billion shillings.
The National Agricultural
Advisory Services (NAADs) also injected 64.6 billion for clearance of 60,000
acres of land, but the entity has only been able to secure 12,000 acres.
Maxwel Akora the Maruzi County MP tasked UDC to explain
whether the additional 108 billion shillings is a loan or it is intended to
increase share capital of government.
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Paul Omara, the Otuke County MP
asked the Committee to order for a financial audit into Atiak Sugar Factory and
establish how Amina has used the over 120 billion shillings she has got from
Government before more money can be approved.
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Minister David Bahati pleaded
with the Committee to consider the supplementary and give Government three
months to fix the governance issues at Atiak Sugar Factory.
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However, Patrick Isiagi, the
chair of the committee and Kachumbala County MP castigated UDC and Minister
Bahati for allowing taxpayers money go to waste.
He said Parliament will only
consider the supplementary request if the governance and financials of the
company are fixed.
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billion.”//
This is not the first time
Parliament is protesting investment into Atiak Sugar Factory, MPs in the budget
committee of the 10th Parliament rejected the proposal, but funds
ended up being approved.
Alex Otto
Freelancer