Africa-Press – Uganda. The Parliamentary Committee on Trade is pushing for a deeper probe to establish the exact amount of shares that government holds in the Munyonyo Commonwealth Speke Resort Company Ltd.
This push follows claims by officials of Uganda Development Corporation(UDC) that UDC had never received any shares, contrary to information in documents released by Ministry of Finance midweek.
The UDC officials led by their general secretary Hope Kisitu were appearing before the MPs to respond to queries regarding the shares that government holds. Also expected to appear were officials from Munyonyo Commonwealth Resort and Finance ministry officials.
During the interface with legislators on Friday, UDC was tasked to explain the shares that the government holds in Munyonyo.
Mid-week, social media was awash with letters showing that government’s 15 billion shares held in the Munyonyo Commonwealth Resort Company Ltd had been transferred from the Ministry of Finance to the UDC.
The 15 billion shares is said to be 25 per cent of the 60 billion shares that Munyonyo has.
The contention follows allegation that government has pumped in Shs13b, that to date remain an unaccountable for.
This money was meant to finance the construction of a marina at Munyonyo Commonwealth Resort.
“All this money should have been turned into shares; how come you are showing us shares worth only 15 billion only? Where is the Shs13.9 billion going?,” Mr Mwine Mpaka, the chairperson of the Trade Committee, wondered.
But Ms Kisitu, the UDC General Secretary, said she has no knowledge of the money.
“I cannot give a firm response as to what has happened the Shs13.9b,” Ms Kisitu said.
The MPs also demanded to know whether for the last 16 years since Munyonyo was constructed, no coin had been remitted to government by the company.
“For 16 years, nothing has ever been remitted to government? You have never had access to Munyonyo, [and yet] you are the investment of the government. How are you going to treat that money we have lost in the past?” Mr Mpaka asked.
In response Ms Kisitu said: “Chair, I cannot confirm whether they are losses in Munyonyo or not because we have not [yet] taken over.”
But Finance ministry permanent secretary in a letter dated November 11, to the Clerk to Parliament, wrote that they had transferred to UDC, the 15 billion government shares, nearly two years since the UDC made the request for shares to be transferred.
“Ministry of Finance miraculously transferred the shares two days [November 11] before this meeting and said the shares are now in the hands of UDC. But UDC claims they have just received the letter and they are yet to receive the documentation,” Mr Mpaka said.
It is against this backdrop that the committee has since vowed to summon Meera Investments Ltd, which is associated with business tycoon Sudhir Ruparelia, to clear the air.
The Mpaka-led committee has also promised to invite Finance ministry officials to respond to the committee’s queries on the same matter.
Last month, the government through the Finance ministry tabled a supplementary budget request of Shs3.8 trillion. Within the same request, government wants Parliament to endorse a total of Shs1.5b to be paid to Munyonyo Commonwealth Resort Ltd.
This money is meant to cover a debt government accrued out of the lodging costs incurred from the hosting of some of the diplomats and high profile officials that graced President Museveni’s swearing-in ceremony.
GENESIS
Formed by the UDC Act ,2016, the government investment arm is among other things meant to superintend all shares that government holds in private entities or companies.
Prior to its formation, all government shares were placed under the Ministry of Finance.
These shares include those from Munyonyo Commonwealth Resort Ltd.
After it was formed, UDC sought the guidance of the Solicitor General in regard to the matter. In response, the Solicitor General directed the ministry of Finance to transfer all shares it held to the UDC as it is the rightful entity to oversee them.
[email protected]
For More News And Analysis About Uganda Follow Africa-Press
