Gen Museveni while opening the 10-day NRM Parliamentary Caucus at the National Leadership Institute in Kyankwanzi told MPs in attendance to just back off the issues of the Atiak sugar factory because he knows what he is doing. #WhisperEyeNews
Atiak sugar factory has in the past been having a number of scandals that raised eyebrows of the public.
In 2020, the factory temporarily shut down sugar production over inadequate cane supply. The factory commenced production of brown sugar for both domestic consumption and export in later that year and was meant to get sugarcanes from out-growers in Amuru and Lamwo districts.
Dr. Amina Hersi Moghe, the Chief Executive Officer of Horyal Investments Holding Company Ltd, the entity behind Atiak Sugar Factory has for long said n that the factory will get back to full business once sugarcanes from Ayuu Alali plantation in Palabek Kal sub-county, Lamwo district matures between July and August this year.
“In Lamwo, they have canes, which are still immature but by July or August, they will be ready for the factory and production,” she said.
Mps at many times have been questioning the government why the government keeps holding fewer shares in the factory but at the same time the biggest injector of fresh capital.
In 2020, parliament approved a budget of over 108 billion to be injected into Atiak sugar factory to enhance production but no tangible results have been seen.
This year, the Government of Uganda wants the country’s parliament to save the controversial sugar factory from being taken over or sold off by Equity Bank, through the approval of Shs274.11Bn (US$72.9m) that would be used to repay loans.
According to the government, the budget contained in a supplementary request by Uganda Development Corporation (UDC) will resuscitate the company that ceased its operations in April 2022.
The additional funding of Shs274.11Bn is to be deposited into Horyal Investment Holding Limited, which is managing Atiak Sugar Factory, as part of the preparations for the factory to resume operations in 2024.
Despite the Government injecting Shs563.22Bn into the company, Amina Moghe Hersi, the CEO of Atiak Sugar Factory, on her part has only injected in Shs121.314Bn, commanding 60% shares, while the government has only 40% shares.
Because Amina used her 60% shares to acquire a loan from Equity Bank and Atiak is now being held as security with the potential of being sold off, the Government is on the brink of losing all this investment.
The investment is not sound as the project also requires urgent construction of accommodation facilities to house at least 1,300 laborers.
So far, UDC has paid the Shs200Bn to Horyal Investment Holding Limited through Ecobank and partial payment has been made to Equity Bank, but the 60% shareholding held as security is yet to be released to UDC.
