Government makes U-turn on new airlines ownership
What you need to know:
- The deadline for the final payment for the purchase of the plane is March 31.Mr Amos Lugoloobi (NRM, Ntenjeru North) who chairs parliament’s budget committee told Parliament there are risks associated with further delay.
- Mr Oulanyah gave Mr Lugoloobi only up to today to scrutinize the documents submitted by Works ministry and report to Parliament.
Parliament. The government in a new twist of events has claimed full ownership of the Uganda National Airline Company Ltd, with 100 per cent shares.
In a set of documents furnished to Parliament, the minister of Works and Transport, Ms Monica Azuba Ntege, said the national carrier will have two million shares, with the ministries of Finance and Works each taking one million.
“We have the return of allotment of shares; the number shares allotted is two million, nominal amount of shares is Shs200 million and amount due on each share is Shs100m,” Ms Ntege said.
This prompted the presiding speaker Jacob Oulanyah to ask when the new dates of allotment were effected.
“I want to thank the members of this House for having highlighted this (anomaly) and this has been rectified as of today (Wednesday),” Ms Ntege said.
The documents included; the Notification of Appointment of Director and secretary of the Company, the Certificate of Incorporation as well as the Memoranda of Association.
Mr Keith Muhakanizi, the Permanent Secretary to the Treasury, and Mr Waiswa Bageya are listed as company directors while Mr Bisereko Kyomuhendo is the company secretary. Mr Muhakanizi and Mr Bageya were appointed directors in their official capacity as Permanent Secreatary to the Treasury and Permanent secretary ministry of works respectively.
The minister also dismissed fears that the name of the company has been patented to a private individual.
The new carrier, whose revival is expected before end of April, will operate under the name of Uganda National Airlines Company Ltd. This is after MPs questioned the shareholding in which the House Budget Committee questioned the minority government shareholding and raising fears that the national carrier risked being taken up by private players.
The hasty move came as MPs pushed to defeat the recommendation for a supplementary request of Shs280 billion for the government to pay off two Bombardier planes.
In the minority report presented to Parliament yesterday, it was discovered that government will have only two shares in the national airline, leaving the 98 per cent to unknown beneficiaries. However, acting on the pointer, the government rushed to have the changes and fresh incorporation made just hours ahead of the House sitting yesterday.
Government cautioned
Former Works minister Abraham Byandala cautioned the government to keep alive to the fact that the national carrier will turn into a burden for the taxpayer, unless keen measures are taken.
The Katikamu North MP told Parliament that only the Ethiopian Airways across the continent has registered profits.
“We should also be in charge of ground cargo handling, we should also be in charge of the cargo at the airport even repairing planes,’ he said.
On delays
The deadline for the final payment for the purchase of the plane is March 31.Mr Amos Lugoloobi (NRM, Ntenjeru North) who chairs parliament’s budget committee told Parliament there are risks associated with further delay. Mr Oulanyah gave Mr Lugoloobi only up to today to scrutinize the documents submitted by Works ministry and report to Parliament.
