Parliament clears purchase of planes for Uganda Airlines

Parliament- Parliament yesterday cleared the government to buy two Bombardier planes at Shs280 billion. The money is meant for the final measures of restoring the national carrier.

Parliament, however, set tough conditions for government; the transfer of management of the national airline to the Uganda Development Corporation (UDC) and the disbanding of the airline’s interim Board of Directors by the end of April 2019
The conditions were set by the House Committee on Budget chaired by Ntenjeru North MP Amos Lugoloobi.

“The Committee noted major weaknesses at the policy making level. The Interim Board members are also fulltime employees of Government and extremely busy in their substantive public offices,” Mr Lugoloobi said.

The current status of the airline is to the effect that the minister of Finance (Matia Kasaija) and his counterpart of Works and Transport (Monica Ntege) are listed as shareholders on behalf of the government, while Mr Keith Muhakanizi and Mr Waiswa Bageya are listed as company directors.

Mr Bageya is the Permanent Secretary in the ministry of Works while Mr Muhakanizi is the Permanent Secretary/ Secretary to Treasury, Ministry of Finance, Planning and Economic Development.

Mr Laban Mbulamuko, a commissioner in the ministry of Finance; Mr Bisereko Kyomuhendo, a commissioner in the ministry of Justice; and Capt Gad Gasaatura, a retired flight captain, are also listed as directors.

This, Mr Lugoloobi said, puts the company in a dangerous situation because they are pre-occupied with other government responsibilities.
Besides, the MP said, the current management staff are also holding interim positions; endangering the company.

As remedies, the committee recommended that the shareholders “must appoint a substantive and competent board, in any case not later that than April 30, 2019. The board members must be subjected to a fit and proper test and names presented before the House.”

In the event this is not done, the committee recommended that the House should not appropriate any funds to the activities and operations of the company for FY 2019/2020.

Parliament will also closely monitors the operations of the company through regular reporting in a bi-annual arrangement.
In the new arrangement, the government owns 100 per cent shares in the national carrier, with Shs200m nominal capital, divided into two million shares, each valued at Shs100m.

Deputy Speaker Jacob Oulanyah, who presided over the House on the day, bemoaned “the mess” which he said had caused unwarranted delays in the re-establishment of the airline.