Hello

Your subscription is almost coming to an end. Don’t miss out on the great content on Nation.Africa

Ready to continue your informative journey with us?

Hello

Your premium access has ended, but the best of Nation.Africa is still within reach. Renew now to unlock exclusive stories and in-depth features.

Reclaim your full access. Click below to renew.

Mayuge Sugar assets put on sale over Shs10b workers' pay

Ariel view of Mayuga Sugar factory. Auctioneers are seeking to recover more than Shs10b in workers’ compensation. PHOTO / COURTESY

What you need to know:

  • Auctioneers say they have been instructed to recover overtime arrears due to 530 workers that have remained unpaid for 12 years now.

Auctioneers have said they will sell various properties including a 5,000 cane crushing milling plant, if Mayuge Sugar Industries does not pay Shs10b due to former workers.

In a notice published last Friday, Twins Court Bailiffs and Auctioneers indicated that they would also sell cane handling machines, cane carriers, feeding tales, and a stem-generation plant boiler within 14 days from the date of publishing the notice on November 29.

Other items listed for sale are a feed water and transfer pump, generators, turbine and alternators, a 3,500 cane crushing boiling house, raw juice tanker water imbibitions and weighment, a juice heater, juice lime tanks, rotary vacuum equipment and evaporator.

“We have attached and shall proceed to sale … the movable properties … to recover the judgment debt unless the judgment debtor pays to our client the decretal sum plus our fees, costs, and disbursements before the date of sale,” the notice reads in part.

The case originates from a 2014 dispute in which Justo Olema and others filed a petition before the Equal Opportunities Commission, accusing Mayuge Sugar of, among others, unlawful termination of pregnant employees, denial of leave, discrimination, failing to offer employees written contracts, massive terminations, failing to give employees work identity cards, lengthy working hours, and failing to offer workers due compensation.

The accusations were later heard in a public inquiry, in which, a tribunal set up by the Equal Opportunities Commission concluded that Mayuge Sugar had broken provisions under Article 21 of the 1995 Constitution, which, in general terms, provides that a person shall not be discriminated against on ground of sex, race, colour, ethnic origin or tribe, among others.

The tribunal, chaired by Ms Sylvia Muwebwa Ntambi, the then Equal Opportunities Commission chairperson, also found that Mayuge Sugar had breached provisions of the of the Equal Opportunities Commission Act, Labour Unions Act, and Occupational Safety and Health Act.


Monitor could not readily get a comment from Mayuge Sugar. Phone calls to known telephone numbers of the company’s officials went unanswered by press time.

However, Mr Hussein Waiswa, a co-director at Twins Court Bailiffs and Auctioneers, said at the weekend they were acting on the instructions of their clients and had obtained all necessary clearances to effect the auction.

Initially, he said, 530 employees had filed complaints, some of which were handled with the Equal Opportunities Commission tribunal issuing eight orders. However, the former workers are seeking to recover overtime arrears that have remained unpaid for 12 years.

“The amount due is more than Shs10b. Mayuge Sugar has not shown any intention of clearing the arrears. When we applied for execution, they were given a notice to show cause why the execution should not be issued. They appeared and didn't show cause. So, the execution was granted,” he said.

However, he added the Equal Opportunities Commission issued another notice, which required the Mayuge Sugar managing director, general manager, and human resources manager to appear in person on November 11, but did not despite acknowledging receipt of the notice and indicating that they would appear.

“So, the warrant of attachment was issued. We are now clearing with Police in Kampala, after which we shall go to the regional headquarters to effect the execution by the end of next week,” Mr Waiswa said.