MPs make U-turn, approve rejected supplementary budget
Members of Parliament during plenary at Parliament recently. PHOTO | DAVID LUBOWA.
What you need to know:
- Part of the money (about Shs274.9 billion) was needed to finance Atiak Sugar Factory in Amuru District owned by Ms Amina Hersi Moghe. The sugar factory was last year shut down over inadequate cane supply.
Parliament on Tuesday approved a supplementary request of Shs1.3 trillion to cover emerging spending gaps in Financial Year 2022/2023.
Part of the money (about Shs274.9 billion) was needed to finance Atiak Sugar Factory in Amuru District owned by Ms Amina Hersi Moghe. The sugar factory was last year shut down over inadequate cane supply.
The government through Uganda Development Corporation (UDC) owns 40 percent shares in the factory, with a total of Shs563 billion spent on the Atiak Sugar venture, while the majority shareholder (Ms Amina) has spent on Shs129 billion.
Ministry of Finance also sought approval of an additional Shs48b for the construction of a Convention Centre at Commonwealth Speke Resort Munyonyo in preparation for the 19th Summit of the Non-Aligned Movement (NAM). The summit is scheduled to be held in January 2024. The government is financing the convention as a joint venture between UDC and businessman Sudhir Ruparelia’s Meera Investments Ltd.
Through UDC, the government investment arm that signed a joint venture agreement with Meera received a supplementary budget of Shs86.4b, of which Shs38 billion was for acquisition of 50 percent shareholding while the balance was to be treated a shareholder loan.
The House also approved Shs26b for the purchase of CCTV cameras under the Uganda Police Force docket.
Some Opposition members led by Shadow finance minister Muhammad Muwanga Kivumbi (Butambala) and Mr Jonathan Odur (Erute South) attempted to block the supplementary for Atiak and Munyonyo but the ruling NRM party used its numerical strength in Parliament to have it approved. Opposition legislators had argued that it would be wrong for the House to approve a request that it had earlier on rejected on account of government failure to show evidence of value for money.
“We have given Atiak a colossal sum of money to a tune of about Shs600 billion, but to the dismay of this country, when you go on ground, there is nothing to show the investment,” Mr Kivumbi said.
“Abid Alam, another investor, spent only $52 million and put up a complete sugar plantation with a factory, while Atiak that has swallowed huge funds from tax payers has nothing to show,” he added.
In December last year, the Finance ministry tabled before Parliament a supplementary budget request totalling Shs2.4 trillion. Part of the request amounting to Shs1.3 trillion was under 3 percent, the threshold that authorises the government to spend without parliamentary approval, while the balance required prior parliamentary approval.
In April, the House rejected the approval of the request,.
However, yesterday, the State minister for Finance (General Duties), Mr Henry Musasizi, presented the request for approval. Then the speaker asked the MPs to pass the supplementary budget this time but should reject the future requests.
