Mixed reactions rocked the August House as Opposition Members of Parliament Hon. Ibrahim Ssemujju (Kira Municipality), Mathias Mpuuga (Nyendo Mukungwe Division) and Yusuf Nsibambi (Mawokota South) exposed another dubious trick to put tax payer’s money to waste.
According to the Minority report presented by Hon. Nganda, it was revealed that the Shs578.4Bn for DEI Bio Pharma Ltd has been diverted from the Shs666Bn that Treasury Operations had earmarked to pay part of Uganda’s debt obligation to Bank of Uganda.
Ssemujju revealed that this is another way to waste reources like the billions of money lost in the Lubowa hospital deal.
“Government doesn’t have money to give to Magoola. What it has done is to divert Shs666Bn from our public debt servicing vote 130. There are many things we aspire for in life. If you cannot get them, you don’t break the bank. A pharmaceutical to manufacture drugs is a very good venture but it found us servicing loans for energy and roods. It is good but we cannot afford it, at least of the moment,” said Ssemujju.
Ssemujju insists that he is sure there is someone falsely claiming to be Magoola.
“I actually now think this is not Magoola. Someone who can make us remove money from debt servicing in order for us to pay his debts. It is not this Magoola. It is another Magoola hiding under this Magoola. Mr. Magoola told the Budget Committee last year that the project’s total cost is US$1 billion (Shs 3.9 trillion). The Government will continue charging the consolidated fund for a private undertaking for a long period at the taxpayer’s expense,” added Ssemujju.
On Tuesday, Parliament debated a supplementary expenditure budget worth Shs1.106 trillion for settling the offtake arrangement between government and DEI Pharmaceuticals, wage and pension and gratuity shortfalls.
During plenary, the Deputy Chairperson of the Budget Committee, Hon. Achia Remigio presented the committee’s report approving the supplementary.
Achia said the government has initiated the process of acquiring equity in DEI BioPharma Ltd as a strategic intervention to increase the local production of pharmaceutical drugs.
DEI Pharma Limited is being allocated Shs578.4 billion to enable it complete business production and ensure it comfortably meets its debt obligations and operational requirements.
“It should be noted that the Minister of Science, Technology and Innovation provided a written commitment to the committee, stating that ‘no funds would be disbursed to the company until the valuation process is completed and the government’s stake in the Company is formally established’,” the report reads in part.
Kira Municipality MP who is also the Shadow Minister of Finance, Hon. Ibrahim Ssemujju Nganda presented a minority report opposing the request stating that it did not comply with the law.
“We oppose donating Shs578 billion to Mr Mathias Magola (DEI Pharma Ltd). All the activities and items the government is seeking to finance through the second supplementary do not meet the requirements of the Public Finance Management Act,” he said adding that, ’money for Magola is being diverted from debt service; the government has diverted Shs666 billion from our debt servicing vote’.
