Opposition Leader Hon. Joel Ssenyonyi has raised serious concerns over the government’s Shs723.4 billion investment in Dei BioPharma Ltd, a private pharmaceutical firm in Matugga, Wakiso District.
In his report, following an oversight visit to the company, Ssenyonyi called for increased accountability and transparency concerning the use of public funds in the project.
The funds, provided in multiple instalments, included Shs578.4 billion allocated through a supplementary budget earlier this year.
During the visit, Ssenyonyi noted critical gaps in documentation, specifically the lack of a formal valuation by the Chief Government Valuer, which should have established the company’s worth before committing public funds.
He questioned why these assessments and essential agreements were absent, stating, “There is no evidence that the Chief Government Valuer valued the company to ascertain its worth before public funds were committed.”
Ssenyonyi also highlighted a lack of clarity on the company’s ownership, pointing out that transparency regarding its beneficial owners, as mandated by the Companies Act, was not observed.
Additionally, he expressed concern over delays in the company’s progress, noting that despite assurances, production of medicines had not commenced by the promised timeline of early October.
“We are now at the end of October, and there’s no sign of any production. What Ugandans are interested in is not just infrastructure but the promised medicines and vaccines,” he said.
In a surprising development, Ssenyonyi revealed that Dei BioPharma’s management expressed willingness to refund the Shs723.4 billion, though no formal offer has been made.
“It raises more questions when the company seems prepared to return such a large sum. Government must clarify its position on this matter,” he added.
Ssenyonyi urged the government to establish a comprehensive policy with clear guidelines on the use of public funds for bailouts, ensuring that such expenditures are transparent and beneficial to the public.
Hon. Ibrahim Ssemujju of Kira Municipality supported Ssenyonyi’s concerns, pointing out that Parliament had approved the supplementary budget on the condition that the government would not release funds until it secured an ownership stake in Dei BioPharma.
“As I speak now, we have not acquired a shareholding in that company. So as they come to respond to the issues, can they also lay on the table a share certificate and when they acquired those shares?” he asked.
In response, Speaker Anita Among deferred debate on the report and directed the Attorney General and Minister of Finance to present a statement addressing the Leader of the Opposition’s findings and recommendations.
