Uganda government yet to be allotted shares in DEI Bio-Pharmaceutical Company

The government of Uganda is yet to be allotted shares into DEI Bio-Pharmaceutical Company despite plans to sink billions of shillings into the private facility.

Government is requesting for Parliament’s approval to allocate more funds to DEI Bio Pharma.

But Parliament’s Budget Committee has learned that while Government has so far injected over Shs145b into the company, the Attorney General is still reviewing documents regarding allotment of shares.

The revelation was made in a meeting held between the Budget Committee and Ministry of Finance officials, who gathered at Speke Resort Munyonyo to scrutinise the Shs1.1Trn supplementary budget, in which the Government is requesting for Parliament’s approval to allocate more funds to DEI Bio-Pharma.

However, Ibrahim Ssemujju (Kira Municipality) wondered how the Budget Committee would justify injecting such amounts of money into a company with no written information. He warned that Government’s dealings woth DEI Bio Pharma would likely suffer similar fate as Atiak Sugar Factory where taxpayers’ money to a tune of Shs485Bn has been injected and Government has about 20% shares, yet the other private shareholder has only injected in Shs80Bn yet she owns 70% shares in Atiak.

“He (Attorney General) is still reading the contract regarding the Pharmaceutical factory, and whenever Government is going to inject money in your business, you have to give Government shares. When you ask Government how many shares that they have, they don’t know but we have given Mathias Magoola (owner of DEI Bio Pharma) Shs145Bn and he has come for more, and he is in need of Shs2Trn. Even next year, you will see him return for more money.

He has become like Atiak Sugar Factory and International Specialized Hospital Lubowa. If Government wants to build a pharmaceutical factory and inject in Shs2Trn, how much money has Magoola injected into this factory?” said Ssemujju.