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The Leader of the Opposition (LOP), Hon. Joel Ssenyonyi has raised concerns over the government’s Shs723.4 billion investment in Dei BioPharma Ltd, a private pharmaceutical firm.
Ssenyonyi who presented a report following an oversight visit to the firm, called for greater accountability and transparency regarding the use of taxpayers’ money in the pharmaceutical company, located in Matugga, Wakiso District.
The funds were allocated in several instalments, with Shs578.4 billion provided through a supplementary budget approved earlier this year.
Ssenyonyi, who led an oversight visit to Dei BioPharma in September, questioned the absence of essential documentation on the government’s involvement with the company, particularly regarding its valuation and ownership.
“There is no evidence that the company was valued by the Chief Government Valuer to ascertain its worth before public funds were committed,” Ssenyonyi said.
In his report, Ssenyonyi highlighted several concerns, including the lack of a memorandum of understanding between the government and Dei BioPharma. He also noted the absence of transparency in identifying the company’s beneficial owners, as required by the Companies Act.
He expressed doubts about the progress of the company’s operations, despite assurances that medicine production would commence by 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 remarked.
Ssenyonyi further revealed that during the oversight visit, the company’s management expressed readiness to refund the Shs723.4 billion, though no formal offer had 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 government to develop a comprehensive policy with guidelines on bailouts, ensuring that public funds are spent judiciously.
Hon. Ibrahim Ssemujju (FDC, Kira Municipality) said that when the supplementary budget for Dei was being passed, the condition by Parliament that government undertook was that no money would be released until shareholding by government has been acquired.
“As I speak now, we have not acquired shareholding in that company. So as they come to respond to the issues, can they also lay on table a share certificate and when they acquired those shares,” he said.
The Speaker, Anita Among deferred debate on the report and asked the Attorney General together with the Minister of Finance to provide a statement responding to the LOP’s report.
Source:Parliament Of Uganda.