Sembule seeks gov't help over sh7b loan from Bank of Baroda

By Paul Kiwuuwa

MPs have appealed to the Government to bail out Sembule Steel Mills over a sh7b loan it owes to Bank of Baroda.

The plea was raised in a petition presented to the parliamentary committee on trade and industry by Buikwe South MP Lulume Bayiga.

Bayiga pointed out that the Government should bail out the proprietors of Sembule Steel Mills before Bank of Baronda takes it over.

The petition said the steel plant is currently valued at sh27bn. Bank of Baroda now wants to it take over at only sh7b. “It will be a loss to the local investor,” Bayiga said.

Christopher Sembuya, the managing director of Sembuletold the MPs that the company borrowed the money 15 years ago to equip the company with machinery but has failed to pay.

“I request the Government to help my company to pay its debt to Bank of Baroda.” Sembuya told MPs.

He told the committee that Sembule group of companies has been in existence for over 30 years. Sembuya started the company with his brother Henry Buwule who died in 1994. The company deals in fabricating steel products at a small scale now.

Flavia Kabahenda (NRM) told Sembuya to write a justifi able business plan which the committee can use to convince the office of the President to help the company.

She said “the Government has in the past bailed out some companies but they still failed to fulfil their obligations like creating employment.