Members of Parliament have raised concerns over the Uganda Investment Authority's (UIA) delay in revaluing a massive 22,877-acre piece of land, demanding answers, and transparency.

During the engagement with a team from the Authority, the Public Accounts Committee chaired by Medad Lubega Sseggona (Busiro County East Wakiso, NUP), the team learnt from the Auditor General’s report on the authority’s financial statements that UIA has not revalued its land for over 10 years.

“I noted that the Authority has not revalued its land for the last 10 years. The current value as indicated in the statement of financial position as of June 30, 2023, is sh28.89b,” the Auditor General’s report indicated.

Medad Lubega Sseggona (Busiro County East Wakiso, NUP), chairperson COSASE

According to the report, this figure reported in the financial statements may not be accurately stated. Robert Mukiza, the Uganda Investment Authority’s Director General on Tuesday explained to the legislators that some land has been valued such as in Kisoro, Rukungiri and Nebbi.

“Management has continued to engage the Ministry of Finance Planning and Economic Development (MOFPED) to provide funds for titling and securing all the industrial Park land with boarder markers being set in the upcoming financial year,” he said.

The Auditor General advised Mukiza to prioritise valuation of the Authority’s land in the subsequent financial year so as to enhance reporting.

Other audit queries

During the interaction on Tuesday, February 20, 2024, the MPs queried the delay of the development of Kampala Industrial and Business Park (KIBP), a project being implemented by the Authority in Namanve Industrial Park.

The project became effective on July 6, 2020, and is expected to end in January 2024. However, it is not net completed.

The project total cost is sh849.50b and is funded by the government of Uganda with support from United Kingdom Export Finance and Standard Chartered Bank UK (Loan Facility).

According to a letter dated April 4, 2023, issued by the Permanent Secretary of ministry of finance, Ramathan Ggoobi, to UIA for the extension of the project development of industrial parks, the project should have exited the public investment plan by June 30, 2023.

However, the AG noted that at the time of audit in September 2023, there was evidence that the project had been granted an extension for one year ending June 2024.

The auditor general notes that the delays in implementation imply delayed service delivery and may lead to unnecessary cost runs and other financial costs.

Mukiza explained that due to the ongoing interventions such as the development of infrastructure at the KIBP in Namanve, Mbale Industrial Investment Park as well as Kapeeka Industrial Park, the project was granted an extension by the development committee until the interventions whose funding is tagged under the project are completed.

He added that for all the other infrastructure development in other industrial parks such as Kisoro, Kasese, Jinja and others, a successor project has been submitted to the development committee and its concepts and profiles have also been approved by the development committee.

Mukiza said that currently, feasibility studies are being conducted in these industrial and business parks.

Sh263 billion need for industrial Parks development :

Members of Parliament on the Finance, Planning and Economic Development Committee in January recommended for the allocation of sh263 billion for industrial Parks development.

The funds will be used to develop infrastructure at Liao Shen Industrial Park, Kapeeka and Mbale Park. The committee stated that as the contract period expires during the Financial Year 2025/2026, further delay may lead to litigation and possible costs that may arise out of the litigation.

The committee chairperson Amos Kankunda (Rwampara County, NRM) said that financing of the infrastructure activities is critical for the Kampala Industrial and Business Park (KIBP).

Kankunda was presenting the budget framework paper for the 2024/25 to 2028/2029 financial year to the Budget Committee on Wednesday January 17, 2024.

The Finance committee also recommended the allocation of Sh6b UIA in the forthcoming fiscal year to implement regional industrial development programmes including surveying, titling, and securing all industrial and business parks.

“Cabinet approved the infrastructure development of Tangshan Mbale Industrial park and Liao Shen Industrial Park, Kapeeka to a tune of sh161.81b and sh102.13b respectively over a three-year period,” Kankunda clarified.

The aforementioned funds are poised at developing reliable infrastructure to aid manufacturing within the planned growth corridors, ease movement and facilitate trade by connecting production centers, households, and communities to markets.