Investor angered by Health ministry
Jan 01, 2004
Richard Nduhuura, the state minister for trade, has persuaded an angry Korean investor not to shift his syringe factory to Kenya or Malawi
By Dan nSalasatta
Richard Nduhuura, the state minister for trade, has persuaded an angry Korean investor not to shift his syringe factory to Kenya or Malawi.
Nduhuura met Mr. Y Kim in the VIP Lounge at Entebbe International Airport last weekend. Kim claims the Ministry of Health has declined to buy his products despite them being cheaper and of higher quality than what the ministry is buying from abroad.
Kim told Nduhuura he was in talks with the Kenyan and Malawi government officials over plans to re-locate the Nalukolongo-based factory to either of those two
countries.
He said he was disappointed by Ministry of Health officials.
“I do not want to take this move and I am happy I have met you,†Kim told Nduhuura. “I came to Uganda not to look for employment, but came with my money to develop Uganda, especially when I heard the presidential call for investors,†he said.
He added: “I identified a syringes factory as one of the non-existent industries in the country and injected a million dollars to start a fully automated factory in 1992. Currently, the factory produces 100,000 pieces of syringes per day, but sells only 30% of its production. We are stuck with the piling up stock in stores and it is not necessary that we produce anymore,†he said.
Kim said they sell a syringe at sh55 yet the ministry buys imports at $30 each in addition to paying for transport and clearing costs.
Nduhuura promised Kim he would talk to the relevant officials on the matter. He also said he would soon visit the factory to see how the trade ministry can help.
Kim said he felt cheated that health ministry officials licensed him, regularly inspected the factory to check on sanitary conditions, but refused to buy from him.
Richard Nduhuura, the state minister for trade, has persuaded an angry Korean investor not to shift his syringe factory to Kenya or Malawi.
Nduhuura met Mr. Y Kim in the VIP Lounge at Entebbe International Airport last weekend. Kim claims the Ministry of Health has declined to buy his products despite them being cheaper and of higher quality than what the ministry is buying from abroad.
Kim told Nduhuura he was in talks with the Kenyan and Malawi government officials over plans to re-locate the Nalukolongo-based factory to either of those two
countries.
He said he was disappointed by Ministry of Health officials.
“I do not want to take this move and I am happy I have met you,†Kim told Nduhuura. “I came to Uganda not to look for employment, but came with my money to develop Uganda, especially when I heard the presidential call for investors,†he said.
He added: “I identified a syringes factory as one of the non-existent industries in the country and injected a million dollars to start a fully automated factory in 1992. Currently, the factory produces 100,000 pieces of syringes per day, but sells only 30% of its production. We are stuck with the piling up stock in stores and it is not necessary that we produce anymore,†he said.
Kim said they sell a syringe at sh55 yet the ministry buys imports at $30 each in addition to paying for transport and clearing costs.
Nduhuura promised Kim he would talk to the relevant officials on the matter. He also said he would soon visit the factory to see how the trade ministry can help.
Kim said he felt cheated that health ministry officials licensed him, regularly inspected the factory to check on sanitary conditions, but refused to buy from him.