Anite clarifies on competitiveness enterprise project

The Ministry of Finance, Planning and Economic Development, has dismissed reports that sh40b meant for the Competitiveness Enterprise Development Project (CEDP), was misappropriated. 

Clarification on the project plan is contained in a letter from State Minister for Privatisation and Investment, Evelyn Anite, dated May 3, 2017, addressed to the chairperson of the parliamentary committee on trade, industry and tourism, Kenneth Lubogo. 

Anite maintains that the deliberations in the interface between the committee and the project managers, was misreported. 

She explains that the Tourism, Wildlife and Antiquities Ministry presentation to the committee was satisfactory. 

Anite observes that CEDP was contracted in special drawing rights, for which Government received 66.6 million, equivalent to $100m (sh361.9b) as of January 2014. 

However, she notes that the dollar value has surpassed the SDR, which has negatively impacted on the distribution. 

"However, the dollar has since appreciated against the SDR and at the time of the Project's mid-term review, the resultant impact translates to $10m (or about sh37b) which consequently affected the allocation across the components," Anite explains. 

"This impact is a result of a global factor, foreign exchange fluctuation that is not in the control of the ministry, and should not be presented as a misappropriation or worse still theft" she added.

Anite elaborates that the impact of the fluctuation will be ascertained at the end of the project in March 2019. 

She has also dismissed as untrue, claims that the proposed construction of the Uganda Hotel Tourism and Training Institute, has been downgraded from a 5-Star to 3-Star Hotel. Anite says the initial 3-Star plan still stands. 

The letter has been copied to Tourism, Wildlife and Antiquities minister, and the ministry Permanent Secretary, Secretary to the Treasury, Executive Director Private Sector Foundation Uganda, and project coordinator CEDP.