UK hides investor pulls out
Jan 22, 2004
A United Kingdom-based hides and skins company, East Hides Limited that had invested in Uganda has suspended operations. The firm was the Government to investigate allegations of ‘unprofessional’ methods used in the hides and skins industry.
By David Muwanga
A United Kingdom-based hides and skins company, East Hides Limited that had invested in Uganda has suspended operations. The firm was the Government to investigate allegations of ‘unprofessional’ methods used in the hides and skins industry.
Nick Stephens, the firm’s director said in an e-mail message to Dr. Maggie Kigozi, the Uganda Investment Authority, “Cattle traders supplying
cattle to both Uganda Meat Industry and Kampala City Abattoir complained that they are being forced to sell hides and skins at 50% below the open market price.â€
“This was already one of the concerns raised when we met President Yoweri Museveni together with you. We feel it is only fair to inform you that we have put our investment on permanent hold until the situation is resolved to allow free competition,†Stephens said vial e-mail.
He said he had already received a copy of the complaints.
Workers from both butcheries said in a letter copied to the investment state, Sam Kutesa, UIA, Kampala City Council, NEMA, Human Rights Commission, Parliament and Kampala Traders Association, the companies forcefully bought the hides and skins at sh700 per kilogramme. This is below the open market of sh1,300.
The workers said goats skin went for only sh1, 500 per piece, yet the open market was sh2,200.
They said sheep skins sold at sh700 per piece, yet other buyers paid sh1,900 per piece.
“Before the new management came in, we were paying sh7,000 per head of cattle slaughtered but now we pay sh12,000. The increase in a short period has reduced our profits drastically,†the workers letter said in part.
The workers claimed the companies were forcing the butchers to use dirty water from trenches to clean the meat.
“He has deployed excessive forces who arrest us when we try to hesitate. Now we are being told that we should leave these matters because we could be shot to death because they involve big bosses in government,†the letter said.
“We request President Yoweri Museveni to come out and explain the matters because this is a threat to our working environment,†the letter added.
The workers allege that a new company called First Merchandise was the sole buyer of skins and hides from them.
“They have stopped East Hides, SWT Tenas and Leather Industry Uganda from buying our products,†they said.
A United Kingdom-based hides and skins company, East Hides Limited that had invested in Uganda has suspended operations. The firm was the Government to investigate allegations of ‘unprofessional’ methods used in the hides and skins industry.
Nick Stephens, the firm’s director said in an e-mail message to Dr. Maggie Kigozi, the Uganda Investment Authority, “Cattle traders supplying
cattle to both Uganda Meat Industry and Kampala City Abattoir complained that they are being forced to sell hides and skins at 50% below the open market price.â€
“This was already one of the concerns raised when we met President Yoweri Museveni together with you. We feel it is only fair to inform you that we have put our investment on permanent hold until the situation is resolved to allow free competition,†Stephens said vial e-mail.
He said he had already received a copy of the complaints.
Workers from both butcheries said in a letter copied to the investment state, Sam Kutesa, UIA, Kampala City Council, NEMA, Human Rights Commission, Parliament and Kampala Traders Association, the companies forcefully bought the hides and skins at sh700 per kilogramme. This is below the open market of sh1,300.
The workers said goats skin went for only sh1, 500 per piece, yet the open market was sh2,200.
They said sheep skins sold at sh700 per piece, yet other buyers paid sh1,900 per piece.
“Before the new management came in, we were paying sh7,000 per head of cattle slaughtered but now we pay sh12,000. The increase in a short period has reduced our profits drastically,†the workers letter said in part.
The workers claimed the companies were forcing the butchers to use dirty water from trenches to clean the meat.
“He has deployed excessive forces who arrest us when we try to hesitate. Now we are being told that we should leave these matters because we could be shot to death because they involve big bosses in government,†the letter said.
“We request President Yoweri Museveni to come out and explain the matters because this is a threat to our working environment,†the letter added.
The workers allege that a new company called First Merchandise was the sole buyer of skins and hides from them.
“They have stopped East Hides, SWT Tenas and Leather Industry Uganda from buying our products,†they said.