Govt gives Sudhir sh8b
Dec 29, 2006
THE Government has given property mogul Sudhir Ruparelia sh8.8b to construct 59 modern presidential suites at his Speke Resort and country lodge in Munyonyo, Parliament has been told.
By Cyprian Musoke and Milton Olupot
THE Government has given property mogul Sudhir Ruparelia sh8.8b to construct 59 modern presidential suites at his Speke Resort and country lodge in Munyonyo, Parliament has been told.
Responding to concerns raised by shadow minister of justice and Kampala central MP Erias Lukwago, state minister for regional cooperation Isaac Musumba confirmed the deal.
He said the deal was a public-private partnership that government entered into with Sudhir’s Meera investments, to construct a modern village that will host heads of state at the Commonwealth Heads of State Meeting (CHOGM) here next year.
“Government entered into a joint venture with Meera investments Ltd to construct 59 presidential suites for the accommodation of the Heads of Government and other required facilities, to be managed by a new company known as Munyonyo Commonwealth Resort Ltd.
“The Memorandum of Understanding and joint venture agreement have been signed between the government and Meera investments Ltd. The government has already contributed its 25% equity towards the project,†Musumba said.
MPs put him to task to explain how much money Sudhir himself put in, and whether there were no other hotels interested in the deal.
“We have heard that government contributed sh8.8b to construct commonwealth Resort Ltd, in a joint venture with Meera investments. What was Meera’s contribution, and did parliament ever sanction this deal?†Lukwago inquired.
Local government public accounts committee chairman Geoffrey Ekanya said the partnership was done without a law that would enable the Auditor General audit the project.
“Under the current law, the auditor general does not audit investments where government has less than 50% shares and I know government has 22% in the project. How will these public funds be protected?†he asked.
Musumba explained that the heads of state needed a high-class place where they would retreat. He said when hotels were asked to build the suites, they wondered what they would use them for when the heads of state depart.
“That’s how we went into partnership for the Government to get 25% of that Commonwealth Resort.
He said the money was not a loan, where they needed parliament’s approval, and that there was no need for a law to allow the Government co-invest with the private sector.
THE Government has given property mogul Sudhir Ruparelia sh8.8b to construct 59 modern presidential suites at his Speke Resort and country lodge in Munyonyo, Parliament has been told.
Responding to concerns raised by shadow minister of justice and Kampala central MP Erias Lukwago, state minister for regional cooperation Isaac Musumba confirmed the deal.
He said the deal was a public-private partnership that government entered into with Sudhir’s Meera investments, to construct a modern village that will host heads of state at the Commonwealth Heads of State Meeting (CHOGM) here next year.
“Government entered into a joint venture with Meera investments Ltd to construct 59 presidential suites for the accommodation of the Heads of Government and other required facilities, to be managed by a new company known as Munyonyo Commonwealth Resort Ltd.
“The Memorandum of Understanding and joint venture agreement have been signed between the government and Meera investments Ltd. The government has already contributed its 25% equity towards the project,†Musumba said.
MPs put him to task to explain how much money Sudhir himself put in, and whether there were no other hotels interested in the deal.
“We have heard that government contributed sh8.8b to construct commonwealth Resort Ltd, in a joint venture with Meera investments. What was Meera’s contribution, and did parliament ever sanction this deal?†Lukwago inquired.
Local government public accounts committee chairman Geoffrey Ekanya said the partnership was done without a law that would enable the Auditor General audit the project.
“Under the current law, the auditor general does not audit investments where government has less than 50% shares and I know government has 22% in the project. How will these public funds be protected?†he asked.
Musumba explained that the heads of state needed a high-class place where they would retreat. He said when hotels were asked to build the suites, they wondered what they would use them for when the heads of state depart.
“That’s how we went into partnership for the Government to get 25% of that Commonwealth Resort.
He said the money was not a loan, where they needed parliament’s approval, and that there was no need for a law to allow the Government co-invest with the private sector.