Sh167b saved from NHCC sale
Jul 12, 2007
THE Government saved sh167.4b from the sale of the National Housing and Construction Corporation (NHCC) to Libya, the secretary to the Treasury, Chris Kassami, has said.
By Mary Karugaba
THE Government saved sh167.4b from the sale of the National Housing and Construction Corporation (NHCC) to Libya, the secretary to the Treasury, Chris Kassami, has said.
Kassami told MPs that the money was saved after ‘intensive’ negotiations with the Libyan government and was part of the debt the Government owed Libya.
“This was one of the best deals we made. This money was saved as a result of our negotiations, otherwise the Libyan government had asked the Government to either pay the debt or get a debt swap by selling some of its shares in the NHCC,†Kassami said.
The MPs had accused the Government of ‘irregularly’ selling the corporation’s 49% shares to Libya.
According to the sale agreement signed in 2005 by the then finance state minister, Mwesigwa Rukutana, and the deputy secretary to the Treasury, Keith Muhakanizi, the Government owed Libya $183m.
In June 2005, the Government entered into an agreement with Libya where it was decided that it (Libya) cancels the interest and penalty interests accrued, which amounted to $88m.
Through negotiations, the two governments adopted $95m as the full and final outstanding debt.
The agreement says the two governments agreed to settle part of the $95m by transferring Uganda’s shares in the NHCC worth $20.3m as settlement for the debt at an exchange rate of sh1,760 for $1.
A debt equity swap agreement was reached where Libya acquired 49% shares in the corporation.
The committee chaired by Nandala Mafabi said the corporation was sold “hurriedly without an evaluation report.â€
The MPs also asked why the shares were sold basing on financial statements of 2002 yet the sale was done in 2006.
Kassami explained that at the time of the sale, the corporation’s audited accounts were of 2002 and “therefore, the only alternative basis for determining the Net Asset Value was 2002 audited financial statements.â€
The legislators suggested that an investigation be carried out to determine whether an audit for the money was done.
THE Government saved sh167.4b from the sale of the National Housing and Construction Corporation (NHCC) to Libya, the secretary to the Treasury, Chris Kassami, has said.
Kassami told MPs that the money was saved after ‘intensive’ negotiations with the Libyan government and was part of the debt the Government owed Libya.
“This was one of the best deals we made. This money was saved as a result of our negotiations, otherwise the Libyan government had asked the Government to either pay the debt or get a debt swap by selling some of its shares in the NHCC,†Kassami said.
The MPs had accused the Government of ‘irregularly’ selling the corporation’s 49% shares to Libya.
According to the sale agreement signed in 2005 by the then finance state minister, Mwesigwa Rukutana, and the deputy secretary to the Treasury, Keith Muhakanizi, the Government owed Libya $183m.
In June 2005, the Government entered into an agreement with Libya where it was decided that it (Libya) cancels the interest and penalty interests accrued, which amounted to $88m.
Through negotiations, the two governments adopted $95m as the full and final outstanding debt.
The agreement says the two governments agreed to settle part of the $95m by transferring Uganda’s shares in the NHCC worth $20.3m as settlement for the debt at an exchange rate of sh1,760 for $1.
A debt equity swap agreement was reached where Libya acquired 49% shares in the corporation.
The committee chaired by Nandala Mafabi said the corporation was sold “hurriedly without an evaluation report.â€
The MPs also asked why the shares were sold basing on financial statements of 2002 yet the sale was done in 2006.
Kassami explained that at the time of the sale, the corporation’s audited accounts were of 2002 and “therefore, the only alternative basis for determining the Net Asset Value was 2002 audited financial statements.â€
The legislators suggested that an investigation be carried out to determine whether an audit for the money was done.