MPs query sh2b for CHOGM hotel
Apr 09, 2008
MYSTERY surrounds the sh2.2b released by the finance ministry to J&M Hotel at Bwebajja on Entebbe Road, in preparation for the Commonwealth summit (CHOGM).
By Henry Mukasa
MYSTERY surrounds the sh2.2b released by the finance ministry to J&M Hotel at Bwebajja on Entebbe Road, in preparation for the Commonwealth summit (CHOGM).
Whereas the ministry insists it released the money, there is no evidence to prove that the hotel received it.
MPs probing expenditure on CHOGM were also shocked to learn that no guest slept in the hotel, which was incomplete at the time of the summit.
The MPs, who were meeting the finance minister, Dr. Ezra Suruma and the director of the Budget, Patrick Ocailap, also demanded to know why the hotel was included on the list of benefiting institutions at the last minute.
The hotel was listed for help after Parliament had approved the supplementary budget for CHOGM.
Ocailap said the sh2.2b was sent to the foreign affairs ministry, which was to remit it to the hotel.
“As to whether the money left foreign affairs for J&M is a matter for the permanent secretary to answer.â€
Suruma said his ministry’s role was to release the money as approved by Parliament, while accountability was to be made by the various sectors that handled CHOGM activities.
But MPs Juliet Kabonesa (NRM), Louis Opange (Independent) and Margaret Muhanga (NRM) asked Suruma to state the criteria used to select the hotels, which benefited from government funding.
They also demanded to know whether the Government would earn interest on the investments.
On criteria, Suruma said the hotels approached the Government through the foreign affairs ministry.
He said the Government had acquired shares in all the beneficiary hotels, except Serena, which was yet to issue share certificates. Suruma said the proprietor of J&M could have been misadvised but deserved help.
“My impression is that the man over invested and over expanded. He is all over the hill. He invested $6m (sh10.2b), so the sh2.2b from the Government was a small amount of money,†Suruma said.
“If you have a Ugandan, who has invested $6m and gets stuck, as a government do you say sorry or find a way of helping him? Maybe he was misadvised because he has over 20 incomplete buildings.â€
MYSTERY surrounds the sh2.2b released by the finance ministry to J&M Hotel at Bwebajja on Entebbe Road, in preparation for the Commonwealth summit (CHOGM).
Whereas the ministry insists it released the money, there is no evidence to prove that the hotel received it.
MPs probing expenditure on CHOGM were also shocked to learn that no guest slept in the hotel, which was incomplete at the time of the summit.
The MPs, who were meeting the finance minister, Dr. Ezra Suruma and the director of the Budget, Patrick Ocailap, also demanded to know why the hotel was included on the list of benefiting institutions at the last minute.
The hotel was listed for help after Parliament had approved the supplementary budget for CHOGM.
Ocailap said the sh2.2b was sent to the foreign affairs ministry, which was to remit it to the hotel.
“As to whether the money left foreign affairs for J&M is a matter for the permanent secretary to answer.â€
Suruma said his ministry’s role was to release the money as approved by Parliament, while accountability was to be made by the various sectors that handled CHOGM activities.
But MPs Juliet Kabonesa (NRM), Louis Opange (Independent) and Margaret Muhanga (NRM) asked Suruma to state the criteria used to select the hotels, which benefited from government funding.
They also demanded to know whether the Government would earn interest on the investments.
On criteria, Suruma said the hotels approached the Government through the foreign affairs ministry.
He said the Government had acquired shares in all the beneficiary hotels, except Serena, which was yet to issue share certificates. Suruma said the proprietor of J&M could have been misadvised but deserved help.
“My impression is that the man over invested and over expanded. He is all over the hill. He invested $6m (sh10.2b), so the sh2.2b from the Government was a small amount of money,†Suruma said.
“If you have a Ugandan, who has invested $6m and gets stuck, as a government do you say sorry or find a way of helping him? Maybe he was misadvised because he has over 20 incomplete buildings.â€