Investment Authority Kashari land purchase halted

By Moses Walubiri

MPs have halted the purchase of 155 acres of land meant for an industrial park in Kashari after a string of procurement flaws pertaining to the transaction were laid bare.

The same land had also been rejected by Uganda Investment Authority (UIA) Board after UIA land division deemed it only fit for an agriculture project.

During an interface with UIA officials, the committee on Commissions Statutory Authorities and State Enterprises (COSASE) heard that ministry of finance released funds for UIA to buy the sh448m piece of land from a one Taremwa without calling for bids from other suitable land sellers as required under all public procurements.

“The committee has slapped a moratorium on this transaction until we are convinced about the process and relevancy of the purchase,” committee chairman Amuriat Oboi declared.

MPs Ayena Odong, Sanjay Tana, Mathias Mpuuga faulted UIA for seeking to purchase land for an industrial park in Kashari  yet the one in neighboring  Mbarara is not fully developed.

“The alacrity with which the whole process was executed makes us wonder whether some people keen to sell their land are not pushing government agencies to buy it,” Ayena said.

The head of UIA land division, Geoffrey Ssemakula did not help matters with his acknowledgement that   purchasing land for an industrial park in Kashari was never part of UIA’s work plans for the financial year 2011/12.  

Evidence before the committee indicates that President Yoweri Museveni, through his then Principal Private Secretary, Grace Akello, recommended that UIA explores the viability of establishing an industrial park on the land.
However, the UIA Board rejected the land citing its unviability for an industrial park.

 However, the ministry of finance went ahead and released sh488m, two days to the end of the 2011/12 financial year with instructions to “ring-fence” the money for land purchase.

This was after UIA Director Finance and Administration, Richard Tebandeke, wrote to ministry of finance requesting for the funds.

UIA is a semi-autonomous government agency operating in partnership with the private sector and Government of Uganda to drive national economic growth and development.

UIA operates with the aim of promoting and facilitating private sector investment in Uganda, which sometimes involves purchasing land for potential investors.