MPs approve sh280b for Uganda Airlines
Mar 29, 2019
This followed a report by the budget committee in which trade minister Monica Ntege confirmed on Oath that the aircraft being purchased by the company are brand new.
TRANSPORT|PARLIAMENT
KAMPALA - Parliament has approved a Government request of sh280b to purchase two aircraft for Uganda National Airlines Company Limited.
This followed a report by its budget committee on Friday in which trade minister Monica Ntege con-firmed on Oath that the aircrafts being purchased by the company are brand new, and delivery of the two aircraft of the six aircraft is expected early next month.
The budget committee chaired by Ntenjeru North MP Amos Lugoloobi said it was informed that Government had in the past incorporated two companies: Uganda Airlines Limited (1999) and Uganda Airlines Holdings Limited (2000).
It said the former had never been activated, while the latter was wound up and is under liquidation.
"According to the Uganda Registration Services Bureau (URSB), the two former companies were Government owned companies and the Government had an option to run the Airlines on any of the two or incorporate another company," the committee said.
It reported that the Government preferred to incorporate a new company "Uganda National Airlines Company Limited" so as to avoid any liabilities arising out of the former companies.
The new company incorporated on January 30, 2018 is Uganda National Airlines Company Limited.
"Government was further advised by the URSB that the name "Uganda Airlines" is available for use by Government," the report said.
Ownership of Airline business
The committee recommended that the Uganda National Airlines Company Limited should allot all the shares to the two shareholders (Minister of Works and Minister of Finance) and at an appropriate time may divest them to the public on the stock market.
It also recommended that the company should match the current investment capital with the share capital of the company.
"The directors should be clearly stated as persons acting in their official capacities, for example, permanent secretary in the Ministry of Works and Secretary to Treasury," it said.
MPs also asked the Government to expedite the process of appointing the full Board of the Company.