Trade ministry to verify more South Sudan-based traders

Apr 01, 2019

Government’s decision to pay only 10 companies prompted the establishment of the select parliament committee

The ministry of trade and cooperatives has agreed to set up another committee to verify more traders who incurred losses after the conflict broke out in 2013 and were not paid.

Ann Nankabirwa the chairperson of Parliament's committee investigating the payment of 33 Ugandan-South Sudan companies, told the over 100 traders who claimed to have lost billions of shillings after the war said the ministry of trade has agreed to verify the traders at least before the end of April.

"The Minister of Trade has assured us that a new committee will soon be formed to verify all the traders who were not verified by the joint arbitration committee. We hope this will be as soon as possible before the Ministry of Finance travels to South Sudan at the end of April," Nankabirwa said.

She also urged the government to move fast and compel the government of South Sudan to pay the traders.

"We are of the view that let the government pay the traders something as it pursues payment from South Sudan because these people are suffering. It is now over 9 years. Secondly, why has the government decided to pay only 10 companies? What happens to the rest of the traders?" she asked.

MP Mathias Mpuga urged the traders to organise all their documents so that they are able to make a case for their payments.

The traders, represented by their lawyer Dorothy Kabugo of DN Kabugo Advocates argued that although there are 129 companies and individuals, only 10 have been paid.

She said many traders have since updated their files and are ready for verification.

She warned that if the government does not devise new ways of ensuring that the traders are paid, they may never be paid at all.

"There are over 129 companies and individuals who were affected yet only ten were verified and cleared. The Parliament resolution added 23 more. How about the rest of the companies? Many of them have now gotten documents and are ready for verification. They should also be compensated," she said.

The traders were on Monday appearing before Parliament's select committee investigating the payment of 33 Ugandan-South Sudan companies approved by Parliament.

She argued that Parliament should not have directed payment of the companies before verification of all the claimants.

"If this had been done, all the companies would have received something and not only 10 companies," she said.

"These people have lobbied, demanded their payment since 2010 but nothing has happened. The South Sudan government has not acted as expected," Kabugo said.

Subsequently, Uganda signed a bilateral agreement with South Sudan for the latter to pay off the sh150b balance and await reimbursement from the former, however, Parliament while approving the agreement, said that payment should only be made with an addendum of 23 companies to the list of 10.

Government's decision to pay only 10 companies prompted the establishment of the select committee chaired by Kyankwanzi woman MP Ruth Nankabirwa to among others, lift the veil on the legitimacy of the beneficiaries and probe allegations that partial payment of sh40b to the 10 companies was marred by irregularities.

Appearing before the committee last week, Chris Kaijuka the chairperson of the 10 companies insisted that the $56m is exclusively meant for them who supplied the strategic grain reserve of South Sudan under their umbrella body, Uganda Southern Sudan Grain Traders and Suppliers Association.

According to Nankabirwa, even among the 23 companies that have been left out of the compensation, there are those with documentary evidence indicating that they also supplied the strategic grain reserve of South Sudan.

State minister for finance David Bahati demystified claims that the 23 companies were unfairly left out of the compensation, saying that, although they have already been verified by the ministry of trade in Uganda, their payment awaits verification by South Sudan and another sovereign guarantee.

On his part, the Attorney General, William Byaruhanga said that although at the signing of the bilateral agreement, the 10 companies had already been jointly verified and qualified for the compensation, the priority of payment can change to focus on the companies left out if the resource envelope allows.

"Hypothetically speaking if the remaining balance of $31m (about sh115b) is available, I see no reason why the list of claimants can't be flipped to pay the 23 companies for purposes of equity but of course joint verification will be key," Byaruhanga opined.

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