Dairy Corp sale suspended

By Vision Reporter

THE Government has suspended the privatisation of Dairy Corporation Limited (DCL) opting for management contract privatisation minister Prof Peter Kasenene, said yesterday. <br>

By James Odomel

THE Government has suspended the privatisation of Dairy Corporation Limited (DCL) opting for management contract privatisation minister Prof Peter Kasenene, said yesterday.

“We have suspended the leasing of DCL until it is turned round into a profit- making company.

DCL will be handled on management contract,” Kasenene said in a telephone interview.

A privatisation deal between the Government and Thai company Malee Sampran Plc, failed but the company is expected to be involved in the management contract.

“DCL has a management problem. Thai company is one of the companies the board is negotiating with to be company managers,” Kasenene.

Malee Sampran Plc was expected to have taken over the corporation’s assets by early February.

Kasenene said there was need to inject more money and restructure DCL before it is privatised.

“We want to turn the corporation round to a profit- making one. This is the work of the board. It is the board handling the management contract process,” Kasenene said.

David Bigira, DCL’s board chairman, said they refused to sign a lease agreement with Pan African Foods (PAFL) due to suspicion.

Early 2004, the Privatisation Unit (PU) advertised for interested bidders to buy a controlling stake in the corporation.

However, in October, the Government cancelled the bidding process and directed that the PU goes into negotiations with Malee Sampran Plc for the lease of the company.

The President Yoweri Museveni through his constitutional rights had directed Kasenene to pass DCL to the Thai firm for a nominal fee of $1.

Dairy Corp sale suspended