Kampala — The Public Accounts Committee of Parliament on Wednesday quizzed the Privatisation Unit director Michael Opagi over the loss of US $1million in the sale of Uganda Garment Industries Limited (UGIL).

Mr Opagi was appearing before the committee chaired by Dr Okullo Epak (Oyam South) to answer queries raised in the Auditor General's report for the year ending 30 June 2000.

According to the Auditor General, government bought UGIL at US $ 1.5 million (Shs 1.98billion) during the 1996/97 financial year and sold it to Phenix Logistics Limited at US $ 500,000 in 1999/2000.

The report noted that government lost US$1million in the deal and no satisfactory reason was given.

Mr Opagi, however, could not confirm or deny whether there was a reserve price for the enterprise He said he needed time to trace the documents related to the sale.

Rukiga MP Jack Sabiiti said government just 'donated' UGIL to the new owner because the selling price could not even meet half the cost.

Mr Francis Mukama (Kigulu North MP) said a fresh investigation about the sale be instituted to unearth the dirt underneath.

The Auditor General noted that there was wasteful expenditure from the time UGIL was bought to the time it was sold because it remained unfunctional but Shs 30 million per month was being paid out to the skeleton staff who were retained.

The committee agreed that the sale was a loss to the government and promised to ask Parliament to take stern measures against those involved.