The Government has institute a National Environmental Management Authority (NEMA) team to investigate circumstances under which a $122m (sh300b) beef processing plant has been frustrated by pastoralists.
According to reports, the pastoralists, backed by top government officials, have encroached on the Kafu River, hindering the establishment of the Ziwa Ranch Scheme.
A team of NEMA officials and Environment Police early this week visited the area of contention in Masindi district, following reports of massive encroachment on a swamp next to the river.
The pastoralists accused of sabotage were recently evicted from Bulisa.
"We have discovered that John Kaija, an undersecretary in the labour ministry and Lt. Col. Abel Kandiho, one of President Museveni's guards are involved in the encroachment," said Dr. Festus Bogoora, the NEMA lead investigator.
Bogoore observed that the pastoralists had portioned sections of the swamp and erected kraals along the banks of the river.
"Kaija and his group are within 100 meters from the water mark of the river protected by law. They have encroached on the wetland and damaged the banks of River Kafu," Bogoora said.
"We had plans of exporting beef to Angola, the Democratic Republic of Congo and the Central African Republic next year but we cannot because our efforts are being frustrated by the pastoralists," said the ranch manager, Mohammed Iqbal.
He told the NEMA team that most of the perimeter fence wires erected bordering the river had been vandalised by the pastoralists.
"We were supposed to fence off and spray for two years to get rid of ticks before stocking the farm with 40,000 Braham cattle from Kenya. But each time we erect a fence, it is broken down."
Kaija, however, denied encroaching on the swamp.
"This is not a swamp. The river usually busts after four years and water over flows to my land. I have even applied for a land title from the district land board that I am about to get," he said.
The pastoralists accused Ziwa Ranchers of blocking access to the river.
"We need good neighbours. A good neighbour cannot block a road leading to his neighbour."