The Parliamentary Committee on Trade, Tourism and Industry this week commenced investigations into the controversial coffee deal signed between the government and Uganda Vinci Coffee Company Limited (UVCC).
Chaired by Mwine Mpaka, the committee interrogated officials from UVCC led by the company secretary, Moses Matovu where they unearthed several irregularities regarding the coffee deal.
ADVERTISEMENT
During the meeting, MPs on the committee were dismayed to learn how the Italian investor, Enrica Pinetti, the director, UVCC reportedly mortgaged 25 acres of government land in Namanve given to them to secure a loan from a commercial bank in order to set up the coffee processing plant.
Jinja North County Member of Parliament, David Isabirye told the committee how UVCC reportedly wrote to Uganda Investment Authority (UIA) seeking permission to use the land titles for the said land to acquire a loan.
ADVERTISEMENT
According to Isabirye, the request was hastily granted by UIA in the wee hours of the night.
"This email was written on 01 September 2018 to the acting board chairperson of Uganda Investment Authority and it was replied at 2:36 am in the morning. The acting executive director of UIA acknowledged and gave no objection at 7:59 am when offices were closed. I really want to applaud them for working trans-night," Isabirye said.
But the company secretary Matovu vehemently denied the allegations saying that UVCC has neither borrowed any money nor mortgaged the title of the said land in Namanve.
"UVCC has never borrowed any money or mortgaged the titles of the land in Namanve. I also heard that UIA is in the [committee] room; they are the leaser in respect to that land, if they have information that this land has been mortgaged, I would like to see that information. But as Company Secretary, I can confirm to you that we have never borrowed, we don't have any loan," Matovu, who had already been put on oath, said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
To his surprise, Bwamba MP, Richard Muhumuza Gafabusa tabled before the committee an email which Pinetti wrote to the former UIA Acting Director, Basil Aja seeking authorisation to use the land title to secure a loan.
Matovu later acknowledged the correspondences but insisted that the request to mortgage government land did not materialise, prompting the committee chairperson, Mwine Mpaka to demand for the copy of the land titles.
Matovu was later handed over to the police Criminal Investigation Department (CID) for further inquiries after presenting to the committee contradictory statements in regards to the said land.
UIA Executive Director, Robert Mukiza said that for a foreign investor to be allowed to mortgage the land title to acquire a loan, they are required to have constructed the factory to 60 per cent completion while the local investors are expected to fulfil the construction to 30 per cent.
