Tagged:

Uganda's Coffee Plant Deal Raises Red Flag on Govt Land Loan

The government signed an U.S.$80 million deal with coffee firm Uganda Vinci Coffee Company Limited (UVCC), to establish a coffee processing plant at Namanve industrial park. The deal - signed by company director Enrica Pinetti - led a parliamentary committee investigation after several irregularities were discovered.

MPs on the committee were dismayed to learn how Pinetti, the firm's director, reportedly mortgaged 25 acres of state land in Namanve - given to them to secure a loan from a commercial banks - to set up the coffee processing plant.

The allegations have been denied by the UVCC company secretary, who said that the request to mortgage the state land did not materialise. The committee chairperson, Mwine Mpaka has in the meantime demanded a copy of the land title deeds. 

Ministry of Finance Permanent Secretary, Ramathan Ggoobi defended the deal as "the best the country can ever get. The deal was signed to add value to Ugandan coffee and export it globally", he said.

InFocus

Pixabay, Rachel Mabala/Daily Monitor

(file photo)

Follow AllAfrica

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.