MPs Query Atiak Sugar Factory
The parliamentary committee of trade and tourism has today queried the management of Atiak Sugar Factory and NAADS for accountability of the 54bn which was allocated by government to provide support to sugarcane out growers .
MPs are also concerned that the government’s share capital has remained very low at 40% against a huge investiment of 101bn shilings.
The government of Uganda has so far invested 101bn shilings into Atiak Sugar Factory to alleviate poverty in the war torn areas of Northern Uganda but the parliamentary committee of trade and tourism has discovered today that it may take long for the factory to benefit locals. The committee is concerned that the huge investment by government doesn’t match with it’s share capital which is at 40%.
The committee discovered that 54bn shilings which was appropriated by government to support sugarcane out growers in Northern Uganda through NAADS, was instead given to Horyal Investimants Company Holdings which runs the factory to grow sugar cane on behalf of the intended beneficiaries. But up to date, out growers from districts of Amuru, Gulu Adjumani and Lamwo districts have not been allocated plantations.
MPs have rebuked the arrangement in NAADS contracted Horyal Investiments to grow canes without involving farmers.
Michael Lakony the Chairperson of Amuru district where Atiak Sugar factory is situated told the committee that the community has not benefited from the 54bn support because NAADS has failed to allocate plots to out growers who were meant to benefit.
The committee was also concerned to find-out that casual labourers who work in Out growers Sugarcane plantations are demanding wage arrears of 1.6bn yet government allocated money
MPs also quizzed Uganda Development Corporation on how 16bn shilings was allocated to Atiak sugar factory to transport sugarcane from Busoga to Atiak in disregard of the appropriation procedures.
Atiak sugar factory was commissioned in October 2020 by President Yoweri Museveni