Amama Tasked To Explain Govt Failure To Rescue Sembule

PM Amama Mbabazi
PM Amama Mbabazi

Ugandan Prime Minister Amama Mbabazi has been tasked to explain why government refused to rescue Sembule Steel Mills yet he promised last year that government will protect the industry.

In a question and answer session with the Prime Minister at Parliament, Rubaga South MP Ken Lukyamuzi asked why Mbabazi made empty promises to Ugandans and whether it is not too late to rescue the industry.

Mbabazi said that indeed government had intended to rescue the industry because it is invested in encouraging the growth of internal capacity but failed to raise the money required to pay off the Sembule’s debts.

He said that after discussing the matter with the concerned parties including the President, the Minister of Finance and the proprietors of Sembule, government had earmarked 5 million dollars to rescue it but required more money which government could not raise.

But Lukyamuzi challenged the Prime Minister saying that the industry needed only 7 billion shillings to pay off its debts and resume operations yet he was talking of 5 million dollars not being enough. Mbabazi said that the figure that the proprietors mentioned was more than 7 billion shillings. He said the issue became more complicated because the matter was already in court and that required raising actual cash which government did not have available.

The Prime Minster added that if government had money, it would have helped but there was no way government could have acted against the court order. He said that government is still in talks with the proprietor Christopher Sembuya.

Workers at the Sembule Steel Mills last year petitioned Parliament urging it to compel government to intervene and help the company pay off the 7 billion shillings it owed Bank of Baroda.

Parliament discussed the petition and demanded that government should not let the bank take over one of Uganda’s largest local investment. Despite Mbabazi’s assurance that government would surely intervene, Sembule was taken over by the bank in November last year.

6 thoughts on “Amama Tasked To Explain Govt Failure To Rescue Sembule

  1. Greedy Mps deal gone bad. That case was settled and the owners paid to bank and the tittles given back. the owner then sold part of it and raised more profits for himself. but because he promised jawulo to you guys if you can manage and get him the 7B he paid to the bank. your here raising your noses.

  2. Am sure some investor in the same industry has paid somebody in govt to frustrate any chances of helping Sembule

  3. How come raising and saving Basaja Balaba the government gathers the money- on even calls from above….this sectarianism should stop ASAP

  4. When you need supplementary budget you get the money ! The judiciary is irrelevant when the govt wants it and respected when the govt want to avoid blames what a circus Mbabazi!!!

  5. shamless Ugandan leaders always care about where they gain when they are eating billions and are now saying the don’t have 7billion

  6. The same govt stood as a guarantor for Roofings 100m dollar world bank loan, an Indian run company, but refused to help Sembule a local Ugandan owned firm! Now that Sembule is in the hands of Indians, clearly we see Indians being propped up and the steel industry is the real economy…forget selling clothes in owino, the steel business is big business, Indians have successfully taken over with M7s help.

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