WETLAND WRECKERS! Swiss-Indian tycoon Oswal’s Ethanol factory in Uganda on spot over wetland degradation, faces 12-year jail

Swiss-Indian billionaire Pankaj Oswal’s industrial empire is under fire after Ugandan authorities accused his flagship ethanol factory in the East African country of choking protected wetlands with toxic waste — a crime that could land company bosses behind bars for up to 12 years, RedPepper can report.

The storm centres on PRO Industries Pte Limited, a massive ethanol and extra-neutral alcohol (ENA) plant in Luwero District, central Uganda commissioned with fanfare by President Yoweri Museveni himself just weeks ago.

Now, the same factory is on the spot for alleged environmental destruction.

In a dramatic turn, RedPepper understands Indian nationals Asrashundhra Oswal and Riddhi Oswal, directors of the company, were summoned by Uganda’s environmental watchdog NEMA, questioned at its Albertine regional office, and had formal statements recorded.

Authorities have opened a criminal case file, setting the stage for possible prosecution under Section 55 of the National Environment Act, which treats wetland degradation as a serious criminal offence. Upon conviction, they face a fine of up to Shs600 million (USD167664.64), up to 12 years in prison, or both.

According to NEMA, a joint inspection involving environment police, the army (UPDF) and environmental enforcement units reportedly uncovered multiple violations, including: direct discharge of industrial effluent into a wetland; poor handling of toxic distillery sludge; and breach of Environmental and Social Impact Assessment (ESIA) conditions.

NEMA has since ordered the company to restore the damaged wetland, warning that failure to comply will trigger tougher enforcement action.

PRESIDENT M7 FURIOUS

The scandal comes at the worst possible moment.

President Museveni has recently gone on the warpath against wetland grabbers.

The President also last week grilled officials from NEMA and Ministry of Water for several hours at his ranch in Kisozi, Gomba district, south central Uganda. He was reportedly furious over what he sees as failure to stop environmental crimes by these bodies and warned of serious consequences.

Sources say the President is deeply unhappy — especially given that wetlands have shrunk from 15.6% of Uganda’s land in 1994 to just 8.9% in 2019.

H.E President Museveni has issued several directives to wetland encroachers to vacate these sensitive ecosystems, however, these have not achieved the desired effect. Encroachment on wetlands has long been a pressing issue, often driven by the need for agricultural land, urban expansion and industrialization among others.

“This nonsense must stop,” Museveni has repeatedly warned.

PRO Industries had been showcased as an industrial success story, with Riddhi Oswal boasting of 100 million (Shs380b) investment, largest ENA and ethanol plant in East Africa, 20,000 farmers supplying maize and 120,000 litres of ENA and 35,000 litres of ethanol daily.

But critics now say the economic gains may be coming at a deadly environmental cost.

The question now: Will Uganda make an example of one of the world’s wealthiest industrialists — or will the wetlands pay the price?

WIDER PICTURE

For more than a century, the Oswal Group Global has built power quietly — and relentlessly.
Founded in 1912 by Swiss-Indian billionaire Pankaj Oswal, the family-owned conglomerate has stitched together a shadowy global empire, expanding across continents while largely avoiding public scrutiny.

Run from plush headquarters in Singapore, the Oswal machine now reaches deep into Africa, Australia and Switzerland, embedding itself in some of the most sensitive and extractive sectors of developing economies.

The group’s empire spans textiles, real estate, yarn and garment manufacturing, mining and petrochemicals — industries notorious for their heavy environmental footprint. Yet Oswal Group loudly markets itself as a poster child for sustainability and social responsibility, boasting of a commitment it claims is “deeply felt” by communities on the ground.

Reality, however, is catching up.

Across Africa, Oswal Group’s presence is not just wide — it is overwhelming. In Guinea, West Africa, the family conglomerate controls Axis Minerals, the largest privately owned bauxite mine, exporting a staggering over 10 million tonnes of raw bauxite every year to China.

That level of extraction has raised eyebrows among environmental watchdogs — and now, Uganda’s wetlands may have become the latest casualty of Oswal’s industrial march.

What was once sold as a story of responsible global investment is now unravelling into allegations of environmental abuse, exposing a growing gap between the conglomerate’s polished sustainability rhetoric and the destructive footprints allegedly left behind.

As Uganda investigates illegal wetland degradation, the Oswal empire faces a question it can no longer dodge: Is this a responsible global giant — or just another resource-hungry conglomerate leaving damage in its wake?

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