The Ugandan parliament has put on hold a proposal to provide an additional $434 million to Dei BioPharma, a pharmaceutical plant, due to unresolved issues regarding ownership, valuation, contractual agreements, and accountability. This decision was made during a plenary debate on the Presidential Affairs Committee's report on selected science, technology, and innovation projects. The committee, led by Martin Ojara Mapenduzi, had recommended that the Ministry of Finance provide further funding to complete and operationalize the plant.
Deputy Speaker Thomas Tayebwa expressed concerns that parliament could not legitimately direct further expenditure while key processes underpinning the state's existing investment remained unresolved. He warned that lawmakers risked authorizing spending before basic safeguards were in place. The committee reported that the government has so far invested 723.4 billion Ugandan shillings in Dei BioPharma. Despite this, no documentary evidence confirming the government's reported 9.4 percent shareholding was presented during the assessment.
Mapenduzi emphasized that clear documentation of the state's shares, expected returns, deliverables, and performance targets must be provided in proportion to the public resources committed. He stressed that the government should ensure that clear documentation of its shares in Dei BioPharma, expected returns, deliverables, and performance targets are provided. This documentation is crucial to ensure accountability and transparency in the use of public funds.
Leader of the Opposition Joel Ssenyonyi questioned the logic of approving more financing for Dei BioPharma without proof of government shareholding. He also challenged the committee's parallel recommendation of $250 million for Inspire Africa Coffee, citing the lack of a contractual and financing framework for that relationship. Ssenyonyi demanded a value-for-money audit of all public funds already committed to such projects before any additional financing is approved.
Ssenyonyi's concerns extended beyond Dei BioPharma, as he questioned what he described as a pattern of bailouts for selected private firms while other enterprises struggle without comparable support. He noted that numerous companies also require bailouts from the government, and wondered why the government continues to support certain problematic companies while neglecting other genuine businesses that are struggling.
Buzaaya County MP Martin Kasule Mugabi questioned whether the investment structure adequately protects public capital, citing cases where similar investments have faced challenges. The parliamentary debate highlights the need for greater scrutiny and transparency in the use of public funds for private sector projects. The concerns raised by lawmakers reflect a broader debate about the role of government in supporting private sector initiatives and the need for accountability in the use of public funds.
The parliamentary committee's recommendations and the concerns raised by lawmakers are expected to shape the government's future investment in Dei BioPharma and other science, technology, and innovation projects. The government's response to these concerns and the actions it takes to address them will be closely watched by stakeholders, including lawmakers, civil society, and the private sector.
Key points
- Parliament has delayed a proposal to commit $434 million to Dei BioPharma due to concerns over ownership, valuation, and accountability.
- The government has invested 723.4 billion Ugandan shillings in Dei BioPharma so far, but lacks documentary evidence confirming its 9.4 percent shareholding.
- Lawmakers are demanding a value-for-money audit of all public funds already committed to such projects before any additional financing is approved.
