LOP Raises Alarm over UGX 723Bn Investment in Dei BioPharma

Before the government makes any financial commitment to a company, there must be due diligence done, and it is imperative for the government to prioritize accountability in all public expenditures, particularly in high-stakes commitments such as Dei Biopharma Company.

By
Agnes Atewo
-
19
Parliament
Hon. Joel Ssenyonyi, Leader of Opposition in Parliament (LOP) presenting a report on the floor of Parliament during the plenary session. Courtesy photo

The Leader of Opposition in Parliament (LOP), Joel Ssenyonyi, has raised concerns over the irregularities involving the UGX723.4Bn government investment into Dei BioPharma Company, citing the lack of transparency in this deal raises concern about taxpayers’ money that has been sunk into this project.

Ssenyonyi raised these concerns on Thursday, October 24, 2024, during the plenary sitting while presenting a Report on the Oversight Visit he took with his Shadow Cabinet to Dei Pharma Ltd. at Matugga in Wakiso district on September 19, 2024.

“The lack of transparency surrounding the agreement between the Government of Uganda and Dei BioPharma raises considerable concerns about the accountability of both parties involved,” Ssenyonyi said.

He further said that before the government makes any financial commitment to a company, there must be due diligence done, and it is imperative for the government to prioritize accountability in all public expenditures, particularly in high-stakes commitments such as Dei Biopharma Company.

According to Ssenyonyi, there is a need to see value for taxpayer’s money, and that in order to promote transparency, the government should table on the floor of Parliament the agreement signed with Dei BioPharma to ascertain the obligations of each party and the valuation report by the Chief Government valuer.

Read Also: LOP Expresses Discontent over Roko Construction Blockade

He added that the government should bring to Parliament a comprehensive policy on bailouts to guide future government interventions in private enterprises.

Additionally, Ssenyonyi said that Dei Biopharma received a cumulative total amount of UGX 723.4Bn as funding from the government. This financial support began with an initial allocation of UGX 70Bn, which was granted during FY 2023/24, followed by an additional UGX 75Bn in December 2023, and finally the most recent funding amounting to UGX 578.4Bn that was provided.

Speaker Annet Anita Among asked both the Attorney General and Minister of Finance to provide a written response to Ssenyony’s report.

RELATED ARTICLESMORE FROM AUTHOR