The Member of Parliament for Kira municipality, Ibrahim Ssemujju, has raised concerns regarding the financial dealings of companies associated with the military, which has raised significant debate in parliament.
Ssemujju’s scrutiny centered on J2E Investment Corporation, which reportedly has a tax obligation of around UGX 2.718 billion and is alleged to have close ties with the Army.
During a parliamentary session on August 20, 2024, Ssemujju expressed his frustration when the Minister of State for Finance, Henry Musasizi, admitted to having no knowledge of the individuals behind this company, raising questions about transparency and accountability in government contracts.
“They claim that J2E Investment Corporation Ltd. is constructing barracks for the Army in Kaweweta. The government delayed payments, so it now wants taxpayers to shoulder the company’s tax burden due to its interests. It’s concerning to me that only one company is awarded Army contracts for such projects,” Ssemujju said.
“When we inquired about the company’s ownership and background, no information was forthcoming. The Minister could not justify why J2E is the sole company with Army contracts,” Ssemujju added.
Ssemujju also highlighted the troubling case of businessman Kananura, whose tax obligation of around UGX 3.776 billion was waived on the grounds of ill health.
This decision has drawn skepticism, particularly in light of the substantial amounts involved and the lack of clarity surrounding the criteria used for such waivers.
However, Ssemujju’s persistence in seeking answers reflects a growing demand for transparency on how public resources are allocated and managed.
The lack of clarity surrounding the ownership and operations of companies like J2E Investment Corporation raises concerns about potential conflicts of interest and the equitable distribution of government contracts.
Parliament Watch on their X handle noted that despite a recent report disclosing that Uganda has lost over UGX 12 trillion in the past five years through similar tax waivers, the government asked the Parliament of Uganda to exempt eight companies and individuals from paying taxes worth UGX 13.391 billion due to various reasons like COVID-19 effects that affected businesses, and ill health. The Minister of State for Finance identified the beneficiaries of these proposed waivers as Nkumba University, J2E Investment Corporation Limited, Nicontra Ltd, Kisiizi Hospital Power Ltd, Busoga University, Makerere Business Institute, Peter Lokwang, and businessman Donati Kananura.
