Members of Parliament have protested the government’s proposal to give Shs2 trillion to DEI Bio Pharma for the construction of a pharmaceutical factory in Uganda.

Ibrahim Ssemujju Nganda, the MP of Kira Municipality, wondered how the Budget Committee would justify injecting such a huge amount of money into a company with no written information.

According to Ssemujju, the government’s dealings with DEI Bio Pharma are likely to suffer a similar fate as Atiak Sugar Factory.

“Taxpayers’ money of about Shs485 billion was injected into Atiak Sugar Factory, and the government has about 20% of the shares. The other private shareholder only injected Shs80 billion, yet she owns 70% of the shares,” Ssemujju said.

He made the revelations in a meeting held between the Budget Committee and Ministry of Finance officials, who gathered at Speke Resort Munyonyo to scrutinize the Shs1.1 trillion supplementary budget, for which the government is requesting Parliament’s approval to allocate to DEI Bio Pharma.

“Whenever the government is going to inject money into your business, you have to give it shares. When you ask the government how many shares they have, they don’t know, but we have given Mathias Magoola (owner of DEI Bio Pharma) Shs145 billion, and he is in need of more, making it Shs2 trillion,” Ssemujju asked.

He added that if Magoola is given that money, he will keep coming for more.

“Even next year, you will see him return for more money. This will become like the Atiak Sugar Factory and the International Specialized Hospital Lubowa projects. If the government wants to build a pharmaceutical factory and inject in Shs2 trillion, how much money has Magoola injected into this factory?” Ssemujju questioned.

Henry Musasizi, Minister of State for Finance, defended the government’s position, arguing that it entered into a partnership with the project developer to build the factory that will facilitate import substitution in the pharmaceutical sector.

“The company has already made an investment of US$ 500 million (Shs1.902 trillion) in establishing Africa’s largest and state-of-the-art pharmaceutical plant,” Musasizi noted.

With the government having injected over Shs145 billion, Musasizi said shares are yet to be allocated to the company since the Attorney General is still reviewing documents regarding the allotment of shares.

Who is DEI Bio Pharma?

DEI Bio Pharma is a pharmaceutical manufacturing facility located in Matugga, Uganda, that produces biological drugs and vaccines.

The factory was commissioned in July 2021 by President Yoweri Museveni. It is a multi-million-dollar facility that is expected to employ up to 40,000 people directly, with tens of thousands more in indirect jobs.

The factory is a significant achievement for Uganda’s science and innovation capabilities, as it represents the country’s first large-scale bio-pharmaceutical manufacturing plant. It will allow Uganda to produce its own vaccines and other biological drugs, reducing the country’s reliance on imports.