Businessman Sudhir Ruparelia has filed his response to Parliament regarding the government shares in Munyonyo Commonwealth Resort Limited. Parliament had summoned Sudhir to explain the status of government shares in the 5-star facility.
“The committee has noted with concern that Uganda Development Corporation (UDC) as an investment arm of Government, has not been availed an opportunity to manage the Government shares it owns in Munyonyo Commonwealth Resort,” said the letter to Sudhir.
“Thus, you are invited for a meeting with the committee, to explain the status of Government shares and the accessibility UDC has had to the shares, in order to efficiently manage them,” the letter added.
The businessman has however filed his response to concerns raised by Parliament’s committee on Tourism, Trade and Industry.
In his response dated November 10, which was received by both the Ministry of Finance, Planning and Economic Development (MoFPED) and the office of Clerk to Parliament, Sudhir noted that Government, through MoFPED, holds 25 per cent of the shares (equivalent to 15,061,209 – 120 ordinary shares).
The other shareholders are Meera Investments Ltd (8,434,277,107 ordinary shares), Sudhir Ruparelia (30,724,866,605 ordinary shares) and Jyotsna Ruparelia (6,024,483,648 ordinary shares).
The city tycoon added that Government had the right to choose which entity should hold its shares on its behalf, but added he was yet to receive directives to transfer the shares from MoFPED to UDC.
“GOU holds the 25 per cent shares through the Ministry of Finance, Planning and Economic Development. GoU is free to decide by whom its shares are held,” explained Ruparelia.
“We have not received communication from the Minister of Finance, Planning and Economic Development regarding the decision to transfer its shares to UDC as choses and preferred entity to hold GoU shares. In case we missed it, kindly share a copy so that when we appear we address you about it appropriately through the normal procedures for transfer of shares and UDC will then be the entity holding GoU shares,” he added.
The meeting with Sudhir was scheduled for Friday November 12. But the tycoon told the committee that he would be returning on the evening of the same day, consequently asking for rescheduling of the meeting.