Latest Posts

Finance Minister, AG Defend Controversial Coffee Deal

The Attorney General Kiwanuka Kiroywa and Finance Minister Matia Kasaija have defended the controversial coffee contract between the Government and the Italian investor that has ruffled feathers since last month.

While appearing before the parliamentary committee on Trade, Tourism and Industry chaired by Mbarara city south MP Mwine Mpaka on Wednesday, 27 April 2022, the Attorney General told the committee that the contract is legal and binding.

“I checked the company’s legal standing and I was convinced that the company has proper legal standings in Uganda and therefore the contract has no breach of any provisions of the law. So I confirm that I carried out a legal due diligence on the company and I am convinced it is in compliance with the provisions and any of the laws,” Kiwanuka said.

His response was triggered by Kalungu West County MP Joseph Ssewungu who demanded the Attorney General’s confirmation that the contract is favourable for the people of Uganda.

On 10 February 2022, minister Kasaija on behalf of Government signed an agreement with Uganda Vinci Coffee Company Limited (UVCC) owned by an Italian investor, Enrica Pinetti to have exclusive rights to buy Uganda’s coffee for processing on top of several incentives and concessions extended to the same coffee company that among others include; allocation of 27 acres of land at the Industrial Park in Namanve, government to construct an access road linking the plant to the main access road, power transmission to the plant at government’s cost and exemption from all kinds of taxes.

In his statement, Minister of Finance Kasaija allayed MPs’ fears that the contract favours the coffee company at the expense of local farmers. He insisted that the UVCC deal is beneficial to Ugandans.

“This agreement does not deter other potential investors from investing in value addition. UVCC provides an opportunity for the country to fetch better prices for high grade coffee. The company aims to establish several hubs across the country intended to enhance traceability of farmers and to eliminate middlemen,” Kasaija said, adding that UVCC will pay a competitive and market determined price.

Bwamba County MP Richard Gafabusa questioned why Government did not consult widely before signing the controversial coffee contract. He also wondered why there was no termination clause in the contract that was signed with UVCC.

“Enrica acquired the deal to get the land but over the years nothing has been done. Over 10 years have gone by and the deal has just been finalised this year. This makes the previous years null and void. Is there any clause that calls for termination in case the investor fails to deliver?”Gafabusa asked.

Some of the MPs on the Committee on Trade, Tourism and Industry expressed distaste for the coffee agreement.

Amuria Woman MP Suzan Amero was disgruntled with Finance minister for failing to seek the consent of the farmers before signing the deal as it gives away the coffee that they produce and yet they are not given the right to set their own prices.

“Coffee is not a natural resource that is owned by the government. And since the company does not have coffee, our farmers shall also not be party to their agreement because they were not consulted,” Amero said.

The Solicitor General Francis Atoke refuted allegations that he said he had never seen nor heard anything about UVCC. He says that the press comments are exaggerated.

“I cannot do anything without the authorization of the Attorney General. Why would I talk about something I had no consent to talk about? This doesn’t mean that the deal is illegal or wrong in any way,” he said.

The Trade committee is still skeptical about the coffee deal as there are significant documents that are still missing and questionable.

Loading

Don't Miss

EXPOSED! Muyenga Tycoon’s Maid Cited In Land Wrangle

In recent days, Muyenga, Y2K Zone a push Kampala suburb,

Parliament Orders Closure Of Fuelex Petrol Stations For Adulterating Fuel

The Parliamentary Committee on Trade And Industry led by Mbarara

Big Story: Parliament Probes UETCL Bosses Over Corruption, Mismanagement & Controversial UGX 28Billion Compensation Deal

Members of Parliament on the Committee on Environment and Natural

‘Back Off Buganda Land’ Kabaka Mutebi Castigates People Pushing For Abolition Of Mailo Land Tenure System

The Kabaka of Buganda Kingdom Ronald Muwenda Mutebi II has

Big Story: IGG Probes Over Shs1bn Ubos Fraud

The Inspector General of Government (IGG) is investigating top officials

EXPLOSIVE: How Speaker Kadaga & Confidant Hon. Okupa Spent Over US $764,000 (Shs2.8 BN) In-less Than 2 Years In Travels Abroad

Since taking office as Deputy Speaker of Parliament way back

Ham Vs DTB Appeal: Bank Of Uganda Runs Out Of Case, Leaves DTB To Carry Its Own Cross

Bank of Uganda has officially quit the case involving city

Amnesty International Joins Push To Free Presidential Runner Robert Kyagulanyi

The Ugandan authorities must immediately lift the police and military

Exporters Call For Strong Action Against EAC States’ Trade Barriers

Manufacturers have called on the government to impose tough measures

Big Story: How KCCA Officials Messed Up Youth Fund Programs, Stole Billions of Gov’t Funds In Shoddy Deals

Kampala: If there is any government Authority that frustrating President

I Predict Museveni, NRM Victory In 2021 Elections

By Faruk Kirunda Kampala: As we dive into the high

Crisis: Lord Mayor Lukwago Defies Court Order, Appoints Balondemu As Chairman K’la District Land Board

Veteran lawyer Hajji Elias Lukwago, who is the Kampala city

Scandal: Stanbic Bank Bosses Allegedly Steal Borrowers’ Land Titles, Mortgage Them To Dfcu Bank

Several officials at Stanbic Bank are in deep trouble after

Scandal: KCCA Officials On Spot For Blowing Shs 8Bn Under The Guise Of Renovating Old Tax Park

Several officials at the Kampala Capital City Authority (KCCA), are

Covid-19 Crisis: Ugandan Students Expected To Sit For UNEB Exams In March 2021

All indications are that a dead year will not be

BoU To Appeal In Supreme Court Over Trashed Crane Bank Case

The Bank of Uganda (BOU) has said it will be

Shame As Top Police Boss Is Convicted Of Car Theft, Ordered To Pay Over Shs282M

Untold shame has engulfed the Uganda Police a senior officer

Just In! Energy Mafias Rock Parliament As Patriotic Young Turks Question AIGP Akullo’s Involvement In Min. Energy Corruption

Panic has rocked Parliament as renowned Parliamentarian and Lawyer Hon.

Energy Mafias Debunked Part III: How Werikhe, Turyagyenda Corruptly Swindled Shs15 Bn For 3 Electricity Distribution Projects In Acholi, Bunyoro & Kiruhura

FUNDING THE COUP THROUGH ENERGY AND MINERALS CORRUPTION By the

Just In: Top Energy Officials Fired On Presidential Orders Over Massive Theft Of Electricity Distribution Funds

By Our Reporter Kampala: Two senior officials of Rural Electrification

Salary Scam Hits KCCA AS 29bn Is Paid To Ghost Workers

After Eng Andrew Kitata took over as the acting Executive

Court Trashes Nzeyi’s Case Involving Sale Of NBC To Crane Bank

The Constitutional Court has dismissed an application filed by city

Prime Finance Sues Fountain Publishers Over Shs43Bn Loan

Prime Finance Company has dragged Fountain Publishers Limited to court