The Permanent Secretary in the Ministry of Finance, Planning and Economic Development (MoFPED)
Mr Ramathan Ggoobi has clarified to Parliament on the status of Government’s 25% shares held in the Commonwealth Resort, Munyonyo.
In a detailed letter to the Clerk to Parliament Parliament, Mr Ggoobi also a leading economist noted that Finance Ministry is at the tail end of finalising the share transfers to the Uganda Development Corporation.
UDC is Ugandan government’s investment arm.
“Reference is made to your letter Ref. AB 215/287/01 dated 5th November 2021 to this office on the above subject matter and requiring a written explanation from the Ministry of Finance Planning and Economic Development (MoFPED) as the regulator of Agencies affiliated by Subvention,” Mr. Ggoobi wrote.
He added: “This Ministry received a communication Ref. UDC/CR/110/1/1 dated 27th January 2020 from the Executive Director, Uganda Development Corporation (UDC) requesting the Ministry for a transfer of all the Shares held in Munyonyo Commonwealth Resort Limited to facilitate the operationalization of schedule 2 of the UDC Act”.
“The Ministry wrote to Solicitor General seeking legal advice on how to handle this transaction of transferring Government shares. In a letter, Ref: ADM.202/03 dated June 22, 2021, the Solicitor General guided on the transfer of the 15,061,209,120 shares from the Ministry of Finance, Planning and Economic Development to Uganda Development Corporation.”
“The Ministry represented by the Hon. MoFPED has since signed the transfer of shares stock forms (being the holder of the shares on behalf of the Government) and returned the same to the Executive Director, UDC for filing with the Registrar of Companies and further management as evidenced in our Ref. AGO/139/81/21 dated 22nd October 2021,” Ggoobi added.
He said the whole process is being guided by the Solicitor General.
In a separate latter dated October 22 2021 (AGO/139/81/21) finance ministry PS confirmed the transfer of executed stock transfer forms The Executive Director, UDC.
“Reference is made to your letter Ref: UDC/CR/187/1 dated 22nd September 2021 regarding the above subject. The Ministry has fully executed the transfer of shares stock forms effecting the transfer of all the 15, 061, 209, 120 shares held in Munyonyo Commonwealth Resort Ltd to UDC. This is, therefore, to forward the signed forms for further management,” Mr Ggoobi wrote.
According to information on the record, the Government, through MoFPED, holds 25 percent of the shares (equivalent to 15, 061, 209, 120 ordinary shares) in the joint venture that owns the resort.
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).