Shs70b  deal leaves Naads in crosshairs

The circumstances under which Shs70.9 billion was spent on readying land in the northern districts of Lamwo and Amuru for sugarcane production were a sticking point as officials from the National Agricultural Advisory Services (Naads) met a House committee last week.

The money, secured through the restrictive and or direct procurement process, was channeled to Horyal Investment Holding Company Limited across two financial years (2017/2018 and 2018/2019).

The House committee on Commissions, Statutory Authorities and State Enterprises (Cosase) heard that the money was used to execute mundane tasks such as bush clearing and land preparation albeit at princely sums. 

Mr Samuel Mugasi, the Naads executive director, told Cosase that the Finance ministry greenlit “entering contract with the Horyal … and [allocation of] funds for the out growers scheme.” 

Naads was also compelled to opt for direct and restrictive bidding methods, Ms Eunice Katto—its procurement officer—disclosed, because the rainy season was only days away.  

She further revealed, therefore, competitive bidding would frustrate efforts to plant on time.

“It is worth noting that the Horyal investments, which operates the Atiak Sugar cane factory at the moment, does not have irrigation facilities and their production of sugar cane is dependent on natural rainfall,” Ms Katto reasoned, adding: “Therefore, time is of essence to ensure that the planned activities are implemented within the rainy season and overall enable the timely production and supply of sugar cane.” 

Cosase, which is currently looking into queries raised in the Auditor General Report for the 2021/2022 fiscal year, heard that the Shs70.6 billion was appropriated in at least four sets of contracts.

Shs15.8 billion was spent on bush clearing activities on 31,159 acres of land in Palabek in Lamwo District.

A further Shs6 billion was also used to clear bushes across 15,000 acres. 

Elsewhere, Shs4.5 billion was spent on supply and delivery of seed cane in a contract that was issued through restrictive bidding during the 2017/2018 fiscal year.

Kinyara Sugar Company and Horyal Investment Holding Company Limited were sourced for the deal, but Kinyara is said to have opted out.

Cosase was also told that Shs1.6 billion was spent on DAP fertilisers and Shs1.2 billion on urea fertilisers during the same financial period.

The House committee also issued summons to Mr Patrick Kiconco, a lawyer working at the Pathway Advocates, as allegations of misappropriation of Shs39 billion came to light.

Mr Kiconco is said to have received Shs39 billion on behalf of his law firm.

He was supposed to pay off tea farmers, who registered losses after Naads declined to buy off their seedlings contrary to a prior agreement.

Ms Lucy Akello, the Cosase vice chairperson, confirmed that work commitments meant that Mr Kiconco couldn’t honour the summons. The lawyer is, nevertheless, expected to appear before the House committee on Tuesday to account for the Shs39 billion.

Expenditure
Partial Breakdown of  Shs70b 

Shs6 billion used on bush clearing

Shs15.8 billion used on bush clearing

Shs2.1 billion used on land preparation

Shs440 million on planting activities

Shs795 million on manual weeding

Shs150 million on chemical weeding

Shs146 million on fertiliser application

Shs5b construction of housing units for labourers

Shs1.8b on seed cane transportation and harvesting services

Shs4.5 billion for supply of seed cane

Shs1.6 billion spent on fertilisers

Shs1.2 billion spent on fertilisers