UGANDA, Kampala | Real Muloodi News | The Government of Uganda announced economic stimulus packages to be implemented during the 2021 financial year to boost economic growth and revive the economy post-COVID-19. One beneficiary of these stimulus packages is the Kampala Serena Hotel, through the Uganda Development Corporation (UDC).
However, the Trade Committee of Parliament has halted the payment of USh 3 billion to Kampala Serena Hotel. The government had earlier awarded the USh 3 billion in October last year.
During a meeting, Mwine Mpaka, the Trade Committee of Parliament chairperson, questioned UDC, a government entity that enhances economic development, about why Serena Hotel got the stimulus money and how the hotel would reimburse the government. UDC members could not justify to the Committee why Kampala Serena Hotel received the stimulus.
Several companies own Kampala Serena Hotel, including Tourism Promotion Services (a division of Aga Khan Fund for Economic Development), National Social Security Fund (NSSF), and Proparco.
According to UDC, the hotel was entitled to the stimulus. They approved the funds to Serena Hotel after a request from Nile Hotel, the hotel holder, on behalf of the government. The Director of Finance of the UDC explained to the committee that the stimulus package would be a loan lent to their subsidiary–Nile Hotel. He explained that the USh 3 billion is part of the USh 100 billion approved by the board for the stimulus packages.
The Director of Investments at UDC said that the hotel is to be supported as the pandemic affected it over the last two years, and they require the stimulus to revitalise.
However, the committee decided that the Serena hotel should not receive the stimulus and asked UDC to bring evidence of minutes and written requests to show the selection process for the stimulus package.
Finally, according to a source, UDC is already reconsidering the loan to Serena Hotel.
Others who are likely to receive the stimulus package include (but are not limited to):
- Luwero Fruit Factory
- Mabale Tea Factory
- Moroto Cement Factory
- Atiak Sugar Works
- Busoga Cane Growers
- Acholi Bur Pader Catholic Archdiocese
- Yumbe Mango Factory
- Mpanga Tea Factory
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