UGANDA, Kampala | Real Muloodi News | Members of Parliament have expressed concern over the Uganda Investment Authority’s (UIA) failure to revalue a significant portion of its land holdings, totalling 22,877 acres, prompting demands for transparency and accountability
The issue was raised during a session of the Public Accounts Committee chaired by Medad Lubega Sseggona (Busiro County East Wakiso, NUP), where legislators scrutinised the Auditor General’s report on the financial statements of the authority, revealing a lack of land valuation for over a decade.
The Auditor General’s report highlighted that the current value of UIA’s land, stated at sh28.89 billion as of June 30, 2023, may not accurately reflect the true worth of the assets.
Robert Mukiza, the Director General of the Uganda Investment Authority, informed the committee that while some land holdings, such as those in Kisoro, Rukungiri, and Nebbi, have been valued, there has been a delay in the valuation process for the broader portfolio.
Mukiza assured the MPs that efforts are underway to secure funds from the Ministry of Finance, Planning, and Economic Development to finance the titling and securing of all industrial parklands in the upcoming financial year.
The Auditor General recommended that UIA prioritise the valuation of its land holdings in the subsequent financial year to ensure accurate reporting.
Additionally, MPs raised concerns about the delay in the development of the Kampala Industrial and Business Park (KIBP), located in Namanve Industrial Park, a project funded by the Ugandan government with support from the United Kingdom Export Finance and Standard Chartered Bank UK.
The KIBP project, with a total cost of sh849.50 billion, commenced on July 6, 2020, and was expected to conclude by January 2024.
However, as of the time of the audit in September 2023, the project remained incomplete. A letter from the Permanent Secretary of the Ministry of Finance, Ramathan Ggoobi, dated April 4, 2023, instructed UIA to conclude the project development by June 30, 2023.
Despite this directive, the Auditor General’s report revealed that the project had been granted an extension until June 2024.
Mukiza attributed the project extension to ongoing infrastructure development activities at the KIBP in Namanve, Mbale Industrial Investment Park, and Kapeeka Industrial Park.
He assured the committee that feasibility studies are underway for infrastructure development in other industrial and business parks across the country.
In a bid to address the infrastructural needs of industrial parks, the Finance, Planning, and Economic Development Committee recommended allocating USh263 billion for industrial park development, emphasising the importance of timely completion to avoid potential litigation costs.
Chairperson of the Finance Committee, Amos Kankunda (Rwampara County, NRM), emphasised the critical role of infrastructure financing in the development of industrial parks, particularly for the KIBP.
Kankunda presented the budget framework paper for the fiscal years 2024/25 to 2028/29, highlighting the allocation of USh6 billion to UIA in the upcoming fiscal year for regional industrial development programs, including surveying, titling, and securing industrial and business parks.
Cabinet approval has been granted for the infrastructure development of Tangshan Mbale Industrial Park and Liao Shen Industrial Park in Kapeeka, with allocated funds aimed at enhancing infrastructure reliability and connectivity to support manufacturing activities and facilitate trade within growth corridors.
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