Thursday , June 30 2022
Home / NEWS / MPs recommend transfer of Uganda Airlines to UDC

MPs recommend transfer of Uganda Airlines to UDC

Parliament’s Budget Committee chairperson Amos Lugoloobi

Kampala, Uganda | THE INDEPENDENT | Parliament’s Budget Committee has recommended that the ownership of Uganda National Airlines Company Limited be transferred to Uganda Development Corporation-UDC.

According to the Uganda Development Corporation Act 2016, UDC is the business arm of Government. The new recommendation is carried in a report to parliament concerning the ownership of the Company by the Budget Committee.

Ntenjeru North MP Amos Lugoloobi, the committee Chairperson on Friday presented the report to Parliament Chaired by Deputy Speaker, Jacob Oulanyah.

The committee’s report follows a directive by Parliament on Wednesday for the committee to scrutinize fresh documents that had been tabled by Works and Transport Minister, Monica Ntege Azuba indicating that government had regained full ownership of Uganda National Airlines Limited.

The documents showed allocation of 2 million shares worth 200 million Shillings to Matia Kasaija, the Finance Minister and Works and Transport Minister Monica Ntege Azuba as shareholders with 1 million shares for each shareholder.

This was after a minority report presented to parliament by Lira Woman MP Joy Atim Ongom in which she indicated that 99.9% of the shares of the company did not belong to government.

The committee further reported that the allotment of shares was signed by the Minister Monica Ntege Azuba), one of the Shareholders, which is irregular especially where the company had previously appointed directors.

Lugoloobi told parliament that the new special resolution of the company now indicates shareholders as  Minister of Works and Transport (1,000,000 Ordinary Shares) and Minister of Finance, Planning and Economic Development (1,000,000 Ordinary Shares).

He recommended that Parliament adopts this ownership structure that was approved on Thursday.

Deputy Speaker Jacob Oulanyah directed Minister Azuba to withdraw misleading documents she had earlier tabled before parliament and also apologize. Azuba offered an apology and subsequently withdrew earlier documents.

The controversy on the ownership of Uganda National Airlines Limited follows a request for a supplementary budget of 280 billion shillings to purchase two bombardiers planes from Canada.

According to government, the money is required by the manufacturer by today and that failure to respect the agreement, Uganda will incur costs of insurance and parking fees as the planes lie idle with the manufacturer.

Last year, the government placed a firm order worth 711 billion Shillings for four CRJ 900 planes from Bombardier, a Canadian manufacturer for regional airliners.



One comment

  1. Ooooh. Our member’s of parliament are fools

Leave a Reply

Your email address will not be published. Required fields are marked *