This new investment brings the total government investment in the factory to Shs 668.7 billion, sparking concerns about the factory’s productivity and the government’s interests.
Nakawa Municipality Member of Parliament Joel Ssenyonyi, who is also the Leader of Opposition (LoP), last year called out the government to desist from investing any more money in Atiak Sugar Factory until a thorough audit that correlates with value for money is done.
Ssenyonyi told Parliament that there is nothing to show for the Shs553.71 billion that the government has progressively sunk into Atiak Sugar Factory, and demanded an explanation for the investment in the factory that has since failed to break even.
“This project excited many people because it sounded good for people in northern Uganda and the country generally. It started so well but along the way, there are many unanswered questions,” Ssenyonyi told Parliament in October 2024 shortly after visiting the Factory.
He expressed concern that the factory that has not been able to produce sugar is continuously being funded and questioned the government’s interests.
“How are we ensuring that the investment of taxpayers is making returns, almost every year there is a request for money to this entity,” Ssenyonyi wondered.
A Factory in Limbo
Atiak Sugar Factory, commissioned by President Yoweri Kaguta Museveni in October 2020, has failed to break even, despite receiving substantial government funding. The factory’s inability to produce sugar has led to concerns about its viability and the government’s continued investment in the project.
Lack of Transparency and Accountability
The Leader of the Opposition, Joel Ssenyonyi, last year called for a thorough audit to establish how the Shs 553.71 billion invested in the factory was utilized. Ssenyonyi’s concerns are echoed by many Ugandans, who are demanding transparency and accountability in the management of public funds, although their calls have always landed on deaf ears.
Challenges Facing the Factory
A 2021 report by the Parliamentary Committee on Tourism, Trade and Industry highlighted several challenges facing the factory, including:
Lack of Raw Materials
The factory’s inability to access sufficient sugarcane, the primary raw material, has hindered production.
Inefficient Management
The report cited laxity on the part of the Uganda Development Corporation (UDC), Ministry of Finance, Planning and Economic Development, and Ministry of Trade, Industry and Cooperatives.
Community Engagement
The factory’s failure to engage with local communities and involve them in the production process has led to mistrust and resistance.
The Way Forward
To address these challenges, the government must prioritize transparency and accountability in the management of public funds. This includes:
Conducting a Comprehensive Audit: A thorough audit of the factory’s finances and operations is necessary to establish how public funds have been utilized.
Improving Management and Efficiency
The government must work to address the management and efficiency challenges facing the factory, including improving community engagement and involvement.
Ensuring Value for Money
The government must ensure that public funds invested in the factory reflect value for money, with tangible benefits for Ugandan citizens.
Ultimately, the success of Atiak Sugar Factory depends on the government’s ability to address these challenges and ensure transparency, accountability, and value for money.