A fresh report states the sketchy things about the ownership of the Uganda National Airlines Company Limited!
“Hold fast to dreams,
For if dreams die
Life is a broken-winged bird,
That cannot fly.” – Langston Hughes
Today, there was tabled a report on the 26th March 2019, reported titled: “Report on the Budget Committee on the Supplementary Expenditure 2 for FY 2018/19” especially the vote – “Vote 016 MOWT – USHS 280.046 For Financing Costs of Uganda National Airline”. In this report there are vital information coming up. That I will address, but also show, as it proves how the state plans to invest the taxpayers money on the airline, but also what sort of finance it has already.
The government clearly have already invested money into it, but doesn’t have ownership in it. That is what the report says. It shows intent of investing more in it, but not actual ownership of it. However, not claiming it, which is weird, but that is what they do. They are buying planes for it and investing in it, but not owning it. That is what they are initially saying. This is really rare and weird.
Here is the quotes from the report that matters in my sense:
“The Government of Uganda has injected approximately 29.9 USD million into this company but has only 2 shares allocated to it”
“Ministry of Works and Transport has requested for on additional Ushs 280,046,77 6,933 to cater for investment costs of the Uganda National Airline”
“The Ministry of Finance, Planning ond Economic Development indicated that it was to use proceeds from MTN licence amounting to USD 60 million (approximately UGX 222 billion) to portly finance Uganda National Airlines”
“The shore capital of Uganda National Airlines Company Limited is 200 million divided into 2 million shores of UGX 100. Of the 2 million shares only 2 shares worth UGX 200 to Minister of Works and Transport as well as Ministry of Finance, Planning and Economic Development. This makes both ministries to be minority shareholders holding only 0.0001% of the shores. At the moment the owners of the 99.97 shares are unknown. The owners will only be determined when the Directors decide to allocate the shares. It was asserted that the minority shares will be floated to the public. However contention arose as to whether the minority shareholders can float what they do not own. lt was however asserted that this move was undertaken to limit the liability of government. Hence a concern pertaining intension of government to establish o company that it already roles 10 be huge liability from the onset”
As you see, the $30m been invested in the Airline already. The Government and Ministry of Works and Transport, that they need more funds. Also, telling their lack of the shares in the company, while also planning to use licencing funds from MTN to cover the spending on the Company. Which later, in the Report states they will not, but I added to prove how the state spend the revenue it is getting.
The Uganda National Airlines is clearly not well-managed or well prepared, as it is a pile of expenditure, but not allocated what it needed. Since, the state is in need of more after spending millions already. As the first planes are coming in the coming week. Therefore, the National Resistance Movement and the ones behind it is clearly playing games.
They are spending public funds on a possible Uganda National Airline Company Limited, when they arrive. Since the report turned public the GCIC have claimed this in response to the report delivered. Which clearly shows the significant stature of the ownership in question.
They are claiming this:
“ CLARIFICATION: There has been misleading information regarding shareholding of Uganda Airlines Company LTD. The company was incorporated on 30th Jan, 2018. The company has 2 million shares. Minister for Works was allotted 1 million shares & Minister for Finance, 1 million shares. 3/3: In July, 2018, the management of the company allotted the entire shares of the company as follows:
1. Minister of Works & Transport (represented by Hon. Monica Azuba Ntenge)- 1 million shares.
2. Minister of Finance (represented by Hon. Matia Kasaija) – 1 million shares” (GCIC, 27.03.2019).
This is countering the facts in the report, that even before the ink is dry. Before the time and test of the knowledge given by the Ministry and the Government itself. So why does the GCIC have other indications and facts, than the report. You can wonder who gave them and where it is from? Why wasn’t this given as facts to Parliament and signed of by the Members of Parliament then?
Well, this will be played out in real-time. This is not a fan-fiction, West-Wing drama, no this is real live events of the operations and investing in the resurfaced Airline Company. This shouldn’t be that tricky or played out like this, but it is because the state and the ones involved in it. Because, there must be some loose ends, which is not yet caught. It will eventually. Peace.