Gov’t to Take over Crumbling Companies, Says Minister Kasaija

The Minister of Finance, pharm Planning and Economic Development, this web Matia Kasaija has revealed that government won’t bail out any companies as requested by several tycoons in the country, drug accusing their owners of living luxurious lifestyles.

While appearing before the committee of finance at Parliament on Tuesday, the Minister said that most of the tycoons that are seeking bailout have poor financial discipline.

Kasaija made mention of a one businessman Tom Mugenge who borrowed money but blew it all up.

Mugenga appeared on the list seeking to be bailed out. According to Kasaija, the said tycoon borrowed Shs2billion from a bank but only used Shs1Billion to establish a potato processing factory in Kisoro, and can’t account for the other balance.

Kasaija noted that the factory hasn’t been completed and government intends to take it over since it is a strategic industry.

“If the potato processing factory is to take off, it is one of the liberating industries in Uganda. We found out that market for the products is available in Rwanda, DRC and a new management is being put in place to take over the company until we have recovered our money.”

Kasaija added that all failing companies that Government will find dealing in relevant investments will instead be taken up.

The Minister clarified on the bailout reports making rounds in mainstream media; stressing that government will only work on paying the companies who supplied it with goods and services.

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