Uganda’s Speaker, Jacob Oboth, has told a parliamentary committee to investigate Dei Biopharma Limited and report within two weeks, after assets linked to the company were advertised for sale.
The government has invested an estimated Shs724bn in the pharmaceutical firm, according to a statement from the Parliament of Uganda. The directive followed a concern raised in plenary on Tuesday by opposition leader Joel Ssenyonyi.
Why is Parliament investigating Dei Biopharma?
Ssenyonyi cited media reports that the company had auctioned property and asked what taxpayers’ money had bought. “The company is now a shell,” he said. The Daily Monitor has reported on recurring auction threats over properties linked to the company’s founder, Mathias Magoola, and on what the state secured for its money.
Nakiyi, a ruling-party MP, asked whether assets advertised by Dei Industries International belonged to Dei Biopharma and whether they were acquired before the state bought shares.
What does the government say?
David Bahati, minister of state for industry, said due diligence was carried out before the investment. “The mere fact that assets have been advertised does not mean that we are losing assets,” he said, adding that any mistakes would be corrected.
The state’s stake has drawn scrutiny before. Daily Monitor and other outlets have reported that the Auditor General raised concerns about due diligence and that a parliamentary committee said documents proving the government’s 9.4 per cent shareholding had not been provided.
What happens next?
Samuel Opio, who chairs the Science, Technology and Innovation committee, said inquiries had begun and that the finance minister is among the stakeholders to be heard. The committee must report to the House in two weeks. Dei Biopharma has not commented in the Parliament statement.
FAQ
How much has Uganda invested in Dei Biopharma?
The government has invested an estimated Shs724bn, according to the Parliament of Uganda.
Who will investigate?
The Committee on Science, Technology and Innovation, chaired by Samuel Opio, has two weeks to report to Parliament.
What is the government’s position?
Minister David Bahati said due diligence was done and that advertising assets does not mean the state is losing them.
