947 billion Shillings approved for payment of Ugandan companies that lost money in South Sudan
The 82 Ugandan traders/ companies that supplied goods and services in South Sudan but were not paid due to the outbreak of conflict in December 2013 will soon smile to the bank after Parliament approved their payment of 947 billion shillings.
South Sudan and Uganda entered into a mutual agreement which ensured that Uganda clears the debt and treat it as a loan to the Government of South Sudan In 2010. The approved monies will be paid back within a period of five to 10 years at a six percent interest rate after the first year.
The memorandum of understanding signed covers 10 companies of Rubya Investments, Kibungo Enterprises, Aponye (U) Limited, Afro Kai Ltd, Swift Commodities Establishment Ltd, Sunrise Commodities, Ms Sophie Omari, Apo General Agencies, Ropani International and K.K Transporters. The companies have already received 41 billion shillings.
Members of Parliament had initially questioned why only 10 companies were being paid and yet several companies and individuals had supplied South Sudan. They later added more companies to the list before a select committee was set out to investigate the matter.
But on Thursday, Parliament adopted the report of the select committee on South Sudan chaired by Kyankwanzi district Woman MP Ann Maria Nankabirwa, which recommended for the payment of 778 billion shillings which has been approved by the Minister of Finance and Planning of South Sudan to 40 companies and another 169 bn to 42 companies.
Parliament also passed a proposal to have the Ministry of Finance, Planning and Economic Development disburse the loan balance of 112 Billion shillings under the sovereign guarantee to the companies in order to build confidence and assure South Sudan that it is committed to the terms of the Bi-lateral Agreement.