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Bugiri Sugar Factory Faces Expulsion From Namayingo Over Corruption Claims

Kizito Moses Buule by Kizito Moses Buule
1 year ago
in Business
5 1
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Namayingo District has remained the centre of a fierce conflict among rival sugar factories for over a week.

This follows a controversial suspension of CN Sugar Factory, by the Minister of Trade, Industry and Cooperatives.

The ministry’s decision left over 800 workers jobless and other residents, who were supplying construction material for the new multi-billion CN sugar project, at a significant financial loss.

After the suspension of CN Sugar factory activities, rumours spread on social media and across the district alleging that the proprietors of Bugiri Sugar Factory which operates in Namayingo district, were behind the closure.

Information received from the protesters indicates that Bugiri Sugar Factory aimed to establish a monopoly on sugar production in the area, fearing that the new rival CN Sugar Factory would threaten their business and market dominance.

This did not please the ill-fated CN workers, residents and leaders who protested against the deceptive actions of Bugiri Sugar Factory.

The Trade Minister- Francis Mwebesa, suspended the improvement and activities of CN Sugar, mentioning regulatory non-compliance with the aid of the Indian investor for the duration of the startup.

However, residents believe that the minister’s decision was influenced by existing external actors.

CN Sugar Limited received a certificate of No Objection from Minister Mwebesa in November 2022, granting the organisation permission to set up its production website.

Surprisingly, in a letter dated June 17, 2023, the minister reversed the preliminary decision, bringing up the dearth of a nucleus property of at least 500 hectares and a network of sugarcane outgrowers as reasons for halting the venture.

One of the residents, Mark Siminyu, stressed that they would no longer allow vehicles belonging to Bugiri Sugar Factory to go into or skip through Namayingo District.

“We will not allow corrupt leaders to restrict the improvement of our area. Consider the out-growers who’ve invested in developing sugarcane, who will purchase it as soon as the Indian traders leave? We are putting forward this area a no-pass zone for Bugiri Sugar, or we will burn their vehicles,” an agitated Siminyu stated.

Since the arrival of CN Sugar in Namayingo, 80-year-old Juma Kasadha noted a significant decrease in youth idleness and incidents of coffee theft in his village.

However, with all activities now suspended, Kasadha fears a resurgence of youth-related problems, which could potentially disrupt the peace and security of the village once more.

He’s now concerned that the suspension of CN Sugar’s sports will lead to a resurgence of children-related crimes in the village.

The Namayingo LC5 Chairperson, Ronald Ssanya, said they are to resort to ‘an eye for an eye’, once Bugiri doesn’t support development in Namayingo districts. “We shall also suspend its operations in the district,” he warns.

He cited that he had already petitioned the First Deputy Prime Minister, Rebecca Kadaga, and the Minister for Trade, Investment, and Cooperatives, highlighting the manufacturing unit’s importance to the network.

“I have additionally submitted recordings of DPC Kamukama trying to coerce me into betraying the development of my humans in Namayingo for money. I will by no means betray my humans; if it way demise, I will die preventing their development,” Ssanya declared.

The manager of CN Sugar Factory, Rashid Kakungulu, said they have been working to meet all requirements but felt ignored by the minister, who didn’t give a clear reason for the suspension.

The Namayingo District Woman Member of Parliament and the Bukooli South MP additionally vowed to oppose anyone obstructing improvement.

Deputy RDC for Namayingo, Treva Solomon Baleke, condemned the alleged bribery geared toward irritating network improvement.

He mentioned that even as the ministry stated non-compliance, it did now not address the manufacturing facility’s progress and that whoever halts development should be investigated.

Efforts to contact the owners of Bugiri Sugar Factory for comment were unsuccessful at the time of reporting.

At the end of the week, police, under the leadership of DPC Joseph Kamukama, raid

ed CN Sugar Factory, dispersing workers and management with tear gas and live ammunition.

 

 

 

 

 


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