The Ministry of Finance has, in October completed the transfer of government shares in Munyonyo Common Wealth Resort Limited to Uganda Development Corporation (UDC) a couple of days ago, the Secretary to the Treasury has revealed.
A 22 October 2021 letter from Mr Ramathan Ggoobi, to the UDC executive director, states that the ministry of finance had fully executed the transfer of 15,061,309,120 shares owned by the government. Forms for further management, according to Mr Ggoobi, had been forwarded to the Executive director of UDC for further management.
The letter puts to rest the agitation of Parliamentarians, targeting majority shareholder Sudhir Ruparelia, from whom demands that he explains why shares had not been transferred to UDC for management.
It emerged that a sectoral committee on Tourism, wanted Mr Ruparelia to explain why the transfer of government shares to Uganda Development Cooperation (UDC) had not taken place. However, like the Secretary to the Treasury letter states, was never the role of the Businessman but the Ministry of Finance itself.
It should be noted that efforts have been underway since February 2020, to transfer government shares in the above-named resort, from the Ministry of Finance, Planning and Economic Development to Uganda Development Cooperation (UDC).
The government of Uganda held 25% shares in the resort, through the Ministry of Finance, Planning and Economic Development, which amounts to 15,061,309,120 shares out of the 60,244,836,480 paid-up shares.
It’s these shares that the government wanted to be placed under the UDC.
In a letter to Parliament dated November 10th, 2021, Munyonyo Resort had requested for the postponement of the meeting, citing the would be absence o
“We are glad to oblige but we request you kindly reschedule the meeting,” due to the absence of the managing director, who would ably answer questions on behalf of Munyonyo Commonwealth Resort.
In correspondence with Parliament, it was clear the resort had no knowledge of the government’s decision to transfer its shares to UDC.
“Government of Uganda is free to decide by whom its shares are held. We have not received any communication from the ministry of finance, planning and Economic Development regarding GOU decision to transfer its shares to UDC as the chosen and prefered entity to hold GOU shares,” reads the letter.
However, the finance ministry letter emerged contending that all arrangements for the transfer of shares had been finalised, in a letter dated November 22nd, 2021, addressed to UDC.
“The ministry has fully executed the transfer of shares stock forms, effecting the transfer of all the 15,061,309,120 held in Munyonyo Common Wealth Resort Ltd to UDC,” read the letter.
In the letter, the resort also contended that upon the receipt of such information, the government would follow normal modalities for transfer of shares, leading to being placed under UDC
“………the address will be a confirmation, that such a decision will be implemented through normal procedures for transfer of shares and UDC will then be entity holding GOU shares,”
In a letter by the Ministry of Justice and Constitutional Affairs to UDC dated July 22nd, 2021, the latter was advised on the simple procedure to be followed leading to the successful transfer of shares.
“The Ministry of Finance, planning and Economic Development, him being the holder of shares (on behalf of the government), shall sign a share transfer instrument. The instrument is known as the “transfer of share stock” form and has already been availed, duly filled in, (by Uganda Development Corporation and is attached,” read the letter.
Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
