Parliament has learned that the letter by Uganda Investment Authority (UIA) authorizing the Italian investor Enrica Pinetti behind the controversial coffee deal, allowing her to mortgage 25 acres of land was signed off at 2:36am even before the request from the investor was made.
This was disclosed by Jinja North Division County legislator David Isabirye during a meeting held between Parliament’s Trade, Tourism and Industries Committee where the proprietor of Uganda Vinci Coffee Company was tasked to explain why they used the land title of the 25 acres gifted to the company to secure a loan from a commercial bank.
His remarks were in relation to a question posed by MP Mwine Mpaka (Mbarara City South) who tasked Moses Matovu, the Company Secretary of Uganda Vinci Coffee Company to respond to reports that contrary to the glossy proposal of injecting US$80 Million into coffee processing and export, Vinci Coffee Company used the title of the land given out in Namanve Industrial Park as mortgage in order to secure a loan to raise money for the construction of the factory.
However, Matovu denied saying that UVCC has neither borrowed any money nor mortgaged the title of the land in Namanve.
Bwamba County MP Richard Muhumuza tabled before the Committee a 30th August 2018 in which Pinetti wrote to UIA Acting Director Basil Aja seeking authorisation to use the land title to secure a loan, thus punching holes in Matovu’s earlier denials that there was never such a move.
The Committee was further shocked to learn that although Pinetti is said to have written the letter requesting to mortgage Namanve land on 30th August 2018, the letter from UIA authorizing the transaction came on 3rd August 2018.
This prompted Matovu to acknowledge presence of the letters but insisted although the intention was made, it did not materialize.
His remarks were however dismissed by Mwine who pointed out that when Pinetti requested for the mortgage, her request was processed at an alarming speed and in the wee hours of the night, which points to the request being urgent.
The Executive Director Uganda Investment Authority Robert Mukiza informed the Committee that for a foreign investor to be allowed to mortgage the land title to acquire a loan, they are required to have constructed the factory to 60% completion while the local investors are expected to fulfill the construction to 30%.
This prompted the Committee to task Matovu to furnish the Committee with copies of the land title to the land occupied in Namanve.
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