Pallisa district has stopped the operations of Eco-Friendly Ltd and Hero View, for encroaching on wetlands.
Eco-Friendly Ltd and Hero View, which are owned by Asian businessmen, have been operating farms in Kapyani and Apapa in Pallisa district.
Issa Taligola, the Pallisa LC5 chairman has asked the two firms to wind up their activities on the land.
Taligola's directive stems from an order from NEMA to Pallisa district local government to stop any activities on the land.
The National Environment Management Authority recently directed Pallisa district administration to order Eco-Friendly Ltd and Hero View to vacate the area immediately.
Gerald Sawula Musoke an official with NEMA wrote to Pallisa district saying that the two farms were located deep into permanent wetlands, which have been subjected to intensive cultivation and grazing.
Mohammed Samuku, Pallisa District Natural Resources Officer says that the Asians have using the land to grow rice and maize, yet they had promised to invest in agro-processing.
He says that a team from NEMA visited Buseta and Kasodo sub counties on the invitation of the Asians in November last year and discovered that the farms were set up in Wetlands.