Bunyoro Goes To Court Over Kinyara Sugar Factory Shares

1426 Views Masindi, Uganda

In short
The Kingdom Prime Minister Norman Lukumu says the institution is meant to own 10 percent shares in Kinyara Sugar Works as the owner of the land, on which the sugar factory is built.

Bunyoro Kitara Kingdom has petitioned the Commercial Division of High court over it shares in Kinyara Sugar Factory. The Kingdom Prime Minister Norman Lukumu says the institution is meant to own 10 percent shares in Kinyara as the owner of the land, on which the sugar factory is built.

  
In 1995, government sold its 51 percent shares in Kinyara Sugar Works Limited (KSWL) to Rai Group, a Mauritius-based investment group. In September 2011, government sold a further 19 percent shares in KSWL to the Rai Group.

  
According to the sale agreement, Rai Group was expected to float the 19 percent shares it acquired to the public through the stock exchange. The agreement also called for the sale of the remaining 10 percent shares to the Omukama of Bunyoro, 10 percent to KSWL out growers and the other 10percent to Kinyara Sugar Works Limited employees. 
 


However, the Kingdom says it has not received its shares to date. Bunyoro King Solomon Gafabusa Iguru has repeatedly used his annual coronation anniversary speeches to remind government of his entitlement in Kinyara Sugar Works Limited in vain.
 
 
 
The Kingdom Prime Minister, Norman Lukumu reveals that when the Kingdom approached Kinyara on the matter, they were told that the factory had not received certificates of shares from government.

//Cue in: "Bunyoro Kitara Kingdom.....
Cue out: .....cant agree to pay us."//

Lukumu explains that they were also told that the Kingdom was meant to buy the shares and not receive them freely. He says as a result, they have petitioned the Commercial Division of High court over the matter.

 
//Cue in: "The king Gafabusa....
Cue out: .....for the outcome."//


When contacted, the Kinyara Public Relations Officer Mark Ssali referred our reporter to Monica Namuli, the Program Assistant Privatisation Unit. Namuli picked calls from our reporter, but didn't respond to the query.