Sembuule Sinking In Debts, Begs Govt For Bail Out

6084 Views Kampala, Uganda

In short
Sembuule is said to have borrowed 7 billion shillings for capital development from Bank of Baroda and has failed to pay back the loan. The bank now wants to take over the plant which is worth 50 billion shillings.

 Sembule Steel Mills Limited has implored government to intervene and rescue the company from being taken over by Bank of Baroda which it owes seven billion shillings.
 
The plea was made through Buikwe South MP Dr  Lulume Bayiga who presented a petition to the Parliamentary Committee on trade, tourism and industry saying if government does not intervene, local companies will vanish at the expense of foreign investors.
 
Sembule is said to have borrowed 7 billion shillings for capital development from Bank of Baroda and has failed to raise the money to pay back the loan. The bank now wants to take over the plant owned by Christopher Sembuya which according to the petition is worth 50 billion shillings.
 
Bayiga urges government to have a listening ear and bail the investment saying that it has encouraged and helped many Ugandans and promoted local investors.
 
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Members of the committee have said that it is unfortunate that the government encourages and helps foreign investors when the investments that belong to Ugandans are collapsing. Kanungu woman MP Elizabeth Karungi welcomed the petition and said it is high time government protected its local industries.
 
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Bukomasimbi MP Deogratius Kiyingi said Sembule is one of the few local companies that started in 1986 and from which many Ugandans have benefited in form of employment.
 
Committee chairperson Flavia Kabahenda said Sembuya should write a justifiable business plan that the committee can use to convince the Office of the President to support the company.
 
She said that while government has in the past bailed out some companies, the companies have failed to fulfill their obligations like creating employment opportunities and contributing to the Gross Domestic Product. Kabahenda said Sembule management should justify why they seek government intervention.
 
She said the committee will also tour the factory in Nalokolongo to ascertain if it warrants government intervention.