By Rolex Akena
Lira
Government is demanding over 15 billion shillings from six companies after they took over government enterprises under privatization policy and failed to pay.
The revelation is contained in a report of the Auditor General to the Commissions, Statutory Authority and State Enterprises Committee of parliament.
The committee chairman MP John Odit of Erute South says the defaulters have taken between 6 to 11 years without settling balances of the purchase price and arrears on the said enterprises after taking over from government.
Acholi Inn in Gulu and Hill Top Hotel in Kitgum have outstanding balances of 122 million shillings for 6 years and 25 million shillings for 10 years respectively and both enterprises are under litigation.
Meanwhile, Lira Hotel, which has a balance and arrears of 200 million for 11 years, is accused in the Auditor General’s report for allegedly forging land title for the hotel premises to secure a loan. Odit says a caveat has been placed on the title and the enterprise is under litigation.
Government is as well demanding a huge balance of US dollars 423,255 that lasted with African Textile Mill for the last 10 years.
However, Sam Engola, the proprietor of Lira Hotel, has denied both allegations of obtaining fake title-deed and defaulting to pay 200 million shillings to government.
Engola says Uganda Hotel Limited run the hotel without leasing its land, and that he followed all the procedures to obtain a clean title after buying the hotel.
He argues that Lira Hotel owes government no arrears or balance, blaming MP Odit of political intrigue against him.
Recent Comments