Legislators from both the ruling NRM party and the opposition have threatened to censure the Minister of Finance, Matia Kasaija, over his failure to guide the government on the controversial coffee deal with investor Enrica Pinneti.
Kasaija and Secretary to the Treasury Ramathan Ggobi signed the Shs284 trillion deal on behalf of the government, while Pinetti signed as a witness.
Under the signed agreement, Pinetti’s Vinci Coffee Company is expected to construct an $80 million integrated coffee processing plant at Namanve industrial park and also market the finished coffee products in Europe and the Middle East. The agreement extends an array of incentives and concessions to the investor in a manner that has been widely criticized as monopolizing Uganda’s coffee business.
The ministry is blamed for the failure to consult stakeholders in the coffee sector and went ahead to sign on their behalf.
Frank Tumwebaze, the Minister for Agriculture, has since denied his involvement in the signing of the deal. He also added that the ministry he leads did not participate in any deal process.
Kasambya County MP David Kabanda revealed that the censure motion under rule 109 of parliament’s rules of procedure is being considered against Kasaija.
“The motion is citing incompetence, the Lubowa Hospital botched deal, the coffee agreement, issues relating to Entebbe airport, and usurping Parliament’s mandate of appropriation,” he said.
The Parliamentary Committee on Tourism, Trade, and Industry has summoned 21 entities and individuals, including Kasaija, and Italian investor Ms. Enrica Pinetti, over the recently signed coffee agreement that has turned controversial. Also, PS Ministry of Finance Ramathan Ggoobi, Uganda’s Attorney General Kiryowa Kiwanuka, Minister for Trade, Industry, and Cooperatives Hon. Francis Mwebesa, Minister for Agriculture Hon. Frank Tumwebaze, and the Solicitor General have been summoned.
Other entities and agencies invited include; Uganda Coffee Development Authority (UCDA), Uganda Coffee Federation (UCF), Uganda Coffee Quality Trader’s Association, Uganda Coffee Trader’s Alliance, Rwenzori Coffee Trust, Bugisu Cooperative Union, Ankole Coffee Cooperative Union, UNZO Coffee, Uganda Large Scale Farmer’s Association, BUCADEF, UGACOF, KAWACOM, ESCO (U) LTD, and OLAM (U) LTD.
Investigations into the Coffee Agreement deal will commence on April 25.