Atiak Sugar Seeks UGX 24Bn to Start Production
Members of parliament have resolved to carry out an onsite examination of the out grower farms that are reportedly growing sugarcane for Atiak Sugar factory.
The MPs sitting on the trade committee of parliament are in the process of scrutinizing an allocation of 24bn shs towards the operations of the factory which is run by a private business woman through Horyal enterprises.
Horyal Investment Company Holdings Limited is owned by a Somali, Amina Hirse Moghe, his son Mohamoud Abdi Mohammed, and Government of Uganda through Uganda Development Corporation (UDC) which owns 34 per cent of shares.
Government has already sunk in over 62bn shs in previous years into the factory to save it from undercapitalization and debt.
Mahmoud Abdi Mohammed a director with Horyal told MPs that the 24bn shs from government is required to kick start phase one of operations so that production can begin by August 2019.
Another 52bn shs is earmarked to run an out grower scheme through NAADS as a poverty alleviation project for households in the area.
Mahmoud told MPs that the 52bn from NAADS had a capacity to generate 317bn shs in five years for the community.
However the MP for Samwa Bugwe North Gideon Onyango and the Kumi woman MP Monica Amoding argued that the committee needed to ascertain for themselves the existence of these households.
They were also interested in confirming the ownership of the 28,000 acres that have been zoned out for sugarcane crop production under NAADS. The Aruu county MP Odonga Otto argued that as a local leader he was unaware of any households within the 28,000 acres identified by Atiak sugar factory.
Mohamoud allayed the fears of the MPs and stated that the 28,000 acres belongs to the community under communal ownership. He revealed that Horyal is working with local cooperative societies and the local district leadeership to ascertain household membership before land is parceled out to the growers.