Kampala — The Leader of the Opposition in Parliament, Joel Ssenyonyi, has called for a comprehensive audit into the operations of Atiak Sugar Factory following concerns over the use of Shs553.71 billion in government funding. Ssenyonyi made the demand while presenting a report from an oversight visit to the factory on October 7, 2024, highlighting the need for accountability before any further funds are injected into the project.
“Government should conduct a thorough audit of the company to establish whether it is a going concern. While the company is seeking additional funds, the Shs553.71 billion already invested must be accounted for first. There must be value for all this money before we think of investing more,” Ssenyonyi remarked.
The Uganda Development Corporation (UDC), which holds a 49% stake in the factory, has been criticized for its limited oversight of the factory’s operations. Ssenyonyi emphasized that UDC must fast-track the conversion of its preferential shares into ordinary shares to improve its decision-making powers within the company. He also stressed the importance of transparency and effective management in the use of public funds at the factory.
Atiak Sugar Factory
Atiak Sugar Factory, which was founded in 2016 and is owned by Horyal Investments Holding Company Limited, has been non-operational for several years. According to Ssenyonyi, despite the government's significant financial support, the factory is not producing any sugar. The factory management cited a shortage of sugarcane as the reason for the lack of production and reported ongoing infrastructure development, including the construction of water reservoirs and an irrigation system.
During the visit, it was revealed that the factory consumes 200 liters of diesel daily to run turbines, allegedly to prevent machinery from rusting. Ssenyonyi questioned this expenditure given the factory’s non-operational status, pointing out the slow delivery of machinery and incomplete equipment.
He also raised concerns about the factory’s shift in strategy, which initially aimed to plant 60,000 acres of sugarcane in collaboration with local farmer cooperatives but has since scaled down to 25,000 acres solely owned by the factory. Additionally, a fire in December 2020 destroyed 7,900 acres of sugarcane, further disrupting operations.
Despite these challenges, there are plans to resume production by 2025, relying on irrigation and mechanization to boost productivity.
Ssenyonyi’s call for an audit underscores growing concerns over whether the investment in Atiak Sugar Factory represents a prudent use of taxpayer money or if it risks becoming another "white elephant" project.
Torch Media Africa
