By Insight Post Uganda
Kampala, Uganda
The Coffee Investment Consortium Uganda (CICU) is facing a serious audit over the UGX37 billion allocated for coffee value chain investment. The funds seem to have been misused according to President Yoweri Museveni.
Mr. Museveni gave the directive after questioning the progress of this venture supervised by the Minister for Science and Technology, Dr. Monica Musenero.
The call for accountability came directly from the president, who expressed concern over the lack of apparent progress and benefits within the coffee industry despite the substantial financial injection.
Museveni has now prompted the Minister for Science and Technology to request a comprehensive progress report from CICU regarding the milestones achieved with the allocated funds.
In a letter dated January 15, 2024, addressed to CICU, Dr. Musenero stated that the president is seeking an update on the developments within the consortium since the funds were disbursed.
As part of the ministry’s commitment to transparency, Musenero mentioned in the letter that they are compiling a technical financial report for the funds received.
This report is expected to shed light on the financial transactions and activities related to the coffee industry, providing a clearer picture of how the funds have been utilized.
Nelson Tugume, who holds a key position in overseeing the coffee investment, has recently faced scrutiny for alleged failure to provide a satisfactory account of the disbursed funds.
This has led to increased concerns among coffee dealers who have yet to witness the promised benefits from the significant financial injection into the industry.
Stakeholders in the coffee sector are eagerly awaiting the report from the Ministry of Science and Technology, hoping that it will provide clarity on the utilisation and impact of the funds within the coffee industry.
The audit and subsequent report are crucial steps in ensuring accountability, promoting trust among stakeholders, and promoting the sustainable growth of the coffee sector in Uganda.
Early last year, Members of Parliament on the budget committee had rejected allocating the said funds to the State House for coffee value chain development.
The decision, made in April 2023, has sparked a heated debate over the capacity and expertise of the State House to engage in coffee value addition and trade.
The controversy unfolded during the scrutiny of the Presidential Affairs Committee report on the ministerial policy statements of the State House and the Office of the President.
MPs, including Dickson Kateshumbwa from Shema municipality, expressed their reservations about the allocation. They questioned the rationale behind assigning such a significant amount to the State House, stressing concerns about its capabilities in coffee value addition and trade.
Amolator district woman MP, Agnes Apea, raised a pertinent question about the allocation, wondering why funds earmarked for coffee development were directed to State House when the Uganda Coffee Development Authority, mandated by law for coffee development, is grappling with financial constraints.
The controversy deepened as committee members delved into the purpose of the allocated funds. Vice chairperson Ignatius Mudiimi Wamakuyu, who chaired the session, revealed that the said fund was not intended for direct coffee value chain development within the State House. Instead, he disclosed that the funds were earmarked for a consortium of coffee exporters.
The consortium reportedly sought financial support from President Museveni to facilitate roasted coffee supply to the European and other global markets. This revelation countered the initial assumption that the funds were solely allocated for the State House’s involvement in the coffee value chain.
The rejection of the allocation fueled debates on the appropriateness of directing such substantial funds to a consortium of coffee exporters, raising questions about transparency and adherence to established procedures for budgetary allocations.
As the controversy unfolds, stakeholders await further clarification on the intended purpose of the funds and whether a reallocation to the Uganda Coffee Development Authority, as proposed by the budget committee.
The scrutiny of budgetary allocations continues to shed light on the intricacies of financial decisions and the need for transparency in Uganda’s coffee development initiatives.
However, the President authorised the Finance Ministry to set aside the said amount as a coffee export fund to allow exporters access to the required capital to procure large quantities of coffee from farmers for value addition and export.
MPs had rejected this idea, saying the project was a non-starter.
The coffee fund project was heavily promoted by the Presidential Advisory Committee on Exports and Industrial Development (PACEID) under the leadership of Odrek Rwabwogo.
In May 2023, Rwabwogo said the coffee fund was meant to underwrite invoices for 21 coffee firms that had had limited market presence for years.
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