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PARLIAMENT - Lawmakers have raised questions
over the ownership of Apparels Tri-Star.
Members of
Parliament also questioned the perks that government has been giving the
textiles firm, which exports garments to the United States under the
African Growth and Opportunity Act.
On the
first day of Parliament after a month on recess, MPs were bound to ask
questions about the affairs of the firm, which sacked 298 female
employees, popularly known as Agoa girls, after they went on strike on
October 21.
The
Minister of State for Finance (Investment), Mr Sam Kutesa, had been
called in to provide some answers to those questions.
But it was
clear very early on that he would not satisfy all the MPs when he failed
to present the agreement signed between government and the company.
Kutesa, who was appearing before the Parliamentary Committee on Finance,
also failed to name the shareholders of the company - raising eyebrows
among some of the MPs.
Kutesa told
the MPs that government had, through the Uganda Development Bank,
granted Tri-Star a loan of $3.6 million (Shs 7.4 billion) to get it off
the ground.
But the MPs
pointed out that in the memorandum of understanding - the only official
document they have between the firm and government - Tri-Star was
supposed to get a loan of only $2.5 million (Shs 5 billion).
"Where is
the agreement for the $3.6 million?" Mr James Mwandha (PWD) asked,
without getting an answer.
Other MPs
were irked about the lack of information about the identity of the
owners of the textiles firm.
"We don't
know who the owners of Tri-Star are in this country," Mr Harry Kasigwa
(Jinja Municipality West) said. "You even don't have an agreement you
only have a memorandum of understanding."
He added:
"I have information that Tri-Star was thrown out of Botswana. This
company we are being told is financially sound does not own industries
in Sri Lanka. They just run franchises in Sri Lanka."
The MP
alleged that the equipment brought in by the firm had been rejected in
Botswana.
"Why should
we spend on briefcase businessmen? How do you open up the state coffers
for some foreign quack investor and yet we have local investors?" he
said.
Mr Jack
Sabiiti (Rukiga) was more concerned about the lack of transparency in
the whole affair.
"This
company will not benefit this country if it is benefiting individuals.
Why is government not being open with what is going on?" he
said.
When he
spoke again, Mwandha threw a rather large spanner into the
wheels.
Said
Mwandha: "Allegations are coming out that the company belongs to
President Museveni. The fact that we cannot access the file of this
company in the office of the registrar of companies shows suspicion. Why
is Agoa managed under State House?"
But Kutesa
protested.
"You can't
make any speculative allegations and get away with it. Where is the
evidence that Museveni owns Tri-Star? I challenge anybody to produce
it," he said.
But the MPs
were not done with the Bugolobi-based firm. Mr Henry Banyenzaki (Rubanda
West) said: "Tri-Star are exploiting the country's taxpayers. This
company supplied under-size uniforms to the army."
"Tri-Star
was given an advance of Shs 1 billion by the army," Kasigwa added.
Mr
Aggrey Awori (Samia Bugwe North) said that Tri-Star's financial woes
would blow up government's opportunity to access the Agoa market in the
United States. However, Mr Dinesh Wellala, the general manager at the
textiles firm, dismissed the allegations when contacted last
evening.
"The
allegations by the MPs are rubbish," he said, "the uniforms we supplied
to the army were okay. We did not bring in used equipment from Botswana;
the equipment we brought in is brand new. We have the documents for the
equipment." | 
