President Yoweri Kaguta Museveni has revealed that some of the speakers in parliament that were recently discussing the “coffee deal” had fundamentally disoriented positions.
While addressing the nation on the state of the economy Sunday night, President Museveni said he would address the coffee agreement during the State of the Nation Address on the 7th of June, 2022.
“I will touch on the issue of the so called “coffee deal” that was being discussed in Parliament the other day.”
He added: “I could see fundamental disorientation in the position of some of the speakers that were speaking in Parliament. Uganda indeed Africa, being in a slave-relationship with external actors, is not comparable to any other factors.”
Parliament unanimously called for the termination of the agreement between Uganda Vinci Coffee Company Limited (UVCCL) and the Government, which sought to grant the company monopoly over the coffee sector.
The report of the Committee on Trade, Tourism and Industry alleged unfair terms of the Memorandum of Understanding (MoU) between government and UVCCL and further directed government to report back to Parliament within six months of adoption of the report.
The Committee Chairperson, Hon. Mwine Mpaka, told plenary on 18 May 2022, that the agreement was illegal and contravened the Constitution and other tax laws.
The committee discovered that UVCCL failed to commence the construction of the US$440 million coffee factory when it was allocated 25 acres of land in Namanvanve Industrial Park.
It was also recommended that government should consider extending appropriate incentives to the already existing 47 local companies that are doing value addition as well as fast-track the capitalization of Uganda Development Corporation to invest in soluble coffee plant.
The MPs recommended that officials who committed government to such illegalities should be penalized as a deterrent measure to avert similar occurrences.
Mpaka that President Museveni agreed with most of the issues raised but emphasized that the biggest problem has been on value addition.
“He recommended that three months should be given to cater for revision of the agreement as opposed to termination, which may have far-reaching implications,” Mwine Mpaka added.
The agreement was signed on 10 February 2022 by the Minister of Finance and Secretary to the Treasury on behalf of government but it was not signed by UVCCL.
