Members of the Parliamentary Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) have questioned the Uganda Development Corporation (UDC) over its selective application of bailouts to private companies.
During a meeting with UDC officials and Nile Hotel International Limited, legislators expressed concern over the Shs11 billion investment in Igongo Country Hotel and Cultural Center, made to save the company from losses.
COSASE chairperson Medard Seggona led the inquiry, citing several companies that faced worse financial struggles without receiving government support.
The committee’s concerns were heightened by Joseph Barungi, Nile Hotel’s general manager, who revealed that the investment was made following a presidential directive. Committee members were displeased with these findings, prompting a deeper investigation into UDC’s bailout practices.
Further scrutiny revealed that Nile Hotel International Limited, which manages the government’s interests in Serena Hotel, lacks a clear investment policy.
Additionally, Serena Hotel has failed to invest in redevelopment and refurbishment, and neglected maintenance of the conference center, contrary to the 35-year concession agreement.
