Aya Factory in Kamempe risks being added to the list of failed Ugandan businesses if reports that the company is on the verge of collapse are something to go by.
According to sources, the factory is said to be struggling with salary challenges forcing workers to abandon work and resort to playing board games like Ludo.
During the week, while appearing on Kwese TV, controversial Pastor Solomon Male claimed that he had met with workers who told him they were no longer working because of lack of salary and have since been left redundant.
Aya factory which is under Aya Group of Companies and produces products including wheat, biscuits, is owned by Sudanese born tycoon Mohammed Hamid who also owns Pearl of Africa Hotel.
It’s not the first time Aya’s name is being mentioned with reports to do with his treatment of workers.
Last year, over 500 staff of Pearl of Africa Hotel, petitioned the Hotels & Allied Workers Union, protesting what they called unfair treatment after the facility ordered all of them to sign fresh contracts as casual labourers.
The then hotel human resource manager, Mr Lawrence Kulanga, issued a staff notice, indicating that a new investor will take over the facility next month and that as a result, they have all been put on temporary terms hence working as casual labourers.
In July, Fuel distributor, Total Uganda Limited sued Aya Investments seeking to recover more than Shs70m in petroleum products supplies.
In a case filed before the Commercial Division of the High Court, Total contends that Aya has refused to pay for supplied fuel and other petroleum products despite several reminders.
Total, acting through Sekabanja & Co Advocates, claims that on December 9, 2015 it signed a Product Supply and Loan of Equipment Agreement, which contracted the company to supply Aya with petroleum products among them diesel and liquid petroleum gas (LPG).
Under the agreement, Aya undertook to pay for the products supplied within 30 days from the date of invoicing.
However, Total claims that Aya has refused or neglected to pay despite several reminders, which the fuel distributor claims have been ignored.