The request by Government for additional Shs66.126Bn as insurance fees for a loan borrowed in 2020 worth Shs621.171Bn for the extension of electricity in industrial parks has raised suspicions among MPs.
The legislators wonder how Government just realized after 5years that the loan facility required insurance fees, arguing that this could be a ploy by some people in Government to siphon taxpayers’ money.
Leading the protest was Allan Atugonza (Buliisa County) during the consideration of the loan request by Government to borrow additional Euro17,293,000 (Shs66.12bn) from China Export & Credit Insurance Corporation (SINOSURE) as part of the 7.60% insurance premium for the loan facility borrowed from the Export Import Bank of China to finance the development of industrial parks including power supply and power transmission line extension in industrial parks.
“There is a trend we are registering now of SINOSURE where people come, get loans, they look competitive, they win jobs and thereafter, they come with such requests. You remember the Masaka-Kyotera Road, we really had issues to approve the insurance of Kyotera Road, now, we have another SSINOSURE. If put together, are these people still competitive? Are they still the lowest bid? In the other SISNOSURE, we felt someone was creating an avenue in order to siphon money from Government, this one, we don’t have an explanation for someone to say after 5years, we forgot insurance,” remarked Atugonza.
It should be recalled that in August 2024, Parliament approved a similar insurance fees loan of Shs64.77bn for the loan facility acquired by the Chinese contractor for the Masaka-Mutukula Road, a move that saw the cost of the project increase from Shs691.68Bn to Shs751.002Bn.
