The Speaker of Parliament, Anita Among has directed the Committee on Trade Tourism and Industry to probe a controversial coffee agreement signed between Government and Uganda Vinci Coffee Company Limited (UVCC).
According to the agreement signed on 10th February by Finance Minister, Hon. Matia Kasaija and Italian investor, Enrica Pinneti on behalf of UVCC, the coffee company retains the exclusive right to buy all Uganda’s coffee.
Raising a matter of national importance in Parliament on Tuesday, 12 April 2022, Hon. Abed Bwanika, the Member of Parliament, Kimanya-Kabonera said that the agreement alienates Ugandans from the coffee business as it gives monopoly of purchase and export of coffee to only one organization.
Bwanika said that the company is also exempted from all taxes, given a special tariff as far as electricity is concerned and all these provisions violate the laws of Uganda. He called on Parliament to prevail on the said agreement to protect coffee farmers.
“This document gives them power, that nobody will procure coffee unless this company gets the quota that they want. The provisions of the Coffee Act section 52 say that the Coffee Authority should be the one to come up with auction avenues where our coffee should be traded, but this agreement gives the company the right to determine the price,” Bwanika said.
Kazo County Member of Parliament, Hon. Dan Kimosho said that the same investor has failed to complete the International Specialized Hospital of Uganda in Lubowa. He said Parliament and the Ministry of Health have failed to supervise the project.
“It has been very difficult for this Parliament to supervise works going on at Lubowa; we have been crying about medical tourism but I was shocked when I saw the Ministry of Finance entering in agreement with the same person that we are failing to supervise,” Kimosho said.
Buyamba County MP, Hon. Gyaviira Ssemwanga questioned the benefits of tax exemptions saying the country is in an economic crisis.
Following the debate, Anita Among directed the Ministry of Trade to scrutinize the agreement.
“The issue of tax exemptions; there are so many people who have benefitted from tax exemptions, we want to understand the cost-benefit analysis, we need to understand who are these persons benefitting from the exemption and what is the criteria of giving the exemptions,” Among questioned.
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