TRALAC - Trade Law Centre

' Ugandan Government Spent Sh5.8b On AGOA Factory'

Friday, 31 October 2003

Source: New Vision (Kampala)

The Ugandan Government reportedly spent sh5.8b to train over 1,000 girls at the Apparel Tri-Star factory state minister for information, Nsaba Buturo, said yesterday.

The sum also included renovation of the former Coffee Marketing Board building housing the factory.

He said the Government was investigating the allegations made by the girls against the management of Tri-Star and expects to complete the probe in a week's time.

Addressing the weekly Government press briefing at Nakasero, Buturo dismissed claims by the chairman of the UPC Presidential Policy Commission, Dr. James Rwanyarare, that the company belonged to President Yoweri Museveni.

He challenged Rwanyarare to produce the evidence.

He said the company was paying rent to the Government for using the building.

He said no subsidy has ever been given to Tri-Star but it secured a loan from Uganda Development Bank as did Phenix Logistics, Lira Spinning Mill and UGIL.

On taxes, Buturo said the policy of the Government is that no tax is paid on export of raw materials.