Appearing on Wednesday to explain about the delay of payment of the traders, Kasaija said Government did not have money to pay the traders because it had deferred several other payments due to lack of money in the COVID-10 crisis.
The Minister for Finance Matia Kasaija has told Parliament that the
government does not have money to pay Ugandan traders who supplied goods to South
In 2019, Parliament approved 900 Billion shillings for traders that supplied
goods and services to the South Sudan government between 2008 and 2010. The
traders were not paid following the outbreak of the conflict in 2013.
The payment follows a 2010 mutual agreement between South Sudan and Uganda.
According to the agreement, Uganda was supposed to clear the debt and treat it
as a loan to the government of South Sudan. The money was to be paid back
within five to 10 years at a six per cent interest rate after the first
However despite Parliament appropriating 78 billion shillings, the
Ministry of Finance has been hesitant to release the funds.
Appearing on Wednesday to explain about the delay to pay the traders,
Kasaija said Government did not have money to pay the traders because it had
deferred several other payments due to lack of money in the COVID-10 crisis.
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However, Kampala Central Member of Parliament Mohammed Nsereko
said that Parliament’s authority was being challenged by the Minister. He tasked
the Minister to pay the traders or resign.
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The Speaker of Parliament Rebecca Kadaga ruled that the government
should pay the traders since Parliament's decisions have never been rescinded.
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The MOU initially signed between the Government and that of South
Sudan covers 10 companies which include Rubya Investments, Kibungo Enterprises,
Aponye (U) Limited, Afro Kai Ltd, Swift Commodities Establishment Ltd, Sunrise
Commodities, Ms Sophie Omari, Apo General Agencies, Ropani International and K.K
Transporters. These companies have already been given at least 41 billion
shillings. However, the companies are now 82 in total.