No Money to Pay South Sudan Traders, Kasaija says

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 Sudan.

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 year. 

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. 

“We have been forced to differ many other payments including those central to our economic development strategy. Therefore, it is not possible to pay the Southern Sudan traders in one tranche. In conclusion madam speaker, I would like the House to note the following; Category 1 claimants are still a subject of court, Category 2 are still awaiting a cabinet decision,”  he said.

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.

“There is only solution that our honourable brother can do. If you defy the position of parliament, you state it but if u still stand by the position of Parliament, you ought to effect the payment. You cannot postpone the payment of monies that were appropriated in the House in which you took part. If you had objected at that time then you should have stated it in this House that you were not able to pay. People come to this August House to seek justice. This August House has the powers to pay. The issue madam speaker is that we should stand by our resolution that what we adopted from the report of Parliament should be upheld that the minister of finance either pays or resigns,” he said.

The Speaker of Parliament Rebecca Kadaga ruled that the government should pay the traders since Parliament’s decisions have never been rescinded.

The Memorandum of Understanding 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.