The Ministry of Finance, Planning and Economic Development (MoFPED) Permanent Secretary/ Secretary To The Treasury, Mr Ramathan Ggoobi has today written to Parliament, clarifying the status of the Government’s 25% shares held in the Munyonyo Commonwealth Resort.
In the letter, (Ref AGO/13918/21) addressed to the Clerk to Parliament Parliament Mr Ggoobi explained that the ministry, through whom the shares are held, is at the tail end of finalising the share transfers to the Uganda Development Corporation, the Government of Uganda’s investment arm.
“Reference is made to your letter Ref. AB 215/287/01 dated 5th November 2021 to this office on the above subject matter and require a written explanation from the Ministry of Finance Planning and Economic Development (MoFPED) as the regulator of Agencies affiliated by Subvention,” Ggoobi wrote.
Munyonyo Commonwealth Resort Limited is listed in Schedule 2 of the Uganda Development Corporation Act, 2016 as one of those government investments in which Uganda Development Corporation is required to take over, manage, promote and facilitate the interest of the Government of Uganda effective June 1, 2016.
“This Ministry received a communication Ref. UDC/CR/110/1/1 dated 27th January 2020 from the Executive Director, Uganda Development Corporation (UDC) requesting the Ministry for a transfer of all the Shares held in Munyonyo Commonwealth Resort Limited to facilitate the operationalization of schedule 2 of the UDC Act,” Ggoobi wrote, adding that: The Ministry wrote to Solicitor General seeking legal advice on how to handle this transaction of transferring Government shares. In a letter, Ref: ADM.202/03 dated June 22, 2021, the Solicitor General guided on the transfer of the 15,061,209,120 shares from the Ministry of Finance, Planning and Economic Development to Uganda Development Corporation.”
“The Ministry represented by the Hon. MoFPED has since signed the transfer of shares stock forms (being the holder of the shares on behalf of the Government) and returned the same to the Executive Director, UDC for filing with the
Registrar of Companies and further management as evidenced in our Ref. AGO/139/81/21 dated 22nd October 2021,” Ggoobi added.
In the letter, the Permanent Secretary/Secretary to the Treasury as that as guided by the Solicitor General, after the filing of the stock forms, minister of Finance, Planning and Economic Development, Hon Matia Kasaijja, shall then proceed to notify UDC in writing of his substitution with UDC as the holder or overseer of the Government’s stake in the Company.
“Thereafter the Company shall enter Uganda Development Corporation’s name in its register of members and the transfer process will stand completed,” Ggoobi guided Parliament in a letter copied to the Minister of Finance, the Accountant General and the Executive Director, Uganda Development Corporation.
How Stanbic Bank CFO Ronald Makata Blends Governance, Technology and Human Leadership to Drive PerformanceThis website has also seen another 22nd October 2021 (AGO/139/81/21) letter by the finance ministry PS to The Executive Director, UDC forwarding him the executed stock transfer forms.
“Reference is made to your letter Ref: UDC/CR/187/1 dated 22nd September 2021 regarding the above subject. The Ministry has fully executed the transfer of shares stock forms effecting the transfer of all the 15,061,209,120 shares held in Munyonyo Commonwealth Resort Ltd to UDC. This is, therefore, to forward the signed forms for further management,” Mr Ggoobi wrote.
The communication by the Finance Ministry is expected to put to rest concerns by Parliament’s Sectoral Committee on Tourism Parliament of Uganda over why the shares remained untransferred after the passing of the UDC Act in 2016.
Other shareholders in the Hotel include Dr Sudhir Ruparelia, the founder and Chairman of the Ruparelia Group, who owns 51%; Meera Investments, a Ruparelia Group Company that 14% and Jyostna Ruparelia, a director in the Ruparelia Group, who owns 10%.
Parliament had also written to the business over the same matter- but in a November 10th letter, he told Parliament that he was yet to get official communication from the Ministry of Finance over the share transfers to UDC.
“GOU holds the 25% shares through the Ministry of Finance, Planning & Economic Development. GOU is free to decide by whom its shares are held. We have not received communication from the Minister of Finance, Planning & Economic Development regarding GOU decision to transfer its shares to UDC as the chosen and preferred entity to hold GOU shares. In case we missed it, kindly share a copy so that when we appear we address you about it appropriately,” Dr Sudhir wrote in the letter copied to the Minister of Finance, Planning & Economic Development and The Chairperson Sectoral Committee on Tourism Parliament of Uganda.
The businessman however reiterated to parliament that the Ministry of Finance still held 25% of the hotel. He also shared with Parliament, a set of documents from the Uganda Registration Servies Bureau (URSB) that included share certificates as well as annual company return that all correlated the shareholding structure.
