Government has threatened to withdraw the operational license of Mayuge Sugar Industries Limited, buy following reports that the company was planning on a general upgrade of all its machinery at all levels.
State Minister for Karamoja Affairs and Member of Parliament for Bugabula North Hon Moses Kizige, says cabinet would consider revoking the Sugar company’s license for possible failure to abide by its terms.
“We don’t expect companies to expand without consulting us first. That is breach of contract. The company ought to have re-visited the contract before embarking on the overhaul,” he said.
Minister Kazige was speaking to Chimpreports about the cabinet position on the sugar plant, at the sidelines of a fundraising and groundbreaking event of Busoga Diocese Bishop’s Palace held at Christ’s Cathedral in Bugembe, where he represented the Speaker of Parliament Rebecca Kadaga.
The minister said cabinet in the latest sitting decided to go back to the Mayuge Sugar Company’s license to ascertain whether or not it is being affected by the company’s actions.
“For every company before being given an operation license, many things are put into consideration including the annual output, which we think could increase by the upgrade. That means that a new contract has to be signed, The minister said.
He clarified however, “We have no problem with the company especially if we find that they haven’t breached the terms of their license.”
Mayuge Sugar Industries was established in 2005 in Mayuge district and majorly manufactures white Sulphur-less sugar and pack under the name Nile Sugar.
Its planned expansion will among others entail; Installing parallel tandem of 2,500 TCD expandable to 8,000 TCD, Installing Power Generation plant of 9 MW expandable to 50 MW; Installing 30 KLPD distillery expandable to 9 KLPD, Installing 150 TPD Paper Plant expandable to 450 TPD and plans to start manufacturing spirits, sweets and a paper industry
The expansions are expected to create employment for more than 2500 Ugandans.