Ramathan Ggoobi, the permanent secretary of the Ministry of Finance and Secretary to the Treasury, announced that the Ugandan Government invested in ROKO Construction Ltd in 2022 to enable the completion of projects valued at Sh1.4 trillion and preserve the country’s largest construction company along with numerous jobs.
Ggoobi detailed this during a statement on July 4, 2024, addressing concerns about the UGX 300 billion reportedly allocated to ROKO Construction Company. He emphasized the critical nature of this investment, which included key projects like the new nine-floor Parliamentary Building designed to accommodate 600 MPs.
In July 2022, Uganda’s Parliament approved the government’s proposal to purchase 150,000 preference shares in ROKO Construction Limited, worth Sh202 billion. This decision faced resistance, especially from opposition lawmakers, but was pushed through after Deputy Speaker Thomas Tayebwa warned that without the investment, ROKO would be forced to shut down operations.
Impact on Revenue and Economy
Ggoobi also highlighted the broader economic benefits in his statement on social media platform X, noting that the Uganda Revenue Authority (URA) is now collecting more tax revenue. He claimed that the the investment in ROKO has created a positive multiplier effect on the larger economy, and demonstrated an effective economic strategy.
“This approach supports strategic local companies and stimulates economic growth,” Ggoobi, a former economics lecturer at Makerere University Business School, explained.
Budgetary Adjustments and Allocations
Ggoobi addressed the reallocation of Sh750.47 billion in the 2024/25 financial year budget, indicating an overcut in the Treasury Operations budget. Parliament had reduced this budget by over Sh400 billion, exceeding the necessary adjustments.
The allocation details provided by Ggoobi were as follows:
| Allocation Detail | Amount (UGX) |
|---|---|
| Payment for Bank of Uganda charges | 200 Billion |
| Payment of Government securities | Remaining from 256.2 Billion |
| Payment for ROKO shares acquisition | 56.2 Billion |
Ggoobi explained that the UGX 256.2 billion budget included UGX 200 billion allocated for the Bank of Uganda charges to manage government accounts, facilitating the payout of the UGX 72 trillion budget, and payment of government securities. The remaining UGX 56.2 billion was for the payment of the shares acquired in ROKO, as approved by Parliament in 2022.
