A pharmaceutical and mRNA vaccine manufacturing facility worth approximately UGX 1.8 trillion, commissioned by President Museveni in 2020, is now up for sale due to outstanding debts.
The debts originate from a loan acquired by Dei Biopharma Limited, formerly known as Dei Natural Products International Limited, the company responsible for the facility’s construction.
An advertisement from Kaweesi and Partners Advocates, dated September 14, on behalf of a financial institution, the registered mortgagee, stated that the property would be sold at public auction if the outstanding loan balance, fees, and other costs are not settled within 30 days.
The facility, located in Matugga, Wakiso District, sits within an industrial zone.
The company initially secured funding from two local banks and Uganda Development Bank to support construction, importation of advanced medical equipment, machinery, and working capital. However, it has been unable to meet its loan repayment obligations.
The advert also lists several other properties owned by the company, including a wheat milling plant in Luzira, a hospital in Kitende, residential houses in Muyenga, a commercial property in Seguku, and a weighbridge station, all of which are also up for sale.
The vaccine plant was inaugurated on three occasions, with President Museveni first launching operations in June 2020. However, production delays due to structural planning issues were cited.
Subsequently, President Museveni and Kenyan counterpart William Ruto visited and commissioned the facility in 2021, expressing optimism about Uganda’s involvement in the pharmaceutical sector.
Despite these inaugurations, the property is now being sold merely two months after President Museveni’s last commissioning in December 2022.
Finance Minister Matia Kasaija had previously indicated the government’s willingness to support Magoola’s efforts, but details regarding the bailout amount remained undisclosed. A team of ministers conducted a feasibility study on government investment in the facility, with Magoola stating his need for at least $600 million to complete the project. He also projected significant revenues of $5 billion within five years.
However, this proposal faced criticism from opposition legislators, who argued that such funding should be channeled through the Uganda Development Bank or involve the government acquiring shares in the ventures instead of using the consolidated fund.
Magoola, the entrepreneur behind the vaccine plant, has faced several controversies, including financial investigations, disputes with construction companies, and legal battles. Despite being vouched for by President Museveni and other prominent figures, Magoola’s business endeavors have been marked by ongoing scandals.
As an engineer who was terminated in unra without any cause, I near this wud happen, excerpt those with hope in government, wait for atiak sugar, munyonyo, roko, wherever the regime had put tax payers money