Horyal Investment Company Holdings Limited and Uganda Development Corporation (UDC) appear before the Parliamentary Committee on Trade.
Today 23rd of April 2019, Horyal Investment Company Holdings Limited owned by Amina Hirse Moghe (a Somali Citizen), his son Mohamoud Abdi Mohammed (a director), and Government of Uganda through Uganda Development Corporation (UDC) appeared before the Parliamentary Committee on trade which is scrutinizing the allocation of Shs 24 billion towards the operations of Atiak Sugar.
Mr Mahmoud Abdi Mohammed, a director at Horyal informed the Committee that the Shs 24 billion from the government was required to facilitate phase one of the processes so that production could begin by August 2019. He further noted that
Another Shs 52 billion had been held in reserve to cater for an out-grower scheme through National Agricultural Advisory Services (NAADS) as a poverty alleviation project for households in the area.
Mahmoud told the committee which was chaired by Hon. Sebunya Kasule that the Shs. 52 billion from NAADS had a capacity to generate Shs 317 billion in five years, which in his view would be a great deal for the local communities.
The Committee however was more interested in understanding how the whole project would be of help to the locals in Ataiak. In response, Mahmoud Abdi Mohammed stated that the 28,000 acres belonged to the community in totality under communal ownership. He revealed that Horyal is working with local cooperative societies and the local district leadership to ascertain household membership before the land could be parcelled out to the growers.
Hon. Odonga Otto, the Member of Parliament representing Aruu County questioned the ownership and the shareholders of the respective companies Abdi Mohammed in response assured the committee that, Horyal Investment Company Holdings Limited was owned by Amina Hirse Moghe (a Somali business lady), his son Mohamoud Abdi Mohammed, and Government of Uganda through Uganda Development Corporation (UDC) which owns 34 per cent of shares. He further informed the Committee that the government had already invested over Shs 62 billion in previous years into the factory to save it from under-capitalization and debt.
The Committee resolved to carry out a site visit to inspect the out-grower farms that are reportedly growing sugarcane for Atiak Sugar factory.