By Spy Uganda
The Leader of the Opposition, Joel Ssenyonyi, has called on the government to disclose details of the agreement it signed with Dei Bio Pharma, following the company’s announcement that it plans to repay the UGX723 billion it received from taxpayers. This demand comes after the government had previously denied the existence of such an agreement at the time the funds were approved.
Ssenyonyi’s request followed a field visit to the company’s premises in Matugga, where Mathias Magoola, the proprietor of Dei Pharma, revealed that vaccine production would commence in October 2024.
“The company says they will start producing vaccines at the beginning of next month, which is just around the corner. We are waiting to see what happens. The proprietor, Mathias Magoola, also mentioned that the government had valued the company and that an agreement was signed, but they have not shared this agreement with us,” Ssenyonyi stated.
Ssenyonyi criticized the government for failing to provide the agreement, despite promising to do so back in April 2024 during discussions of the UGX1.1 trillion supplementary budget, in which the government sought to invest an additional UGX578 billion into Dei Bio Pharma—a company said to be dedicated to manufacturing vaccines and other medicines.
“Back then, the government assured us they would return to Parliament for approval since this company had already received UGX723 billion. Now, the same proprietor claims he will return this money within a few months, as stated in the agreement with the government. This raises questions: Is the government buying shares for just a few months?” Ssenyonyi asked.
He highlighted the lack of due diligence before the approval of the funds, recalling objections from MPs when the government proposed bailing out the heavily indebted company by buying shares. The Ministry of Finance admitted it had no clear understanding of the company’s financial health, as no valuation had been conducted.
Ssenyonyi remarked, “We asked, ‘If you haven’t valued the company, is there any agreement between the government and the company before disbursing funds?’ The minister admitted there wasn’t one at the time but assured us they would work on it later. We opposed this, as it seemed backward—like shooting first and aiming later. But despite our opposition, the request was passed.”
He defended his demand for the agreement, stating, “We need to know how true this agreement is. If Dei Pharma is planning to return the money, what sort of arrangement is this? It would be procedurally correct for the government to return to this House, just as they did when they requested the funds.”
Ssenyonyi also called for the establishment of a formal policy on company bailouts in Uganda. “The government must be more organized. Can we have a comprehensive policy on bailouts? Otherwise, in a short time, the government will return with another request to bail out yet another company.”
In response, Attorney General Kiwanuka Kiryowa confirmed the existence of an agreement between the government and Dei Pharma. He explained that the government is amenable to the company buying back its shares and announced plans to collaborate with the Ministry of Finance to develop a formal bailout policy.
“Shares are property. If someone wishes to buy them back, it’s the right thing to do. The agreement includes a clause stating that should Dei Pharma want to repurchase the shares, they will be valued at that time and bought back,” Attorney General explained.
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