Cabinet has directed the Minister of Finance, Planning and Economic development to ensure all Accounting officers of government institutions undertake due diligence of all foreign investors to avoid fraudsters.
The cabinet decision was reached at during a meeting at State House Entebbe Monday and dully communicated by Deputy ED Media Centre Col Shaban Bantariza on Tuesday.
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According to the resolution, foreign investors who intend to Partner with government entities will have to be vetted by Accounting Officers in close consultation with the Financial Intelligence Authority before any Project Proposals are submitted to the Public Private Partnership Committee for consideration
The directive is intended to detect Entities/individuals who may attempt to defraud Government MDAs, by purporting to have huge sums of money that they intend to transfer to Uganda to finance various investment projects and seeking letters of introduction to open Bank Accounts from MDAs which accounts are used for the purpose of Money Laundering.
“This will also ensure that only credible Investors partner with Ministries, Department and Agencies of Government and to minimize the risks associated with undertaking investment projects with potential criminals,” a statement from cabinet reads in part.
This comes at a critical time when the country is being invaded by a litany of foreign investors, who come under guise of being laden with money bags, only to turn out to be downtown traders or open up kiosks in city suburbs.
In November 2013, Trade, Industry and Cooperatives minister, Amelia Kyambadde issued warning to fake investors saying they had one year to shape up.
In November 2017, President Museveni said the country would put a stop to the influx of investors who come to Uganda only to end up roasting maize and hawking goods.
"There is influx of foreigners to do hawking jobs (Kutembeya), etc. We shall stop it," Museveni said.
