Legislators sitting on the Trade, Industry and Tourism Committee of Parliament have faulted NAADS for illegally dispensing Shs 54 billion to Horyal Investments, the company that manages Atiak Sugar factory.
MPs said the money was supposed to be directed to the out growers to support them in growing sugarcane contrary to the decision by NAADS to hire a private company.
The committee chaired by MP Mwine Mpaka had an interface with the directors of Atiak Sugar factory, leadership of the Sugarcane Cooperatives, NAADS officials and officials from the Uganda Development Corporation on the progress of Atiak Sugar factory in Northern Uganda.
But to their dismay, Committee members discovered that a private company Horyal Investments irregularly received Shs 54 billion shillings from Naads, the money that was supposed to support sugar cane out growers as per the agreement with government.
The officials were tasked to explain their decision to invest in the growing of sugarcane on 7807 acres of land in the contested area with South Sudan.
The legislators also tasked the officials to explain the claims that majority of the labourers at the factory have spent a number of months without receiving their pay.
The directors of Atiak Sugar Factory also faced the wrath of legislators on the accountability of Shs 16 billion from government used in the transportation of sugarcane from Busoga to Atiak Sugar Factory in Amuru.
Local leaders from Amuru urged MPs to support the project as it will redeem the lost glory of Northern Uganda that was devastated by the war.