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Ssenyonyi blocked from accessing Roko Construction amid scrutiny over Shs263Bn bailout

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Ssenyonyi blocked from accessing Roko Construction amid scrutiny over Shs263Bn bailout
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The Leader of Opposition, Joel Ssenyonyi, was barred from accessing the premises of Roko Construction Company on Monday as he sought clarity on the utilisation of the Shs263 billion taxpayer-funded bailout.

Ssenyonyi, who had planned to meet with company officials, was met with a letter from Roko’s Managing Director, Mark Koehler, denying him entry.

The visit followed complaints from Roko employees alleging they haven’t received their salaries for four months.

Expressing concern over the lack of transparency, Ssenyonyi noted potential mismanagement of funds, as government officials reportedly prepare to request another bailout for the company.

“This company has already received Shs263.3 billion, and now the government is planning to request even more,” Ssenyonyi told journalists in Kawempe.

“We came to find out where this money is going, especially with reports from staff who haven’t been paid for months.”

Ssenyonyi revealed that he notified Roko's management on October 8 about his visit but was turned away upon arrival.

The denial of entry raises questions about accountability, as the company faces delays on major projects like the Lubowa International Hospital and the new Parliamentary chambers.

“The government’s continued funding to private companies without proper due diligence is problematic,” Ssenyonyi said.

He also pointed out that delays in the Parliamentary chambers project have forced Parliament to spend billions on renting offices for MPs and staff, which he described as “nugatory expenditure.”

Criticizing the government’s planned supplementary budget request for Roko, Ssenyonyi questioned the justification for ongoing bailouts without oversight.

He called on the Ministry of Finance to account for funds already disbursed, stating that further taxpayer money should not be spent without proper oversight.

In July 2022, Parliament approved the purchase of 150,000 preference shares in Roko Construction worth Shs202 billion.

The approval angered some MPs, particularly as Deputy Speaker Thomas Tayebwa pushed it through amid claims of insufficient quorum and a rushed process.

This was despite a stay on approval by Speaker Anita Among the day prior.

In July this year, legislators on the Committee on Commissions, Statutory Authorities, and State Enterprises tasked the Ministry of Finance to clarify the criteria for granting bailouts to financially distressed companies.

Committee Chairperson Medard Sseggona highlighted concerns over foreign-owned companies benefiting more than Ugandan-owned businesses, questioning the framework guiding bailout decisions.

Sseggona also urged Finance Minister Matia Kasaija to present a detailed account of government investments, including shareholdings and management roles, to ensure public funds are well-managed.

However, it appears that after pressure from President Museveni, Parliament ceased further inquiries, with Minister Henry Musasizi later confirming that Roko would receive Shs56.2 billion of the Shs300 billion allocated for emergencies.

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