Legislators on the Natural Resources Committee have summoned Attorney General Kiryowa Kiwanuka over the ongoing controversy surrounding the termination of Tibet Hima Ltd's contract with the government.
The termination occurred after the company failed to meet its obligations, including the payment of an annual concession fee of $1.5 million.
In December 2015, the government terminated Tibet Hima’s $22 million (Shs80bn) contract, citing non-compliance.
The State Minister for Investment and Privatisation, Evelyn Anite, defended the termination, maintaining that it was conducted in accordance with the law.
The committee, chaired by Herbert Ariko, is currently investigating the matter but is facing legal bottlenecks, particularly related to court interpretations.
Ariko reassured committee members who had expressed concerns about the ongoing proceedings, asserting that the investigation seeks to clarify the legal aspects of the contract.
Anite, while appearing before the committee, reiterated that Tibet Hima had delayed or failed to fulfill the necessary conditions for the contract, including acquiring the required licenses.
She emphasised that the delay was due to the company’s failure to enable the authorities to facilitate them as stipulated in the agreement.
The committee's chairperson, Ariko, highlighted the need for legal advice from the Attorney General to resolve the challenges.
He stated, "We also know the issues of entering and signing of contracts are matters that require legal advisory. What the committee wishes is to know whether the Attorney General was consulted and his guidance in the matter."
The concession between the Ugandan government, Kilembe Mines Ltd, and Tibet Hima Ltd was signed on September 6, 2013.
The agreement’s main objectives included the rehabilitation and commercial exploitation of the Kilembe Mines, as well as generating revenue for the government.
The committee’s inquiry is part of broader efforts to address the challenges related to the contract and ensure proper legal interpretation.
