The Leader of Opposition in Parliament (LoP), Joel Ssenyonyi, has expressed renewed concerns over the government's decision to allocate Shs 723 billion to Dei BioPharma Ltd., a private pharmaceutical company based in Matugga, Wakiso District.
On Thursday, Ssenyonyi, accompanied by about 15 opposition MPs, inspected Dei BioPharma, Uganda’s first research-based biotechnology and pharmaceuticals firm. They toured the company’s 150-acre facility, guided by Chairman Dr. Patrick Wakida and Managing Director Dr. Matthias Magoola, along with their team, including Board Pharmacist Dr. Arthur Kayanya.
The LoP conducted the oversight visit to evaluate the progress and utilization of the funds. He noted that in April 2024, the opposition opposed a supplementary budget request of Shs 578 billion, which was in addition to Shs 145 billion previously allocated to the company.
This funding was intended to support Dei BioPharma's efforts to manufacture vaccines and other drugs, including a promised COVID-19 vaccine that has yet to materialize.
"The government claimed it was purchasing shares in the company as a bailout. However, at the time of allocation, the company had not been valued, raising questions about the government’s stake," Ssenyonyi stated, emphasizing the lack of an agreement between the government and Dei BioPharma, which created uncertainty regarding taxpayer value.
Despite opposition resistance, the supplementary budget was approved, allowing the funds to be released.
During the oversight visit, Dei BioPharma management informed the team that the company has since been valued and an agreement with the government has been signed. However, the relevant documents were not presented to the opposition.
While Ssenyonyi acknowledged that government bailouts for private companies can be warranted, he emphasized the need for transparency and clear policies regarding which companies qualify for such financial support.
"We need to ensure there is value for taxpayers' money. It is unfair for some companies to be handpicked for bailouts while others are left to fail," he said.
He said the opposition continues to demand accountability and increased scrutiny of government expenditures, particularly concerning the substantial sums allocated to Dei BioPharma.