Atiak Factory Burns 200lt of Fuel Daily to Run Idle Machinery - Ssenyonyi

During an assessment visit at the sugar plant this month, Ssenyonyi told Parliament that his team found out that the factory consumes 200 litres of diesel daily to run idle turbines.

NATIONAL | The Leader of the Opposition, Joel Ssenyonyi, has revealed that despite the government injecting over Shs553.71 billion into Atiak Sugar Factory, the project being set up in northern Uganda remains non-operational.

During an assessment visit at the sugar plant this month, Ssenyonyi told Parliament that his team found out that the factory consumes 200 litres of diesel daily to run idle turbines.

This practice, which management claims is necessary to prevent machinery from rusting, has drawn heavy criticism, particularly as the factory has failed to produce any sugar for several years.

Ssenyonyi raised the issue in Parliament, questioning the financial management of the factory and the lack of oversight from the Uganda Development Corporation (UDC), which is meant to supervise the project.

"This regular expenditure is disturbing given that there is no production going on," Ssenyonyi remarked, highlighting the financial burden on the taxpayer for a facility that remains inactive.

Established in Northern Uganda with the goal of boosting the local economy and creating jobs, Atiak Sugar Factory was seen as a public-private partnership, with Horyal Investment Holding Company, owned by businesswoman Amina Hersi, playing a leading role.

The government stepped in to support the project with significant financial backing, injecting billions of shillings to ensure the factory's success.

Initially, the plan was for the factory to cultivate 60,000 acres of sugarcane from Atiak to Lamwo using local farmer cooperatives, a move aimed at empowering the local community and creating widespread economic benefits.

However, the management has since abandoned this cooperative model, opting instead to grow 25,000 acres of sugarcane on land owned directly by the factory.

Despite this, production has stalled, and the factory continues to consume diesel for non-production activities.

Ssenyonyi expressed concern that the factory has seen a slow delivery of machinery necessary to begin full-scale production.

"At the time of our visit, only some of the required equipment had been delivered, and these were incomplete without necessary accessories," he said.

Adding to the factory's setbacks, in December 2020, 7,900 acres of sugarcane plantations were destroyed by a fire, further delaying operations.

The cause of the fire remains unclear, leaving the factory unable to resume production. Despite these challenges, the government is reportedly considering injecting additional funds into the factory, a move Ssenyonyi and others in Parliament find questionable.

Ssenyonyi raised the alarm over the lack of tangible results from the factory’s operations, pointing out that despite the significant investment, there has been little to show on the ground.

"What is on the ground is not commensurate with the investment made. This raises questions as to whether this is another white elephant," he said.

The non-operational status of the factory and the ongoing fuel expenditures have led to increased calls for a review of the project and for better oversight to ensure that further investments are justified.