By Bida Elly David
The parliament of Uganda has written to the Government of South Sudan seeking compensation of funds owed to Ugandan traders and companies by South Sudan government for the supply of goods and services.
In 2018, Parliament endorsed government’s request to clear Shs 151 billion owed to Ugandan traders and companies by the South Sudan Government.
Ugandan traders supplied goods and services to the Government of South Sudan between 2008 and 2010 but following an outbreak of conflict in December 2013, the payment process was interrupted.
Following this, the two governments formerly entered into a mutual agreement that would ensure Uganda clears the payments and treat it as a loan to the Government of South Sudan.
Speaking to the Trade Tourism and Industrial committee on Thursday, Hon. Matia Kasaija the Ugandan finance minister said that he had written to the South Sudan Government asking for reimbursement of the money they paid to Ugandan traders.
“We have already submitted letters of claim and when I met the South Sudan Minister, he answered positively that they have received the letter and they are making preparations to pay” he said “We have already submitted letters of claim and when I met the South Sudan Minister, he answered positively” he added.
Kasaija said they waited to start demanding the repayment after they concluded the payments in a due cost of time with accurate determination.
The Ugandan minister of finance’s response followed questions from the committee on the selective payment of South Sudan traders.
The Committee Chairperson, Hon. Mwine Mpaka asked the minister to explain how they selected the claimants and efforts to recover the money and how Ernest and Young were contracted to conduct verifications and issues of individual traders who do not appear on the list.
“The issue of South Sudan traders seems not to end. We are aware that a certain super 10 were paid their money; this money was also meant to accrue interest; how much interest have you got?” he questioned.
According to the agreement, the money was to be paid back between five to ten years with an interest of six percent after the first year but due to the pandemic, the contract was interrupted due to constant lockdown.
Government has so far paid Shs 155 billion to category one traders and some of the compensated companies are Aponye Uganda, Kibungo Enterprises, KK Transporters, Ropani International Company, APO General Agency and Queens Transport, Trade and Investment and ROKO construction Company among others.
Meanwhile Kasaija has also committed to reaching out to other Ugandans who lost their property and their dear ones in South Sudan so that they can dialogue with the Government of South Sudan on possible compensation.
According to Hon. Francis Mwijukye, the Buhweju County MP, several traders and parents and siblings of people who died in South Sudan want to be compensated.