Parliament summons Finance, AG over Roko’s Shs260b bailout

Two years after government voted to invest more than Shs266 billion in Roko Construction Company, concerns are growing that if not closely monitored, this may turn into another huge loss to the taxpayer.
Parliament now wants the government through the Ministry of Finance, Planning and Economic Development and the Attorney General, to expeditiously table a report detailing the status at ROKO Construction Company.This is after concerns were raised by the Leader of Opposition in Parliament, Mr Joel Ssenyonyi, in a report detailing his botched oversight visit to the company headquarters on October 14.
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Mr Ssenyonyi told Parliament that he and other members of the shadow cabinet were denied a meeting with the executives at ROKO, and locked out of the premises where they had gone to ascertain whether the rationale of the bailout was being achieved. 
Roko Construction, once a renowned contractor reportedly ran into financial difficulties in recent years, prompting the government to intervene with a bailout of Shs207 billion of taxpayers’’ money in 2022, and another Shs56 billion in the current financial year.  This intervention from the government coffers entailed the government acquiring a 15 per cent stake, making the company’s operations a concern of the public and a justification for the LoP’s visit as part of Parliaments oversight role.
While granting the bailout, even amidst spirited protest by a section of legislators, the government argued Roko’s sinking would leave a dent on the economy in the form of loss of over 1,800 jobs, but also affect major government projects like the construction of the new Parliament Chambers whose completion dates keep on shifting. To date, however, there has been no significant improvement on government projects while employees of the company continue to raise concerns of nonpayment of salaries for months. “While the Government of Uganda’s financial intervention towards Roko Construction Company Ltd was aimed at preserving jobs, continuing important infrastructure projects, and maintaining stability in the construction sector, the glaring concerns about project delays, financial transparency, and governance reforms need to be urgently addressed,” Mr Ssenyonyi told Parliament.
“Government construction projects have continued to stall despite the 2022/23 bailout, and this raises a lot of questions.Most notable of these projects is the Parliamentary Chambers, whose target completion date was July 2021, but to date not much progress is seen. What is bothersome is that Parliament spends billions to rent office space for MPs and staff at Kingdom Kampala and Queens Chambers because of this incomplete project,” the Nakawa West MP added. A section of legislators has called upon Speaker of Parliament Anita Among to terminate Roko’s Contract of constructing the new Parliament chambers.  Ms Among said:  “We have our money that is with Roko; we need to know how the money is being used and most importantly, what members are asking. You need to have an interface with Roko and give a report to this House.” Mr Ssenyonyi further sought an explanation into whether after the bailout, the company’s management and governance structure was changed, if accumulated debts are being paid and if amendments were made to include the government's investment and how much it owns in equity. “Is Government aware of these concerns by employees? Keeping an eye on this company in which it injected taxpayers’ money? Are we not bothered that Ugandans are suffering,” he said. With nothing to hide,  Mr Ssenyonyi said the executives at Roko should not be shying away from accountability engagements. “We call for continued vigilance to ensure public funds are used efficiently, and the interests of Ugandan workers and taxpayers are protected… the Attorney General should be required to lay before the House the Share Agreement with Roko, Government shares are not clear; there is need to clarify this,” he said.
 Mr Ssenyonyi argues that while investing in private companies to stimulate economic growth, foster innovation, and address strategic national interests, it should be done judiciously to ensure taxpayer money is effectively and rightfully used“In recent years, government has invested heavily in private companies cross various sectors, from technology and healthcare to infrastructure and energy. These investments aim to promote entrepreneurship, create jobs, and drive economic development. However, they also involve significant risks, including the potential for inefficiency, corruption, and misallocation of resources,” he said. While Minister of State for General Duties at the Ministry of Finance, Henry Musasizi faulted Mr Ssenyonyi for going to the company headquarters which he said is not a sight where he could get answers, he committed to offer a response to the House.