MPs on the Committee on Science, Technology and Innovation have expressed shock after finding Fresh Cuts, a government-supported beef processing facility in Seguku along Entebbe Road, closed for three years despite receiving public funds to support its operations.
The MPs, led by committee chairperson Dr. Samuel Opio Acuti, discovered this during a field visit to the facility on Wednesday morning, where they found machinery lying idle and the company struggling with outstanding electricity bills.
“We were shocked that the facility has not been in operation for three years, while the machines are lying idle and the company is faced with outstanding power arrears,” Acuti told Bbeg Media.
Fresh Cuts benefited from Shs798 million under the government’s innovation fund to support the Ankole beef products initiative, which was intended to promote the export of Ugandan beef to the Serbian market.
However, the committee questioned why the facility had remained closed despite the financial support and the government’s efforts to help businesses recover from the economic effects of the Covid-19 pandemic.
Acuti further revealed that the company had received a tax waiver worth Shs8.7 billion following a presidential directive aimed at supporting businesses affected by the pandemic.
He questioned what the company had achieved in return for the government support, noting that MPs had expected to find an operational facility with products ready for export rather than idle machinery and no ongoing business activity.
The company’s use of the Shs798 million innovation fund also came under scrutiny, with Aringa County MP Siraj Ozama questioning how the money had been spent.
In response, an unidentified official from the company told the committee that the funds had been used to launch a product in the Serbian market during a one-day event.
The explanation raised further questions about the sustainability of the project and whether the government investment had achieved its intended purpose of establishing a viable beef export business.
Isingiro South MP Marri Mujuni called on the government to intervene and support the struggling facility, arguing that the company had access to a ready market for its beef products.
Mujuni said reviving the facility could help Uganda earn foreign exchange through beef exports, particularly because a significant portion of the company’s planned production was intended for international markets.
The committee’s visit was initially delayed after members encountered difficulties obtaining clearance from the company’s top management. The managing director was reportedly out of the country.
The MPs said they had expected to find an operational processing plant producing beef products for the Serbian market, given the public resources that had been invested in the project.
