Parliament terminates infamous coffee processing deal

The deal was terminated in public interest after a two-and a-half hour bipartisan debate where it was agreed upon that the deal the government signed with Uganda Vinci Coffee Limited was problematic.

Parliament terminated the deal for three main reasons: the deal contravened multiple sections of law; the company doesn’t have the financial capacity to undertake the project, and lacks a valid investment license as the company’s investment licence issued in 2014 expired and was not renewed in 2019.

Pinetti Kasaijja and Ggoobi after signing the agreement on February 10-2022 Pulse

Attorney General Kiryowa Kiwanuka accepted the House decision on the coffee deal and promised that the government would review the committee recommendations.

“I have read it and noted its contents. We have listened to the concerns. We have noted the concerns of Parliament and the people. We shall take the recommendations that have been given. We shall review them and report back to Parliament on the action taken,” Mr Kiryowa said.

The government had waived all taxes including social security contributions for company employees; offered free land, water, electricity, monopoly for premium quality coffee and the powers to determine prices and limiting licencing of coffee exporters until the company meets its demand, which is unlimited.

The MPs resolved that all these waivers were illegally and unlawfully granted by Finance Minister Matia Kasaija.

Mr Mwine Mpaka, the Trade committee chairperson, stated that President Museveni was in complete agreement with most of the findings of the report but was against the termination of the contract.