Uganda Airlines directed to redraft ownership and shareholding documents

  • Posted on: 28 March 2019
  • By: sanyu-fm-news

The Uganda national airlines company has been directed by parliament to redraft documents relating to the ownership and shareholding of the airline company.

This follows an admission by the  Registrar General Bemanya Tumwebaze to errors in the document of return of allotment of shares for the Uganda National  airlines company.

Bemanya was appearing before the budget committee alongside the finance minister Matia Kasaija and works minister Monica Azuba along with the airline's top management including Capt. Gad Gasatura the chairman of the board, Company secretary Bisereko Kyomuhendo and the CEO Ephraim Bagyenda.

The government officials were summoned following revelations on Tuesday that the 99.9% of the shares of the company did not belong to government as per documents presented before the budget committee.

The government hastily presented fresh documents yesterday with allotment of 2 million shares worth 200m shillings to the finance and works ministers as shareholders with 1 million shares for each shareholder.

The members of the committee chaired by Amos Lugoloobi have questioned the allotment of shares to individuals and the manner in which they were authorized. MPs note that the resolution to allot shares was not signed by the Company secretary or a director of the company.

The registrar general as well pointed out that the allotment of shares was already done on the 11th ofJuly last year and therefore documents presented yesterday to Parliament by the works minister were null and void since there can only be one allotment of shares in the history of a company. He also observed that the names of the ministers as shareholders should have been followed by their portfolios as cabinet members of the republic of Uganda.

Lugooobi ruled that the ministers and the board of the company as well as the registrar general sit together and rectify the mistakes before the plenary sitting this afternoon.