Uganda Seeks Reimbursement of Funds Paid to Traders Owed by South Sudan
Uganda has written to the government of South Sudan requesting compensation for money paid by South Sudan to Ugandan traders and businesses.
Uganda Seeks Reimbursement of Funds Paid to Traders Owed by South Sudan
Uganda has written to the government of South Sudan requesting compensation for money paid by South Sudan to Ugandan traders and businesses.
In 2018, Parliament granted the government’s request to pay Sh151 billion that the South Sudanese government owed to Ugandan businessmen and businesses.
Between 2008 and 2010, Ugandan traders provided the Government of South Sudan with goods and services, but after fighting broke out in December 2013, the payment process was halted.
A mutual agreement between the two governments was then reached, ensuring that Uganda clears the payments and treats them as a loan to the Government of South Sudan.
On November 3, 2022, when the Finance Minister, Hon. Matia Kasaija, testified before the Trade Tourism and Industries committee, he stated that he had written to the South Sudanese government to request reimbursement for the money they had paid to Ugandan traders.
When I met the South Sudan Minister, he responded favorably that they had received the letter and were getting ready to pay, Kasaija said. “We have already submitted letters of claim,” Kasaija said.
He claimed that they held off on demanding repayment until after they had finished making payments.
Questions from the committee on the selective payment of South Sudanese traders were answered by Kasaija.
Hon. Mwine Mpaka, the chairperson of the committee, questioned the minister about the selection of claimants, efforts to recover the funds, the contract with Ernest and Young to conduct verifications, and the problems with specific traders whose names did not appear on the list.
“The problem with South Sudanese traders appears to be ongoing. How much interest do you have? We are aware that a particular super 10 were paid their money, which was also intended to earn interest. He inquired.
The loan was to be repaid between five and ten years, with interest starting after the first year at six percent.
To date, the government has paid category one dealers Sh155 billion.
Aponye Uganda, Kibungo Enterprises, KK Transporters, Ropani International Company, APO General Agency and Queens Transport, Trade and Investment, and ROKO Construction Company are a few of the businesses that received compensation.
In the meantime, Kasaija has vowed to get in touch with other Ugandans who lost loved ones and/or property in South Sudan so that they can discuss potential compensation with the South Sudanese government.
This came when MPs asked about a number of traders who have lost people and property but are not on the list.
A number of traders, as well as the parents and siblings of persons who perished in South Sudan, seek compensation, according to Hon. Francis Mwijukye, the Buhweju County MP.
