Before Museveni and the NRM came to power, many public enterprises had been mismanaged. But they still belonged to Ugandans, and had great potential. With the introduction of privatization and Liberalization, the NRM regime used the opportunity to completely make Ugandans second class citizens by taking away from ordinary people what they used to pride in.
NYTIL a very large textile factory with extensive real estate was sold for Shs. 1,000= and Museveni attempted to give away the Dairy Corporation at 1 US dollar.
State house is the clearing house for foreign investors. Tristar/AGOA was given 11.0 Million dollars of tax payers’ money and the investor brought in nothing. This was with tax exemption and freedom to repatriate profits and in the end the factory collapsed and Uganda lost everything it had given as an incentive. The only Ugandans who benefited were the residents of State House.
General Salim Saleh, the president’s brother, and one Ruyondo, his business partner, were given $ 3 million state funds on orders of the president to open coffee shops in Denmark, there are no results to date. He also acquired and sold for personal gain several cooperative societies namely Banyankole Kweterana, Sebei Cooperative Union, Okoro, West Mengo Cooperative Union, and North Bukedi cooperative Union.
President Museveni promised to determine the fate of the remaining 60 public enterprises to a tune of Shs. 290 billion which have not been accounted for. Both the enterprises and the money from their sales disappeared!
President Museveni decided to fast- track the completion of the Trans ocean Island port in the interest of his daughter. The government has since agreed to pay 25 years free rent for Grain Traders, a company in which his daughter is a shareholder. The URA set aside some stores for the first daughter’s company at their facility in Nakawa. (She seemed to have lost interest in the business, as these stores have been lying idle for some time.)
UGIL was sold to Phoenix for 500,000 dollars, after the government had spent 6 million dollars to rehabilitate the company.
The Government spent 12 million dollars refurbishing the Nile Hotel, only to lose 4.5 million dollars in the legal costs of a botched privatization which was initiated and supervised by the president.
The first failed sale of Uganda Commercial Bank was at a loss of 69 billion shillings to Westmont Bhd (a Malaysian company). It was then sold to STANBIC at shs. 43 billion with the UCB headquarters tower given away for absolutely free. Clearly, a visit to State House made the transaction smooth.
With the approval and Knowledge of the president, the government operated an illegal and secret account with the Bank of Uganda for twelve years, where they were siphoning off tax payers money for private use. In 2004 alone 92 billion went through this account, including the 21.0 billon as a donation to Mr. Basajabalaba.