In a surprising turn of events, a $500 million (approximately UGX 1.8 trillion) pharmaceutical drug and mRNA vaccine manufacturing facility located in Kigogwa, Matugga, Wakiso District, which was commissioned by President Museveni in 2020, is now up for sale due to outstanding debts.
The debt issue arises from a loan taken by the company, formerly known as Dei Natural Products International Limited and now called Dei Biopharma Limited.
An advertisement from Kaweesi and Partners Advocates dated September 14 states, “We have been duly instructed by our client, a financial institution which is the registered mortgagee to advertise and sell by public auction to recover the outstanding loan balance, our fees, and other costs. The owner/owners are hereby notified that unless full payment to our client is effected within 30 days from the date of this advert, the property shall be disposed of to recover our client’s money.”
The advertised facility is located in an industrial zone in Matugga, Wakiso district.
The company initially secured funding from two local banks and the Uganda Development Bank to support the construction, importation of advanced medical equipment and machines, as well as working capital. However, it has failed to repay these loans, leading to this drastic step.
Other properties owned by the company, including a wheat milling plant in Luzira, a hospital in Kitende, residential houses in Muyenga, a commercial property at Seguku, and a weighbridge station, are also listed for sale.
The facility had been launched three times, with President Museveni initially inaugurating it on June 3, 2020. However, it faced delays in production due to structural planning issues.
In 2021, President Museveni and Kenyan counterpart William Ruto commissioned the facility again, praising Uganda’s potential in the pharmaceutical industry.
Despite these efforts, it appears that financial challenges persisted, leading to the property’s sale.
The facility’s sale has raised questions about its future and the government’s involvement, with Finance Minister Matia Kasaija previously expressing willingness to support it. Parliament had allocated funds to Dei Pharma Limited for the factory in the budget, although it faced opposition from some legislators.
Mathias Magoola, the owner of the facility, has been a figure embroiled in controversy and legal disputes. He has faced allegations of financial irregularities and legal battles over payments to contractors, among other issues.
The sale of the facility highlights the challenges faced by ambitious projects in the country and raises questions about financial management and transparency in such endeavors.
