Parliament Demands Safeguards for Shs723 Billion Dei BioPharma Investment

The Committee on Presidential Affairs has flagged significant gaps in the oversight of the government’s considerable investment in Dei BioPharma Limited, a private pharmaceutical manufacturing company. The committee is calling for robust accountability measures and clearly defined performance targets to ensure the prudent use of Shs723.4 billion in public funds.

During a plenary session chaired by Deputy Speaker Thomas Tayebwa, the committee’s report highlighted a worrying lack of documented evidence concerning the government’s shareholding in Dei BioPharma, the projected returns on investment, and the specific deliverables expected from the project. This absence of clear documentation is particularly concerning given the scale of public resources allocated.

“Government should ensure that clear documentation of government’s shares in Dei BioPharma, the expected returns, deliverables and performance targets, commensurate with the public resources invested are provided,” stated Hon. Martin Mapenduzi, who presented the committee’s findings. The report indicates that the government has channeled Shs70 billion in the 2023/2024 financial year, an additional Shs75 billion in December 2023, and a substantial Shs578.4 billion via a supplementary budget in the 2024/2025 financial year to the company.

While the government reportedly holds a 9.4 per cent stake, proof of this ownership was not presented during the assessment. Dei BioPharma, located in Matugga, Wakiso District, operates a large complex with facilities for various pharmaceutical products. However, the facility is operating below its potential due to infrastructural deficits and funding shortfalls.

Mapenduzi stressed the urgency of completing and commissioning the remaining production lines to bolster import substitution, enhance national medicine security, drive pharmaceutical exports, and create employment. The Ministry of Finance, Planning and Economic Development has been tasked with securing the additional US$434 million needed to fully operationalize the facility, which has already created over 1,000 jobs and is projected to employ up to 20,000 people when operating at full capacity.

Furthermore, the committee recommended that the government prioritize providing a reliable 100 MW electricity supply and that the National Water and Sewerage Corporation establish adequate water infrastructure, as the facility requires between seven and 10 million litres of water daily. The committee also reviewed other innovation projects across the country.

Source: Parliament of Uganda