Parliament Cautions Dei BioPharma Against Unfair Competition

Members of Parliament have expressed concern over the government’s investment in Dei BioPharma, advising the company to operate within its intended mandate. The core of the issue lies in allegations that Dei BioPharma, a company receiving substantial government funding, is producing generic medicines already manufactured by local Ugandan businesses.

During a plenary session chaired by Deputy Speaker Thomas Tayebwa, MPs debated a report concerning government investments in several projects, including Dei BioPharma. Tayebwa highlighted complaints from local manufacturers who have taken out loans to establish their businesses, only to face competition from a government-subsidized entity. He stressed that Dei BioPharma should be supported to develop innovative and strategic pharmaceutical products, rather than encroaching on markets already served by local entrepreneurs.

Questions were raised regarding the value for money of the government’s investment and the equity structure of Dei BioPharma. Concerns were voiced about the extent of government ownership relative to its financial contribution, with some MPs suggesting the investor might hold a larger share despite the significant public funds invested. The Leader of the Opposition, Joel Ssenyonyi, pointed out a perceived contradiction in the report, which questioned government ownership while simultaneously recommending further funding.

MPs suggested that the government needs to conduct thorough due diligence, including obtaining independent valuations and reviewing business plans and audit reports, before committing public funds to such ventures. The Minister for Energy and Minerals Development, Monica Musenero, assured Parliament that she would engage with the Attorney General to provide the necessary valuation reports and documentation regarding the government’s stake in the company.

Source: https://www.parliament.go.ug/news/4657/stick-your-lane-parliament-tells-dei-biopharma