Parliament has criticised the continued funding of Atiak Sugar Factory after Government admitted that despite injecting over Shs668Bn into the project, no sugar has been produced for years.
During debate on the Shs1.105Trn Supplementary Expenditure Schedule No.5 for FY2025/26, lawmakers blasted Government for seeking an additional Shs37.9Bn for the controversial factory, with opposition legislators accusing officials of wasting taxpayers’ money on a failed project.
Leader of Opposition Joel Ssenyonyi tore into the project, questioning why Ugandans should continue financing a factory that has repeatedly failed to deliver.
“It is a factory I went to visit with colleagues and there is no sugar coming out of there for the last couple of years, but every year we keep appropriating money. Help me understand, who is this Atiak person that we have got to keep giving them money,” Ssenyonyi said.
He further warned that Parliament risks looking like “conduits of fraud” before taxpayers.
“Fraud is when you are paid for a service and you don’t deliver it. You have given Shs668Bn so far to Atiak, no sugar is coming out of there and you want to add them money. For what?” he charged.
Government, through David Bahati, defended the investment and promised that the factory would finally begin producing sugar in September 2026.
“As we speak, I know members are very much concerned with when will the sugar from Atiak Sugar Factory be put on the market. I have good news for you, Atiak Sugar Factory will start producing sugar in the month of September this year,” Bahati told Parliament.
But Ssenyonyi dismissed the timeline as another empty promise.
“As sure as day follows night, it is not going to happen, because every year they keep promising us,” he said.
The opposition also questioned why Government keeps pouring public money into what they described as a private business with unclear returns for taxpayers.
Earlier this year, Ibrahim Ssemujju revealed that another Shs100Bn has been earmarked for the factory in the 2026/27 budget through the Uganda Development Corporation.
According to Ssemujju, Government will have invested nearly Shs769Bn in the factory, while businesswoman Amina Moghe Hersi reportedly holds 60% ownership after investing only Shs125Bn.
“The Shs100Bn new allocation will bring total investment in this company to Shs768.710Bn. The proprietor Amina Moghe Hersi has invested Shs125Bn, she has 60% stake in the company and Uganda has 40%,” Ssemujju revealed.
Even legislators from Northern Uganda admitted frustration over the endless delays.
Anthony Akol acknowledged that residents in Amuru are also tired of waiting for results.
“What Ugandans want to see is the sugar,” Akol said, while admitting that earlier sugar cane planted for production “got finished within a very short period” forcing operations to stop.
He however asked for patience from legislators and Ugandans.
The latest controversy now raises fresh questions over accountability, value for money, and whether Atiak Sugar Factory has become one of Uganda’s most expensive unfinished government-backed projects.
