Ugandan Parliament Probes $41 Million Grain Deal

The Parliament in Uganda is looking into a $41 million grain deal with the Government of South Sudan known as the Dura saga and the participation of Ugandan companies.

The Parliamentary Select Committee is looking into the role Uganda played in the deal in which companies have been alleged to have received payments from the Government of South Sudan but failed to deliver the cereals. It has been reported that $1 million was paid out to domestic contractors in order to secure supplies to boost food security.

According to the World Bank 290 companies were paid in the absence of signed contracts. A further 151 companies were overpaid. There were also existing question mars concerning the capacity and credentials of a number of these firms.

The Committee is looking at a $56 million contract between South Sudan and the Uganda South Sudan Grain Traders and Suppliers Associations ltd, under which ten Ugandan companies were to provide supplies to the country. The Government of South Sudan is reported as having paid the first instalment of $15million, with an outstanding balance of $41 million.