By Lumpe Media
KAMPALA — The growing dispute over the legal status and operations of the Presidential Advisory Committee on Exports and Industrial Development (PACEID) has escalated, with the Patriotic League of Uganda (PLU) calling for the suspension of an alleged US$14 million (about Shs52 billion) government payment linked to PACEID chairman Odrek Rwabwogo.
The demand has opened a new front in an increasingly public confrontation over PACEID’s establishment, access to public resources, staffing, financial accountability and the role of presidential initiatives within Uganda’s government structure.
Kasambya County MP David Kabanda, who also serves as Executive Secretary to PLU chairman Gen Muhoozi Kainerugaba, said the organisation wants the Ministry of Finance and other government agencies to suspend dealings with PACEID until questions surrounding its legal foundation and accountability are addressed.
Mr Kabanda said he was conveying a position attributed to Gen Kainerugaba, who has publicly described PACEID as an illegal entity.
According to Mr Kabanda, President Museveni has the constitutional authority to establish, merge or abolish government departments and initiatives, but such bodies must operate within a clear administrative and legal framework that specifies their mandate, staffing, funding and accountability.
He questioned PACEID’s position within that framework, particularly its access to public resources.
“The country needs to know who appointed him as the chairman of PACEID,” Mr Kabanda said, while also questioning who serves as the committee’s accounting officer, how its staff were recruited and where its financial reports are submitted.
He argued that Mr Rwabwogo’s appointment as a senior presidential adviser did not, by itself, establish a separate government agency with authority to recruit personnel and administer public funds independently of established government structures.
Mr Kabanda also raised questions about PACEID’s reported involvement in trade-envoy appointments, arguing that Uganda’s foreign relations are ordinarily handled through the Ministry of Foreign Affairs and the country’s diplomatic missions.
Shs52bn payment questioned
The PLU’s latest demand is centred on an alleged US$14 million payment that Mr Kabanda claims the government is preparing to make to Mr Rwabwogo.
He alleged that the payment relates to a transaction involving the supply of helicopters and other materials to South Sudan during the period of conflict in that country.
Mr Kabanda further linked the claim to Thomas Farm Company Limited, which he said is associated with Mr Rwabwogo, and questioned the circumstances under which Uganda would be required to settle a bill arising from supplies allegedly made to the South Sudanese government.
“If you supplied the government of South Sudan and you are not in the original agreement, why don’t you go to South Sudan and ask them to pay you?” he asked.
The claims, however, have not been independently verified from the available material. The alleged US$14 million liability, the contractual arrangements concerning the helicopter supplies and the legal basis for Uganda’s responsibility to make the payment would require documentary confirmation from the relevant government agencies and companies involved.
If confirmed, the alleged payment would be a significant public-finance matter, given that it amounts to more than Shs50 billion.
South Sudan debt history
The controversy comes against the backdrop of earlier government efforts to settle debts arising from supplies made to South Sudan during the country’s civil conflict.
In 2018, Parliament recommended that government pay about US$41 million (approximately Shs150 billion at the time) in outstanding arrears to 10 Ugandan companies that had supplied maize and sorghum to South Sudan.
The companies, operating under the Uganda South Sudan Grain Traders and Suppliers Association Ltd, reportedly supplied maize and sorghum to various South Sudan states under the Strategic Grain Reserves Suppliers arrangement between 2008 and 2010.
The total value of the supplies was reportedly about US$56 million, with payment scheduled in instalments.
According to information cited by PLU, Thomas Farm Limited was not among the original 10 companies identified as beneficiaries. However, Mr Kabanda alleges that Mr Rwabwogo later claimed that his company had supplied helicopters and spare parts during the same period.
It is this alleged claim that PLU says should be examined before any payment is authorised.
Rwabwogo defends PACEID
Mr Rwabwogo has rejected the allegations and defended both his organisation and its mandate.
Speaking to journalists on Tuesday, he said PACEID was established on March 16, 2022, with a mandate to help open international markets for Ugandan products before being placed under the Office of the President on May 25 of the same year.
He said the committee remains a presidential initiative and that its mandate can only be terminated by the President, who created it.
Mr Rwabwogo said President Museveni had assured him that no directive had been issued to terminate PACEID.
He also defended the committee’s performance, saying it has focused on improving food safety and export compliance, negotiating transport and infrastructure arrangements and facilitating affordable financing for companies with confirmed export orders.
According to Mr Rwabwogo, PACEID exceeded its initial target of generating US$6 billion in exports, contributing to an increase in Uganda’s exports from about US$4.5 billion after the Covid-19 pandemic to approximately US$13 billion.
He said PACEID has now entered a second phase focused on establishing aggregation, cooling and drying centres across 18 zones to address supply constraints affecting exporters.
Mr Rwabwogo warned that uncertainty surrounding government institutions and their mandates could undermine investor confidence and insisted that PACEID remains committed to supporting Uganda’s export sector.
Political and institutional dispute
The controversy has increasingly moved beyond questions about PACEID’s mandate to include allegations concerning Mr Rwabwogo’s private business interests and the administration of public resources.
Mr Kabanda has also raised allegations concerning land in Nshaara, Kiruhura District, and questioned Mr Rwabwogo’s involvement in businesses spanning sectors such as coffee, dairy and media.
Those allegations have not been established through a court judgment or an official finding and would require verification from relevant records and the parties concerned.
The reported detention of Matthew Bagonza, described as head of the PACEID secretariat and an associate of Mr Rwabwogo, has further heightened attention around the dispute. However, details concerning the circumstances of his reported detention and any charges against him have not been fully established publicly.
The disagreement now presents government with competing positions: PLU is demanding greater scrutiny of PACEID’s legal and financial framework, while Mr Rwabwogo maintains that the committee is a legitimate presidential initiative with a defined mandate and measurable achievements.
At the centre of the dispute is the alleged Shs52 billion payment. Whether the payment exists, who is entitled to it, what contract or government decision supports it, and whether public funds can legally be used to settle the alleged claim remain questions requiring documentary clarification from the Ministry of Finance and other relevant authorities.