Atiak Sugar Factory sparks fury in Parliament over Shs668bn spending spree
Parliament has raised fresh alarm over the Atiak Sugar Factory project, questioning why Government continues to inject billions of shillings into a venture that has yet to produce a single bag of sugar despite receiving more than Shs668 billion in public funds. The concern came during debate on the Shs1.105 trillion Supplementary Expenditure Schedule No.5 […] The post Atiak Sugar Factory sparks fury in Parliament over Shs668bn spending spree appeared first on Daily Star.
Black News 
Parliament has raised fresh alarm over the Atiak Sugar Factory project, questioning why Government continues to inject billions of shillings into a venture that has yet to produce a single bag of sugar despite receiving more than Shs668 billion in public funds.
The concern came during debate on the Shs1.105 trillion Supplementary Expenditure Schedule No.5 for the 2025/26 financial year, where lawmakers strongly opposed an additional Shs37.9 billion requested for the controversial project.
Opposition legislators led by Leader of Opposition Joel Ssenyonyi described the factory as a long-running financial burden on taxpayers, questioning the logic of continued funding.
Ssenyonyi said he had personally visited the facility and found no production activity taking place.
“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, yet every year we keep appropriating money,” he said.
He warned that Parliament risks being seen as enabling misuse of public funds.
“Fraud is when you are paid for a service and you do not deliver it. You have already given Shs668 billion and no sugar is coming out, and now you want to add more. For what?” he asked.
Government defended the project, with State Minister for Planning David Bahati assuring Parliament that production would finally commence in September 2026.
“As we speak, Atiak Sugar Factory will start producing sugar in September this year,” Bahati said.
But his assurance was quickly dismissed by Ssenyonyi, who said similar timelines had been given repeatedly without results.
“As sure as day follows night, it is not going to happen. Every year they keep promising,” he said.
The debate exposed deep divisions in Parliament over whether continued investment in the project is justified, with critics arguing that the factory has become a symbol of unchecked public spending.
Earlier, MP Ibrahim Ssemujju Nganda revealed that Government is planning to inject an additional Shs100 billion into the project in the 2026/27 budget through the Uganda Development Corporation.
He said total Government investment is projected to reach about Shs769 billion, while businesswoman Amina Moghe Hersi reportedly controls a 60 percent stake after investing Shs125 billion, with Government holding 40 percent.
“The new allocation will push total investment close to Shs768.710 billion,” Ssemujju said.
Even legislators from Northern Uganda, where the project is located, admitted growing frustration over the delays.
Amuru County MP Anthony Akol said communities were losing patience as expectations remain unmet.
“What Ugandans want to see is the sugar,” he said, noting that earlier cane plantations meant to supply the factory had collapsed before production could stabilise.
He, however, appealed for continued patience as the project undergoes restructuring.
The renewed scrutiny has now placed Atiak Sugar Factory at the centre of a wider debate over accountability in public investments, with lawmakers demanding clarity on whether the project still offers value for money or has become one of Uganda’s costliest stalled ventures.
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