Published on 02/08/2024
A group of Members of Parliament in Committee of Commissions, Statutory Authorities, and State Enterprises (COSASE) condemned the Government for neglecting the Kampala Serena Hotel‘s refurbishment as per the concession agreement.
Instead, UGX 86.4 billion was allocated to the Speke Resort Convention Centre. In 2023, Parliament approved this supplementary budget for Meera Investment Limited owned by Sudhir Ruparelia, to build a US$40 million conference hall. Sudhir offered 2.288 acres of land valued at UGX 16.4 billion while the Government paid UGX 38 billion for a 50% stake in Munyonyo resort. The remaining UGX 48 billion was loaned to Sudhir.
During the July 22 meeting to consider findings in the December 2023 Auditor General’s report, officials from Nile Hotel International Limited, the Government’s entity overseeing Serena Hotel’s concession, were asked to explain the reasons behind the delayed redevelopment, refurbishment, and maintenance of the conference centre at Serena.
Elijah Okupa (Kasilo County) inquired, “The concession time is running out. When do we expect the refurbishment of the Conference Centre to be completed?”
Medard Sseggona (Busiro East) questioned if the delay in refurbishing Serena Hotel is affecting the Government’s earnings from the facility, stating, “Does the delay in investing the remaining funds affect our earnings from the facility? The concession is for 35 years, and 15 years have already passed without the concessionaire investing as per the agreement. Does this impact our revenue as a country?”
Joseph Barungi, Manager of Nile Hotel International Limited, responded that Serena Hotel still generates revenue for the Government, saying, “In the first 10 years of the concession, Serena Hotel attracted significant revenue. It is only in recent years that challenges have arisen. Despite these limitations, Serena Hotel continues to generate substantial income from workshops and conferences.”
However, Okupa rejected this response, arguing, “Yes, it may be making money, but how much? We wouldn’t have needed to build another convention centre in Munyonyo if Serena had been refurbished. Major conferences like CHOGM, Non-Aligned Movement and others generate significant revenue. The sooner the refurbishment is done, the better for the country.”
Barungi defended the Government’s decision to abandon Serena Conference Centre and build a new one for a private individual, arguing that Serena did not meet the requirements to host the Non-Aligned Movement (NAM) Summit. “NAM required a larger facility. Serena Conference Centre could not be expanded to the level of Speke Convention Centre. By 2025, the concessionaire will refurbish it, but Serena will remain a functional and attractive facility,” explained Barungi.
Eddie Kwizera (Bukimbiri County) expressed suspicion over the Government’s decision, stating, “The issue of this centre hosting the African Union meeting in 1975 was sufficient. Supporting a private business instead of refurbishing Serena creates suspicion. Are you now employed by private individuals to undermine Government efforts?”
Patrick Birungi, Executive Director of Uganda Development Corporation (UDC), defended the decision to build a new conference centre in Munyonyo, explaining that Serena had different specifications from those required for the NAM Summit. “NAM had completely different requirements. Serena’s existing conference centre could not accommodate 3,200 people. Therefore, a new convention centre was necessary,” said Birungi.
MPs were also shocked to learn that despite UDC being mandated to oversee Government’s investments in private companies, it was not involved in controversial investments like the International Specialized Hospital Lubowa, Dei Pharmaceutical Limited, and Roko Construction Company, where the Government has sunk money. Birungi remarked, “All the mentioned entities are not part of our investments. We do not appraise or conduct due diligence on them.”
His revelation followed a question from Timothy Batuwa (Jinja South-West), who asked, “I want to know if UDC is securing our investment in International Specialized Hospital Lubowa, Dei Pharmaceutical Limited, and Roko Construction Company. Who is safeguarding our money in these private entities?”
