GLOBAL AND LOCAL MEDIA EXPOSE NEED FOR MORE TAXPAYERS MONEY TO PAY FOR NEW PLANES
(Posted 10th March 2019)
(Picture courtesy of Bombardier)
Information has come to light that the Ugandan government has filed a request with parliament to approve the spending of US Dollars 7.53 million or Uganda Shillings 280 billion to make a further payment to Canadian aircraft manufacturer Bombardier.
It is understood that two Bombardier CRJ900 aircraft are ready for delivery to Uganda but that further payments need to be made after previous financing options through the Canada Export Development Corporation fell through.
Uganda’s Minister of State for Planning David Bahati reportedly told parliament last week that: ‘We need to pay UGX280 billion. We have taken a decision and we are proposing that proceeds from the MTN license and also the capital gains tax from the proceeds from the Petroleum Fund be used to finance the UGX280 billion required to complete the payment for the first delivery of the two aircrafts and this payment is required in ten days‘, indicating an unusual rush in subject matter which proper financial advance planning ought to have captured weeks ago.
Industry pundits have already quipped that if this is the way the newly revived national airline will be run, then not all will be well in the future.
No information could be obtained how far the audit process by the Uganda Civil Aviation Authority towards an Air Operators Certificate, in short AOC has gone by now, a major factor in determining when the airline will be able to commence flight operations.
Travel agents have also confirmed that no flights of Uganda Airlines are yet displayed on their GDS systems, indicating further need to get ready on the double if the mid year target for launch is to be reached.
