Uganda: Sh480m Kawanda Silk Plant Closed
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PublishDate:
2008-04-17 16:26:00
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THE sh480m silk processing plant at the National Research Laboratories in Kawanda has closed down over alleged mismanagement.
Dr. Ambrose Agona, the director, said the machines were not under the institute's mandate.
"They are not ours and we are not responsible for them," he said.
The closure has left more than 100,000 farmers in eastern and western regions stuck with sacks of silk cocoons and mulberry plant farms. Sources said the plant ceased operations over six months ago due to a wrangle over its management.
"It is a mixture of politics and mismanagement. "Some powerful people in the Government want to own it as individuals yet the plant is a national public good," the source explained bitterly.
The Chinese-made plant used to process a tonne of silk cocoons per month into fine export quality yarn.
Some of the machine units were obtained through a loan from the African Development Bank.
Others were a donation from the US government.
"The Americans want to take their machines away," the source said.
The source added that the Uganda Export Promotions Board (UEPB), which had shown interest in the running of the machines, suddenly backed down.
"I can not state our position on those machines. "But what I know is that we have an interest there," Daniel Karibwije, the UEPB trade promotion and public relations director, commented over the weekend.
Source:Industry Website