Somehow, Uganda's financial engineers, can allow/assist someone -- a foreigner at that -- borrow SIX MILLION DOLLARS (US $6M) without colateral! Where else on the planet do such opportunities exist?
I've heard of taking candy from a baby but this is ludicrous! It'd seem that, in Third world, when we are about to be raped, we do everything possible under the sun to assist the rapist.
What to do if he skips town? Why would anyone have too much incentive to run any company from such a loan too well, after s/he has zilch assests on the line? What to do if he defaults on that loan -- who pays?
No change! No change! Clear-headed leadership to protect Uganda's interests, vision, sad term, etc, etc.
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--- Begin Message ---'Tri-Star boss incompetent'
By Emma Mutaizibwa
Jan 28, 2004
KAMPALA - The Managing Director of Tri-Star Apparels, Mr Vellupillai Kananathan, is not fit to run the firm, a senior presidential adviser has said.
Tri-Star Apparels exports garments to the United States under the African Growth and Opportunity Act.
Agoa allows selected African countries to export apparels quota and duty-free to the United States.
Mr Onegi-Obel with Ms Muhwezi appearing before Parliament's Finance committee yesterday (Photo by John Nsimbe). "I am on record as having said that this gentleman [Kananathan] running this company is incompetent," Mr Onegi-Obel, the senior presidential adviser on Agoa, told MPs on Parliament's Finance Committee yesterday.
Kananathan received a loan of $6 million from government through the Uganda Development Bank to run the firm - but did not provide collateral.
Onegi and Ms Suzan Muhwezi, who is the presidential assistant on Agoa, appeared before the committee yesterday to answer several queries about the firm. Mr Bright Rwamirama (Isingiro North) chairs the committee.
The firm came under the spotlight last October after 298 of its female employees went on strike protesting the poor working conditions. Kananathan fired nearly all the girls whom he considered troublemakers.
Onegi said he wrote President Museveni in February 2003 about Kananathan's incompetence. He said that government is trying to acquire shares in the firm as a risk management intervention measure.
"I have triggered off a damage control. Government is carrying out negotiations to acquire equity in the firm," he said. But the MPs were angered by Onegi's news.
They wondered why Kananathan, who is a senior four dropout, is still in charge of the firm. They also queried Kananathan's hefty salary.
Mr James Mwandha (PWD Eastern) wondered how government would legally become a shareholder in the company.
"How does government intervene in the operations of a private company? Isn't that exercise of acquiring shares [in Tri-Star] in futility?"
Mr Ephraim Kamuntu (Sheema South) said that acquiring equity in the firm would not resolve the problems of the firm.
"If you convert the loan into equity, don't you think that you will be compounding the problem? If Tri- Star Apparels or Uganda Development Bank collapses it is government that will feel the effect," Kamuntu said.
Onegi said that the mess at Tri-Star was caused by weaknesses within the team that negotiated the Tri-Star deal on behalf of government. Onegi told the MPs that he only signed the memorandum of understanding on behalf of government.
"Onegi you should resign," Mwandha said. The MPs also asked Onegi why Tri-Star Sri Lanka, which was originally hired to do the work was replaced by Tri-Star Uganda.
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I think its M7 who is terribly incompetent! This is his baby. He should , together with his fellow con-man Kananathan, resign!
Gook"You can't separate peace from freedom because no one can be at peace unless he has his freedom."- Malcom X
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