M7, Madhavani Fall Out Deepens
By John V Sserwaniko
In a rare show of anger, resentment and frustration, President Museveni has described the Madhvani Group as useless.
And to show how serious he was in what in what he was saying, the man from Rwakitura even put his concerns in writing.
In our possession is a one page letter in which Museveni accuses the group of frustrating his investment plans.
At the center of his bitterness is the Sukuru Phosphates project based in Sukuru Hills in Tororo district.
We have seen a series of correspondences in which Museveni discusses how he was patient with the Madhvani group for so long but they let him down creating an impression they didn’t have as much money as they would like to be perceived.
Convinced it would create thousands of low income jobs for the community, Museveni badly wanted the phosphates deposits developed into commercial fertilizers’ production with a factory which the Madhvanis failed to do despite his patient waiting that lasted decades.
The Madhvanis were supposed to obtain funding to develop the project and government would give some concessions.
What annoyed Museveni was that they mismanaged the whole thing, lost a lot of time and the matter ended up in Court.
A furious Museveni reacted by directing Ministry of Energy bosses to ignore the Madhvanis and go with the Chinese.
The Chinese are investors Museveni lured through the Chinese President whom he met during the BRICS Summit meeting in South Africa a few years ago.
It was the Chinese President that specifically head-hunted and sent the Chinese Group to Museveni who are now struggling to develop the phosphates project in Tororo.
When the Chinese, whose investment is worth $600m, began working there, the Madhavanis went to Court seeking an injunction.