Who Exactly Owns Commonwealth Resort Munyonyo & Why is there Noise over its Shares?

Parliament’s recent quest to investigate why government shares in Commonwealth Resort Munyonyo Ltd have not been transferred to Uganda Development Corporation (UDC), the investment arm of government, has revealed who owns the hotel and how much each owns.

On November 05, the office of Clerk to Parliament Adolf Mwesige, through Jacqueline Muhimbise, summoned Meera Investments Limited Managing Director to appear before the sectoral committee on tourism, trade and industry to explain the issue of UDC shares in Munyonyo Commonwealth Resort Limited.

“The committee has noted with concern that UDC as an investment arm of Government has not been availed an opportunity to manage the Government shares it owns in Munyonyo Commonwealth Resort,” Muhimbise wrote to Meera.

“As thus, you are invited for a meeting with the committee to explain the status of Government shares and the accessibility UDC has had to the shares, in order to efficiently manage them.”

On November 10, Sudhir Ruparelia wrote to parliament explaining the issue of government shares.

“GOU holds the 25 per cent shares through the Ministry of Finance, Planning and Economic Development. GoU is free to decide by whom its shares are held,” said Ruparelia.

“We have not received communication from the Minister of Finance, Planning and Economic Development regarding the decision to transfer its shares to UDC as choses and preferred entity to hold GoU shares. In case we missed it, kindly share a copy so that when we appear we address you about it appropriately through the normal procedures for transfer of shares and UDC will then be the entity holding GoU shares.”

According to Ruparelia, the following are the shareholders in Commonwealth Resort Munyonyo:

• Government of Uganda (Ministry of Finance, Planning and Economic Development): 25 per cent (equivalent to 15,061,209, 120 ordinary shares)
• Meera Investments Ltd: 8,434,277,107 ordinary shares
• Sudhir Ruparelia: 30,724,866,605 ordinary shares
• Jyotsna Ruparelia: 6,024,483,648 ordinary shares

The following are the directors of Commonwealth Resort Munyonyo according to a response offered by acting URSB Registrar Maureen Nabachwa to Walusimbi & Co. Advocates following a search request in August 2020:

• Sudhir Ruparelia
• Jyotsna Ruparelia
• Joseph Biribonwa
• Francis Rwego
• James Mugume
• Keith Muhakanizi
• Francis Karape
• Patrick Ocakip alternate to Keith Muhakanizi
• Benon Kumumanya alternate to Amb. James Mugume
• Alex Rezida: Company Secretary

Meanwhile, finance ministry permanent secretary Ramathan Ggoobi has told parliament that MoFPED has since transferred government shares in Commonwealth Resort Munyonyo to UDC.

“The Ministry wrote to Solicitor General seeking legal advice on how to handle this transaction of transferring Government shares. In a letter, Ref: ADM.202/03 dated June 22, 2021, the Solicitor General guided on the transfer of the 15,061,209,120 shares from the Ministry of Finance, Planning and Economic Development to Uganda Development Corporation,” wrote PS Ggoobi.

“The Ministry represented by the Hon. Minister of Finance, Planning and Economic Development has since signed the transfer of shares stock forms (being the holder of the shares on behalf of the Government) and returned the same to the Executive Director, UDC for filing with the Registrar of Companies and further management as evidenced in our Ref. AGO/139/81/21 dated 22nd October 2021.”

In another letter, written on October 22, the Permanent Secretary confirmed that MoFPED “fully executed the transfer of shares stock forms effecting the transfer of all the 15,061,209,120 shares held in Munyonyo Commonwealth Resort Ltd to UDC.”