Uganda : Court orders sugarcane board establishment
A Ugandan court has ordered the trade ministry to establish the Uganda Sugarcane Board within three months, ruling that it lacked authority to issue sugar manufacturing licenses. The court declared licenses issued to CN and Shakti Sugar illegal and mandated their cancellation, citing violations of the Sugar Act 2010 and zoning policies.
KAMPALA – Court has directed the trade ministry to constitute the Uganda Sugarcane Board within three months, which will in effect grant licences to industry players.The order was made after the court ruled on January 20, 2025, to the effect that the trade ministry had no powers to grant licences to industrialists.The case arose when the Uganda Sugar Manufacturers Association Ltd (USMA) challenged the minister’s authority to grant such powers. USMA is an association of sugar manufacturers, including Kakira Sugar Works Ltd, Kinyara Sugar Works Ltd, the Sugar Corporation of Uganda Ltd, Bugiri Sugar Ltd and Sango Bay Estates Ltd.The association claimed the minister had no power and was acting illegally when it granted sugar manufacturing licence to CN and Sharkti Sugar factories, located in Busoga region.In his ruling, Justice Douglas Karekona Singiza of the Civil Division of the High Court stated that in the absence of a properly constituted Uganda Sugarcane Board, neither the trade ministry nor Uganda Investment Authority could validly issue any sugar and jaggery mills licences on account of exercising their concurrent powers.“The acts of the trade ministry in licensing CN and Shakti, or indeed any other sugar enterprise, to establish and operate sugar and jaggery mills were unlawful,” he ruled.
The judge observed that the purported sugar and jaggery mill licences granted to CN and Shakti are not only illegal but also contravene the existing government policy on sugar in Uganda.The judge noted that failure to put the Uganda Sugarcane Board in place was a breach of a statutory duty by the trade ministry (a line ministry in the sugar sector), a manifestly illegal breach.“It is the finding of this court that the licences granted to CN and Sharkti sugar companies or any sugar mills and jaggery mills after the coming into force of the Uganda Sugar Act 2010 are illegal and of no consequence,” he stated.The court also declared that the establishment of CN and Shakti sugar factories and jaggery mills within the 25km radius of the other existing sugar and jaggery mills is contrary to the Government policy on sugar, as amplified by the presidential guidance on the zoning of sugar business enterprises.Consequently, the judge issued an order for the cancellation of new sugar licences or permissions in the form of letters of no objection that had been granted to CN and Shakti.The Judge also granted an order halting CN and Shakti sugar and jaggery mills from operating until they have been duly licenced by an authorised body.
The judge stated that while the trade ministry has the overall power to appoint the board, it is legally required to consult with millers and sugarcane outgrowers’ organisations before appointing any representatives.Additionally, Section 5 of the Sugar Act stipulates that members representing millers and sugarcane outgrowers can serve only a three-year term, renewable once. The trade ministry may remove a member from the board only on clearly stated grounds.The judge cited Section 7(1)(j) of the Sugar Act, which outlines the board’s functions including the licensing of sugar mills, jaggery mills, and plants processing sugarcane by-products, as well as acting as an intermediary between the sugar industry and the Government. Section 9 of the Act also mandates the board to promote cooperation.Meanwhile, Section 10 of the Act grants the trade ministry general powers to issue policy directions and guidance to the board, which must be complied with.The judge said operating a sugar mill or jaggery mill without a valid license is expressly prohibited by law and attracts serious criminal sanctions.
To read more about Sugar Industry continue reading Agriinsite.com
Source : New Vision
Recommended for you
Leave a Reply
Leave a Reply
