The government’s decision to merge and streamline several agencies has left the multi-billion-shilling Pajule Ginnery project in Pader District in uncertainty.
In February 2021, the government embarked on a sweeping rationalisation of its agencies, a reform meant to improve efficiency and eliminate duplication of roles.
The restructuring, however, has had unintended consequences for several projects, including the Pajule Ginnery, which was under the Cotton Development Organisation (CDO).
The reform transferred CDO’s functions to the Ministry of Agriculture, Animal Industry and Fisheries (Maaif). Since then, work at the facility has slowed dramatically.
In June 2015, the Monitor established that CDO had signed agreements with a contractor to undertake a four-year construction of a seed processing plant worth Shs20 billion.
By mid-2024, however, Shs5.96 billion, about 35 percent of the project funds, had not been released, halting progress following CDO’s restructuring.
Major pending works include the construction of a multipurpose hall and offices (Shs1 billion), a dining hall and fuelwood kitchen (Shs750 million), the main store and external works such as driveways, landscaping and drainage (Shs4 billion), and a mini fuel station (Shs200 million).
To cushion operations, CDO has resorted to makeshift stores to handle seed cotton during peak seasons. The management also partnered with Rwenzori Cotton Ginners Co Ltd, a private company, to buy seed cotton from multiplication areas, transport it to Pajule Ginnery, gin it, and return the fuzzy seed to CDO while retaining the cotton lint.
Under the arrangement, the machinery and equipment are operated by CDO’s technical staff, while Rwenzori Cotton Ginners covers the costs of consumables such as spare parts, lubricants, electricity, and diesel used in the ginning process.
By mid-2023, according to the Ministry of Finance’s Vote Performance Report for the 2023/24 financial year, CDO produced 64,147 bales of lint, of which 5,156 were consumed locally.
It also produced 2,107 metric tonnes of fuzzy seed delivered to Pajule and Kasese stations for processing into planting seed for 2024. Of thismetric tonnes were delinted, graded, and packed., 1,110
While 64,147 bales of cotton were purchased from farmers, 54,832 bales were ginned, with 39,238 exported and 15,594 remaining in stock.
However, the Auditor General, Mr Edward Akol, in his December 2024 report, revealed that the private ginner processed and packaged the seed into 3kg packs and sold them to farmers at Shs3,000 per pack, in violation of the memorandum of understanding.
‘This contravened the MoU, which required that the seed be handed over to CDO for distribution to farmers. This implies that the ginner is using a government facility without any returns to the state, despite the heavy investment,’ Mr Akol stated
He further added that work at the Pajule Ginnery stalled after the Ministry of Finance exited the project from the Public Investment Programme (PIP), blocking access to funds needed for completion.
Mr Akol recommended that Maaif, which is now taking over CDO’s functions, review this arrangement to ensure government benefits from its investment.
By June 2024, CDO’s buffer fund stood at Shs28.1 billion, comprising physical stocks of cotton lint bales and work in progress.
But the Auditor General warned that ginners may no longer access the buffer facility due to the ongoing transition, potentially disrupting production within the textile sector.
‘There is a risk that the RAPEX process will not be smoothly managed as responsibilities move to the Ministry of Agriculture,’ Mr Akol cautioned. Locally, the Pajule Town Council leadership has expressed concern over the ginnery’s state.
Brilliant Okello, the town council chairperson, said the project’s mismanagement has demoralised farmers and affected productivity.
‘We visited the ginnery and found machines lying idle. Workers were not being paid. When we invited officials to explain the challenges in our council meeting, they never showed up. We were only told that the factory would pay local taxes as they look for funds to resume work. It’s a total mess,’ he said.
When contacted, Ms Connie Acayo, the Commissioner for Communications at the Ministry of Agriculture, said fixing the problems at the ginnery is ongoing.
‘I have not come across any recent funding release to complete the works, but it is a work in progress. There are procedures for releasing government funds, and this will be done at the appropriate time,’ she said.
ccording to CDO, although Parliament passed the RAPEX Bill affecting the organisation in October 2024, by early 2025, it had not yet received transition guidelines from Maaif or the Ministry of Public Service specifying when the Act would take effect and formally dissolve CDO.