Know More About Mathias Magoola? A Man Who Wants Gov't To Give Him 44Bn To Build A personal Pharmaceutical Industry.

Prof. Safraz in black hat with President Museveni and Speaker Kadaga

There was a strong debate on the floor of parliament on the 30th of April 2024, as legislators opposed the decision of Government giving a private investors over 40.5Bn shillings to start up a person Pharmaceutical Industry.

According to parliament the investor is Magola Mathias.

“I actually now think this is not Magoola. Someone who can make us remove money from debt servicing in order for us to pay his debts. It is not this Magoola. It is another Magoola hiding under this Magoola. Mr. Magoola told the Budget Committee last year that the project's total cost is US$1 billion (Shs 3.9 trillion). The Government will continue charging the consolidated fund for a private undertaking for a long period at the taxpayer's expense,” added Ssemujju.

Opposition MPs; Ibrahim Ssemujju (Kira Municipality), Mathias Mpuuga  (Nyendo Mukungwe Division) and Yusuf Nsibambi (Mawokota South) revealed that the Shs578.4Bn for DEI Bio Pharma Ltd has been diverted from the Shs666Bn that Treasury Operations had earmarked to pay part of Uganda’s debt obligation to Bank of Uganda.

“Government doesn't have money to give to Magoola. What it has done is to divert Shs666Bn from our public debt servicing vote 130. There are many things we aspire for in life. If you cannot get them, you don't break the bonk. A pharmaceutical to manufacture drugs is a very good venture but it found us servicing loans for energy and roods. It is good but we cannot afford it, at least of the moment,” said Ssemujju.

Ssemujju further noted that if this money is approved, this will bring the total State House budget to Shs802.6Bn. State House has turned into a bottomless pit. 

"What this means in real terms is that the country is spending Shs2.1Bn per day on maintaining the residence of its revolutionary leader, Shs91.6Mn per hour and Shs1.5Mn per second. While we spend Shs91.5 million on maintaining the president per hour, we spend Shs3.5 million on Kampala roads and bridges,” said Ssemujju.

What You need to know about Magoola

Do you remember a Ugandan man who was filmed in 2021 convincing President Yoweri Kaguta Museveni along with Speaker Rebecca Kadaga that Uganda would in the next two weeks begin producing a spray that will kill Corona virus?

An excited Speaker by then later update parliament with conviction that a Ugandan and more so from Busoga region was behind the invention of this sanitizer.

The man was identified as Mathias Magoola, who explained to Museveni that this disinfectant would kill any bacteria and other virus that emerge in future.

He said he had teamed up with an American professor Safraz Njaz who was also available in the clip trying to explain to the President.

But what remains disturbing was how timely the two scientists planned to ‘invent’ the drug in the shortest time possible.

According to Magoola the sanitizer would be co-produced by his company DEI GROUP which runs over 10 subsidiaries; Dei Industries International Limited, Dei Natural Products International Limited, Dei Minerals International Limited, Dei Tech LLC, USA, Dei Technologies International Limited, Dei Farms International Limited, Dei Pharmaceuticals, Dei Import and Export International Limited and Dei Investments International Limited.

Inventor or Criminal?

But those known to Mr Magoola scoffed at by then  Speaker Kadaga for not only allowing to be duped but also carrying the schemers to President Museveni.

But what is disheartening was allowing a recorded video clip which made rounds as the ‘conman’ was seen laboring to explain the use of this sanitizer.

What You Need To Know 

Seven years ago, local media published stories about the arrest of Minister Isaac Musumba and Ugandan MP Micheal Mawanda who were held in India on charges of fraud.

But the arrest involved in a third party- little Mathias Magoola a businessman who turned to be a mastermind of the game.

The fraud involved shs 50 billion which he sought from Videocon an Indian firm.

Magoola had alleged wanted to sell ‘un-existing’ minerals to these Indians.

Whereas Magoola had been placed under investigations by Indian police, he later switched the version of his story saying he had been fleeced of his mining licence by Videocon.

Background

It all began in September 2006, according to documents seen by The Observer. Magoola, working as a proxy for some powerful officials in the ministry of Energy, got the largest wolfram mine in the country, located on 600 acres of land in the western district of Kisoro.

China is currently the largest consumer of wolfram, which is used in the manufacture of engines for planes and bombs, among other uses. Under the trading name of Dei Minerals International, Magoola was given a licence barely 10 days after applying for it.

He was also given prospecting rights to produce an acceptable feasibility study to develop the mine. He, however, failed to avail the feasibility study, although records show that Magoola had previously worked in the department of Mines and Geological Survey and Mines.

On August 21, 2008, Magoola sold 60 per cent majority shareholding to the Indian firm, Videocon Natural Resources PLC, whose chairman, Martin X. Fernandes, got him arrested in India.

Two years after selling the majority stake, Magoola again applied for a mining licence from the Geological department, using the trading name of Dei Minerals, after getting disagreements with Videocon.

But the first owner of the mine, Sebuhingiriza Rwabiti, had protested Magoola’s acquisition of the mine. In 2007, through Ayigihugu & Company Advocates and Ssendege, Sseyondo & Co Advocates, Rwabiti sued Magoola and government for not compensating him. The case is now being heard by Justice Hellen Obulu Obura of the Commercial court.

According to a sale agreement The Observer has seen, Rwabiti purchased the mine from a Greek Cypriot Polis Kikkides at Shs 1.3m in 1974. However, in 2002, the licence was abruptly withdrawn by government, on the grounds that that Rwabiti had defaulted on paying the annual fee.

But Rwabiti yesterday told The Observer that, “I paid for the renewal of the licence in 2001 and I still have the receipt for it.” He also revealed that since 1985 when the global price of wolfram had taken a tumble, he continued to pay for the licence.

“It was a case of greed. When the prices of the mineral began rising, Magoola and his cronies in the ministry planned not to renew the licence,” he said.

It is not clear yet at what stage Magoola hired former minister for Regional Cooperation, Isaac Musumba, to provide legal services for him, but he had previously hired the services of other lawyers, including the former state minister for Gender and Culture, Sam Bitangaro.

The role of Igara East MP Michael Mawanda remains foggy. Efforts to speak to both Magoola and Musumba were futile yesterday after the lady at the reception of Trident hotel in India where they were staying said the hotel doesn’t have anyone by those names residing there.

A son of Rwabiti, who is a director in the company, Derrick Kirunga, told The Observer on Thursday that they had always fought off ‘powerful people in government’ who wanted to take over the mine. Rwabiti himself says he is not surprised Magoola has ended up in a trap.

“We warned the Videocon people that they were dealing with a wrong man. I am not surprised at all with what has transpired,” said Rwabiti, who believes his arrest is poetic justice.

Shortly after Magoola’s firm received the licence for the mine, about 100 armed men raided Kirwa mine. They confiscated/vandalized equipment, stole unprocessed wolfram, destroyed a lot of property including workers’ houses and plundered timber.

“It was like a battle-front. They ordered me to get out of my office or else they would shoot me,” recalls Rwabiti.

Rwabiti then wrote to the president, urging him to intervene. On March, 15, 2010, President Museveni wrote a letter to the minister of Energy and the Commissioner Mines and Geological Survey, demanding that the mine revert to Rwabiti.

“It has always been the policy of government to encourage meaningful investment. The government cannot dispossess one individual of his property and give it to others without any lawful justification,” reads Museveni’s letter in part.

“Moreover, over the long period of operating the mine, this proprietor has heavily invested in it by way of spending on expensive mining machinery and equipment, accessories and other facilities. It cannot be fair that this property should be so callously removed from him and just handed over to others. I’m, therefore, directing you to look into this matter, rectify the situation and inform me accordingly,” wrote the president.

It is claimed that then acting Principal Private Secretary to the president, Grace Akello, wrote to Hilary Onek, then Energy minister, to communicate that the president had changed his mind and given Dei Minerals International Ltd the green light to take over the mine. However, the president, on a campaign tour in Kisoro in 2010 said the Akello letter was forged.

The wrangle also sucked in Tress Bucyanayandi, the current Agriculture minister, who is one of the most senior NRM politicians from Kisoro. On August 22, 2011, he wrote to his counterpart in the Energy ministry wondering why the president’s directive had not been implemented.

“The prayer is to request you to consider the return of the Kirwa wolfram Mines to Mr Sebuhingiriza Rwabiti, the rightful owner and to renew his mining licence,” wrote the minister.

Earlier on in 2008, senior politicians from Kisoro, including Bucyanayandi and then Ethics minister Nsaba Buturo had also recommended that, “Mr Sebuhingiriza, should be considered for the licence. He bought the mine and operated it for over 30 years and throughout these years he kept in touch with ministry officials.”

The decision was also ratified by other MPs from Kisoro, including Eddie Kwizera and Silver Bahane. Apparently, when Magoola fell out with Videocon, he tried to get other partners on board. He formed a joint venture with a Kampala-based Fax Group Metal Ltd.

He also partnered with Rwandan businessman Iyakalemye Anthere through a middleman in Kisoro district known as G. Nzabonimpa. According to a memorandum of understanding (MoU) drawn by Bitangaro & Co Advocates, on January 7, 2011, Magoola leased the mine to Nzabonimpa and Iyakalemye for Shs 70m.

“I authorize Mr Nzabonimpa G. and Mr Iyakaremye Anthere to use the mine for up to 12 months from the date of signing and their activities at the mines must conform with the obligations of the licence of the Mining Act and Mining regulations 2004,” reads the MoU.

On May 8, 2011, Magoola’s Dei Minerals International Ltd entered another joint venture with Fax Group Metal Ltd. In the deal, it was agreed that Dei Minerals would pay $30,000 for four tonnes of wolfram and $70,000 for another nine tonnes.

The deed was signed by Magoola for Dei and a one Boris Libenson on behalf of Fax Group. Documents show that on October, 22, 2010, the Chief Magistrate’s court in Kisoro district found Saidi Mvumba of Dei Minerals guilty of illegally mining 470kg of  ore.

What used to be a vibrant factory now lies in ruin ever since Dei Minerals took over. No new infrastructure has been bought except for the exploitation of wolfram ore using rudimentary means.