Entebbe Airport ‘Sale’ Reports: CAA Confirms Exim Bank of China is Monitoring its Bank Accounts

Uganda Civil Aviation Authority (UCAA), the country’s airport regulator, has rubbished claims that Uganda mortgaged Entebbe International Airport, putting it at risk of a takeover by the Exim Bank of China, and putting Kampala’s sovereignty in the hands of Beijing.

Read our report on claims of Museveni Government surrendering Entebbe International Airport to Chinese here.

But in a statement, CAA’s Manager for Communications and Corporate Affairs John Vianney Luggya, dismissed reports of Entebbe International Airport sale.

“We would like to make it categorically clear that the allegation that Entebbe International Airport has been given away for cash is false,” said Luggya.

“Government cannot give away a national asset like an international airport. We have said it before and repeat that it has not happened, and is not going to happen. There isn’t an ounce of truth in this, and it should be disregarded with the contempt it deserves.”

He also rubbished reports that Exim Bank of China had taken over UCAA’s accounts, budgets and operations.

But Luggya confirmed the Chinese lender was monitoring the aviation regulator’s account.

“It is true that Uganda Civil Aviation Authority opened up a Sales Collection Account in Stanbic Bank where all the Authority’s revenues are deposited in line with the Escrow Account Agreement terms, but it does not mean that anyone is to control our finances. The Authority enjoys the freedom and liberty of spending what is collected (as per the budget),” noted Luggya.

“The lender’s monitoring of the account is only similar to what happens when one gets a salary loan or any other loan for that matter, and the bank requests that the salary is channeled through their bank. It does not mean that lending bank takes over your salary.”

He also talked of Uganda being within its grace period.

“The loan terms provide a grace period of seven years, and we are still within that grace period during which only interest is paid, and government has not defaulted on those obligations.”