KAMPALA – The Uganda Air cargo cooperation (UACC) is seeking USD15million approximately UGX55bn for recapitalization with funds aimed at keeping the company both afloat and competitive in the aviation business.
The plea was made on Tuesday 12 by the Chairperson of Uganda Air Cargo Cooperation Captain John Otekat while appearing before the Parliamentary Defense and Internal Affairs Committee.
Otekat told MPs that currently, the Air Cargo is only operating one aircraft which has deterred the Company from competing with other players in the industry for contracts where companies require winning backup for uninterrupted services.
He told the Committee that the US10m will be used to carry out repairs of the other C130 aircraft that is down, while the other USD5m would go towards purchasing a new craft Boeing B73-500 for troop rotation and running capital.
Healso said that the Air Cargo suffered major setback in 2014 when the operating license was revoked leaving the company grappling with arrears to a tune of Shs8Bn before resumption of operations in 2016.
The Committee tasked the Ministry of Defence to table before Parliament a supplementary budget request to recapitalise the Air Cargo.