President Museveni’s directive, dated July 10th, 2022, has drawn criticism for overlooking Tian Tang’s questionable history, including its involvement in the theft and vandalism of Uganda’s railway infrastructure. Despite these concerns, the President has chosen to proceed with the land donation, raising questions about accountability and transparency.

Tian Tang’s tarnished reputation came to light during investigations into the rampant theft of railway materials, particularly rails and sleepers, which have caused significant financial losses and compromised safety. Officials from Uganda Railways Corporation (URC) estimated losses exceeding USD 100 million over the past decade alone, highlighting the magnitude of the issue.

The above figure doesn’t even account for the loss of life and property resulting from train accidents caused by compromised infrastructure! According to URC officials, the railway materials` heist, particularly rails and sleepers, has reached alarming levels. Entire sections of railway lines spanning over 400 kilometers have been uprooted, causing immense financial losses estimated above!

The modus operandi of these thieves was simple yet devastating. A four-meter rail, which costs USD 120, was, and still is sold to steel companies as scrap for a mere UGX 20,000. The stolen materials were, and still are then melted down by these steel companies Tian Tang and Tembo Steels, and repurposed into lucrative products such as steel bars, pipes, and nails, fetching prices far higher than the original value of the stolen rails.

The theft of railway materials follows a simple yet devastating pattern. Despite court-sanctioned raids on Tian Tang’s factory complex in Mbalala Mukono and Tembo Steels’ facilities in Lugazi and Iganga, both companies evaded significant consequences, paying nominal settlements far below the value of the stolen goods.

The Auditor General’s report exposed a disturbing pattern of collusion and mismanagement, with both Tian Tang and Tembo Steels paying settlements that failed to account for the real extent of their wrongdoing. Despite the damning evidence, Tian Tang only faced a nominal penalty of a mere UGX 210 million in an out-of-court settlement!

Tembo Steels also managed to evade significant consequences, settling for a meager UGX 520 million, a fraction of the estimated UGX 12.39 billion worth of stolen materials.

Further investigations revealed the audacious nature of the theft, with reports detailing how Tian Tang’s factory was constructed using stolen railway materials, underscoring the shamelessness with which these companies operate.

Efforts to unveil the individuals behind these crimes reveals Tian Tang’s founder, Zhang Zhigang, and Tembo Steels’ owner, Sanjay Awasthi. Despite their dubious backgrounds, President Museveni’s decision to donate Luzira Prisons land to Tian Tang has raised eyebrows, with critics arguing that it rewards criminal behavior and undermines efforts to promote accountability.

As Uganda endeavors to restore its railway infrastructure, the actions of Tian Tang and Tembo Steels serve as a stark reminder of the challenges posed by corruption and greed. The decision to donate prime land to a company with a tainted reputation has sparked outrage and renewed calls for accountability in governance.

Despite the significant losses incurred by their criminal activities, Tian Tang and Tembo Steels have not faced true accountability, instead using their ill-gotten gains to expand their ventures. Now, with President Museveni’s approval, they seek to capitalize on Luzira Prisons land, further fueling public outcry and highlighting the urgent need for justice and transparency. Watch this space…

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The said Group, led by Paul Zhang Zhigang, stands accused of pilfering crucial railway infrastructure, shedding light on the dark underbelly of investment incentives, The Investigator Website, The Investigator Tv and TV10 investigates and reports…

President Museveni’s fervent efforts to attract investors have often led to unconventional decisions, including overruling technocrats to grant lucrative incentives such as free land and tax holidays. The recent proposed giveaway of portions of the prison to Tian Tang Group is seen as part of this broader strategy to foster a favorable investment climate, albeit amid mixed reactions from the Ugandan populace.

Central to Museveni’s agenda is the reduction of production costs, with a focus on addressing challenges in electricity and transportation. Despite battles with power distribution companies and attempts to revive the country’s railway system, rampant theft of rail infrastructure remains a persistent obstacle.

Former Uganda Railways Corporation Managing Director, Stanley Ssendegeya, revealed the staggering extent of theft, with over 400km of railway lines looted, resulting in losses exceeding USD100 million over a decade. The theft, primarily attributed to steel manufacturing companies, has seen vital railway materials repurposed for profit, with dire consequences for Uganda’s transportation network.

In a dramatic turn of events, a court-sanctioned raid on Tian Tang Group’s Tian Tang Steel factory complex some time back uncovered significant quantities of stolen railway materials. Uganda Railways Corporation, backed by law enforcement, seized materials valued at over USD1 million, sparking a legal battle with Tian Tang Group.

URC demanded hefty compensation totaling UGX11.4 billion for material replacement and lost value, along with additional costs incurred. The revelation has cast a shadow over President Museveni’s investment drive, raising questions about the efficacy of incentivizing foreign investment at any cost.

As the controversy unfolds, Uganda finds itself at a crossroads, balancing the imperative of economic development with the need for transparency and accountability in investment dealings. The outcome of the legal proceedings against Tian Tang Group may well determine the trajectory of Uganda’s investment policy and its quest for economic transformation.

Surprisingly, the Directors of the same company which was convicted for vandalizing the country`s railway infrastructure, have since drawn their way to the President along with his attention. Now, they want to be given Luzira Prisons land for whatever investment they have seduced the Man of The Hat with. But the same people, who managed to evade paying the court awards to government as mentioned above! Watch this space…

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