A probe into the contract to extract minerals in Sukulu hills, Tororo district, has revealed that it was given to the Chinese investors M/s Uganda Hui Neng, fraudulently.

Sources revealed that Frontier Exploration Uganda Limited, the company that first applied for the contract to explore minerals in Sukulu carbonatite complex, petitioned the Inspector General of Government (IGG), Justice Irene Mulyagonja, citing fraud.

After investigations, the source added, the IGG recommended cancellation of the contract to Hui Neng, which is affiliated to Guangzhou Dongsong Energy Group.

“The Minister for Energy and Mineral Development should, through the department of geological survey and mines (DGSM), require the current holder of the licence secured by Hui Neng to show cause why the license should not be summarily cancelled on grounds of having been secured through fraud,” the source quoted the IGG’s report of July 5, 2016 as saying.