National
MPs vote to terminate Umeme, Eskom contracts
Publish Date: Mar 27, 2014
MPs vote to terminate Umeme, Eskom contracts
  • mail
  • img
newvision

By Moses Mulondo & Henry Ssekanjako

KAMPALA - Parliament has voted overwhelmingly to terminate the Umeme Limited’s and Eskom power contracts.

The recommendation to terminate the contracts was contained in the ad-hoc committee report on energy set up by Parliament to assess performance of the electricity sub-sector in the country.

The committee recommended termination of the Umeme contract over “lopsided agreements, exaggerated level of losses and investment among other reasons.

Cabinet will have the final decision on the issue.

The contract was signed on May 17, 2004 after former Uganda  Electricity Board (UEB) was unbundled into three different entities overseeing generation, transmission and distribution of power. The Umeme contract is set to end in 2024.

“Due to the gross illegalities and manipulations encountered surrounding the procurement of the Umeme concession/contract and the scandalous provisions of these power distribution agreements signed between government and Umeme Limited, this contract should be terminated,” stated the committee’s recommendation which Parliament endorsed yesterday. 

The committee chaired by Jacob Oboth (Independent) also contended that the Attorney General did not perform the constitutional duty required of him of drawing and perusing all the agreements signed between Government and Umeme limited regarding the concession.

“This constitutional obligation was hijacked and therefore abused by the privatisation unit who hired transaction advisors who did not transact in the best interest of government and the people of Uganda,” the over 160-page report states.

The investigations followed outcry from members of the public regarding persistent load shedding, high electricity tariffs and faulty billing systems amidst other challenges.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
South Africa
SOUTH Africa''s acting High Commissioner to Uganda Wendy Swartz has rendered an "unreserved apology" to the continent for the spate of xenophobic attacks targeting African immigrants...
Govt accused of failing NEMA on kavera ban
Environmentalists have accused Government of frustrating efforts by National Environment Management Authority to ban the use of Kaveera...
Mulago needs testing facility for blood disorders
GOVERNMENT has been asked to set up a testing facility for patients with blood disorder commonly known as haemophilia at Mulago National referral hospital...
Kasese NRM youth storm CFO
DRAMA ensued on Friday when a group of youth stormed the home of the Kasese Chief Financial Officer (CFO) in Kilembe Quarters in Kasese municipality demanding him to contest in 2016...
Catholic Church rules out boycotting 2016 polls
THE Catholic Church is to use its outreach platforms to engage its followers on the importance of voting and what they are required to do to exercise their right...
UCU joins fight against unemployment
IN a partnership with Uganda Manufacturers Association, the university has launched a department that will help graduates identify businesses ideas and create their own businesses...
Should African countries expel South Africans?
Yes
No
Can't Say
follow us
subscribe to our news letter