Auditor General report reduces UMEME buyout figure

KAMPALA - A special audit report by the Auditor General, Edward Akol, has confirmed that the buyout amount for UMEME Ltd is $118 million (sh432.2 billion), significantly lower than the previously estimated $190 million (sh695.9 billion).

The report was presented on Thursday (March 27) to the Speaker of Parliament, Anita Among, at her offices in Parliament. 

The report follows a two-decade-old concession agreement between Uganda Electricity Company Ltd and UMEME Ltd that has not been renewed.

Akol, who was accompanied by a team from his office, explained that an independent audit firm was contracted to determine the accurate buyout amount.

Eng. Ziria Tibalwa Waako, the CEO of the Electricity Regulatory Authority (ERA), was present during the briefing. While the original estimated amount was $190 million, Akol's report confirmed the revised buyout figure to be $118 million. 

This comes as the government seeks to finalize the buyout of UMEME by March 31, 2025, a date set by the concession agreement.

The report was tabled before Parliament by finance state minister (General Duties) Henry Musasizi and was swiftly adopted during the plenary sitting. 

Last week (March 20), Parliament had agreed to borrow over $190 million from Stanbic Bank, contingent on the Auditor General’s confirmation of the actual amount.

Deputy Speaker of Parliament Thomas Tayebwa chairs Thursday's (March 27) plenary. (Credit: Maria Wamala)

'Time-sensitive'

However, the move to adopt the report was met with opposition from some MPs. 

Kira Municipality MP Ibrahim Ssemujju Nganda called for further scrutiny before adoption, questioning why legislators had not had the opportunity to review the Auditor General's findings. He raised concerns about bypassing normal parliamentary processes.

The Leader of the Opposition in Parliament, Joel Ssenyonyi, criticized the rush to adopt the report, arguing that it would undermine Parliament's authority by allowing the Executive to make key decisions without adequate review.

In response, Deputy Speaker Thomas Tayebwa, who chaired the plenary, explained that the special audit report, unlike annual reports, was time-sensitive and must be resolved before the contract's March 31 deadline.

Tayebwa emphasized that failure to meet the deadline could lead to penalties and interest, giving UMEME significant leverage. 

Tororo North county MP Geoffrey Ekanya supported the Deputy Speaker's position, pointing to practices in neighbouring countries such as Tanzania and Kenya, where governments do not wait for parliamentary approval to act on such reports.

"Special audit reports often involve issues with criminal implications, but this particular report is time-sensitive," he said.

"We urge the Speaker to invoke the necessary rules to ensure that when Parliament makes a decision, it aligns with our established procedures."

The report was then adopted by the House.