MPs grill Mulago Hospital officials over sh712m debt claim

KAMPALA - Members of Parliament (MPs) on the Public Accounts Committee (PAC) were left demanding answers on July 9, 2025, after revelations that Mulago National Referral Hospital is demanding over shillings 712 million from various government entities and private patients.

Shockingly, not a single shilling was recovered during the last financial year.

Led by executive director Rosemary Kusaba Byanyima, officials from Mulago appeared before the committee chaired by Butambala County MP Muwanga Kivumbi to respond to concerns raised by the Auditor General’s (Edward Akol) report for the financial year 2023/2024.

According to the Auditor General, analysis of receivables—money owed to a business for goods or services that it has delivered but not been paid for yet—in the statement of financial position and Note 23 of the hospital’s financial statements showed a worrying 115% increase in accrued revenues yet no recovery was made during the year under review.

The failure to collect these receivables, the Auditor General warned, denies the hospital essential revenue to deliver quality healthcare services.

“The biggest amount of the receivables is from patients who sought medical attention through the hospital’s private wing but failed to pay,” Byanyima said.

Butambala County MP Muwanga Kivumbi

“However, we have recovered some of the money since the end of the audit period. But yes, there is still a considerable amount that remains outstanding.”

“There are two issues. One, you did not collect any receivables during the year under review. Two, your receivables increased by over 100%. What is going on?” Kivumbi asked.

Joseph Gonzaga Ssewungu (Kalungu County West) expressed doubt over the claim that private patients were not paying, citing personal experience at the hospital.

“I have taken patients to Mulago and they don’t allow you to proceed without paying,” Ssewungu said. “So, who are these patients who receive treatment without payment? What criteria are used to exempt them?”

Silas Aogon (Kumi Municipality) also questioned why anyone who chooses the private wing, typically associated with premium services, would default on payment.

“Mulago offers both public and private services. If a patient chooses the private wing, they are presumed to be financially ready. So, how do they end up with unpaid bills? We need to understand the rationale behind this,” he said.

In response, Byanyima submitted a breakdown of some of the outstanding receivables as of June 30, 2024, totalling sh712.16m.

These included, Uganda Police (sh50.23m), Civil Aviation Authority (sh5.13m), Bank of Uganda (sh1.3m), Shield Enterprises Uganda Limited (sh393m), Racers Restaurant (rent of sh16m) and other institutions like Uganda Prisons Service, Ministry of Defence, and National Water and Sewerage Corporation (NWSC) were also listed as defaulters.

It was the sh393m debt by Shield Enterprises Uganda Ltd that sparked further outrage. Ssewungu demanded to know the identity of the company and how such a huge sum had accumulated.

Byanyima clarified that Shield Enterprises had been contracted to manage the Mulago Guest House under a rental agreement, but had consistently defaulted.

“They are supposed to run the guest house as a business and pay rent to Mulago. Due to continued defaulting, we issued them an eviction notice in accordance with the terms of the contract,” she said.

In light of the revelations, Kivumbi directed Mulago management to furnish the committee with a copy of the agreement signed with Shield Enterprises and other related documentation for scrutiny.

Dr Rosemary Kusaba Byanyima

Domestic arrears balloon to sh12.67b

Beyond the receivables, the Auditor General also flagged a steep rise in Mulago’s domestic arrears.

The hospital’s outstanding obligations jumped by shillings 4.96 billion from 7.7 billion the previous year to 12.67 billion by the end of 2023/2024, representing a 64% increase.

A bulk of this debt is owed to utility providers. Water bills alone account for shillings 6.063 billion, while electricity arrears stand at shillings 1.69 billion.

The unpaid utility bills not only threaten service delivery but could also lead to legal battles if providers resort to litigation.

“These liabilities raise sustainability concerns. If the hospital continues to accumulate such debts without a plan for settlement, it risks service disruption or costly lawsuits,” Auditor General warned.

Byanyima noted that they had received a supplementary of sh6b that cleared the water bill, reducing the arrears by half.