Museveni appoints Lt. Gen. Lakara as Uganda Air Cargo boss

President Yoweri Museveni has appointed Lt. Gen. Lakara Nakibus as the new Uganda Air Cargo boss.

Lakara, who is the AMISOM force commander in Somalia, replaces Eng. Frank Kyankya.

The UPDF spokesperson, Brig. Richard Karemire, confirmed the development, adding that Lt. Gen. James Mugira, the manager of the Army's National Enterprise Corporation (NEC) has also been appointed on the Uganda Air Cargo board.

The Uganda Air Cargo co-ordinates air transport systems in the country.

The changes have come against the backdrop of recent reports of losses to the tune of sh40b at Uganda Air Cargo, leading to the grounding of three of the four aircrafts, according to the Auditor General.

The three aircrafts; 5X-UDF, 5X-UYX and C130, have remained grounded requiring major overhaul, and the cost for restoring them has been escalating over time.

According to the Auditor General, John Muwanga, the opportunities for these aircrafts have not been utilised, resulting into the corporation losing contracts with the United States government and UNDP worth over $11m a year in gross revenue.

The Corporation is capable of providing the following services; air cargo freight, air passenger charters, medical evacuations, VIP charters, fun flights, aerial surveys, leisure/tourist charters, business charters, humanitarian/relief flights and international conference charters if funded adequately," the AG noted.

UACC is 100% owned by the Government of Uganda and under the supervision of the Ministry of Defence and Veteran Affairs. It was established to offer Air Cargo transport services and Air Passenger Charter services.

Established in 1994, UACC is an airline based in Kampala, Uganda. The carrier operates scheduled and charter cargo services from its main base at Entebbe International Airport to destinations in East and Central Africa.
   
The Corporation has continued to operate amidst a wide array of challenges. Between 2009 and 2013, the Corporation recorded outstanding performance in which period it expanded the fleet from one aircraft to four, two C130 and two Y12.

Muwanga pointed out that the longer the aircrafts remain grounded, the more costly it is to restore them. At the time of grounding the aircrafts, the costs were $8m compared to $11m now, the AG added.

He observed that the challenge was caused by lack of capitalisation and operating funds, which renders the corporation to have inadequate capacity due to limited aircraft carriage.

He singled out the apparent failure by the shareholders to appreciate the potential of UACC and the benefits of airline operations to the national economy as the possible cause for the collapse of the company.

He advised the Government to consider recapitalisation of the corporation to avoid further escalation of the costs of restoration of the aircrafts.

The corporation's performance was disrupted in June 2014, after the revocation of the Corporation's Air Operator Certificate by the Uganda Civil Aviation Authority.

"The effects of the loss of the license were adversely strategic," Muwanga noted.

The Corporation suffered huge losses during the period 2014 to 2015 resulting into; erosion of operating funds, accumulation of fixed costs and loss of customer confidence by clients. The Air Operator Certificate has, however, since been restored.