Published on 31/03/2025
Parliament has been informed that the US$190,988,556 (UGX 700.218Bn) loan from Stanbic Bank, intended for the Umeme buyout, exceeded the required amount by UGX 267.614Bn. According to the Auditor General’s findings, the actual amount due to Umeme is only US$118 million (UGX 432.677Bn).
The revelation was made by Speaker Anita Among on March 27, 2025, while receiving the Auditor General’s audit report on the conclusion of Umeme’s concession. She emphasized that Parliament had approved the loan on the condition that the amount to be paid to Umeme would be based on the Auditor General’s verification.
“When we last sat in the House, the loan presented for approval was US$190 million. Now that the audit is complete, the verified amount due is US$118 million. We should only pay what the Auditor General has confirmed, not the estimated figure given earlier. As we previously stated, payment should be based solely on the Auditor General’s report,” said Among.
She further noted that the report would be formally laid before Parliament that morning, forming an official basis for documentation and ensuring that payments align with the verified figures.
Among also commended the Electricity Regulatory Authority (ERA) and the Uganda Electricity Distribution Company Limited (UEDCL) for providing all necessary documents that facilitated the completion of the audit. She urged the government to guarantee improved services for Ugandans once UEDCL takes over operations from Umeme.
“We appreciate ERA’s cooperation in supporting the Auditor General’s work by providing all required documents. As UEDCL takes over, we hope to see better services for Ugandans,” she added.
However, Deputy Speaker Thomas Tayebwa faced resistance from Opposition MPs when he declined to refer the special audit report on the Umeme concession to the Accountability Committees for scrutiny, as is customary with other audit reports.
Leading the protest, MP Ibrahim Ssemujju Nganda objected, stating, “I have been here for years, and we have never passed an Auditor General’s report without reviewing it. This will be the first time in modern parliamentary history that a report is tabled and approved without MPs examining its contents.”
Leader of the Opposition Joel Ssenyonyi echoed these concerns, questioning why the report was not subjected to the usual parliamentary scrutiny process.
“I am perplexed. We approved US$190,998,556, despite our protests that there was no Auditor General’s report at the time. Now, a report has been issued indicating US$118 million, and we are being asked to adopt it without review. Are we surrendering Parliament’s appropriation role to the government?” asked Ssenyonyi.
He further argued that Parliament must thoroughly examine the report before making any financial commitments to avoid future complications.
Defending his position, Tayebwa warned that any delays in approving the buyout could lead to severe financial consequences, including penalties imposed by Umeme.
“This is a time-sensitive report. When Parliament approved the resolution, it was conditioned on this audit. We must resolve the issue with Umeme by March 31, 2025. If we do not act by then, the government will proceed with the US$190 million payment, as they are unaware of the new figures. Any delays will give Umeme a blank check to impose exorbitant interest and penalties,” Tayebwa cautioned.
He further argued that special audit reports, unlike annual reports, are not subject to committee review under Parliament’s Rules of Procedure.
Later, Tayebwa instructed Minister of Energy Ruth Nankabirwa to clarify the total amount the government intended to pay Umeme, citing discrepancies between government figures and the Auditor General’s findings.
“Since we have conflicting figures, the Minister of Energy will be required to report back to Parliament on the exact amount the government has paid or intends to pay Umeme, based on the Auditor General’s guidance,” Tayebwa concluded.
