Published on 20/05/2025
Government has earmarked over Ugx. 720 billion for various private ventures and debt repayments in the 2025/26 national budget.
The allocations include UGX465 billion for the construction of the International Specialised Hospital in Lubowa, UGX247 billion for compensation payments to the Democratic Republic of Congo (DRC), and UGX60 billion for purchasing preferential shares in Roko Construction Company.
The revelations were made by Kira Municipality MP, Ibrahim Ssemujju Nganda, while presenting the Minority Report on the National Budget Estimates for the Financial Year 2025/26 before the Budget Committee on May 15, 2025. He criticised the allocations, stating that public debt payments will dominate the recently approved UGX72.376 trillion budget.
“Part of the UGX27.3 trillion debt servicing includes UGX465 billion for President Museveni’s Italian associate, Enrica Pinetti. This money will be deposited in an escrow account accessible only by her,” Ssemujju claimed. “Remember, she already received UGX298 billion under Supplementary Schedule Three.”
Ssemujju said that with the upcoming allocation, Pinetti will have received a total of UGX1.239 trillion for the Lubowa project. “Whatever this woman did for or to our President, Allah knows,” he added. “This Parliament resolved that no more funds should go into this project until a value-for-money audit is conducted. Since no such audit has been done, we should respect ourselves and reject further funding for this suspicious venture.”
MPs Oppose Funding to Private Entities
Oyam District Woman MP, Santa Alum, also condemned the continued allocation of public funds to private individuals while critical public services remain underfunded.
“We are struggling to finance the Parish Development Model, yet we are giving billions to individuals like Roko, Pinetti and others,” she said. “We are cutting a coat far too large for our size. Just yesterday, the Works Minister was pleading for road funds—why not prioritize such foundational needs?”
Leader of the Opposition, Joel Ssenyonyi, echoed similar concerns, calling the allocations unjustifiable.
“We continue to hand out free money to companies like Atiak Sugar Factory, Dei BioPharma Ltd, Roko Construction, and Inspire Africa Coffee Factory,” Ssenyonyi said. “Meanwhile, service providers to government go unpaid. That’s not sustainable. We must reprioritize.”
Speaker, Finance Minister Defend Lubowa Project
However, Speaker of Parliament Anita Among defended the Lubowa Hospital project, asserting that construction had picked up and the facility would soon be operational.
“I invite you all to visit Lubowa Hospital. We are about to open,” said Among. “I will personally visit the site with the Leader of the Opposition.”
Minister of State for Finance, Henry Musasizi, also justified the allocation, noting that all expenditures were in line with Parliament-approved project costs.
“There is nothing happening at Lubowa that wasn’t approved by this House. Yes, the project had challenges initially, but it’s now progressing steadily,” Musasizi said.
UGX247Bn to DRC Stirs More Controversy
Ssemujju also opposed the UGX247 billion payment to the Democratic Republic of Congo, which he claimed is meant to compensate for atrocities allegedly committed by Uganda People’s Defence Forces (UPDF) soldiers during their deployment in the late 1990s.
“This money is for rapes, looting of gold, diamonds, and timber—atrocities committed during Gen. Tibuhaburwa’s 1998/99 invasion,” Ssemujju said. “We are even paying 6% interest on the outstanding balance. There’s an additional UGX40 billion in this budget earmarked for the DRC.”
The International Court of Justice ruled in 2022 that Uganda must pay US$325 million (UGX1.2 trillion) to the DRC for damages, with US$65 million to be remitted annually. The compensation includes US$225 million for harm to individuals, US$40 million for damage to property, and US$60 million for exploitation of natural resources.
Ssemujju further objected to the UGX60 billion allocation for Roko Construction Company, part of a five-year UGX207.13 billion bailout approved by Parliament in July 2022.
He revealed that by May 31, 2022, Roko’s debts had reached UGX419 billion, including UGX49 billion to DFCU Bank, UGX30 billion to ABSA, and UGX11.5 billion to Bank of Baroda, among others.
“This payment is now a public debt. Gen. Museveni intervened because Roko’s proprietors are his comrades from the bush war. We are now borrowing to pay someone else’s debt,” Ssemujju argued.
He cited the Auditor General’s December 2024 report, which flagged the share purchase as irregular, noting that government shares were allotted before Parliament’s approval and warning of potential legal disputes.
Another contentious allocation is the UGX14 billion to clear debts incurred by the Uganda Muslim Supreme Council under Mufti Sheikh Shaban Mubajje. Ssemujju accused Mubajje of mismanaging council assets and altering the constitution to cling to power.
“Mubajje sold council land in Sembabule to two different buyers. One of them sued and secured an order to attach UMSC property, including the national mosque. Now Museveni wants taxpayers to foot the bill,” Ssemujju claimed. “Just like Museveni, Mubajje changed the UMSC constitution to remain in power after turning 70. Birds of a feather.”
Budget Passed Despite Minority Objections
Despite strong objections from the opposition, Parliament approved Uganda’s UGX 72.376 trillion national budget for the 2025/26 financial year, including the controversial allocations.
