The Government of Uganda has made a significant revision to its loan request in order to acquire the electricity distribution company, UMEME. Originally, the loan request was for over US$190 million, but it has now been reduced to over US$118 million as per the Special Audit Report for the end of lease and assignment between UMEME Limited and Uganda Electricity Distribution Company Limited (UEDCL).
The Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, tabled the report during a plenary sitting on Thursday, 27 March 2025. This decision came after Parliament had previously approved a proposal for the Government to borrow over US$190 million from Stanbic Bank, contingent on confirmation of the actual investment amount by UMEME as verified by the Auditor General.
During the sitting, Deputy Speaker Thomas Tayebwa emphasized the importance of considering the special audit report when finalizing the buyout with UMEME. He highlighted that the Auditor General had confirmed the buyout amount to be US$118 million, which was lower than the initially approved amount.
However, there was opposition from Kira Municipality Member of Parliament, Hon. Ibrahim Ssemujju, who raised concerns about adopting the report without thorough scrutiny by MPs. He emphasized the importance of accountability and proper examination of the Auditor General’s report before making any decisions.
Leader of the Opposition, Joel Ssenyonyi, echoed similar sentiments, stating that passing the report without fully understanding its contents would mean relinquishing Parliament’s appropriation mandate to the Executive. He stressed the need for transparency and adherence to parliamentary procedures.
Despite the opposition, the Deputy Speaker clarified that the special audit report did not require referral to a committee, as it was time-bound and crucial to meet the deadline of finalizing the UMEME buyout by 31 March 2025. He emphasized the importance of adhering to contractual obligations to avoid penalties and interests that UMEME could potentially impose.
Hon. Ekanya Geofrey (FDC, Tororo North County) supported the Deputy Speaker’s stance, citing practices from neighboring countries where governments do not wait for parliamentary approval before implementing such reports. He highlighted the criminal nature of issues in special audit reports and emphasized the need for the Speaker to invoke the necessary rules to ensure that Parliament’s decisions align with its rules.
In conclusion, the revised loan request for the UMEME buyout reflects the Government’s commitment to financial prudence and accountability. The decision-making process in Parliament underscores the importance of transparency, adherence to procedures, and meeting contractual obligations within stipulated deadlines.
