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UMEME Deal Revised: Govt. to Pay US$118 Million
The government has revised the loan request to buy out the electricity distribution company, UMEME, from over US$190 million to over US$118 million.
This was contained in the Special Audit Report for the end of lease and assignment between UMEME Limited and Uganda Electricity Distribution Company Limited (UEDCL) that was adopted during a plenary sitting on Thursday, 27 March 2025.
The report was tabled by the Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi.
On 20 March 2025, Parliament adopted the proposal for the Government to borrow over US$190 million from Stanbic Bank, on condition of confirmation of the actual monetary amount of UMEME’s investment by the Auditor General.
Before the revised figure was passed, during plenary sitting on Thursday, 27 March 2025, Deputy Speaker, Thomas Tayebwa, urged the government to take into consideration the special audit report when finalising with UMEME.
“This morning, the Auditor General submitted a special audit report, verifying and confirming the buyout amount of US$118 million against the approved US$190,” he said.
This, however. sparked opposition from Kira Municipality Member of Parliament, Hon. Ibrahim Ssemujju, who called for scrutiny of the report before it is adopted.
“We have never passed a report of the Auditor General without the MPs reading it. We have accountability committees that deal with these reports. Have you waived those particular rules that [now reports can be passed without MPs processing them?” Ssemujju asked.
Leader of the Opposition, Hon. Joel Ssenyonyi, questioned the move to adopt the report, saying that by so doing, Parliament would be handing over its appropriation mandate to the Executive.
“The Auditor General’s report should be verified and studied before we pass. It would be good to know what is in the report,” he said.
But the Deputy Speaker guided that the special audit report, unlike annual reports, does not require being referred to a committee.
“This is a time bound report, we must sort out UMEME by 31 March [2025]. It is a matter of beating deadlines, which is in the contract. If we do not settle, UMEME will have a blank cheque to determine penalties and interests,” Tayebwa said.
Hon. Geofrey Ekanya (FDC, Tororo North County) agreed with the Deputy Speaker, citing practices from neighbouring countries like Tanzania, Kenya and South Africa, where, he said, governments there do not wait for Parliament approval before implementing such reports.
“Special audit reports have issues of a criminal nature, but also this report is time-bound. We request that the Speaker invoke the necessary rules so that when Parliament takes a decision, it is within our Rules,” Ekanya said.
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