Mulago Money Scandal Explodes! Bosses Caught Spending UGX1Bn Without Approval, Accountant Confesses Before Parliament 

By Aggrey Baba

Mulago National Referral Hospital officials have been cornered before Parliament after admitting that the hospital spent public money without obtaining the required authorization, with the Auditor General flagging more than UGX1 billion in unbudgeted payments and UGX6.9 billion in domestic arrears.

The admission came on Monday, November 2, 2026, when Mulago management appeared before Parliament’s Public Accounts Committee (PAC) to answer for financial irregularities highlighted in the Auditor General’s report for the financial year 2024/2025. Full PAC inquiry session can be viewed in video form via this YouTube link https://www.youtube.com/watch?v=npmOMjV31Xw.

In one of the most uncomfortable exchanges, MPs questioned how Mulago ended up paying UGX6.9 billion in domestic arrears against an approved budget of only UGX6 billion and whether management had obtained permission to exceed the allocation.

The hospital’s head of accounts had a blunt answer when asked whether the necessary authority had been secured.

“Chair, no,” she responded, further explaining that the money originally allocated to clear domestic arrears had been consumed by utility bills, forcing management to use the current budget to settle other outstanding obligations.

“So, there was no way out. We had to pay a recurring expenditure from the current budget,” she told the legislators.

But the explanation did little to ease the accountability concerns as MPs pressed her on whether management had effectively transferred money from one approved expenditure line to another without permission.

The accounting official acknowledged the absence of authorization, arguing that the hospital had urgent operational obligations that could not be ignored, including payments for cleaners.

Her explanation exposed the difficult financial choices facing the hospital, but also raised questions about whether management can independently redirect public funds whenever operational pressures arise.

The Auditor General also flagged UGX142 million in pension arrears that were paid without a budgetary allocation.

This brought the total value of unbudgeted payments identified in the audit to UGX1.027 billion.

The AG advised Mulago to seek a supplementary budget allocation or obtain the necessary authority before reallocating funds to meet expenditure outside approved budget lines.

However, the PAC maintained that the audit query would stand, meaning the hospital’s explanation about urgent operational requirements did not clear management of the accountability concerns.

Accounting Officer Dr Rosemary Byanyima subsequently told the Committee that she would implore staff to seek the necessary clearance before undertaking similar transactions.

The matter leaves the management of Mulago Hospital with questions to answer about its financial controls, particularly how taxpayers’ money is committed and spent when approved allocations are insufficient to meet the hospital’s competing obligations.

While the hospital must meet essential expenses such as utilities, cleaning services and pension obligations, the Committee’s concern was that such expenditure must follow established public financial management procedures.

The appearance has put the hospital’s financial management under fresh scrutiny, with MPs insisting that operational difficulties cannot automatically replace the requirement to obtain proper authorization when taxpayers’ money is reallocated. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).