By Aggrey Baba
In the world of finance, it is often said that “the devil is in the details.” This wisdom rings true as MPs raise alarms over the $190.9 million (approximately UGX 700 billion) allocated for the buyout of electricity distributor Umeme Limited.
While Parliament has approved the sum, several legislators are now demanding a thorough audit of the funds before payment is made.
The concern stems from the fact that the Ministry of Finance failed to present audited reports for a portion of the money earmarked for Umeme’s buyout. Maracha County MP Dennis Lee Oguzu (FDC) questioned the legitimacy of Umeme’s financial claims. According to Oguzu, when the Minister of Finance appeared before the National Economy Committee, it was clear that crucial financial details were missing, and there was no definitive explanation for the figures being disputed.
“We were told they wanted to borrow money for the buyout, but when we probed further, there were no solid justifications,” Oguzu said. “The costs that Umeme is recovering through feed-in tariffs should have been reflected in their tariffs, yet they are demanding more money from Ugandans.”
Oguzu further emphasized that the Auditor General has not yet provided a report on Umeme’s financial standing, which is a critical step before any funds are disbursed. He also pointed out that the Rural Electrification Agency should have played a role in approving the investments in the energy sector, ensuring transparency in the process.
The chairperson of the National Economy Committee, Robert Migadde Ndugwa (Buvuma Island, NRM), echoed Oguzu’s concerns, confirming that the committee was still reviewing the $190.9 million loan request. Ndugwa added that the Ministry of Energy had yet to provide the necessary audited reports.
“The ministry of energy has not come back to the committee, and we are still unsure of the next steps regarding the request,” Ndugwa said.
MP Geoffrey Ekanya (FDC) from Tororo North also voiced his concerns, stressing the need for an audit before any payments are made. He argued that Umeme has been making substantial profits, and it is crucial to ensure that the amount demanded is justified.
“The company is making a lot of money, but there are issues with the amount they are asking for,” Ekanya added.
In response, State Minister for Finance, Henry Musasizi, clarified that the government plans to borrow the $190 million from the domestic market to cover the obligations arising from Umeme’s winding-up process. He sought Parliament’s approval to borrow the funds and assured MPs that the borrowing was backed by legitimate revenue sources.
“The money for Umeme’s buyout will be borrowed domestically, and this is in line with our overall budget,” Musasizi explained.
As the debate continues, MPs remain cautious, insisting that the financial reports and audit must be presented before any funds are released.
The final decision on the buyout remains pending, and the demand for transparency in this significant financial transaction is louder than ever. In the end, as the old saying goes, “trust is earned, not given.” (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
