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Parliament Aproves Supplementary Ugx 4.2 Trillion in Record Time as Umeme Buyout Sparks Corruption Fears

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Parliament Aproves Supplementary Ugx 4.2 Trillion in Record Time as Umeme Buyout Sparks Corruption Fears

by Mulengera
1 year ago
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Parliament Aproves Supplementary Ugx 4.2 Trillion in Record Time as Umeme Buyout Sparks Corruption Fears
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By Aggrey Baba

Amidist serious contention, Parliament has approved a hefty Sh4.2 trillion supplementary budget, with funds spread across various sectors, from electricity to salaries and infrastructure.

However, not everyone welcomed the move with open arms, as opposition MPs questioned the urgency and transparency of some allocations.

The budget request presented on Tuesday, was reviewed by the Budget Committee the following morning, and passed in the afternoon, an unusually fast process for such a massive financial decision.

Sheema Municipality MP Dickson Kateshumbwa, who stood in for the committee chairperson, confirmed that all requested funds were approved without alteration.

A major highlight of the budget is the Ugx 725.42 billion allocated for the government’s buyout of Umeme, Uganda’s main electricity distributor. Umeme, which has managed the country’s power sector for 20 years, is set to exit on April 1, 2025.

However, Energy State Minister Opolot Okaasai raised concerns, stating that Umeme’s outstanding claim is actually Ugx 760 billion not Ugx 725 billion as presented. This prompted MPs to demand an audit of Umeme’s financial records to verify the figures.

Beyond the Umeme buyout, the budget covers a wide range of expenditures, including Ugx190.9 billion for Uganda Police Force operational needs, Ugx38.1 billion to Uganda Revenue Authority (URA) for payments to Ripple Nami Inc, Ugx35.2 billion to purchase vehicles for district chairpersons, city, and municipal mayors, Ugx7.3 billion for ex-gratia and honoraria arrears for LC1, LC2, and sub-county councillors, who had gone unpaid for years, and Ugx87.8 billion for renovating Mandela National Stadium ahead of the 2027 AFCON tournament.

Not all MPs were convinced that the budget was justified. Kira Municipality MP Ibrahim Ssemujju described the process as “chaotic,” arguing that many of the items listed were not emergencies, as required by Uganda’s Public Finance Management Act.

He pointed to previously controversial projects, such as Lubowa Specialised Hospital, questioning why such items suddenly became urgent.

Additionally, Erute South MP Jonathan Odur criticized the lack of consultation, saying some institutions receiving funds were not involved in the budgeting process. He insisted that, by law, supplementary budgets should be scrutinized by sectoral committees before reaching the full budget committee, something that did not happen.

Speaker Anita Among defended the budget’s fast approval, arguing that delays could disrupt essential services and development projects. She pointed to urgent needs like stadium construction, warning that failure to act swiftly could cost Uganda its chance to host AFCON 2027.

This Ugx4.2 trillion approval follows two previous supplementary budgets, of Ugx31.05 trillion and Uhx2. With Uganda’s 2024/25 financial year ending in June 2025, government institutions now have three months to utilize these funds. As always, the real test will be whether these billions translate into visible development or fade into bureaucratic confusion, because, as the wise say, [money is like rain, when it falls, you must know where it flows]. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).

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