A special audit report presented to Speaker Anita Among this morning has revealed a significant reduction in the buyout figure for Uganda’s power distributor, UMEME.
The report indicates that the buyout amount has dropped to $118 million, far lower than the $190 million that was previously approved by Parliament.
This revelation comes amid growing calls to halt the approval of the loan from Stanbic Bank, which was intended to finance the buyout.
While handing over the special audit report, Parliament was informed that the original loan amount of US$190,988,556 (Shs 700.218 billion) was excessive by over Shs 267.614 billion. According to the audit, the only amount due to UMEME is US$118 million (Shs 432.677 billion).
Speaker Among highlighted the discrepancy during the presentation of the report, emphasizing that Parliament had approved the loan on the condition that the amount to be paid to UMEME would be determined by the Auditor General’s audit.
“When we last had a sitting in the house, what was brought on the floor for approval, the loan which was brought in the house was $190 million. I am aware that the audit is completed and the approved amount that has come out of audit is about $118 million. So we should be able to pay what Auditor General is reporting, not the estimate that we are given. And as we made a disclaimer that day, that we shall only pay based on the Auditor General’s report,” said Among.
The Speaker also expressed gratitude to the Electricity Regulatory Authority (ERA) and the Uganda Electricity Distribution Company Limited (UEDCL) for their support in providing the necessary documents to the Auditor General to complete the audit.
She further urged the government to ensure that Ugandans receive better services following the takeover of UMEME’s operations.
“We also want to thank ERA, for supporting the Auditor General in providing all the required documents that are required to complete the audit. And we pray that as UEDCL takes over, that we get better services. We really pray that we get better services,” added Among.
Not long ago, Auditor General Edward Akol had advised Parliament to suspend the approval of the $190 million loan from Stanbic Bank.
His concerns stemmed from discrepancies in the figures provided by various government agencies regarding the amounts owed to UMEME.
Despite his warnings, Parliament proceeded with the approval of the loan, dismissing his advice.
The new figures presented in the audit report have intensified the ongoing debate over the buyout process.
Critics are questioning why such a significant difference in the buyout figure was not identified earlier and why Parliament moved forward with the loan approval without fully addressing the inconsistencies raised by the Auditor General.
