Government has asked Parliament to approve the write-off of Shs2.2974 billion in non-tax revenue owed by Kilembe Mines Limited in accumulated Annual Mineral Rent arrears.
The request was presented to the Parliamentary Committee on Finance, Planning and Economic Development on Thursday by State Minister for Finance (Planning) Amos Lugoloobi, who appeared before the committee alongside technical officials from the Ministry of Finance, Planning and Economic Development.
According to Lugoloobi, the debt accrued between 2018 and 2024.
He told the committee that the proposed write-off follows a recommendation by the Auditor General in the audit report for the Ministry of Energy and Mineral Development for the year ended December 2024.
“The Auditor General’s report on the Ministry of Energy and Mineral Development for the audit year ended December 2024 recommended the write-off of the outstanding Annual Mineral Rent arrears amounting to shs2,297,400,000,” Lugoloobi said.
He explained that the Ministry of Finance received a request from the Ministry of Energy and Mineral Development to write off the outstanding non-tax revenue owed to the Government by Kilembe Mines.
Lugoloobi said the request requires parliamentary approval under Section 33(1) of the Public Finance Management Act, Cap. 171.
The provision requires the Minister of Finance to seek Parliament’s approval before abandoning or remitting a claim, or writing off a loss or deficiency involving public money or public resources.
“The request to write off Kilembe Mines debt has therefore been presented to you, Hon Chair and members of this committee in accordance with the provisions of the Public Finance Management Act for your consideration,” Lugoloobi said.
The Finance Committee will scrutinise the request before making recommendations to Parliament on the proposed write-off.
The Shs2.2974 billion comprises Annual Mineral Rent arrears accumulated over six years, from 2018 to 2024, representing revenue that the Government was entitled to collect from the mining company.
