The government has adjusted its loan request to acquire electricity distribution company UMEME, reducing the amount from over $190 million to $118 million.
This revision was highlighted in the Special Audit Report on the termination of the lease and assignment agreement between UMEME Limited and Uganda Electricity Distribution Company Limited (UEDCL), which was adopted during the plenary sitting on Thursday, 27 March 2025.
The report was presented by Hon. Henry Musasizi, the Minister of State for Finance, Planning, and Economic Development (General Duties).
On 20 March 2025, Parliament approved the government’s request to borrow over $190 million from Stanbic Bank, subject to the Auditor General’s confirmation of UMEME’s actual investment value.
Before approving the revised figure, during the plenary sitting on 27 March 2025, Deputy Speaker Thomas Tayebwa urged the government to take the Special Audit Report into account when finalizing the buyout deal with UMEME.
“This morning, the Auditor General submitted a special audit report, verifying and confirming the buyout figure as $118 million, compared to the previously approved $190 million,” he stated.
However, this sparked opposition from Hon. Ibrahim Ssemujju, the Kira Municipality MP, who demanded a thorough review of the report before its adoption.
“We have never passed an Auditor General’s report without MPs first reviewing it. We have accountability committees responsible for handling such reports. Have you suspended the rules, allowing reports to be approved without MPs scrutinizing them?” Ssemujju questioned.
Leader of the Opposition, Hon. Joel Ssenyonyi, also raised concerns, arguing that fast-tracking the adoption of the report would essentially transfer Parliament’s appropriation authority to the Executive.
“The Auditor General’s report should be examined and verified before approval. It is essential to understand its contents,” Ssenyonyi emphasized.
However, the Deputy Speaker clarified that unlike annual reports, a special audit report does not require committee referral.
“This is a time-sensitive matter, and we must conclude UMEME’s buyout by 31 March 2025. Delays would allow UMEME to impose penalties and interest charges at its discretion,” Tayebwa explained.
Hon. Geofrey Ekanya (FDC, Tororo North County) supported the Deputy Speaker’s stance, citing examples from neighboring countries such as Tanzania, Kenya, and South Africa, where governments execute similar reports without awaiting parliamentary approval.
“Special audit reports often contain elements of criminality, but they are also time-bound. We request the Speaker to invoke the necessary rules to ensure that Parliament’s decision aligns with our procedural framework,” Ekanya stated.
