Uganda Airlines (UR, Entebbe) has reportedly underperformed by UGX207 billion shillings (USD56.3 million) and is struggling to sustain its services, according to the December 2022 dated Ugandan Auditor-General Report for the Financial Year ended June 2022.
Auditor-General John Muwanga handed the report to Parliamentary Speaker Anita Among on January 19, 2023. "As mandated, Parliament will study, analyse and scrutinise these reports to ensure all public funds serve the intended purposes. I will task the relevant committees to handle the audit queries expeditiously and report to the House for debate," Among promised on social media.
NTV reported excerpts on Uganda Airlines revealed the state-owned airline was projected to make UGX348 billion (USD94.6 million) in the FY 2021/22 but collected only UGX141 billion (USD38.3 million). It said the report further indicated that UGX22.8 billion (USD6.2 million) collected in airport taxes from passengers through Entebbe remained unremitted to the Uganda Civil Aviation Authority for over two years.
Uganda Airlines Chief Executive Officer Jenifer Batumaraki was not immediately available for comment.
The Auditor-General's report unearthed a plethora of irregularities in several government ministries, departments, and agencies, indicating corruption, ghost staff, and diversion of taxpayer's funds, reports Uganda's Monitor newspaper. The year under review saw Muwanga audit the financial statements of 186 ministries, departments and agencies, 83 statutory corporations and 151 local governments.
Meanwhile, Among unleashed a political storm last week when she ruled that Parliament would not consider a report on Uganda Airlines by the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) because it had been leaked to the media. Instead, parliament would adopt an earlier report by the Auditor-General. During a sitting on January 18, Among accused COSASE of under-performance. "I don't want to say shame on us, the House, but shame on you, COSASE! We have invested a lot of money in the committee but have not got results."
COSASE investigated the airline between August and September 2022 and reportedly revealed irregularities, including corruption and abuse of office, lack of job grades, a non-existent strategic plan, poor management of contract files, and mismanagement of 25 procurements. The report was submitted to parliament on September 15, 2022. It was eventually tabled for debate on January 18, but when COSASE chairman Joel Ssenyonyi tried to table it, the Speaker announced there would be no debate due to the leaks to the media. According to COSASE, Uganda Airlines lost around UGX500 billion (USD136 million) in FY 2021/22, more than twice than reported by the Auditor General.
