Government has revised the loan request to buy out electricity distribution company, UMEME, from over US$190 million, to over US$118 million.
This is contained in a Special Audit report tabled before the plenary sitting of parliament by Hon. Henry Musasizi the Minister of State for Finance, Planning and Economic Development (General Duties) for the end of lease and assignment between UMEME Limited and Uganda Electricity Distribution Company Limited (UEDCL)
Parliament adopted the proposal for Government to borrow over US$190 million from Stanbic Bank, on condition of confirmation of actual monetary amount of UMEME’s investment by the Auditor General.
Deputy Speaker, Thomas Tayebwa before the report was adopted confirmed to the Auditor General’s special report verifying and confirming the buyout amount of US$118 million against the approved US$190 thus urged government to put into consideration the special audit report when finalising with UMEME.
This however sparked opposition from Kira Municipality Member of Parliament, Hon. Ibrahim Ssemujju, who called for scrutiny of the report before it is adopted.
“We have never passed a report of the Auditor General without the MPs reading it. We have accountability committees that deal with these reports. Have you waived those particular rules that [now] reports can be passed without MPs processing them,” Ssemujju asked.
Leader of the Opposition, Joel Ssenyonyi, questioned the move to adopt the report, saying that by so doing, Parliament would be handing over its appropriation mandate to the Executive.
“The Auditor General’s report should be verified and studied, before we pass. It would be good to know what is in the report,” he said.
But the Deputy Speaker guided that the special audit report, unlike annual reports does not require to be referred to a committee noting that the report is a time bound.
“we must sort out UMEME by 31 March [2025]. It is a matter of beating deadlines, which is in the contract. If we do not settle, UMEME will have a blank cheque to determine penalties and interests,” Tayebwa said.
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