The controversy surrounding the government’s planned buyout of electricity distributor Umeme has escalated after an audit revealed a significant discrepancy in the buyout figure.
A special audit report, presented to Speaker of Parliament Anita Among, shows that the final buyout figure is $118 million (Shs 430 billion), sharply lower than the $190 million (Shs 700 billion) approved by Parliament just last week.
Speaker Among confirmed the discrepancy, saying, “The discrepancy in the amount to be paid to Umeme… $190 million, $118 million is the final audit.”
She announced that the report would be formally presented to Parliament today, adding, “We are going to table the report this morning. We hope this will lead to improved services as UEDCL takes over.”
This revelation has sparked renewed calls to halt the loan approval process with Stanbic Bank, which was meant to finance the buyout.
Details of the audit report remain unavailable, and attempts to reach Auditor General Edward Akol and his team for comment have been unsuccessful.
On March 20th, Parliament approved a loan of $190 million from Stanbic Bank for the Umeme buyout, despite concerns raised by the Auditor General and the Committee on National Economy. The Committee had urged Parliament to “pause the process until the actual buyout amount is clarified,” citing inconsistencies in the figures presented for the buyout.
The government’s push to secure the loan was driven by the impending expiration of its agreement with Umeme on March 31, 2025.
In presenting the loan request, the State Minister for Finance argued that the buyout would make electricity more accessible, affordable, and help reduce service costs.
Despite these arguments, the Committee on National Economy had warned that the government should wait for the Auditor General’s finalized audit before proceeding, citing several “irregularities, including fluctuations in the reported buyout figure.”
These concerns sparked divided opinions among MPs. Some feared that delaying the buyout could lead to a crisis, particularly with the concession deadline fast approaching. Minister Musasizi emphasized the urgency of the matter, warning that failure to act by the end of March would result in significant penalties.
Despite these concerns, Parliament approved the loan, citing the need to meet the tight timeline for completing the buyout.
The disclosure of the much lower buyout figure in the audit now casts doubt on the initial valuation and the process leading to Parliament’s approval.
As the report is tabled today, the country waits to see the full details and the implications for the Umeme buyout and the future of electricity services under the Uganda Electricity Distribution Company Limited.
