Parliament has directed the Inspectorate of Government (IGG) to investigate and prosecute officials of Uganda Railways Corporation (URC) implicated in the irregular disposal of railway wagons and the resulting loss of Shs2.4 billion.
The directive is contained in a report adopted by Parliament after the Committee on Physical Infrastructure uncovered cases of financial mismanagement, disputed procurement deals, missing railway wagons and widespread encroachment on railway land.
The IGG has specifically been tasked with investigating members of URC’s Adhoc Board of Survey, Contracts Committee and Procurement and Disposal Unit over the irregular disposal of scrap wagons.
The anti-corruption body has also been directed to investigate former URC managing director David Musoke Bulega, contract managers and members of management over payments for unexecuted services, questionable travel claims, unprocured software, vehicle misappropriation and contractual terms that resulted in URC losing ownership of a concrete sleeper plant.
The report, adopted during a sitting chaired by Speaker Jacob Markson Oboth, paints a grim picture of the state of the railway corporation, citing weak accountability systems and alleged abuse of public resources intended to revive the country’s railway infrastructure.
Shs2.4bn wagon loss
The committee found that 112 railway wagons remain unaccounted for after they were routed to a “virtual station” in Nyahururu, Kenya, under a tracking system previously used by the former Rift Valley Railways.
The report further found that URC sold 152 wagons domestically as scrap and another 28 in Tanzania, but could not account for 82 of the wagons classified as scrap.
“URC sold 152 wagons domestically as scrap and another 28 in Tanzania, but official records could not account for 82 of the scrap wagons, resulting in a direct financial loss of Shs2.4 billion,” the report states.
Committee chairperson Mwine Mpaka said the disappearance and disposal of railway wagons raises questions of criminal liability.
“URC cannot account for its own land, its land titles or its rolling stock,” Mpaka said.
Foreign consultants
The committee also raised concerns over the management of a Shs125 billion Spanish-funded railway project, which included Shs20.8 billion earmarked for capacity building.
According to the report, almost 90 per cent of the capacity-building component, equivalent to €4.33 million, went to five foreign experts, with some earning as much as €32,500, approximately Shs140 million, per month.
The committee also found that some URC employees were allegedly listed as foreign experts to access the higher payments while continuing to receive their normal local salaries of about Shs6.5 million.
Mpaka said public funds intended to strengthen Uganda’s railway system were instead used to benefit consultants and foreign companies.
“We have established a systematic failure where public funds meant to build local railway capacity and rehabilitate critical transport infrastructure were instead deployed to enrich individual consultants and foreign firms under the guise of technical expertise,” he said.
Questionable procurement
The committee also questioned the procurement arrangements surrounding the Spanish-funded project.
It found that Spanish firm Consultrans S.A.U., which designed the project feasibility study and assessed URC’s capacity needs, subsequently awarded the works contract to its sister company, Imathia Construction, through direct procurement.
Other irregularities cited by the committee included multi-day workshops being reduced to one-day refresher courses, €79,500 claimed for overseas back-office travel, and project-funded second-hand pickup trucks allegedly sold to staff.
The committee further found that €60,000 intended for office furniture was instead used to equip offices occupied by Spanish consultants.
Railway land
The report also raises concerns over the protection and management of URC’s land.
According to the committee, URC holds 20,848 acres of railway land, of which 1,983 acres remain untitled and are affected by more than 24,653 encroachment cases.
A further 62 railway land titles reportedly went missing from the Ministry of Finance, Planning and Economic Development during office relocations and have never been returned, despite reminders dating back to 2016.
The committee recommended that the Ministry of Lands and the Ministry of Works and Transport submit a joint railway-land recovery strategy within 30 days.
The strategy is expected to include measures to remove 1,698 identified encroachers, with police and military support where necessary.
Railway network decline
The committee also highlighted the deteriorating state of Uganda’s railway infrastructure and rolling stock.
It found that only 269 kilometres of URC’s 1,266-kilometre network is currently operational.
Fleet availability was also found to be low, standing at 22 per cent for locomotives, 36 per cent for coaches and 30 per cent for operational wagons.
Mpaka said the findings demonstrate a systematic failure to protect public assets and ensure that resources allocated to revitalise the railway sector deliver value to Ugandans.
The committee’s recommendations now place the IGG at the centre of efforts to establish accountability for the alleged financial losses, irregular procurement practices and disposal of URC assets.
