The Auditor General is scheduled to present the 2025 audit report to the Speaker of Parliament, Anita Among, with special audits into the operations of Uganda Airlines, the Shs 60 billion Bank of Uganda (BoU) money heist, and the verification of the UMEME buyout payout dominating the report.
The development was earlier revealed by Stephen Katerega, the Assistant Auditor General in charge of Corporate Affairs, while appearing before Parliament’s Finance Committee to present the Office of the Auditor General’s (OAG) 2026/27 National Budget Framework Paper (NBFP).
BoU Money Heist
In 2024, the country was rocked by a major financial fraud involving US$21,013,562.31 (approximately Shs 77.1 billion) at the Bank of Uganda. The scandal led to the arrest and charging of several officials from the Ministry of Finance, including the Accountant General and seven others, six of whom were later released on bail.
The matter attracted the attention of President Yoweri Museveni and security agencies. In a letter dated October 24, 2024, the Director of the Criminal Investigations Directorate requested the Auditor General to conduct a forensic and information technology audit.
The audit was intended to support police investigations into allegations of abuse of office, embezzlement, causing financial loss, and money laundering. These stemmed from two fraudulent transactions initiated through the Integrated Financial Management System (IFMS), managed by the Ministry of Finance, Planning and Economic Development (MoFPED), and processed by the Bank of Uganda.
Following a review of the request and preliminary findings from both MoFPED and BoU, the Auditor General conducted a forensic investigation to establish whether fraud had occurred, how funds meant for loan repayments to the International Development Association (IDA) and the African Development Fund (ADF) were diverted, identify those responsible, and recommend measures to prevent a recurrence.
Uganda Airlines Under Scrutiny
Uganda Airlines has also come under increasing public criticism following operational disruptions at Entebbe International Airport. Passengers reported missed flights, repeated rescheduling, and limited assistance from airline staff, with many sharing images and accounts on social media showing travellers stranded at check-in counters with little communication.
In a statement issued on December 13, Uganda Airlines acknowledged the disruptions and said efforts were underway to restore normal flight schedules. However, the assurance did little to ease public frustration.
Passengers cited multiple cancellations, including a midweek flight to Zanzibar that was postponed to the following day, while a return flight was delayed late into the night before being postponed again.
Sources within the airline attributed the disruptions to capacity constraints linked to one of its Airbus A330-800neo aircraft. Uganda Airlines later confirmed that technical challenges affecting parts of its fleet were responsible for the delays and cancellations, adding that corrective measures were being implemented.
Chief Executive Officer Jennifer Bamuturaki apologised to affected passengers, explaining that technical issues involving even a small number of aircraft can significantly disrupt operations for airlines with limited fleets.
“With a fleet of seven aircraft, grounding one or two for maintenance or technical checks inevitably affects the entire network,” Bamuturaki said.
UMEME Buyout Payout
The Auditor General’s report also raised concerns over the government’s planned payout to UMEME, revealing that the amount proposed was significantly higher than the actual liability.
According to the report, the US$190,988,556 (Shs 700.2 billion) loan secured from Stanbic Bank for the UMEME buyout was excessive by Shs 267.6 billion. The audit established that the actual amount due to UMEME is US$118 million (Shs 432.7 billion).
Last year, Parliament conditionally approved the loan, insisting that payment should strictly follow the Auditor General’s findings.
Speaker Anita Among reaffirmed Parliament’s position, saying:“When we last sat, the loan brought for approval was US$190 million. I am aware the audit is complete, and the approved amount is about US$118 million. We shall only pay what the Auditor General has reported, not the estimates we were given.”
