Parliament has launched an investigation into the Uganda Revenue Authority (URA) over a controversial Shs15.7 billion contract signed with a foreign consultancy to audit telecom companies. The deal is seen to be filled with delays, unverified expenditures and potential financial loss to the taxpayer.
The contract, signed in May 2023, was meant to run for 18 months with the aim of recovering undeclared taxes from telecom companies and building URA’s internal capacity to conduct such audits. It included the procurement of hardware and software valued at Shs11.4 billion.
However, by the time the Auditor General reviewed progress in late 2024, only MTN Uganda had been audited, while other major players such as Airtel, Smart Telecom, Lyca Mobile, Roke Telecom and Liquid Telecom had not been touched.
“The work remains incomplete as only MTN has been audited. There were no reports or updates on audits of other telecoms. This raises doubts on whether the project can achieve its intended objectives,” the Auditor General cautioned.
Worse still, MPs discovered that despite payments being made, there was no proper documentation confirming that URA had verified delivery of the costly hardware and software.
“There is a risk that the equipment may not have been procured and value for money may not have been achieved,” PAC noted, describing the deal as deeply problematic.
The Committee also expressed concern that the contract’s requirement to train at least 15 URA auditors had not been fulfilled. By February 2025, just three months before expiry, only three officers had participated in skills transfer sessions.
“It is abundantly clear that both parties did not fully appreciate the complexity and nature of the contract they were entering into. With only months to expiry, the work is not even a quarter executed,” PAC said in its hard-hitting report.
The Committee concluded that the project was poorly managed, the timelines unrealistic, and the oversight weak. It warned that without renegotiation of terms, URA risked sinking billions into a failed project.
The revelations have revealed doubt on URA’s procurement practices with MPs calling for accountability.
“URA should renegotiate the timelines and outputs to salvage the project, or else risk a repeat of costly mismanagement of taxpayers’ money,” the report urged.
