Parliament’s Public Accounts Committee (PAC) has summoned officials from the Ministry of Finance, Planning and Economic Development to explain how Shs846 billion approved for the buyout of former electricity distributor Umeme was utilised, as lawmakers seek a full account of the expenditure.
The committee wants the government to demonstrate that every shilling authorised by Parliament can be traced and justified in accordance with Uganda’s public finance laws.
The inquiry follows the committee’s examination of the Auditor General’s report, with legislators raising concerns about accountability in the management of public funds, particularly where Parliament approves borrowing that later differs from the actual amount spent.
Members of the committee said the review forms part of Parliament’s constitutional oversight role under Articles 90 and 164 of the Constitution, which empower parliamentary committees to scrutinise government expenditure and require the Auditor General to audit and report on the use of public resources.
The committee is also relying on the Public Finance Management Act, 2015, which requires transparency, prudent borrowing and accountability in the management of public finances.
Lawmakers said government must provide clear documentation to account for the money approved for the Umeme buyout and satisfy Parliament that the transaction complied with the country’s financial management laws.
“The committee wants to establish whether every dollar approved by Parliament for the Umeme buyout can be fully traced, accounted for and justified in line with Uganda’s public finance laws,” members said during the proceedings.
The committee also turned its attention to discrepancies involving the Rural Electrification Levy after uncovering conflicting financial records between the Ministry of Energy and Mineral Development and the Uganda Electricity Transmission Company Limited (UETCL).
According to the Auditor General’s report, the Ministry of Energy reported a receivable of Shs121 billion that does not appear in UETCL’s financial statements, while legislators noted inconsistencies involving more than Shs132 billion linked to the levy.
PAC directed both institutions to reconcile the conflicting figures and present a harmonised financial position before the committee continues with its audit review.
“The Ministry of Energy and UETCL must reconcile these records and establish the actual financial position before the committee proceeds with the audit,” the committee directed.
The inquiries come at a time when government is implementing major reforms in the electricity sector following Umeme’s exit and increasing investment in power infrastructure to expand access to electricity across the country.
On July 31, Umeme issued a profit warning announcing that it expects to register a second consecutive loss for the six months ended June 30, 2026, after posting a loss for the financial year ended December 31, 2025. The company attributed the expected losses to the end of its electricity distribution concession and the handover of the national distribution network to the Government of Uganda on March 31, 2025, which effectively ended its revenue-generating operations.
“The assessment is based on the fact that the Company ceased to generate revenue following the handover of the electricity distribution system to the Government of Uganda at the natural end of the 20-year electricity distribution concession in Uganda on 31 March 2025,” Umeme said in the public notice.
The listed power distributor also said it remains engaged in efforts to recover outstanding claims from the Government through the dispute resolution mechanism provided for under the Privatisation Agreements.
“The Company continues to actively pursue its outstanding claims against the Government of Uganda through the ongoing dispute resolution process as stipulated in the Privatisation Agreements and as notified to the public previously. We will keep the shareholders and stakeholders informed of any material developments in this respect,” the company said.
Umeme said more details on its financial performance and the basis for the expected losses will be contained in its interim financial statements for the six months ended June 30, 2026, which will be released in due course.
The committee said its review is intended to ensure that public resources are managed responsibly and that all borrowing and expenditure approved by Parliament are backed by proper accountability.
