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.

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The Territorial Police in Old Kampala Division have arrested eight suspects in connection with a violent robbery that left a hardware accountant stripped of Shs242 million in Rubaga Division last month.

According to ASP Luke Owoyesigyire, the Deputy Public Relations Officer for Kampala Metropolitan Police, the incident occurred on August 22, 2025, at Kakeka Zone, Rubaga Division.

“On that day, a group of thugs armed with pangas and riding on five motorcycles violently intercepted a city hardware accountant, robbed him of Shs242 million that he was taking to the bank. Fortunately, neither the victim nor his rider was injured during the attack,” said ASP Luke Owoyesigyire, Deputy PRO of Kampala Metropolitan Police.

Following intelligence-led operations, detectives analyzed CCTV footage and pursued other leads that led to the arrest of eight suspects.

“So far, the following individuals have been charged: Bakunda Steven alias Kevin, Atwine Robert Kiiza alias Mzee Lubuto, Andebuni Brian alias Junior Black, Musuza Raymond alias Caesar, Ssali Andrew alias Ande Swag, Kanyerezi Stanley, Nsubuga Andrew, and Aboth Shivan Alecho, who has been charged as an accessory after the fact,” Owoyesigyire revealed.

During the crackdown, police recovered Shs105 million, a motorcycle suspected to have been bought with proceeds of the robbery, and a black laptop bag containing vouchers and receipts belonging to the victim’s hardware. These exhibits were positively identified by the complainant.

“The suspects face charges of Aggravated Robbery, Conspiracy to Commit a Felony, and Being Accessories After the Fact to a Felony. Investigations are ongoing to trace other accomplices who are still at large,” Owoyesigyire added.

The eight suspects appeared before Mwanga II Chief Magistrate’s Court on Thursday, 11th September 2025, where they were formally charged.

Police have since reassured the public of their commitment to tackling violent crime.

“We reassure the public that such violent crimes will be pursued to their full conclusion, and we commend our officers for the dedicated work that has already yielded results in this case,” Owoyesigyire said.

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Many communities in Uganda continue to face limited access to safe water and reliable energy, challenges that affect health services, education and local development.

To address this, Rotary District 9213 Uganda has signed a landmark Memorandum of Understanding with Davis & Shirtliff Uganda (D&S) to implement sustainable water and solar energy solutions in underserved areas.

The collaboration seeks to leverage Rotary’s community networks and D&S’s technical expertise to design and implement projects that expand access to clean water, improve energy supply, and strengthen community resilience.

Announcing the partnership in Kampala on Thursday, Rotary leaders said the initiative will focus on installing solar-powered water systems for schools, communities, and health facilities. It will also provide sustainable irrigation systems to boost agriculture and food security, as well as water treatment solutions for schools and health centres.

Under the agreement, the two institutions will share responsibilities on a 50-50 cost-sharing model, ensuring sustainability and local ownership. D&S will provide technical expertise, equipment, training, and cost-sharing support, while Rotary will mobilize communities, identify projects, and fundraise.

“This partnership will not only expand access to clean and renewable energy but also improve access to safe water and sanitation, reduce reliance on unreliable utilities, and strengthen the resilience of local communities,” said Samuel Ingambwaaki, District Membership Chair, Rotary District 9213.

The MoU will initially run for one year, with the potential for renewal and expansion. Both partners are committed to promoting joint projects that prioritize inclusion and address Uganda’s infrastructure gaps. They emphasized that access to safe water and energy should not be a privilege, but a fundamental right for all Ugandans.

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Prime Minister Robinah Nabbanja has reassured Ugandans that the government is committed to fast-tracking the completion of the Mubende–Fort Portal and Mubende–Kyenjojo road projects, following concerns over stalled works and prolonged delays.

Speaking during the 6th Bi-annual private sector CEO retreat held in Fort Portal, Nabbanja admitted that the contractor, Energo, has faced financial and operational challenges that have slowed progress, but noted that the government has now set aside Shs50 billion to revitalise the project.

“Energo got a number of challenges. When he was paid part of the money last month, he had to solve some of those challenges. The suppliers were on him—fuel, equipment and other costs—so the money was used to clear those obligations,” Nabbanja explained.

She added that despite the setbacks, works never fully stopped but were progressing at a very low pace.

“He has been working, but at a low pace. This week or next week, he will receive another cohort of money. With this money, he is going to receive around Shs50 billion, and it will push him to some level. That I can promise,” she said.

The Prime Minister recalled that President Yoweri Museveni had earlier directed Cabinet to give priority to the Mubende road corridor during his tour of Mubende, Mityana and the surrounding districts.

“Remember when he toured Mubende and Mityana, the President directed us in July to prioritise that road. That is why the contractor was paid, and we are making sure resources are channelled accordingly,” Nabbanja said.

On the Mubende–Kyenjojo road, Nabbanja announced that the Ministry of Works and Transport’s in-house engineering team will be deployed to carry out urgent forward maintenance.

“We are going to use our in-house engineering services under the Ministry of Works. They are the same team that has just completed Jinja Road. The next area is Mubende–Kyenjojo, to at least do forward maintenance so that the road is motorable. I believe to some extent this will solve the problem,” she added.

The Mubende–Fort Portal and Mubende–Kyenjojo roads have, for months, remained a source of public frustration. Road users have complained of potholes, incomplete sections, and muddy diversions that worsen during heavy rains. Transporters say vehicle maintenance costs have soared, while farmers in the Mubende–Kyenjojo belt lament that poor access has reduced their ability to take produce to markets in Kampala and western Uganda.

Local leaders in Mubende have repeatedly accused contractors of abandoning worksites, while business owners warn that the state of the road has disrupted trade and tourism in the region.

Government’s renewed pledge of Shs50 billion now raises expectations that the long-awaited works will resume in earnest. However, Parliament has already raised broader concerns about inflated contracts and poor supervision across Uganda’s road sector, demanding stricter accountability to ensure value for money.

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The Committee on Public Accounts (Central Government) has sounded alarm over inflated costs of government-funded infrastructure projects, revealing that taxpayers are paying up to three times more for roads of similar length and quality.

In its report on the Auditor General’s findings for the 2023/2024 financial year, PAC showed glaring discrepancies in project costs. For instance, rehabilitating a 1.37-kilometre road in Arua City cost Shs13.4 billion, while 2.68 kilometres in Fort Portal cost Shs21.4 billion. In contrast, a one-kilometre stretch in Mbarara City costs only Shs4.9 billion.

“These roads measure almost the same in length, yet the costs vary abnormally. Such discrepancies are unjustifiable and point to inflated contracts and loss of public funds,” said Muhammad Muwanga Kivumbi, PAC Chairperson, while presenting the report during Tuesday’s plenary, chaired by Speaker Anita Among.

According to estimates from the Ministry of Works and Transport, the average cost of upgrading a kilometre of paved road should be Shs3.1 billion. This makes the Arua project cost more than three times the benchmark, while the Fort Portal works could have financed nearly seven kilometres instead of the reported 2.6 kilometres.

The report also flagged exorbitant supervision costs, which in some cases consumed up to 20 percent of the project budget. Arua’s 1.37km road attracted Shs3 billion in supervision fees, while Mubende spent Shs2.5 billion supervising a 2.86km stretch.

“These inflated costs have deprived Ugandans of better roads, schools and hospitals. Borrowed money is wasted on enriching a few individuals. Government is losing money through inflated contracts and weak supervision,” Muwanga Kivumbi stressed.

PAC further revealed that Uganda is losing value for money on loans, with most funds lying idle despite accruing interest. Out of Shs7.958 trillion in loans and Shs3.97 trillion in grants secured for development projects, less than half was absorbed—48.2 percent of loans and just 25.6 percent of grants.

A review of 17 loans showed an average disbursement of 36.7 percent, with some projects recording almost no utilisation. The Mbarara-Masaka Transmission Line, for example, had a disbursement rate of only 0.3 percent despite its completion deadline passing in June 2023.

Speaker Among expressed concern that government continues to pay interest on unused loans.

“We will give this item a day’s sitting for debate. We need to look at it seriously because we are paying for loans that we are not using,” she said, directing the Ministry of Finance to submit an updated report on all borrowed but idle funds.

The Minister for Defence and Veteran Affairs, Jacob Oboth, urged Parliament to craft proposals that would strengthen loan management and ensure value for money.

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