The Auditor General has reduced the Umeme buyout to Shs430 billion, uncovering a massive overestimation in the original loan secured for the concession’s termination.
This revelation could save Ugandan taxpayers over Shs 267 billion.
Speaker of Parliament Anita Among disclosed the findings on Thursday while receiving the audit report on the termination of Umeme’s electricity distribution concession.
She emphasized that Parliament’s approval of the loan was tied to the Auditor General’s final figures, not the initial estimates.
“During the previous parliamentary sitting, the approved loan was $190 million (approximately Shs700 billion). However, the Auditor General’s report indicates the actual amount due is around $118 million (Shs430 billion),” Among said.
“We must adhere to the Auditor General’s findings, not the initial estimates provided.”
The Ugandan government had initially secured a loan of $190,988,556 (about Shs 700.2 billion) from Stanbic Bank to facilitate the Umeme buyout.
However, the Auditor General’s audit determined that the actual amount due to Umeme is $118 million (approximately Shs 432.6 billion), highlighting a Shs 267.6 billion discrepancy.
Speaker Among commended the Electricity Regulatory Authority (ERA) and the Uganda Electricity Distribution Company Limited (UEDCL) for their cooperation during the audit process.
She stressed the importance of improving electricity services now that UEDCL is set to take over the distribution network.
“We appreciate ERA’s support in providing all necessary documentation to the Auditor General. Now that UEDCL is taking control, we expect improved service delivery for Ugandans,” Among added.
The government’s decision to terminate Umeme’s concession marks a major shift in Uganda’s electricity distribution sector. The reduced buyout figure signals potential relief for taxpayers and increased accountability in public financial management.
