Auditor General slashes Umeme buyout to Shs430 billion

Parliament has raised concerns about a significant overestimation in the loan secured for the Umeme buyout.

The initial loan of $190,988,556 (approximately Shs700.218 billion) from Stanbic Bank is now alleged to be excessive by over Shs267.614 billion. This discrepancy stems from the Auditor General’s audit, which determined that the actual amount due to Umeme is $118 million (approximately Shs432.677 billion).

Speaker of Parliament, Anita Among, revealed these findings while receiving the audit report on the Umeme Concession’s termination from the Auditor General on Thursday. She emphasized that Parliament’s approval of the loan was contingent on the payment being based on the Auditor General’s audited figures.

“During the previous parliamentary sitting, the approved loan was $190 million. However, the completed audit indicates that the due amount is approximately $118 million. Therefore, we must adhere to the Auditor General’s report, not the initial estimates provided. We explicitly stated that payment would be based solely on the Auditor General’s findings,” Speaker Among stated.

She expressed gratitude to the Electricity Regulatory Authority (ERA) and the Uganda Electricity Distribution Company Limited (UEDCL) for their cooperation in providing the necessary documents for the audit’s completion. Speaker Among also urged the government to ensure improved electricity services for Ugandans following UEDCL’s takeover of the distribution network.

“We appreciate ERA’s support in providing the Auditor General with all required documents. We hope that as UEDCL assumes control, we will witness enhanced service delivery,” she added.

The Ugandan government is in the process of buying out Umeme’s electricity distribution concession. A loan was secured from Stanbic Bank to facilitate this transaction. However, discrepancies have emerged between the initially proposed loan amount and the findings of an audit conducted by the Auditor General.