government 4 August 2026 Nile Post
Energy Ministry Faces PAC Scrutiny Over Shs 17 Billion in Abandoned Electrification Projects
Parliament's Public Accounts Committee (PAC) has summoned officials from the Ministry of Energy and Mineral Development to account for over Shs 17 billion allocated to rural electrification projects that remain incomplete. Lawmakers are demanding explanations for stalled works, contractor performance issues, and the awarding of new contracts to firms with a history of failure. Source: https://nilepost.co.ug/news/361248/pac-grills-energy-ministry-over-shs-17bn-abandoned-electricity-projects
The Ministry of Energy and Mineral Development is under fire from the Public Accounts Committee (PAC) for failing to ensure the completion of rural electrification projects valued at over Shs 17 billion. During a recent committee session, ministry representatives and contractors linked to the former Rural Electrification Agency (REA) were pressed to explain why public funds have been spent on projects that are years behind schedule, with some stalled at approximately 60% completion.
Mutiko Technical Services, in particular, faced tough questions regarding a Shs 10 billion project intended to bring electricity to Kayunga, Lugazi, and Kamuli districts. The contract, awarded under REA and spanning from 2019 to June 2021, saw the company receive over Shs 6.2 billion but failed to reach its completion goals. While the contractor cited the COVID-19 pandemic and rising material costs, committee chairperson Patrick Oshabe Nsamba dismissed these excuses, pointing to evidence of implementation failures predating the pandemic.
MPs also expressed alarm over allegations that Mutiko Technical Services removed electricity poles from project sites post-contract termination and questioned how the firm continued to secure work from other government entities like UEDCL despite its performance issues. This has raised concerns about the government’s contractor monitoring systems.
Another contractor, Global Komulo JV, was questioned over a Shs 7.5 billion project for Butambala, Gomba, Masaka, and Rakai districts. This project, awarded in 2019 and expected to finish by 2021, received multiple extensions before expiring in 2023 without completion. The contractor blamed delays on inconsistent government funding, leading to high loan interest costs.
Irene Batebe, Permanent Secretary for the Ministry of Energy, acknowledged that capital-intensive projects often face funding challenges but assured the committee that contractors undergo technical evaluations as per PPDA guidelines. The committee, however, insisted on stronger oversight to prevent underperforming companies from securing further government contracts while communities continue to lack essential services.
Source: Nile Post