Uganda's Road Sector Plagued by 'Mafias' Allegedly Siphoning Billions

Uganda’s road construction sector is reportedly losing billions of shillings to systemic corruption, according to Works and Transport Minister Fred Byamukama. He alleges that corrupt officials and contractors are colluding to inflate project costs, make illegitimate compensation claims, and manipulate road designs, leading to massive financial losses for the government.

Minister Byamukama stated that these “road mafias” could be costing the nation up to Shs 50 billion every three months. The corrupt schemes include creating fake graves along proposed highway routes to claim compensation, rapidly developing properties just before government valuers arrive, and even acquiring land titles for wetlands within months to present them for compensation.

These allegations shed light on why many road projects in Uganda exceed their budgets, take longer than planned, or remain incomplete. The minister pointed to specific cases, including the Busega Expressway, where a project originally estimated at Shs 600 billion allegedly ballooned to Shs 2 trillion due to corruption in land acquisition. He also cited the Masaka–Mutukula Road, where a contractor is accused of attempting to add an extra tarmac layer for an additional Shs 150 billion, despite the project being significantly behind schedule.

Perhaps the most audacious alleged scam involves the Nateete–Nakawuka–Kawuku Road, where fake graves were reportedly planted to justify compensation claims. Furthermore, buildings allegedly belonging to Ministry of Works officials were constructed along the route, allowing them to influence and benefit from compensation payouts. Byamukama has vowed to crack down on these practices, announcing arrests and potential prison sentences for those involved, and warning contractors that blacklisting is imminent.

The financial implications are severe, diverting funds that could be used for development and exacerbating Uganda’s rising debt-servicing costs, which have climbed to over Shs 12 trillion annually. The minister is determined to rectify the situation and ensure public money is used effectively for infrastructure development.

Source: https://observer.ug/news/how-road-mafias-are-eating-billions