Parliament Uncovers Financial Mismanagement and Missing Assets at Uganda Railways

Parliament has adopted a damning report from the Committee on Physical Infrastructure, revealing widespread financial irregularities and mismanagement at the Uganda Railways Corporation (URC). The committee, chaired by Hon. Mwine Mpaka, found that public funds intended for the revival of the railway system were instead channeled to foreign consultants and firms under the guise of technical expertise.

A significant portion of a Shs125 billion Spanish-funded project, particularly its Shs20.8 billion capacity-building component, was allegedly used to enrich external experts. Nearly 90 percent of the capacity-building funds, amounting to Euros4.33 million, reportedly went to just five foreign professionals, some earning as much as Euros32,500 per month. The report also raises concerns about URC employees allegedly posing as foreign experts to receive inflated payments while retaining their local salaries.

Further irregularities include a Spanish firm, Consultrans S.A.U, awarding a works contract to its sister company, Imathia Construction, through direct procurement. Other issues noted were the reduction of multi-day workshops to single-day events, questionable travel claims, the sale of project-funded vehicles to staff, and the misappropriation of funds meant for office furniture.

The report also highlights a critical lack of accountability for URC’s assets, with the corporation unable to account for its land, land titles, and rolling stock. Over 1,900 acres of URC’s 20,000-acre landholding are untitled and face extensive encroachment, while 62 railway land titles remain misplaced by the Ministry of Finance since 2016.

Operational capacity is severely limited, with only 269km of the 1,266km network functional. Fleet availability is low, with locomotives at 22%, coaches at 36%, and wagons at 30%. Alarmingly, 112 wagons are unaccounted for after being routed to a “virtual station” in Kenya. The report details the sale of 152 wagons domestically and 28 in Tanzania as scrap, with records failing to account for 82 of these, resulting in a direct financial loss of Shs2.4 billion.

The adopted report directs the Inspectorate of Government (IGG) to investigate implicated URC officials and prosecute those involved in the irregular disposal of wagons and resulting financial losses. The IGG will also probe the former Managing Director and other management staff over various financial and contractual improprieties.

In response, the Minister of State for Transport, Hon. Julius Maganda, acknowledged the decline of URC but assured that the government is actively working towards its revival. Ministries of Lands and Works and Transport have been ordered to submit a land recovery strategy within 30 days.

Source: Parliament of Uganda