Parliament has been informed that the loan of USD 190 million (equivalent to UGX 700.218 billion) from Stanbic Bank, intended for the Umeme buyout, exceeded the required amount of USD 118 million (equivalent to UGX 432.677 billion), resulting in a surplus of UGX 267.614 billion.
This revelation was made by Speaker Among reveals Loan Surplus in Umeme buyout on the conclusion of the Umeme concession from Auditor General Edward Akol.
The surplus raised concerns over the financial management of the transaction, prompting further scrutiny of the buyout process and its cost implications.
However, Speaker Among clarified that, despite Parliament’s prior approval of the loan, the final amount to be paid to Umeme will depend on the verification conducted by the Auditor General.
She stressed that the final figure will be confirmed after the verification process is completed, ensuring that all figures are accurate and aligned with the agreed terms.
In her remarks, the Speaker commended the Electricity Regulatory Authority (ERA) and the Uganda Electricity Distribution Company Limited (UEDCL) for their cooperation in providing all necessary documentation, which played a crucial role in ensuring the timely completion of the audit.
She acknowledged the dedication of these organizations in facilitating transparency and accountability throughout the process.
The Speaker also emphasized the importance of transparency in such major transactions and urged the government to ensure that Ugandans benefit from the buyout by receiving improved and reliable electricity services.
She further called for a clear plan to address any existing gaps in the electricity distribution system, especially in rural and underserved areas, to ensure equitable access for all Ugandans.
The issue of the Umeme buyout has drawn significant attention, particularly regarding how the surplus funds will be managed and whether they will be redirected toward improving the national electricity infrastructure.
Members of Parliament have called for continuous oversight of the process to ensure that the public’s interests are protected.
By Francis Lubega
27th Mar, 2025
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