By President Museveni has summoned Uganda Investment Authority (UIA) officials following revelations that the agency’s management, led by Director General Robert Mukiza, awarded themselves an unauthorized honorarium totaling Shs545 million (approximately $145,000) for their supervision of the Kampala Industrial Park Development (KIPD) project. These payments were made without proper board approval.
The government had secured €219,482,727 (around Shs1 trillion) from UK Export Finance (UKEF) on December 4, 2019, to develop infrastructure at the Kampala Industrial and Business Park in Namanve. Despite this substantial funding, the project experienced significant delays, attributed to inadequate oversight by a consortium comprising Roughton International Ltd, Turner and Townsend International Ltd, Joadah Consult Ltd, and Basic Group Ltd, leading to their contract termination on August 29, 2022.
The controversy deepened when contractor Lagan Dott raised concerns about the honorarium payments to the Project Management Team (PMT) and revealed that Shs545 million had already been disbursed from the project loan. Internal sources at UIA report a state of panic among management and board members, with fears of severe repercussions looming.
“The mood is tense, and people are worried about their jobs,” an insider disclosed.
President Museveni, who has been increasingly vocal about his anti-corruption stance, recently highlighted his efforts to combat graft in his State of the Nation Address. He disclosed evidence of a corruption racket within Parliament and the Finance Ministry, involving bribe solicitations to inflate ministry and department budgets. Currently, three MPs are on remand over corruption charges related to these activities, and two more are expected to face questioning regarding fraudulent war loss compensation funds.
The unauthorized UIA honoraria payments were uncovered following a whistleblower’s report, prompting Investment Minister Evelyn Anite to demand a refund of the Shs545 million. Minister Anite condemned the payments as “despicable, uncouth, barbaric, and uncultured,” and warned UIA management of “dire consequences” if they did not comply with the refund directive. She labeled the payments a clear case of “mischarge, abuse, and corruption” detrimental to taxpayers.
Despite attempts by UIA management to justify the honorarium payments under a contractual clause allowing such awards for additional responsibilities, this explanation has been widely dismissed as flawed.
As UIA officials prepare to meet President Museveni, many anticipate severe repercussions if the President determines that public funds were mismanaged. According to sources within State House, the President is under pressure from the donor community to demonstrate his commitment to fighting corruption.
“If he finds that the UIA management has been reckless with public funds, he won’t hesitate to take action because he is under pressure by the donor community to show that he is committed to fighting corruption,” an insider noted.
The upcoming meeting at State House is expected to be intense, with the President demanding a comprehensive explanation for the unauthorized payments. Additionally, there is speculation that the President may order a thorough audit of UIA’s finances and operations to prevent future irregularities. Observers are keenly watching to see the outcome of this high-stakes encounter and the potential fallout for UIA management.
