Uganda Parliament Speaker, Anita Among has today received the Auditor General’s report on Umeme which recommends a USD 118 (UGX 433 billion) Buyout amount for the unrecovered investments.
Speaker Among said, Parliament will only okay the payment of that particular sum, and nothing more!
However, the payment remains a contentious matter.
Umeme issued a statement yesterday, just a day to the release of the Auditor General’s report, showing a submission of an estimated Buyout amount of USD 234 million (UGX 858 billion), noting that the amount was undergoing audit by the Auditor General.
Umeme noted that upon receiving the audit report from government, it will review the findings and determine the necessary course of action.
“Once audit is complete, Umeme is expected to update its shareholders and inform them of any proposed action. The Buyout amount is expected to be paid in 30 days following the end of the concession term, specifically March 31st, 2025,” the statement reads in part.
Umeme noted that, if payment is not received by the set deadline, a penal interest will be applied as stipulated in the concession agreements.
The private power distributor is also expected to publish financial statements until the pending payment is resolved.
Businessman Haruna Sentongo, A Brother to Billionaire Businessman Hamis Kiggundu, Ordered to Pay UGX 10.38 Bn to I&M Bank or Lose PropertyUmeme’s 20-year concession for electricity distribution ended on February 2025, and it is currently in the retransfer transition period.
Last week, Parliament approved the government’s proposal to borrow over USD 190 million (UGX 700 billion) from Stanbic Bank Uganda for the Umeme Limited buyout despite concerns raised by legislators on the Committee of National Economy.
The approval followed a heated debate on Thursday, 20 March 2025 during which Committee Chairperson, Hon. John Bosco Ikojo presented the committee’s recommendation that the government should not proceed with the loan until the Auditor General finalises his report to establish the exact Buyout amount.
Although the Attorney General Kiryowa Kiwanuka sought for the suspension of the rules to allow the House process the loan request without debate of the report, this did not happen as both reports saw the light of day.
Parliament on March 21st, indicated that while the Electricity Regulatory Authority initially estimated US$225.7 million, this was revised to US$127.6 million yet the government sought US$190.9 million.