UEDCL Terminates Contracts of Seven Senior Staff Amidst Restructuring

Seven senior managers at Uganda Electricity Distribution Company Limited (UEDCL) have had their employment contracts terminated. The affected individuals include the heads of internal audit, human resources, corporate affairs, and engineering, among others. These dismissals come after the employees were placed on forced leave in May, a period that was subsequently extended.

The company cited reasons related to “workplace culture” and perceived poor performance as the basis for the terminations. The decision to end their contracts is reportedly linked to the Ministry of Public Service’s guidance under the Rationalisation of Government and Public Expenditure (RAPEX) initiative. This initiative has imposed a hiring freeze on non-critical roles in government agencies undergoing mergers and restructuring.

While the specific reasons for each individual’s termination are not detailed, the broader context involves the planned re-merger of state-owned electricity entities: Uganda Electricity Generation Ltd (UEGCL), Uganda Electricity Transmission Company Limited (UETCL), and UEDCL. These entities were originally unbundled from the Uganda Electricity Board (UEB) almost two decades ago.

The situation surrounding the Managing Director, Paul Mwesigwa, is less clear. He was sent on forced leave earlier in April, reportedly by presidential directive, amidst concerns over increased electricity losses from 15% to 19% since UEDCL took over the National Distribution Network. Unlike the seven managers whose contracts have now ended, Mr. Mwesigwa’s indefinite leave leaves his future with the company undecided.

Attempts to obtain comments from UEDCL management, including the acting CEO and the head of strategy, compliance, and regulation, were unsuccessful by the time of reporting. There are also ongoing developments regarding the merger plans, with sources suggesting that discussions about potential private partnerships for UEDCL continue behind the scenes.

Source: https://www.monitor.ug/uganda/news/national/uedcl-fires-suspended-chiefs-md-fate-undecided-5501806