government 26 August 2026 Daily Monitor (Uganda)
MPs Grill URC Over Shs737 Million Spent on Idle Factory for Spanish Firm
Members of Parliament are questioning the Uganda Railways Corporation (URC) over a significant expenditure of approximately Shs737 million used to prepare land for a Spanish company whose factory now stands idle. The committee is investigating potential misuse of public funds. Source: https://www.monitor.co.ug/uganda/news/national/mps-seek-answers-over-shs700m-spent-by-urc-on-1-8-acre-site-for-spanish-firm-5572626
Parliament’s Committee on Physical Infrastructure has launched an inquiry into the Uganda Railways Corporation’s (URC) decision to spend €169,000 (about Shs736.7 million) on preparing a 1.89-acre site for a private contractor. The land was cleared and leveled for Imathia Construction, a Spanish firm engaged by URC to produce concrete sleepers for the Kampala-Malaba railway line.
The committee, led by Mbarara City South MP Mwine Mpaka, inspected the site in Lugazi, Buikwe District, raising concerns about the value for money. “We are going to look into and see whether there is value for money because this is just 1.8 acres,” stated Mpaka.
URC Managing Director Benon Kajuna confirmed that the land preparation costs were part of the contract with Imathia Construction. However, he revealed that a legal opinion from the Solicitor General indicated the factory built on the site remains the property of Imathia Construction and cannot be taken over by URC even after the contract’s conclusion.
“The contract ended and now the factory is here idle,” Kajuna informed the committee, adding that this was a matter he inherited upon joining URC. The committee’s broader investigation encompasses the rehabilitation of URC’s business units and the proper utilization of public funds in related contracts.
Parliamentarians are determined to ascertain if public resources were mismanaged and to hold any responsible officials accountable. The committee indicated that its report, detailing findings and potential recommendations, is nearing completion and will soon be presented to the Speaker. The factory was intended to bolster the production of concrete sleepers crucial for upgrading the Kampala-Malaba railway.
This development highlights concerns over transparency and accountability in public infrastructure projects, particularly when private entities are involved. The committee’s final report is expected to shed more light on the decisions made and the use of taxpayers’ money. This article is based on information from the Daily Monitor.