news 7 September 2026 Daily Monitor (Uganda)
Parliament Probes UEDCL Over Shs193 Billion Tax Liability and Financial Irregularities
Uganda Electricity Distribution Company Limited (UEDCL) is under fire from Parliament's COSASE committee for significant financial and management issues, including a Shs193.4 billion tax liability and a massive increase in uncollected revenue. Source: https://www.monitor.co.ug/uganda/news/national/uedcl-under-probe-over-shs193b-tax-liability-financial-queries-5587248
The Uganda Electricity Distribution Company Limited (UEDCL) is facing intense scrutiny from the parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) concerning a substantial Shs193.4 billion tax liability and various financial management deficiencies.
A recent audit report by the Auditor General highlighted a concerning surge in UEDCL’s trade receivables, which ballooned to Shs238.5 billion, marking a nearly forty-fold increase from the previous year. This sharp rise has triggered alarms regarding the company’s effectiveness in revenue collection and overall financial oversight.
Further compounding these issues, the audit identified weaknesses in asset management, noting that several electricity distribution lines built by the Ministry of Energy were not accounted for in UEDCL’s asset register. Additionally, the report revealed that at least 12 land parcels occupied by UEDCL have expired leases, leaving the company without legal tenure over these properties.
Procurement practices at UEDCL have also come under the microscope. The audit flagged Shs34.7 billion in procurements initiated in the prior financial year but completed during the period under review. Furthermore, Shs1.4 billion was spent on unplanned procurements that were neither in the approved plan nor classified as emergencies.
Irregularities in procurement methods, inadequate market assessments, and issues with bidder participation and evaluation were also cited, potentially exposing the company to financial losses. The audit also pointed out that two contracts worth Shs807.2 million were approved without the necessary clearance from the contracts committee.
The committee also questioned staffing anomalies, with nine employees hired beyond approved positions, including an excess of receptionists and truck drivers. In response to these findings, COSASE summoned UEDCL management, but the officials were sent back for failing to provide crucial documentation. The validity of the Acting Managing Director’s authority as an accounting officer was also questioned, alongside concerns about multiple senior officials serving in acting capacities.
COSASE chairperson Muwada Nkunyingi emphasized the need for a thorough investigation into potential public fund losses. The committee has scheduled further hearings, summoning former UEDCL managers and requiring the current management, the Permanent Secretary, and the Minister of Energy to appear. This probe follows recent leadership changes at UEDCL, including the suspension of its previous top management.