MPs demand probe into Uganda Railways Corporation over missing wagons, alleged financial losses

Parliamentarians are urging the Inspectorate of Government (IGG) to launch a thorough investigation into the Uganda Railways Corporation (URC) and several of its former officials. The probe is centered on allegations of significant financial losses, mismanagement of assets, and questionable handling of a railway rehabilitation and capacity-building program funded by Spain.

A key concern raised by the parliamentary committee is the disappearance of hundreds of railway wagons. When URC resumed operations from Rift Valley Railways in January 2018, a formal handover and comprehensive stock-taking of assets were reportedly absent. This oversight has made it difficult to account for the exact number of wagons inherited.

Further complicating matters, a transition to a digital wagon-tracking system led to some wagons being moved to a “virtual station” in Kenya, after which they became untraceable. While some wagons have since been located and reclassified, a significant number remain unaccounted for, with an estimated value of approximately $11.2 million (Shs 42.28 billion).

Adding to the controversy, a substantial number of wagons were reportedly sold as scrap in Uganda for Shs 2 billion, despite an estimated value of Shs 4.4 billion. The committee noted a discrepancy between the number of wagons identified as scrap and the quantity sold, raising questions about the procurement and sale processes.

The investigation also scrutinizes the €25.9 million (Shs 113.6 billion) loan from Spain. While physical rehabilitation work is underway, the capacity-building component, costing €4.821 million (Shs 21.1 billion), has drawn sharp criticism. Concerns include the deployment of fewer experts than contracted, potential discrepancies in consultant qualifications, and significant underpayment of local experts compared to contractual rates.

Additionally, the committee flagged potential financial losses related to travel expenses for experts who allegedly did not travel as stipulated, and questioned the legitimacy and value for money of several workshops, citing a lack of documentation for some. The procurement process for the consultant and the sale of project vehicles to individuals involved in the program are also under scrutiny. The failure to secure ownership of a concrete sleeper factory after the project’s completion is another point of contention.

https://observer.ug/news/missing-wagons-billions-at-stake-mps-demand-probe-into-urc