The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has summoned Minister of Defence and Veteran Affairs, Jacob Oboth, to explain alleged mismanagement and underperformance linked to a controversial joint venture at Uganda Air Cargo Corporation (UACC).
Committee chairperson Medard Ssegona revealed that the minister is expected to provide clarity on the partnership between Uganda Air Cargo and Alpha MBM DWC-LLC, a private company engaged to help recapitalize the struggling national carrier.
According to Ssegona, the joint venture has failed to deliver meaningful results, with Alpha MBM supplying only one out of the seven aircraftit had pledged under the agreement.
The venture, intended to revamp the corporation’s fleet and enhance its operational capacity, is now under scrutiny for possible contractual and procedural flaws.
Ssegona further disclosed that UACC’s Managing Director, Nakibus Lakara, informed the committee last week that the deal was signed under the authority of the Ministry of Defence, which supervises the corporation.
COSASE’s summons seek to determine the level of due diligence exercised by the Ministry before entering into the deal and whether public funds or state assets may have been exposed to risk without sufficient safeguards.
Minister Oboth is expected to appear before the committee in the coming days to respond to these concerns and shed light on the government’s position regarding the future of Uganda Air Cargo Corporation.
The development adds to growing public scrutiny of state enterprises and how partnerships with private entities are negotiated and implemented in Uganda.
By Francis Lubega
22nd July 2025
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