URC named worst performing gov’t body

By Francis Lubega

15^th March 2021

Uganda Railways Corporation -URC is rated among the worst performing public bodies causing huge financial loss in billions of taxpayers’ money.

A report by the Auditor General John Muwanga to the speaker of parliament Rebecca Kadaga, he has revealed unexplained loans accessed by the URC and domestic arrears all totaling 46.99 billion Shillings.

URC is a corporate body reporting to the Ministry of Works and Transport under the Uganda Railways Corporation Act (1992). It is mandated with the construction, operation and maintenance of railway and marine services both in and outside Uganda, for the carriage of passengers and goods.

Out of the 46.99 billion Shillings, Auditor General John Muwanga notes that the Corporation during the financial year 2019/2020 had un-supported loans from foreign Governments amounting to 16.51 billion Shillings.
He similarly reveals interest payable amounting to 9.51 billion Shillings which was reported by the Corporation as outstanding without the necessary supporting documentation.

There are also unsupported sundry creditors and other trade receivables of 9.753 billion and 11.21 billion Shillings respectively among other losses.

On top of these irregularities, Muwanga also reveals that the Corporation lacked land titles for land worth 91.83 billion Shillings as evidence of URC’s right to own and use the property.

Besides URC, the other enterprises the Auditor General then queries were Uganda Electricity Transmission Company Limited and Civil Aviation Authority (CAA).