Latest Posts

Ghost Project: PAC Halts Funding Of Lubowa Specialized Hospital Construction

The Public Accounts Committee (PAC) has called for a halt to all funding for the International Specialized Hospital in Lubowa, citing it as a “ghost project” that is likely to cost Ugandans far more than the UGX286 billion already spent, with no tangible work to show for it.

This recommendation is part of the PAC report on the Auditor General’s Treasury Operations audit for the fiscal year ending June 30, 2023, which was presented by PAC Chairperson Muwanga Kivumbi. Kivumbi urged Parliament to suspend further funding until a special audit by the Auditor General is completed and reviewed.

“The Committee recommends that work on the Lubowa project be stopped until Parliament has reviewed the special audit report from the Auditor General. Those responsible for financial losses should be held accountable by refunding the misused funds. Furthermore, the owner’s engineer should face legal charges for issuing false completion certificates,” Kivumbi stated.

The PAC’s recommendations follow numerous irregularities identified in the project by the Auditor General. The report revealed that although seven promissory notes amounting to US$133.6 million (approximately UGX476.5 billion) had been paid to the project’s financier, only 23% of the works had been certified by the government’s engineer, valued at just US$57.5 million. This discrepancy suggests a potential overpayment of US$76.1 million (UGX286 billion).

Kivumbi warned that the government’s method of paying through promissory notes based on milestone certificates issued by the owner’s engineer who lacks full access to the construction site could lead to significant overpayments or payments for incomplete work.

The Auditor General also highlighted that, per the project agreement, payments are to be made upon completion of specific milestones and issuance of completion certificates by the owner’s engineer. However, it was revealed that the engineer’s certification was based more on progress reports from the contractor and consultation fees than actual physical work done, raising concerns about the integrity of the process.

While the Accountant General, Lawrence Semakula, told the PAC that all payments were backed by certification from the owner’s engineer and the government was obligated to honor promissory notes with binding due dates, the Committee was not satisfied. Muwanga noted that the PAC was only provided with promissory notes, not the milestone completion certificates necessary for making payments.

The PAC also faced challenges in verifying the status of the project, as multiple attempts to visit the Lubowa hospital site were blocked by the project developer, leaving the Committee unable to confirm whether any work was being done.

“This is essentially a ghost project, and the risk of Ugandans losing money is very real. Parliament must address this issue urgently,” Muwanga emphasized.

The Ugandan government contracted Finasi-ISHU Construction SPV SMC Limited in May 2015 to design, finance, construct, and equip the International Specialized Hospital of Uganda at Lubowa. In December 2018, the government signed a Promissory Note Purchase Agreement with the Ministry of Health, Africa Export Import Bank, Trade & Development Bank, and Barclays Bank Limited to fund the project up to USD379.71 million. Parliament approved the project’s execution and funding in March 2019.

However, debate on the PAC report was postponed by Speaker Anita Among because no Finance Ministry officials were present in the plenary at the time of the report’s presentation.(parliament watch)

 

 

Loading

Don't Miss

EXPOSED! Muyenga Tycoon’s Maid Cited In Land Wrangle

In recent days, Muyenga, Y2K Zone a push Kampala suburb,

Parliament Orders Closure Of Fuelex Petrol Stations For Adulterating Fuel

The Parliamentary Committee on Trade And Industry led by Mbarara

Big Story: Parliament Probes UETCL Bosses Over Corruption, Mismanagement & Controversial UGX 28Billion Compensation Deal

Members of Parliament on the Committee on Environment and Natural

‘Back Off Buganda Land’ Kabaka Mutebi Castigates People Pushing For Abolition Of Mailo Land Tenure System

The Kabaka of Buganda Kingdom Ronald Muwenda Mutebi II has

Big Story: IGG Probes Over Shs1bn Ubos Fraud

The Inspector General of Government (IGG) is investigating top officials

EXPLOSIVE: How Speaker Kadaga & Confidant Hon. Okupa Spent Over US $764,000 (Shs2.8 BN) In-less Than 2 Years In Travels Abroad

Since taking office as Deputy Speaker of Parliament way back

Ham Vs DTB Appeal: Bank Of Uganda Runs Out Of Case, Leaves DTB To Carry Its Own Cross

Bank of Uganda has officially quit the case involving city

Amnesty International Joins Push To Free Presidential Runner Robert Kyagulanyi

The Ugandan authorities must immediately lift the police and military

Exporters Call For Strong Action Against EAC States’ Trade Barriers

Manufacturers have called on the government to impose tough measures

Big Story: How KCCA Officials Messed Up Youth Fund Programs, Stole Billions of Gov’t Funds In Shoddy Deals

Kampala: If there is any government Authority that frustrating President

I Predict Museveni, NRM Victory In 2021 Elections

By Faruk Kirunda Kampala: As we dive into the high

Crisis: Lord Mayor Lukwago Defies Court Order, Appoints Balondemu As Chairman K’la District Land Board

Veteran lawyer Hajji Elias Lukwago, who is the Kampala city

Scandal: Stanbic Bank Bosses Allegedly Steal Borrowers’ Land Titles, Mortgage Them To Dfcu Bank

Several officials at Stanbic Bank are in deep trouble after

Scandal: KCCA Officials On Spot For Blowing Shs 8Bn Under The Guise Of Renovating Old Tax Park

Several officials at the Kampala Capital City Authority (KCCA), are

Covid-19 Crisis: Ugandan Students Expected To Sit For UNEB Exams In March 2021

All indications are that a dead year will not be

BoU To Appeal In Supreme Court Over Trashed Crane Bank Case

The Bank of Uganda (BOU) has said it will be

Shame As Top Police Boss Is Convicted Of Car Theft, Ordered To Pay Over Shs282M

Untold shame has engulfed the Uganda Police a senior officer

Just In! Energy Mafias Rock Parliament As Patriotic Young Turks Question AIGP Akullo’s Involvement In Min. Energy Corruption

Panic has rocked Parliament as renowned Parliamentarian and Lawyer Hon.

Energy Mafias Debunked Part III: How Werikhe, Turyagyenda Corruptly Swindled Shs15 Bn For 3 Electricity Distribution Projects In Acholi, Bunyoro & Kiruhura

FUNDING THE COUP THROUGH ENERGY AND MINERALS CORRUPTION By the

Just In: Top Energy Officials Fired On Presidential Orders Over Massive Theft Of Electricity Distribution Funds

By Our Reporter Kampala: Two senior officials of Rural Electrification

Salary Scam Hits KCCA AS 29bn Is Paid To Ghost Workers

After Eng Andrew Kitata took over as the acting Executive

Uganda’s Academic Hub Victoria University Kicks Off Registration For August Intake As Its Online Programme Registers Success

If you’re a student who have been home stranded due

Mao Demands Electoral Reforms After Kawempe North Turmoil

Justice Minister Norbert Mao has called for urgent electoral reforms