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The Ministry of Defence, while appearing before Parliament's Public Accounts Committee, attributed the failure to several challenges, including delayed planting, unexpectedly high manual labor costs
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By Our Reporter
PARLIAMENT - Members of Parliament were left in shock after learning that a food security project managed by the Uganda People’s Defence Forces (UPDF) resulted in a massive financial loss for taxpayers. The UPDF was allocated UGX 29.8 billion in August 2022 to grow food aimed at addressing food insecurity exacerbated by the COVID-19 pandemic and the Russia-Ukraine war. However, the harvest raised only UGX 9.1 billion, far short of the UGX 37.9 billion the government had anticipated, leading to a loss of UGX 28.9 billion.
The Ministry of Defence, while appearing before Parliament's Public Accounts Committee, attributed the failure to several challenges, including delayed planting, unexpectedly high manual labor costs, and erratic weather patterns such as drought and flooding, which severely affected crop yields.
“The money repurposed by the entity was over and above what was recommended by the Cabinet resolution by UGX 8.2 billion, which was later diverted as initial capital for members' SACCO. Further, the committee agrees with the observation of the Auditor General that the entity had expected to raise UGX 37.9 billion from the sale of harvests. However, only UGX 9.1 billion was realized. This underperformance resulted in a loss of UGX 28.9 billion,” said John Muwanga, Auditor General.
The Ministry of Defence explained that the delays were due to a change in the project’s design
UPDF's growing financial woes
The failed food project was not the only financial irregularity flagged by Parliament. The Auditor General also reported a sharp increase in the UPDF's domestic arrears, which rose from UGX 314 billion in June 2022 to UGX 515 billion by June 2023—a 64% increase. The arrears include UGX 50.3 billion for pension and gratuity, UGX 375.2 billion for goods and services, and UGX 90.1 billion in deposits, totaling UGX 515.7 billion.
Delays in UPDF national referral hospital construction
MPs also voiced concerns over the four-year delay in the construction of the UPDF National Referral Hospital in Mbuya. The project, which commenced in February 2018, was initially set for completion in July 2020 but was extended to June 2023. However, as of October 2023, the contractor had only completed 70% of the work, far below the expected 90%, and construction had stalled.
MP Muwanga Kivumbi
The Ministry of Defence explained that the delays were due to a change in the project’s design. Initially planned as a 250-bed hospital, the scope was expanded to include a 75-bed capacity block for Cancer and Heart treatment units, necessitating revisions to the Mechanical, Electrical, and Plumbing (MEP) works. Despite the contract’s revised sum of UGX 106.3 billion, of which UGX 69.1 billion had already been paid by June 2023, significant work remains unfinished.
The contractor, China National Aero Technology International Engineering Corporation, was notably absent from the site at the time of the audit, further raising concerns about the project’s completion.
MPs called for urgent accountability and stronger oversight over the UPDF’s financial management, as the issues raised have profound implications for both national security and the country’s economic stability.
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