MBARARA CITY
Seven staff members of Mbarara Regional Referral Hospital (MRRH) have been arrested over the alleged mismanagement and diversion of approximately Shs4 billion in public funds following a six-week financial and operational audit conducted by the State House Health Monitoring Unit.
The arrests were announced by Dr Warren Namara, Head of the State House Health Monitoring Unit, during a health community dialogue (Baraza) held at Independence Grounds in Mbarara City. The meeting brought together local leaders, health workers and members of the public to discuss service delivery at the regional referral hospital.
The announcement comes days after public outrage over the death of a patient allegedly linked to negligence by health workers, an incident that prompted Health Minister Dr Chris Baryomunsi to make an unannounced night visit to the hospital. During the visit, the minister reportedly found the facility being run largely by medical interns, with no senior specialists on duty.
Some of the locals, medics and leaders that turned up for the community dialogue in Mbarara about health
Six-week investigation
Dr Namara said investigators examined five critical areas of hospital operations: medicine management, human resources, medical equipment, infrastructure and financial management.
"Our objective is not to look for faults alone but to improve healthcare delivery. We want to clean up the system and ensure that Mbarara Regional Referral Hospital delivers quality services as expected by the President and the people of Uganda," Namara said.
He said investigators established that the hospital receives medicines regularly from the National Medical Stores, but questioned whether all the drugs reach patients.
"We wanted to establish whether the medicines delivered are actually received and used by patients or diverted elsewhere," he said.
Alleged corruption and absenteeism
According to the findings, investigators uncovered widespread absenteeism, financial mismanagement and extortion of patients.
Namara said about 34 percent of the hospital's 480 registered staff were effectively absent from duty despite receiving salaries.
"The government enhanced salaries for health workers, but absenteeism remains a serious challenge. Consultants are earning up to Shs15 million per month, yet questions remain about whether this has translated into improved service delivery," he said.
He also alleged that extortion was most common in the Radiology Department, Emergency Unit, Outpatient Department, Laboratory, and Obstetrics and Gynaecology wards.
Patients were allegedly referred to private facilities for MRI and CT scan services after being charged illegally.
Seven staff arrested
Those arrested include:
According to Namara, Principal Hospital Administrator Sarah Mulongo allegedly failed to effectively supervise hospital operations for nearly a year, resulting in significant financial losses.
Shs4 billion unaccounted for
Investigators said MRRH received approximately Shs57 billion between the 2023/24 and 2025/26 financial years. However, about Shs4 billion remains unaccounted for.
The audit revealed:
Namara questioned why government funds were being paid without proper accountability.
"Why do you pay government money without receipts? Why are cash payments made instead of using traceable banking systems? These are clear indicators of possible theft of public funds," he said.
Gerrard Tukamuhebwa, Deputy RCC Mbarara City South embrace community dialogue on health
Fuel fraud uncovered
Investigators also uncovered alleged fuel fraud involving hospital vehicles.
They said fuel requests as high as 470 litres were regularly approved for vehicles with fuel tanks capable of carrying only about 80 litres.
Drivers interviewed during the investigation reportedly admitted receiving cash instead of the excess fuel that had been recorded.
Governance weaknesses
The investigation also identified several governance gaps, including:
Namara criticised the hospital board for failing to ensure the recruitment of a substantive executive director after the previous holder of the office fell ill.
He also questioned why Mbarara City still lacks a public mortuary despite serving a population of more than six million people across southwestern Uganda.
Understaffing remains a major challenge
Despite the findings, Namara acknowledged that MRRH faces severe understaffing.
He said the hospital currently operates with only 26 percent of its required workforce.
"At only 26 percent staffing, it is impossible to deliver the quality of healthcare expected. This is largely a government funding issue," he said.
He also called for the restoration of allowances for medical interns, arguing that they play a critical role in running public hospitals.
"Interns are doctors. They work extremely long hours and deserve to be supported. Without them, many hospitals would struggle to function," he said.
Dr Warren Namara, Incharge of State House Health Monitoring Unit warning medics at Mbarara Regional Referral Hospital over extortion and causing financial loss to government funds
Report to be submitted
Namara said the final report will be submitted to President Yoweri Museveni, the Ministry of Health, the Criminal Investigations Directorate (CID), and the Office of the Director of Public Prosecutions (ODPP) for further action.
Those unable to account for public funds, he said, will face prosecution.
Hospital responds
MRRH Acting Director Dr Deus Twesigye acknowledged the challenges facing the hospital, including congestion, shortages of medicines and corruption allegations.
"There are concerns about congestion, drug shortages and bribery targeting patients. These are issues that require urgent attention," Twesigye said.
Residents attending the Baraza also raised concerns about expensive medicines, understaffing, extortion and delays in accessing diagnostic services.
Deputy Resident City Commissioner Gerard Tukamuhebwa welcomed the findings, saying they would help improve accountability and service delivery at the hospital.
"We shall continue following up these recommendations to ensure Mbarara Regional Referral Hospital delivers better healthcare services," he said.
Established as a health centre in 1930, Mbarara Regional Referral Hospital was upgraded to a district hospital in 1953 and became a teaching hospital in 1989. Today, it serves an estimated catchment population of more than six million people across southwestern Uganda and neighbouring countries.