In a sharp rebuke, State Minister for Privatisation and Investment, Ms. Evelyn Anite, has decried a Sh545 million honoraria payment to Uganda Investment Authority (UIA) executives, sparking a heated debate over fund misuse and project delays.
The Uganda Investment Authority (UIA) is embroiled in controversy following the revelation of a Sh545 million payment, labeled as "honoraria," to its top management. This payout, drawn from funds allocated for the Kampala Industrial Park Development (KIPD) project and financed through a substantial loan, has led to accusations of misappropriation and a stern response from State Minister for Privatisation and Investment, Minister Evelyn Anite.
In a letter dated June 12 to the UIA board chairperson, Mr. Morrison Rwakakamba, Ms. Anite described the honoraria payments as
"despicable, uncouth, barbaric, and uncultured."
She accused the UIA’s senior management of misusing project funds, highlighting that the project has been stagnant for five years, missing its initial completion deadline of January 5, 2024.
Minister Anite demanded that the director-general, Mr. Robert Mukiza, and his team return the entire amount within 24 hours, warning of severe repercussions if they failed to comply.
"The misuse of these funds is not only a breach of trust but also an outright act of impunity," Ms. Anite wrote. "Such actions cannot and will not be tolerated under my watch."
Defending the payment, Mr. Mukiza insisted that it was lawful and in line with contractual agreements that sanction such allowances. He suggested that the minister might not have fully understood the intricacies of the contracts.
"These payments were within the bounds of our contractual obligations and were necessary for the additional responsibilities undertaken by our team," Mr. Mukiza responded.
The UIA is responsible for driving Uganda's investment policies and initiatives. According to Ms. Anite’s letter, Mr. Mukiza and eight other officials allocated Sh280 million on July 23, 2023, for their roles in overseeing the KIPD infrastructure development from August 2022.
Among the allocations, Mr. Mukiza received Sh82 million, his deputy, Dr. Paul Kyalimpa, Sh58 million, and Ms. Patience Kabije, the contracts and claims manager, Sh43 million.
The controversy deepened when further payments in euros were disclosed, showing substantial sums assigned to the project management team, including Mr. Alex Nuwagira, the KIPD project manager, and Mr. Felix Tumukunde Beinamaryo, the project engineer.
These revelations have intensified public scrutiny and outcry over alleged mismanagement, corruption, and inflated project costs within the KIPD initiative.Despite the ongoing dispute, UIA officials maintain that the project, funded by a €249 million loan from the UK Export Finance and Standard Chartered Bank of London, is critical for Uganda’s industrialization efforts.
The project encompasses road construction, bridges, an SME hub, and other infrastructure aimed at attracting industrial investors. UIA asserts that, despite delays, the initiative is on track for completion by September 2025.Internal documents reveal that the honoraria payments were intended to cover the responsibilities reassigned after the termination of the Owner’s Engineer (OE) in August 2022.
UIA argues that these payments, subject to statutory deductions like PAYE and NSSF, are justified under their human resources manual for exceptional work requiring specialized skills and significant time commitments.As the debate rages on, Ms. Anite has called for a renewed focus on completing the KIPD project, emphasizing that the priority should be on public service and not personal enrichment.
"We must realign our efforts towards fulfilling our promises to the Ugandan people," she asserted, "not engaging in actions that undermine public trust."
