Uganda Railways Corporation faces mismanagement probe

The Ugandan Parliament has adopted a report detailing widespread financial mismanagement within the Uganda Railways Corporation (URC). The findings, presented by Mwine Mpaka, Chairperson of the Committee on Physical Infrastructure, highlight the misuse of funds intended for railway rehabilitation and local capacity building.

A Shs 125 billion Spanish-funded railway project was central to the investigation. The committee found that nearly 90 per cent of the Shs 20.8 billion capacity-building component, totaling €4.33 million, was distributed to five foreign experts. Some of these consultants reportedly earned up to €32,500 (Shs 140 million) per month. The report also alleged that certain URC employees were falsely listed as foreign experts to claim these higher payments while simultaneously receiving their standard local salaries of approximately Shs 6.5 million.

Further irregularities identified include disputed procurement processes, where the Spanish firm Consultrans S.A.U. allegedly awarded a works contract to its sister company, Imathia Construction, through direct procurement. Other noted issues involve the sale of project-funded vehicles to staff, the use of office furniture funds to equip Spanish consultants, and claims for overseas travel. The report also cited missing railway wagons and the encroachment of railway land.