COSASE Summons Energy Minister over 500bn UMEME Debt.
By Fred K
The Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) has summoned Minister for Energy and Mineral Development, Ruth Nankabirwa, to appear before it on Tuesday, June 10. The minister is expected to explain the fate of Sh500 billion owed by UMEME to the Uganda Electricity Transmission Company Limited (UETCL).
This development follows UETCL’s appearance before COSASE, led by CEO Joshua Karamagi, to respond to concerns raised in the Auditor General’s report for the financial year ending June 2024.
During the meeting, MPs expressed concern over UMEME’s failure to pay UGX 500 billion, with UGX 84 billion exceeding the 90-day payment period They questioned why the government paid UMEME USD 118 million without settling the outstanding debt.
COSASE Chairperson Medard Lubega Ssegona, who is also the Busiro East MP, pressed UETCL officials on their failure to enforce payment despite the power sales agreement expiring.
UETCL’s CEO explained that the company is following the agreement to ensure debt settlement.
However, MPs remained unconvinced, questioning UETCL’s contingency plan in case UMEME defaults.
UETCL’s Commercial Manager, Jenkins Miiro, reassured MPs that UMEME is aware of the debt and steps are being taken to ensure payment.
Despite assurances, MPs remained skeptical about UETCL’s efforts to recover the funds.
Following the discussions, the committee resolved to summon Minister Nankabirwa, UMEME, and UETCL to resolve the matter.
