Government-owned enterprises have responded with mixed reactions to the December 2023 Auditor General's report, defending their financial performance while expressing concerns about the accuracy of government reporting.
The report highlights the financial status of key entities, including Uganda Electricity Distribution Company Limited (UEGCL), which had a budget of Shs216.1 billion in 2022/23 and a debt ratio of 88%, amounting to Shs190.2 billion. UEGCL officials attributed this to the energy billing approach, which has hindered the company’s ability to efficiently service its loan due to lower revenues.
Uganda Electricity Transmission Company Limited (UETCL) operated with a budget of Shs134.7 billion in the same financial year, with its debt standing at Shs88.9 billion. The company’s debt primarily arose from the financial liability on the buyout amount of UMEME, which currently manages Uganda’s electricity distribution.
National Water and Sewerage Corporation (NW&SC) saw its debt ratio rise from 65% to 67%, a change the company attributes to the implementation of various water projects across the country. According to the report, NW&SC’s asset base is projected to grow from Shs3.5 trillion to Shs4.5 trillion through government support by reinvesting surplus funds into infrastructure expansion.
Samuel Apedel, Director of Public Relations at NW&SC, defended the company’s performance, stating that the focus is on expanding services to unserved Ugandans. By 2027, the corporation plans to increase water connections from 950,000 to 1,135,000, serving an additional 3.6 million people.
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