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UEGCL saga: Muhakanizi audit blocked

Stephen Isabalija

However, The Independent has learnt, officials at the Finance Ministry were never given this access. Instead, the Auditor General (AG) wrote saying that he would deploy an internal auditor under his office to look into the matter.

According to sources familiar with such transactions, this course of action was unusual because the AG rarely deploys an internal auditor from his office to carry out such audits. Instead the AG usually deploys auditors that carry out external audits to carry out special audits. Secondly, the sources say, the AG had also already submitted the UEGCL audited accounts of 2014 and 2015 to parliament and auditing UEGCL again raised questions about what else his office hoped to find in the audit.

The Independent has learnt that Auditor General, John Muwanga, dispatched a team to UEGCL earlier this year after he was alerted about this.

Simon Kasyate, the UEGCL Corporate Affairs Manager, confirmed that a team from the office of the Auditor General had indeed visited.

Kasyate said in an email to The Independent: “The Auditor General was tasked to audit UEGCL in the wake of these allegations. UEGCL duly cooperated and the audit was conducted and concluded through December last year to January 2017. The audit findings would best answer to your questions, unfortunately, UEGCL is neither the custodian of the audit report nor permitted to divulge its contents”.

On their part, the Finance Ministry say they have never received the outcome of any other audits into UEGCL – be it by an internal auditor or a special audit from the AG.

“I have not seen it,” Muhakanizi told The Independent, “I am still waiting.”

Fake accounts

These details emerged after The Independent broke the story last month lifting the lid off what is being seen as a silent fight between Muhakanizi and the new Energy Ministry Permanent Secretary Stephen Isabalija with UEGCL caught in the crossfire.

In reaction to the story, Muhakanizi denied a fight between him and Isabalija sparked his bid to re-audit UEGCL.

“I am very angry. How can you claim that I am fighting anyone?” Muhakanizi told this reporter in his office at the Finance Ministry, “Isn’t it my job to call an audit when I am presented with claims like what is contained in the whistleblower’s report?”

The report Muhakanizi was referring to is a 15-page dossier complete with what is said to be documentary evidence fingering top officials at the power generator for abuse of office, nepotism and favoritism, abuse of company funds and causing financial loss among others.

The stakes in this standoff are high because UEGCL is in charge of implementing two major hydro-power projects the 600 MW Karuma dam and the I83 MW Isimba dam, which are both estimated to cost over $2 billion. The projects have also already swallowed the US$600 million.

The findings of the audit, which was completed in January, have not been made public. But the accusations made against the UEGCL managers and Isabalija in the whistleblower report are raising concern because of the promise they raised to manage the Energy sector better.

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