KAMPALA, Uganda – The Government of Uganda is facing scrutiny over repeated procurement decisions that have proven financially costly, raising concerns over oversight and accountability.
MV Kalangala Ferry Rental Costs
For the past five years, the government has been renting the MV Kalangala ferry, which transports passengers from Nakiwogo landing site in Entebbe to Kalangala, from a private company. The Ministry of Transport pays 17 billion shillings per year in rent. Over five years, this amounts to 85 billion shillings—far exceeding the 18 billion shilling purchase price of a new ferry.
Despite receiving these substantial payments, the private company that owns the ferry has reportedly failed to pay 820 million shillings in annual taxes, an obligation it has neglected since the ferry began operations. Analysts say this arrangement has left the government paying exorbitant rental fees for a service it could have secured through outright ownership.
Chogm Vehicle Procurement Missteps
A similar pattern of costly decisions occurred during the Chogm ceremony. Mr. Wavamuno, head of Spear Motors Uganda, offered the government a deal to purchase Benz vehicles at a cheaper price, allowing the state to own the cars outright. However, officials within the Vice President’s Office allegedly ignored this offer and instead hired Audi cars from South Africa at roughly the same cost. After the event, the hired cars were returned, meaning the government spent the same amount but acquired no assets.
Calls for Accountability
The repeated instances of expensive rentals over outright purchases have prompted public concern about procurement oversight. Observers note that in both the MV Kalangala ferry and Chogm vehicle deals, the government could have saved significant public funds by purchasing assets instead of hiring them. Questions are being raised about who is responsible for these procurement decisions and why such inefficiencies continue to occur.
