URA Budget Under Fire as MPs Question UGX 23 Billion Welfare Spending, New Rent Deals
Parliament – The Uganda Revenue Authority (URA) faced intense scrutiny from Members of Parliament on Thursday as legislators picked apart the Authority’s proposed expenditure for the 2026/27 financial year, questioning the rationale behind massive spending on entertainment, office rentals, and information technology.
The heated exchanges occurred during a meeting of Parliament’s Committee on Finance, where URA officials had appeared to present their Ministerial Policy Statement. Leading the charge was Kira Municipality MP Ibrahim Ssemujju, who described several items in the budget as a “pandemic” of wasteful expenditure.
Rent Controversy
The session opened with sharp criticism regarding URA’s decision to rent office space from city businessman Sudhir Ruparelia. Ssemujju expressed dismay that the tax body was moving into Pearl Tower, owned by the tycoon, despite the government having spent nearly UGX 180 billion to construct the URA Tower in Nakawa.
“I had thought when we spent nearly UGX 180 Billion on construction of that tower in Nakawa, that the issue of rent was resolved,” Ssemujju remarked.
He accused the Authority of rushing to occupy the new building before “the painting was dry,” questioning whether the URA had become a mere conduit to channel money to the businessman.
“But I saw you recently, as soon as Sudhir completed the building, you were the first to occupy it. You were occupying other facilities of Sudhir. Are you just a conduit URA you just pay Sudhir money?” Ssemujju queried.
The MP argued that the rent allocations would be better spent on constructing government-owned assets. “But in any case, if you look at the amount that you are quoting here for rent, if you gave me this money, I would build for you offices in the next five years; you don’t need to rent,” he said.
Entertainment and Welfare Spending
The most contentious portion of the debate centered on what MPs described as excessive allocations for staff perks and training. According to the procurement plan submitted to the committee, URA intends to spend UGX 23 Billion on welfare and entertainment, a figure that drew audible concern from the legislators.
“I don’t know who benefits from this entertainment,” Ssemujju said, noting that additional funds were earmarked for related activities. The budget also includes UGX 13.5 Billion allocated for workshops and seminars, alongside UGX 18 Billion budgeted for staff training.
ICT and Medical Expenditure
Ssemujju also turned his attention to the technology budget, questioning a combined expenditure of nearly UGX 69 Billion on information and communication technology. He noted discrepancies in the categorization of the funds, distinguishing between UGX 52 Billion for supply and UGX 17 Billion for services.
He further pressed the URA officials on medical expenditure, recalling that the previous year’s budget had been controversial due to a lack of clarity. “Last year, it was controversial because you hadn’t explained it properly; is this medical insurance or you separately pay suppliers?” he asked.
The MPs demanded detailed explanations for the expenditures, arguing that the government must ensure value for money, particularly regarding recurrent expenditures like rent and entertainment.
As of press time, URA officials were reportedly expected to provide further clarifications to the committee regarding the questioned budget items.
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