This archive report was first published on 4 January 2020.
On January 4, 2020, the Auditor-General released a report highlighting the struggles of Uganda's public enterprises. The report found that 15 out of 29 state-owned entities analysed made losses in 2018, with some incurring significant financial burdens.
Notably, the Bank of Uganda, National Social Security Fund, and National Water and Sewerage Corporation posted profits of $114,531,000, $64,829,100, and $13,776,200 respectively. In contrast, the Uganda Railways Corporation, Uganda Electricity Transmission Company Ltd, and Civil Aviation Authority suffered losses of $25,121,300, $20,259,100, and $5,672,550 respectively.
According to the report, there is a need for the government to improve supervision and monitoring of these entities by introducing performance-based contracts with clear targets. The report also suggests exploring public-private partnerships as a potential solution.
Furthermore, the report revealed that several state enterprises are struggling to meet their long-term debt. Four companies, including the Uganda Electricity Distribution Company Ltd, Uganda Electricity Generation Company Ltd, Uganda Electricity Transmission Company Ltd, and National Water and Sewerage Corporation, had debt ratios of more than 50 per cent.
As independently managed entities, these state enterprises are expected to operate efficiently, make profits, and pay dividends to the government. However, the report found that only New Vision Printing and Publishing Company proposed a dividend payout amounting to $540,243.
