Members of Parliament on the Budget Committee have sharply criticized the Ministry of Works and Transport for its poor handling of the transition process involving former employees of the Uganda National Roads Authority (UNRA) and Uganda Road Fund (URF).
The MPs expressed outrage over delays in paying terminal benefits to affected workers, coupled with reports of some employees being offered short-term contracts lasting only one to two months. Their concerns deepened when discrepancies in financial figures for terminal benefits emerged.
Dickson Kateshumbwa (Sheema Municipality) raised questions about the inconsistencies, pointing out that the Ministry of Public Service had approved Shs196.744Bn for benefits, yet the Ministry of Works and Transport reported Shs169Bn. “These are Ugandans who have lost their jobs and are not being paid. The sector is not serious,” he said.
Tony Awany, Vice Chairperson of the Physical Infrastructure Committee, called for immediate action, recommending that the Ministry of Finance include Shs169Bn in the 2025/26 ministerial policy statement to settle the issue.
“We also recommend that the Ministry of Works expedites the payment of terminal benefits,” Awany added.
The Budget Committee’s criticism highlights increasing concerns about the welfare of workers in key government projects and emphasizes the need for transparency in public administration.
The Budget Committee also warned that delays in allocating Shs686Bn in the 2025/26 national budget could derail the construction of Uganda’s Standard Gauge Railway (SGR).
“The limited funding allocated to this critical infrastructure project raises doubts about the government’s commitment to its timely completion,” said Awany.
The SGR is a flagship initiative aimed at transforming Uganda’s transport and logistics sector. However, persistent resource constraints have slowed its progress, sparking concerns about the project’s viability.
The MPs further debated the future of Uganda Airlines, which recorded losses amounting to Shs237Bn in 2024, a 25.6% improvement from the Shs324Bn loss in 2023. Despite the losses, the Budget Committee recommended allocating an additional Shs34Bn to the airline for its new 10-year strategy focused on financial sustainability, operational efficiency, and stakeholder engagement.
Awany defended the recommendation, stating that Uganda Airlines has enhanced its planning and budgeting processes, assuring the Committee that the airline intends to optimize existing routes to improve revenue streams in the next financial year.
However, Kateshumbwa urged the Physical Infrastructure Committee to meet with the Board of Uganda Airlines to assess the economic value of continued taxpayer funding for the airline.
“The government needs to consider the broader economic value of having a national airline. If we continue to focus solely on financial losses, the public will question whether Uganda needs an airline,” he noted.
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