In mid-June 2024, Evelyn Anite, the State Minister of Finance, requested an audience with President Museveni to discuss concerning developments related to the Namanve Industrial Park Infrastructure Development project.
Anite informed the President that Lagan Dott Namanve, the project contractor, had brought to her attention irregular payments totaling Shs 545 million. Specifically, Shs 280 million had been disbursed to certain Uganda Investment Authority (UIA) staff, with an additional Shs 265 million allocated to the project management team. These funds were drawn from the Namanve Industrial Park Project Loan.
Anite further revealed that on April 30, 2024, UIA had requested an additional payment of Shs 316,696,422 in honoraria for selected UIA staff and the project management team, also sourced from the project loan. This disclosure surprised President Museveni, prompting him to convene a meeting at State House Entebbe on June 19, 2024.
Earlier, Anite had sought clarification from UIA regarding these honoraria payments. UIA responded by explaining that after the termination of the Owner’s Engineer in August 2022, the Project Management Team and some UIA staff assumed additional responsibilities to oversee infrastructure development at Namanve. The decision to compensate them was reportedly approved by the UIA Board of Directors to ensure continued project oversight within legal boundaries.
Anite expressed strong disapproval of UIA’s decision to award honoraria while construction was ongoing and demanded that the funds be returned to the project’s coffers. She had previously discussed the matter with Finance Minister Matia Kasaija, who criticized UIA’s actions as indicative of deep-rooted corruption within the organization, necessitating urgent reforms. Anite escalated the issue to President Museveni, who subsequently directed a meeting involving Anite, UIA’s top officials including Chairman Morrison Rwakakamba and Director General Robert Mukiza, and a senior Finance Ministry representative responsible for debt.
During this meeting, Mukiza assured President Museveni in writing on June 14, 2024, that UIA staff would refund the money. He requested account details from Lagan Dott Namanve Ltd for the deposit. However, by the time of the June 19 meeting, UIA had yet to initiate the refund as instructed by Anite.
The gathering at State House Entebbe was tense, with Anite expecting UIA’s leadership to publicly acknowledge their missteps and commit to reimbursing the misused funds. However, Mukiza and his team did not offer an apology or reassurance to that effect.
In a subsequent letter dated July 3, 2024, Anite reminded Mukiza of his commitment to refund the funds and expressed disappointment at his attempts to deflect blame onto her, suggesting personal motives behind her actions as a minister.
The conflict between Anite and Mukiza, once seen as collaborators in Uganda’s industrialization drive, has stirred unease in the business community and prompted calls for reconciliation. Despite their differences, Anite reiterated her commitment to working with UIA to ensure transparency and efficiency in infrastructure development projects.
The episode has also highlighted broader concerns about governance and accountability in Uganda’s public sector, prompting President Museveni to request a report from the Finance Ministry on the appropriateness of such honoraria payments going forward.
Anite concluded her letter to Mukiza with a plea for reflection and reconciliation, emphasizing the need for accountability and transparency in managing taxpayer funds allocated to developmental projects.
