Why Parliament is disagreed with CAA on $200 million loan accountabilities

On Tuesday morning, the committee on National Economy at Parliament interacted with officials from the Uganda Civil Aviation Authority.

The officials, led by the Director General of the Aviation body Fred Bamwesigye, Director Airports and Aviation Security, Eng. Ayub Sooma and Eng. Ngobi Waiswa reached Parliament at few minutes to 11.00 am to convince the committee on further borrowing from the African Development Bank to further work on the airport expansion and upgrade. 

However, the officials were tasked to explain how a 2016 USD 200 million loan from the Export – Import Bank of China (Exim) was utilized. 

The loan was taken by the Aviation body to among other things, upgrade the runways 12/30 and 17/35 at the airport, the parking Aprons, improve and upgrade the terminal buildings and the associated taxiways of the runways.

A Cargo Center expansion and that of the fuel firm were also embarked on, using the same loan that was considered botched due to irregular terms.

The meeting between the House Committee on National Economy and the Authority ended prematurely, when the aviation regulator failed to provide proper accountability for a loan worth US $199, 990,416.

The loan aimed at assisting CAA to provide and upgrade infrastructure and facilities to modern systems, provide relaxing utilities to passengers and attract revenue for Entebbe International Airport. 

The Director General, Fred Bamwesigye however, could not explain to MPs the amount spent on different infrastructure and the specific works accomplished with the aid of the loan.

They for instance reported to have accomplished 96.4 percent of a new cargo building, but could not explain what exactly was accomplished and the amount spent.

“What you are telling us is not what we want. We want to know how much was spent on the construction; if the building is complete are you using it?” asked Kimanya-Kabonera MP, Abed Bwanika, during the meeting on Tuesday 14 February 2023.

“When the loan was passed it had different components, we want to know what you achieved on each component and the expenditure,” said Wilson Kajwengye (NRM, Nyabushozi). 

The Committee Vice Chairperson, Robert Migadde, dismayed by CAA’s failure to give an appropriate account, weighed in the competence of the aviation authority.

“You were given this loan because everyone thought you were fit to handle it, we MPs cannot be the ones to tell you the nitty gritty of the report, that put this here and there,” Migadde stated.

Miggade reiterated that the committee in its invitation to CAA clearly stated that the authority was required to provide both financial and physical performance of the loan including pictorial evidence.

He directed that the authority alongside other agencies under the Ministry of Works and Transport be scheduled for a meeting on a later day.  Other entities include Uganda Railway Corporation and Uganda National Roads Authority which were also present and expected to report on their respective loans.