Approval for the purchase of Boeing aircraft by Uganda Airlines (UR, Entebbe) is under scrutiny as the Uganda Police Force investigates alleged "abuse of office, embezzlement of funds, and false accounting" at the state-owned carrier, according to a leaked letter from the force's Criminal Investigation Directorate (CID).
The January 7 letter, which has circulated on social media, the authenticity of which ch-aviation has not been able to verify, is signed by CID officer Fred Lumala and is addressed to Uganda Airlines CEO Jenifer Bamuturaki. It says the CID is working with the State House Anti-Corruption Unit to investigate unnamed airline officials over alleged financial irregularities.
The directorate requested multiple certified documents to support its investigation. Among them are the minutes of the airline’s Contracts Committee that approved the purchase of Boeing aircraft. Uganda’s parliament has approved UGX422.26 billion shillings (USD119 million) in supplementary funding for Uganda Airlines to purchase two B787s, one Boeing freighter, and two mid-range Airbus aircraft, and cover related leasing costs.
The investigators also asked for the airline’s approved national carrier business and implementation plan and budget for the 2024/2025 financial year.
In addition, the CID is seeking procurement files linked to several service providers, including Sharjah-based MixJet Flight Support Services, aviation fuel provider Associated Energy Group (AEG FUELS), Uganda's Nyanzi Tours and Travel, and ALS - Aircraft Leasing Services (Nairobi Wilson). The authorities also requested procurement records related to the construction of Uganda Airlines offices in Entebbe.
Financial oversight and revenue handling are another focus of the investigation. The letter calls for the internal audit report for the 2024/2025 financial year, alongside records of revenue accounting and ticketing, banking and cash receipts, and expenditure and supplier transactions for fuel during the same period.
Investigators further requested a list of companies that supported the launch of Uganda Airlines’ route to London Gatwick.
Uganda Airlines has declined to comment. ch-aviation has also reached out to Boeing and the service providers mentioned.
This is not the first time that Uganda Airlines is under the spotlight for alleged irregularities. In 2023, Uganda's public procurement watchdog, the Public Procurement and Disposal of Public Assets Tribunal, cancelled an aviation fuel and inflight support procurement process citing "discriminatory treatment of bidders and unfair favouring of the best-evaluated bidders" in contravention of the Public Procurement and Disposal of Public Assets Act. This had followed a complaint filed by MixJet Flight Support Services, which had then been the disqualified bidder.
This followed a report to the country's parliament in September 2022 by the Public Accounts Committee Commissions, Statutory Authorities and State Enterprises (PAC-COSASE) following its evaluation of an Auditor General report on the airline in FY 2020/2021. The PAC-COSASE report found the national carrier had the potential to strive, but only if "financial impropriety, disregard of the law, and staff issues were dealt with robustly".
In 2021-2022, former CEO Cornwell Muleya was suspended and dismissed amid ministry-led investigations into alleged mismanagement and corruption, later ruled unlawful by courts awarding him compensation.
