A damning report by the Auditor General has exposed issues of misconduct that threaten the growth of Uganda’s flagship airliner, Uganda Airlines. Only reopened in 2019, the Airlines is reported to be suffering heavy losses. But while experts have called for patience arguing that the airline will only break even after five years, Parliament is quarrying what appears as misconduct and mismanagement that is further draining the airline’s resources.
The Auditor General earlier this month submitted a report to Parliament indicating that the airline does not have an adequate staff structure with proper processes and procedures. This has resulted in top management allocating themselves colossal sums of money in salaries and allowances according to discovery by the Auditor General, despite it struggling to keep afloat. According to the Auditor General’s report, the CEO earns Shs87 million, the Chief Financial Officer Shs73 million, the Manager Finance Shs58 million, and the Director of Maintenance Shs80 million. Others are Manager ICT at Shs36 million, Human Resource Shs43 million, Manager Cargo Shs14 million, and Manager Quality Assurance Shs43 million.
The Auditor General’s report highlights that Uganda Airlines has been operating without a defined staff structure, something that creates room for glitches.
The report for the Financial Year 2020/2021 further uncovered that the national carrier made losses amounting to Shs498b since its commencement in August 2019 and Shs164 billion in losses in the 2020/21 Financial Year.
Appearing before Parliament’s committee on Commissions, Statutory Authority and State Enterprises – COSASE , the company’s Chief Executive Officer Jennifer Bamuturaki was to explain the justification of the high salaries notwithstanding the financial position of the institution, the salary disparities, and the issue aligning to the staff structure.
Bamuturaki was appointed earlier this year following a directive from President Yoweri Museveni, asking that a recruitment exercise be halted and allow her to serve for three years. She previously worked as the commercial officer of the Airline and as a former aide to the former acting CEO, Captain Steven Wegoye. She acted as CEO for 12 months before been appointed substantively.
While questions continue to linger as to why the company continues to pay high salaries amidst losses, Parliament’s investigation of the matter has also pointed at a possible power struggle at the airlines. Following the probe by Parliament, which has created a media frenzy, the COSASE summoned former CEO Cornwell Muleya, who pinned Bamuturaki for among other things stealing from the company.
Muleya while appearing before the Commissions, Statutory Authorities, and State Enterprises (COSASE) alleged that in her previous role as the Director for Commercial, Bamuturaki caused the airline losses through inflating bills and over-invoicing.
He claimed that his sacking from the airline was as a result of staff loyal to Bamuturaki wanting to circumvent the procurement process and recruitment process at the airline. Muleya, while CEO earned Shs 126 million per month, up from Shs74 million earned by his predecessor.
The Inspectorate of Government in June arrested Muleya who was the CEO of the national airline until, April 2021 when the Minister of Works and Transport, Gen Edward Katumba Wamala suspended him together with other senior managers of the national carrier. Upon his arrest, the Deputy Inspector General of Government, Dr. Patricia Achan Okiria said the Inspectorate were carrying out investigations into gross mismanagement of the national carrier during the period when Muleya was CEO.
