In a shocking revelation, lawmakers in Uganda have exposed that the government intends to allocate a massive UGX2 billion for seminars and workshops, out of a proposed UGX70.4 billion loan from the Arab Bank for Economic Development of Africa (BADEA), meant to rehabilitate and expand Bugiri General Hospital.
According to Isingiro South MP Alex Byarugaba, who made the shocking disclosure, the funds earmarked for the hospital project also include UGX200 million for the construction of a generator house. Byarugaba expressed his dismay, stating that the hefty sums seemed disproportionate to the purpose of the loan.
“The unit costs, can you imagine, Honourable Minister, yesterday we were looking at a loan for rehabilitation and construction of this hospital, Bugiri Hospital, and you know what, they were saying they want UGX2Bn for seminars and workshops.”
“Rehabilitation of a hospital, to launch that project, they wanted two billion; to build a guard house as you enter the hospital, a generator house. This man is looking for two hundred million Ugandans,” Byarugaba said during a meeting between the Ministry of Finance and Parliament’s National Economy Committee.
The disclosure comes amidst the Ministry of Finance tabling three loan proposals in Parliament, seeking approval to borrow over UGX1.418 trillion for various projects, including the construction and equipping of Mbale and Arua Oncology centers, the Busega-Mpigi Expressway, and boosting livestock farming in Uganda.
In its bid to finance the UGX72.376 trillion national budget for the 2025/26 financial year, the government plans to borrow UGX32.075 trillion (44.3% of the national budget) while relying on tax revenue collections by the Uganda Revenue Authority for UGX34.051 trillion (47% of the total budget requirements).
Lawmakers have been advised to scrutinize unit costs attached to loan requests, raising concerns about the allocation of funds and prioritization of projects. As the debate around the proposed loans intensifies, questions remain about the government’s spending priorities in the face of pressing national needs.
