INSIDE WORKS MINISTRY ROT! Sh500Bn Contractor Arrears, Sh533Bn PAPs Debt, Abandoned Roads & Sh40.6Bn Questionable Bills Expose Management Failures
By Our Reporter
The Ministry of Works and Transport is facing a damning audit spotlight after the Auditor General uncovered a mountain of unpaid obligations, delayed and abandoned road projects, compensation backlogs, weak contract controls, questionable procurement practices and serious failures in managing some of the country’s biggest transport infrastructure projects.
The findings contained in the Auditor General’s report for the financial year ended December 2025 paint a troubling picture of a Ministry struggling to properly manage billions of shillings in public resources and deliver projects within agreed timelines.
At the centre of the concerns is the Ministry’s top bosses in management and Accounting Officer, who the Auditor General repeatedly directed to strengthen coordination, improve planning, ensure adequate funding, tighten contract management and prioritise settlement of outstanding obligations.
The audit found that the Ministry had payables amounting to Sh649.16 billion. Of this amount, Sh24.15 billion, representing four per cent, had remained outstanding for more than three years, while another Sh43.31 billion had been outstanding for more than one year.
The Auditor General warned that the unpaid obligations expose Government to litigation and penalty risks.
But the problem became even more complicated after the Ministry settled Sh793.93 billion in domestic arrears despite having budgeted only Sh10.83 billion for such obligations.
The huge settlement mainly comprised arrears transferred from the former Uganda National Roads Authority (UNRA), Uganda Road Fund (URF) and Standard Gauge Railway (SGR) Project Affected Persons (PAPs) obligations.
The Auditor General said the situation undermined budget credibility and fiscal discipline.
SH500BN CONTRACTOR DEBT
Contractors working on roads were among those bearing the brunt of the Ministry’s financial management problems.
As at June 30, 2025, unpaid completed works on road projects stood at a staggering Sh500.347 billion.
Included in this amount was Sh73.991 billion in interest arising from delayed settlement of outstanding certificates.
The Auditor General attributed the arrears to inadequate budget provisions and failure to release funds to settle certified works.
The consequences, according to the audit, are severe.
Failure to settle the debts exposes Government to avoidable penalties and interest, while contractors may suspend road works, leading to deterioration of already completed works.
The Auditor General advised the Ministry’s Accounting Officer to engage the Permanent Secretary/Secretary to the Treasury and prioritise settlement of the obligations.
The Ministry is also sitting on another Sh40.65 billion in delayed payment of Interim Payment Certificates to contractors.
The delay, the Auditor General warned, exposes Government to potential interest claims and affects contractors’ ability to deliver works on time.
28 ROADS DELAYED, 13 ABANDONED
The audit then turns the spotlight on the state of road projects across the country.
The Auditor General reviewed 67 road projects with a combined contract value of Sh10.625 trillion, US$400,043,710 and JPY5,519,324,131.
The findings were startling.
Twenty-eight projects worth Sh3.554 trillion experienced significant delays ranging from six months to more than three years.
Even more worrying, 13 road projects had been abandoned or suspended by contractors at the time of the audit.
Among the affected projects were Mityana–Mubende–Kyenjojo Road, Masindi–Biiso–Kabaale–Kiziranfumbi Road, Hohwa–Nyairongo–Kyarushesha–Butole Road, Busega–Mpigi Expressway, Najjanankumbi–Busabala Road, Munyonyo Spur Interchange and Service Roads, Ntungamo–Kabale–Katuna Road and Olwiyo–Pakwach Road.
The Auditor General attributed the delays mainly to inadequate contractor capacity, delayed payments that affected contractors’ cash flows, delays in granting rights of way and delayed compensation of Project Affected Persons.
But the delays have also come at a huge cost to taxpayers.
Government had paid at least US$17.695 million in commitment charges because delays in works also affected the uptake of loans.
The Auditor General warned that prolonged delays result in traffic inconvenience, loss of project time and increased project costs.
The Ministry’s Accounting Officer was advised to strengthen coordination with responsible stakeholders, particularly Parliament and the Ministry of Finance, Planning and Economic Development, to ensure adequate funding for road projects.
SH533BN PAP COMPENSATION MESS
The Ministry’s handling of Project Affected Persons also came under severe scrutiny.
The Auditor General reviewed compensation for four major Government projects — Bukasa Port, the SGR project, Tororo–Gulu Metre Gauge Railway and Gulu Logistics Hub.
A total of 19,082 PAPs had been assessed at Sh848.46 billion.
By June 30, 2025, only 11,315 PAPs, representing 59 per cent, had been paid Sh315.227 billion.
That left 7,767 PAPs, representing 41 per cent, still unpaid, with compensation amounting to Sh533.23 billion.
The backlog is particularly significant because delays in compensation prevent Government from acquiring the required right of way and can stall major infrastructure projects.
The Auditor General also found that 37,595 PAPs had been assessed at Sh1.163 trillion for seven donor-funded projects.
Although 30,998 PAPs, representing 82 per cent, had been paid Sh842.446 billion, 6,597 PAPs, representing 18 per cent, remained uncompensated, with claims worth Sh320.139 billion.
The audit attributed delayed compensation mainly to inadequate budgets.
SGR LAND STILL UNTITLED
The land problems do not end with unpaid compensation.
Of the 1,908.9 acres acquired for the SGR project, 506.9 acres remained without titles.
The Auditor General also found that the former UNRA had secured 8,263 land titles for projects.
However, 4,055 of those titles, representing 49 per cent, were yet to be subdivided to acquire the relevant land titles and return them to the Project Affected Persons.
The delays in titling, according to the audit, were mainly caused by lengthy and bureaucratic land expropriation and titling processes involving multiple Government institutions.
The consequences include exposure to encroachment and land disputes, reoccupation by already compensated PAPs, escalating compensation costs, project delays and possible financial loss to Government.
The Accounting Officer was advised to engage the Ministry of Finance for timely release of compensation funds and strengthen coordination with other Government agencies to fast-track land titling, evacuate reoccupying PAPs and promptly return remaining titles to their rightful owners.
SH15BN CONTRACTS WITHOUT CONFIRMED MONEY
The Auditor General also questioned the Ministry’s procurement planning and financial discipline.
Twelve procurements worth Sh7.31 billion were initiated and contracts awarded without confirmed funding.
The Ministry also failed to prepare multi-year procurement plans for 17 procurements worth Sh9.57 billion despite the contracts spanning more than one financial year.
Ten procurements worth Sh1.38 billion were not implemented as planned, delaying the delivery of goods, works and services contained in the approved procurement plan.
Contract management was also found wanting.
For three contracts worth Sh119.94 billion, there was no evidence of formal appointment of contract managers, contract management plans, monitoring reports or complete contract management files.
Another 13 contracts worth Sh9.16 billion experienced significant implementation delays, yet there were no approved extensions or enforcement of liquidated damages.
The Auditor General also found that 11 procurements worth Sh4.82 billion were implemented outside the electronic Government Procurement system, undermining efforts to promote transparency, accountability and efficiency in public procurement.
SH109.85BN SGS PAYOUT, ASSETS STILL NOT REGISTERED
The Ministry’s handling of the terminated Motor Vehicle Inspection Services concession has also raised questions.
By June 30, 2025, the Ministry had paid Sh109.85 billion to Société Générale de Surveillance (SGS) following termination of the concession.
However, by November 2025, the assets acquired following the termination had still not been registered in the Ministry’s ownership.
The audit finding raises concerns over the Ministry’s asset management and its ability to properly account for assets acquired using public funds.
The Ministry’s broader asset records were also found wanting.
Thirty-nine Government vehicles used for road supervision still carried private number plates and were not recorded in the fixed assets register.
Buildings valued at Sh14.78 billion had also been constructed on land that was not legally owned by the Ministry, exposing Government to possible loss and ownership disputes.
The Auditor General further found that the Ministry’s assets register was incomplete and outdated, with generic descriptions, missing costs and no consolidated register covering all assets under the vote.
SH45BN EQUIPMENT NEED, ONLY SH7.1BN PROVIDED
The Ministry’s ability to maintain its equipment was also affected by inadequate funding.
Between financial years 2019/20 and 2024/25, only Sh7.10 billion was provided for equipment maintenance against a requirement of Sh45 billion.
The huge funding gap raises concerns about the Ministry’s ability to keep critical equipment operational and preserve Government’s infrastructure assets.
KAMPALA PORT PROJECT STUCK AT 44.91%
The long-awaited New Kampala Port at Bukasa is another major project caught in the Auditor General’s net.
A EUR50 million loan for the project was signed in 2016.
However, by November 2025, EUR12.83 million remained unutilised.
Start-up works had progressed to only 44.91 per cent by November 2025 despite the expiry of the original loan period.
The Auditor General attributed the delays to delayed procurement, land access challenges and unresolved Project Affected Persons issues.
The project’s slow progress means that millions of euros remain unutilised while the infrastructure project continues to struggle to move forward.
STRATEGIC PLAN UNDERFUNDED BY 44%
At the planning level, the Ministry’s 2020/21–2024/25 Strategic Plan was underfunded by 44 per cent.
The Auditor General said the funding gap limited implementation of planned interventions and achievement of strategic objectives.
The Ministry had also failed to finalise a Strategic Plan aligned to the Fourth National Development Plan by the time NDP IV commenced on July 1, 2025.
This resulted in delayed alignment of the Ministry’s activities with national priorities.
The National Planning Authority assessed the Ministry’s FY2024/25 budget compliance with NDP III at only 68.1 per cent, reflecting weaknesses in resource allocation, results-level indicators and project alignment.
Parliament had appropriated Sh4.28 trillion to the Ministry, of which Sh4.27 trillion, representing 99 per cent, was warranted.
However, there was still a shortfall of Sh8.80 billion affecting implementation of planned activities.
Several key activities were consequently only partially implemented or not implemented, including compensation of PAPs on the Tororo–Gulu railway, rehabilitation of the Tororo–Gulu line, procurement of Bailey bridges, development of the Bridge Management System and construction of tarmac roads in town councils.
NTR COLLECTIONS MISS BY SH106.75BN
The Ministry also failed to hit its non-tax revenue target.
It had projected to collect Sh343.13 billion but collected only Sh236.37 billion, representing 69 per cent performance.
The shortfall stood at Sh106.75 billion.
The audit attributed the revenue gap to reduced boda boda licence fees, inadequate staffing, suspension of the Express Penalty Scheme and multiple taxes on passenger motor vehicles.
NINE PROJECTS WORTH SH139.7BN AND EUR347.6M DELAYED
The Auditor General found that nine projects valued at Sh139.76 billion and EUR347.6 million experienced delays averaging about one year.
The delays denied beneficiaries timely access to services.
Major delayed projects included Kayunga–Nabuganyi Road, Nansana–Kireka–Bira Road, Kafunta–Buwampa Road, Kabaale International Airport and the New Kampala Port at Bukasa.
The causes cited included delayed payments, design changes, scope changes, funding gaps and weak contract management.
The Ministry was also faulted over the quality of works on one project valued at Sh8.41 billion.
The Auditor General observed incomplete drainage, unfinished culverts, overgrown road sections and abandonment of works.
The functionality of four completed projects valued at Sh3.87 billion was also affected by poor drainage, erosion, silting, lack of routine maintenance and design limitations.
WEIGHBRIDGE SYSTEM FAILS ROAD PROTECTION TEST
The Ministry’s management of the national weighbridge system was also found inadequate to sufficiently protect road assets and support safe and efficient transport.
The Auditor General identified gaps in the profiling and deployment of weighbridge stations, utilisation of weighbridge data, operational reliability and calibration of equipment, staffing, automation of controls, enforcement of axle-load limits and stakeholder engagement.
These weaknesses, the audit found, have constrained the system’s ability to deter overloading and preserve road assets.
PARLIAMENTARY ORDERS LEFT UNFINISHED
The Ministry also failed to fully implement Parliament’s recommendations.
Out of six recommendations reviewed by the Auditor General, only three had been fully implemented.
Two were partially implemented while one had not been implemented at all.
The Auditor General is separately conducting a comprehensive verification of domestic arrears across Government ministries, departments, agencies and local governments to establish the accurate stock of Government domestic arrears, with detailed findings expected separately.
The latest findings place the Ministry of Works and Transport’s management and Accounting Officer under intense scrutiny over the handling of public infrastructure, procurement, contracts, compensation, assets and billions of shillings in Government obligations.
The audit repeatedly recommends stronger coordination, better planning, adequate funding, tighter contract management and faster settlement of obligations — measures that ultimately fall on the Ministry’s leadership and responsible accounting structures to implement.
With roads delayed or abandoned, contractors owed hundreds of billions of shillings, thousands of PAPs still waiting for compensation, major projects struggling for years and critical assets poorly documented, the Auditor General’s findings expose a Ministry where weaknesses in planning, financing, coordination and contract management are translating into real costs for Government and delays for ordinary Ugandans.
The report therefore puts the Ministry’s leadership on the spot over whether it is adequately exercising the oversight, planning and management responsibilities required to ensure that billions allocated to Uganda’s transport infrastructure actually translate into completed projects and functioning public assets.
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