FUEL SCANDAL ROCKS UFZEPA! Investigation At Free Zones Authority Exposes Multiple Withdrawals, 8 Shell Fuel Cards Loaded With Shs348m, Generator Excuse Questioned As Authority Operates Without Fleet Mgt Policy

KAMPALA — A damning internal audit has raised fresh questions about fuel management at the Uganda Free Zones and Export Promotions Authority (UFZEPA), exposing Shs348.3 million loaded onto eight fuel cards in 12 months, repeated fuel withdrawals on single days and the absence of an approved policy governing the use of the cards.

The audit, conducted by Manager Internal Audit Peter Omwine, warns that the weaknesses expose the young government authority to potential fuel misuse and loss of value for money.

At the centre is Executive Director Hez Kimoomi Alinda, deputized by Elly Twineyo Kamugisha, both now facing uncomfortable questions.

In a report dated September 14, 2026, addressed to the Chairperson of the UFZEPA Board of Directors, Omwine said the investigation had established that the authority operated without a Fleet/Fuel Management Policy specifically governing pool vehicles and staff fuel cards.

The investigation followed a Board resolution passed on July 24, 2026, under Minute 8-05-24.07.2026, directing an inquiry into fuel management, office imprest and reported missing money at the authority’s offices in Communications House.

The fuel findings raise questions about how public resources were controlled, who received fuel allocations, where the fuel was drawn and whether the existing explanations adequately account for the transactions.

SHS348.3M LOADED ON EIGHT CARDS

The audit examined a sample of eight fuel cards whose combined loadings over 12 months amounted to Shs348,296,721.

The cards and their recorded allocations were as follows:

The figures show that five of the eight sampled cards were assigned to Sharon Keitetsi Nangiro, the Senior Administrative Officer responsible for overseeing the administration unit, front desk, stores and transport.

The five cards assigned to Nangiro accounted for Shs246,371,721 of the recorded fuel loadings.

Deo Kyomya’s Operations 1 card accounted for Shs75.925 million, while Accountant Fiona Kesiime’s card accounted for Shs12.302 million.

The audit does not, however, establish that the cardholders personally stole or misappropriated the fuel. Its central concern is that the authority lacked a formally approved framework to regulate eligibility, allocations, usage and accountability.

SHELL STATIONS, MULTIPLE INVOICES AND REPEATED DRAWINGS

The auditor separately analysed a sample of fuel transactions totalling Shs61,641,269, involving the Administration 1, Administration 2, Operations 2 and Operations 3 cards.

The schedule records transactions at several Shell outlets, including Kawempe, Kyanja, Masanafu, Lugogo, Komamboga, City Square, Wakaliga, Ntinda, Kitetika and Bukoto.

The report flags repeated fuel drawings on single days, with some entries supported by multiple invoices.

The sampled transactions were recorded as follows:

Total recorded in the audit schedule: Shs61,641,269.

The March 5, 2026, Operations 3 entry lists Shs3.5 million at Shell Kawempe against nine invoices, but the invoice-date field is blank in the supplied schedule.

The auditor observed that multiple fuel drawings were made on single days and warned that it could not be ruled out that fuel was drawn as cash and misused.

Omwine described such conduct, if established, as irregular and punishable.

The audit did not conclusively establish that the fuel was converted into cash or stolen. Instead, it identified a control weakness that made possible misuse difficult to rule out and recommended corrective action against officers involved in any established mismanagement.

MANAGEMENT SAYS FUEL WENT INTO GENERATORS

UFZEPA Management disputes the suggestion that repeated transactions necessarily indicate irregularity, insisting that the withdrawals were linked to the authority’s operations at the Entebbe International Airport Free Zone.

In its response to Red Pepper, shared by Public Relations Officer Doreen Kembabazi, management said the authority’s fuel supplier had been engaged to supply bulk fuel to the facility.

Management explained that the fuel withdrawals highlighted by the audit were used to fuel two generators, a reserve tank and the authority’s motor vehicles, including fuel, oil and lubricants charged to the relevant budget line.

According to the response, the two generators at the Entebbe facility each have a capacity of 691 litres, while the reserve tank holds 5,000 litres.

Management said the equipment was replenished on multiple occasions, explaining that the repeated transactions reflected the process of purchasing fuel in smaller quantities for transfer to the facility.

The authority’s explanation is that a user fills in a generator fuel log sheet indicating the required quantity, which is then approved by a supervisor.

The user subsequently loads the authority’s vehicle with jerrycans and takes them to an authorised Shell fuel station operated by Vivo Energy, where fuel is dispensed directly into the containers using a fuel pool card.

Management says pump attendants generate multiple invoices because the pump must be stopped each time a jerrycan is filled. A general receipt covering the total amount is then issued.

The fuel is transported to the Entebbe facility using an authority vehicle. On arrival, security personnel record the delivery in a gate register, after which the driver is assisted by the facility team to transfer the fuel into the generators and reserve tank.

Management further says the Administration Unit prepares quarterly fleet reports incorporating fuel utilisation and fuel statements, which are approved and filed. It told Red Pepper that accountabilities for the transactions highlighted in the audit had been attached to its response.

It also maintained that the audit’s suggestion that fuel might have been drawn as cash had not been established by the information presented.

However, the internal auditor remained unconvinced by the explanation that the multiple withdrawals were intended for generators, describing it as questionable and urging the Board to take corrective action against officers involved in fuel mismanagement.

The central question is whether the supporting logs, receipts, gate registers, vehicle records and other accountabilities sufficiently reconcile the recorded transactions with the fuel actually delivered and consumed.

NO APPROVED POLICY TO CONTROL FUEL

Beyond the disputed transactions, the audit identified a major policy gap at an authority entrusted with managing and promoting Uganda’s free zones and export activities.

Omwine said UFZEPA had no specific Fleet/Fuel Management Policy governing pool vehicles and staff fuel cards during the period under review.

Such a policy would ordinarily establish who qualifies for fuel, the trips and activities eligible for allocations, and the rates payable per kilometre or per month.

It would also provide for vehicle logbooks, odometer readings, routes, trip purposes, drivers and litres dispensed.

Without these controls, the auditor warned, the authority was exposed to fuel misuse and potential loss of value for money.

The report further observed that staff were given quarterly fuel loaded onto their cards whether they owned vehicles or not, with the fuel potentially being used in the form of transport.

The absence of clear, approved rules leaves important questions about how allocations were determined, how staff without vehicles were accommodated and how the authority verified that the fuel served official purposes.

Management acknowledged that a formally approved fuel-management policy was missing during the period under review.

It said a draft Fleet Management Policy had been developed and was due for consideration by management before submission to the Board.

In its statement to Red Pepper, management also said engagements had commenced with the fuel supplier and a contractor to modify the tanks and undertake related works to facilitate bulk fuel deliveries.

The authority explained that the tank nozzles at the Entebbe facility were small and lacked a valve suitable for bulk delivery, prompting discussions on how to rectify the technical limitations.

These explanations raise a further operational question: how much of the repeated fuel-card activity was necessary because of the facility’s storage and delivery arrangements, and whether improved infrastructure and controls would have prevented the weaknesses identified by the auditor.

AUDITOR WANTS ACTION AGAINST RESPONSIBLE OFFICERS

In his September 14 report to the Board Chairperson, Omwine recommended that the Board take corrective action against officers involved in fuel mismanagement.

He also advised management to establish and implement a Fleet Management Policy to safeguard the authority’s fuel.

The report’s wider conclusion was that inadequate internal controls exposed UFZEPA to financial and operational risks.

Omwine said the investigation had found no Fleet Management Policy and no Finance and Accounting Manual in place during the period examined, warning that the absence of such instruments exposed the institution to control failures.

The investigation was carried out after the Board’s July 24 resolution, with Omwine co-opting Senior Legal Officer Isabella Taimamigisha from the Legal and Corporate Affairs Division to provide guidance.

The audit’s recommendation puts responsibility on the Board and management to ensure that fuel allocations are governed by clear rules, transactions are properly documented and any unsupported or unexplained expenditure is investigated.

Management, for its part, said it would undertake a detailed review of fuel transactions and require responsible officers to account for any unsupported, irregular or unexplained expenditure established during that process.

It pledged that appropriate administrative action would follow in accordance with applicable regulations and procedures.

UFZEPA’S RESPONSE TO RED PEPPER

In a statement shared with Red Pepper by Doreen Kembabazi, the authority’s Public Relations Officer, UFZEPA Management said it took financial accountability, governance and the proper management of public resources seriously.

Management described UFZEPA as an authority only 18 months old and said it had made progress in building its institutional and operational capacity, while acknowledging that further improvements were ongoing.

On fuel expenditure, the authority said:

“The Authority’s fuel supplier was engaged to supply bulk fuel to its facility – Entebbe International Airport Free Zone. Engagements were also commenced with the Contractor to make the necessary tank modifications and related works to allow the fuel supplier to input into the tanks. The draft Fuel and Fleet Management Policy has been submitted to Management for consideration.”

Management added that the tanks’ small nozzles and lack of a valve for bulk delivery had prompted discussions with the supplier and contractor to address the technical problem.

On financial controls, UFZEPA said it had developed several policies intended to strengthen financial management. It stated that the draft Finance and Accounting Manual had been considered by the Finance and Administration Board Committee and would be submitted to the Board for approval at its next meeting.

The authority also listed the Strategic Plan, Human Resource and Procedures Manual, Audit Manuals and Board Manual among the instruments it had put in place. Other instruments, including the Fleet Management Policy, Finance and Accounting Manual and Incident Reporting Protocol, were awaiting consideration and approval.

Management said it was continuing to recruit staff to fill its approved structure and strengthen operational capacity.

“UFZEPA remains committed to addressing the issues raised, improving its internal control systems and ensuring the responsible management of public resources,” the statement said.

The authority added that it upheld transparency, accountability and due process and would continue cooperating with ongoing investigations to ensure that the issues raised were appropriately addressed.

For now, the fuel audit leaves the authority facing a straightforward accountability test: to demonstrate that the Shs348.3 million loaded onto the sampled cards and the Shs61.64 million in analysed transactions were properly authorised, used for official purposes and fully accounted for.

Until the identified gaps are closed and the transactions independently reconciled, questions over fuel controls at UFZEPA are unlikely to go away.

More revelations from the UFZEPA internal audit and other concerns surrounding the agency which have been forwarded to the IGG will be revealed in our subsequent publication.

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