CORRUPTION! CAA Bosses Cited in Fresh Sh9bn Medical Insurance Scandal

A fresh medical insurance scandal has rocked the Uganda Civil Aviation Authority (UCAA). Barely weeks after President Museveni ordered the mass firing of 152 staff over irregular recruitment, a fresh storm is now brewing inside the institution.

This time, the controversy centers on a new medical insurance scheme being forcefully introduced by the UCAA Board, chaired by retired Deputy Chief Justice Steven Kavuma in cohorts with Human Resource Director Ahmed Sabah Kakooza and State Minister for Works Fred Byamukama.

According to internal sources, the move to replace the existing internal medical scheme with a private insurance model has sparked off intense resistance from senior staff members, department heads, and union leaders—many of whom fear the plan is expensive, exploitative and impractical for the unique demands of aviation work.

Under the current internal medical arrangement, staff benefit from Patient Treatment Order (PTO). This caters for both inpatient and outpatient CAA staff.

This system, staff argue, is cheaper, flexible, reliable, and responsive to the urgency of medical needs in a highly time-sensitive industry.

This internal medical scheme arrangement has been costing CAA sh5bn annually.

However, the Board and other management members are now insisting on transitioning to an external insurance system—reportedly involving major players like ICEA, Prudential, and Jubilee—which, insiders claim is expensive and comes with long verification delays, poor hospital responsiveness, and risk to time-sensitive flight operations.

And to make matters worse, it will cost CAA a staggering sh9bn annually compared to the one being replaced which was at sh5bn.

“Aviation doesn’t wait. If a worker has to first call a hospital and the hospital must call the insurance company before treatment, then we risk delays at work, and delays in the air,” one senior staffer said off record, citing the high-stakes nature of the industry.

“What also baffles us is why has the budget increased from sh5bn to 9bn? That’s almost 100% increase. Are they saving or wasting money. We suspect there are people who want to benefit from it,” another insider adds.

Staff leaders are suggesting a compromise—running both systems concurrently, allowing employees to choose. But the board is said to have rejected the proposal outright, reportedly warning that those resisting the new scheme “would be dealt with.”

Even more damning are fresh allegations of corruption tied to the rollout. Multiple sources claim the board has already quietly awarded the scheme to a preferred insurer that allegedly paid kickbacks to secure the deal as we shall reveal in our subsequent publications.

Following President Museveni sack letter, several heads of departments who questioned the plan were targeted and have since been fired.

“They [management and board] are abusing the presidential directive. They are taking advantage of the letter to fire whoever is opposed to the scheme and other projects,” added a source.

The atmosphere at the Authority has reportedly grown tense, with many staffers unwilling to comment on record.

“The turbulence at UCAA is too much. People are scared. Today it’s the 152 sacked, tomorrow it might be those who ask questions,” a staffer said under anonymity.

CAA is yet to comment.

We have been told following the recent developments, sharp divisions have emerged within top management.

But this is a story for another day.