LAKE PROJECT DRIFT! Probe Reveals Missing Billions, Unprocured Boats, Failed contracts, Idle Billions under MLVMCT Project
The Multinational Lake Victoria Maritime Communications and Transport Project, the celebrated as a flagship initiative to improve safety and efficiency on Lake Victoria, is now battling a storm of financial leakages, stalled contracts and questionable accountability, with Executive Secretary Masinde Bwire firmly in the spotlight.
Even as the project is credited with making progress toward “enhancing maritime safety, strengthening regulatory oversight, and promoting safer, more efficient lake transport operations,” the 2025 auditor general’s report exposes a troubling underbelly of missed opportunities and costly missteps that have left millions of dollars hanging in uncertainty.
At the centre of the controversy is an advance payment of USD 265,400 that has effectively disappeared into thin air. The report states, “An advance payment of USD 265,400 made to the supplier was not recovered after non-performance, following rejection of the guarantee claim by the bank due to account discrepancies, and no evidence of recovery action was availed as at November 2025.” The revelation has sparked outrage, with insiders questioning how such a large sum could be paid out and left unrecovered without follow-up. “That is money gone with no accountability,” a source said to Red Pepper bluntly.
Funding gaps and imbalances further complicate the picture. Out of the expected African Development Fund financing of USD 13,375,100, only USD 10,860,988.03 had been disbursed, leaving a significant balance of USD 2,514,111 untouched. At the same time, government counterpart funding overshot expectations, with USD 2,520,688.64 disbursed against a planned USD 2,270,000, resulting in an overdisbursement of USD 250,688.64. “We are seeing money left idle on one side and overspent on another. That imbalance raises serious planning concerns,” an analyst observed.
The cost of delays has also come at a steep price. Due to slow utilisation of donor funds, the government incurred commitment fees amounting to UA 316,255.52, equivalent to USD 429,067.02. Even more damning is the admission that “USD 161,875.29 could have been avoided had the project closed by 30th April 2021.” This has triggered questions about project management efficiency and oversight.
While eight out of twelve targets were fully achieved, key components remain incomplete. The report notes that several critical activities, including the construction of Search and Rescue Centres, women fish drying sheds and the MRCC–Entebbe facility, are still unfinished, with the latter standing at just 80% completion.
Financial discipline has also been called into question after it emerged that UGX.1.52 billion was spent outside approved Parliamentary estimates, in direct contravention of the Public Finance Management Act. “That kind of expenditure raises red flags about compliance and control,” a governance expert warned.
Ironically, the project received more funds than planned during the financial year, with receipts of UGX.32.53 billion against an approved budget of UGX.31.01 billion, representing 105% performance. Yet despite this inflow, utilisation remained dismally low. Out of UGX.33.70 billion available, only UGX.18.08 billion, representing 54%, was actually spent, leaving a massive UGX.15.62 billion idle. “You cannot justify idle funds when critical components are incomplete,” a critic charged.
Perhaps the most glaring failure lies in a major procurement that never materialised. A contract worth USD 1,327,000 for the supply of nine marine rescue boats and one firefighting boat collapsed entirely. “A contract for the supply of nine marine rescue boats and one firefighting boat valued at USD 1,327,000 was not performed despite multiple extensions, and the contract expired on 10th December 2022 without delivery,” the report states. The absence of these boats raises serious concerns about safety preparedness on the lake.
As pressure mounts, the spotlight remains fixed on Masinde Bwire to explain how a project designed to safeguard lives and improve transport efficiency has ended up entangled in financial inconsistencies, delayed execution and undelivered contracts.
“This project has achieved progress, yes,” a source admitted, “but the gaps are too big to ignore.”
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