OILSEEDS PROJECT CASH SCANDAL! Bosses EXPOSED as Billions Stall, Targets FAIL
Shock and outrage have engulfed the multi-billion National Oil Seeds Project (NOSP) after the Auditor General’s 2025 report exposed glaring failures, financial gaps, and slow implementation under the watch of project bosses led by Project Manager Chris Gumisiriza at the Ministry of Agriculture, Animal Industry and Fisheries.
The seven-year project, running from 2021 to 2028 and funded by the International Fund for Agricultural Development (IFAD) and other partners, was designed to transform Uganda’s rural economy by commercializing oilseed value chains across 81 districts. But instead of delivering prosperity to over 120,000 smallholder households, the project is now drowning in mismanagement, delays, and underperformance.
The Auditor General paints a troubling picture. The Project Coordination Unit failed to prepare consolidated financial statements for both Component 1 under MAAIF and Component 2 under the Ministry of Local Government, a serious breach of the project design that has denied stakeholders critical financial visibility. In simple terms, the people in charge failed to present a clear financial picture of how billions are being handled.
As if that was not enough, assets worth a staggering UGX 510 million were incorrectly recorded in the assets register, raising fresh questions about accountability and record keeping in a project handling taxpayer and donor funds.
Despite an expected disbursement of UGX 196.17 billion from the development partner, only UGX 60.14 billion, representing just 30.66 percent, had been received by June 30, 2025. A massive UGX 136.03 billion remains undisbursed, crippling planned activities and exposing serious funding gaps.
Even the money that reached the project has not been effectively utilized. Out of the UGX 60.14 billion disbursed, only UGX 41.98 billion, representing 69.8 percent, had been absorbed, leaving UGX 18.16 billion idle on project accounts. This means billions meant to transform farmers’ lives are simply sitting in banks while beneficiaries continue to struggle.
On the government’s side, out of the expected UGX 4.73 billion counterpart funding, only UGX 3.55 billion had been released, leaving UGX 1.18 billion unpaid. Although most of this was absorbed, UGX 0.19 billion remained unspent, money that was meant to pay contract staff who were never recruited.
The real shocker lies in performance on the ground. Out of 56 sampled activities worth UGX 83.46 billion, only nine activities worth UGX 3.45 billion were fully achieved. Twenty activities worth UGX 31.11 billion were only partially implemented, while a massive 27 activities worth UGX 48.88 billion had not been achieved at all. This is a devastating indictment of those tasked with delivering results.
During the 2024/2025 financial year, the project had an approved budget of UGX 73.73 billion, but only UGX 43.11 billion was available, creating a shortfall of UGX 30.62 billion, representing 58 percent. Of the funds available, only UGX 24.95 billion was spent, leaving UGX 18.16 billion unutilized. This poor absorption directly affected key project activities, slowing down implementation across the country.
Procurement delays have further compounded the crisis. The report reveals that the procurement of eight Private Service Providers delayed by two months, while a provider for the Busoga region had not even been secured by the end of the financial year, leaving an entire region hanging.
Under Component 2, implemented by the Ministry of Local Government, the situation is equally grim. Out of the expected UGX 123.2 billion, only UGX 43.35 billion, representing 35.2 percent, had been disbursed by June 2025. Out of this, UGX 33.94 billion was spent, leaving UGX 9.41 billion idle in the Bank of Uganda.
Performance remains painfully low. Out of six activities worth UGX 174.4 billion, only two activities worth UGX 1.89 billion were fully achieved, while four major activities worth UGX 172.54 billion were only partially implemented. This means the bulk of the work meant to transform the oilseed sector is lagging behind schedule.
The financial year 2024/2025 tells the same story of failure. The project had an approved budget of UGX 102.51 billion but only UGX 25.71 billion was available, translating into a weak performance of just 25 percent. Although most of the available funds were spent, the low funding itself signals deeper structural and planning challenges.
All this is happening in a project that was supposed to drive “inclusive rural transformation” and improve livelihoods through oilseed commercialization. Instead, the Auditor General’s findings expose a system struggling with coordination failures, poor financial management, delayed procurement, and weak implementation.
The project, which operates in six hubs including West Nile, Northern, Mid Northern, Eastern, Midwestern, and Karamoja, was meant to uplift thousands of farmers, boost exports, and reduce Uganda’s trade deficit. But with billions unspent, activities incomplete, and critical systems not functioning as required, the dream of transforming the oilseed sector is now under serious threat.
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