UPIK IN CRISIS! Staff Gaps, Sh1.67bn Arrears, Shady Procurements & Stalled Projects Expose Management Failures
A fresh storm has erupted at the Uganda Petroleum Institute-Kigumba (UPIK) after a hard-hitting Auditor General’s 2025 report exposed deep-rooted inefficiencies, financial strain and planning failures under the stewardship of Principal Bernard Ongodia.
The institute, which plays a critical role in preparing Uganda’s workforce for the oil and gas sector, is now battling serious questions about its management after the audit uncovered a worrying pattern of poor planning, underperformance and operational gaps that threaten its mandate.
At the center of the findings is a growing financial burden that has left the institute exposed. UPIK is sitting on domestic arrears totaling UGX 1.67 billion, covering unpaid compensation to employees, taxes, and goods and services already consumed. The Auditor General warned that this situation is not just unsustainable but dangerous, noting that it exposes the institute “to the risk of litigation.”
Behind the financial stress lies a deeper structural problem — a significant shortage of staff. Out of an approved structure of 94 positions, only 73 are filled, leaving a gap of 23 positions, equivalent to 22.3 percent. This shortfall has inevitably piled pressure on the existing workforce, weakening service delivery and affecting the institute’s overall performance.
The audit further uncovered glaring irregularities in procurement, raising red flags about compliance with established laws. The institute initiated procurements worth UGX 3.71 billion without preparing a multi-year procurement plan, a basic requirement under the law. This lapse points to a lack of proper planning and raises concerns about how such significant expenditures are being managed.
Even where procurement was planned, implementation was alarmingly poor. Out of UGX 7.79 billion in planned procurements, only UGX 1.02 billion was actually awarded, translating into a dismal implementation rate of just 13 percent. This means that the majority of planned projects and acquisitions never took off, leaving critical gaps in infrastructure and service delivery.
Strategic planning, which should guide the institute’s long-term direction, is also in disarray. The institute’s strategic plan had a cost estimate of UGX 83.46 billion, but actual funding over the implementation period stood at only UGX 60.50 billion, creating a massive shortfall of UGX 22.95 billion — a variance of 27.5 percent.
To make matters worse, the institute had not finalized its new strategic plan aligned to the National Development Plan IV by the required start date of July 1, 2025. This delay means the institution has been operating without a clear, updated roadmap, weakening its ability to align with national priorities and effectively measure its progress.
Revenue performance, while relatively better than other areas, still fell short of expectations. Out of a budgeted UGX 7.50 billion in non-tax revenue, only UGX 6.41 billion was realized, representing 88.7 percent performance. While not catastrophic, the shortfall adds to the financial pressures already facing the institute.
The cracks extend to project implementation as well. Two projects worth UGX 1.64 billion experienced delays averaging 12 months beyond their expected completion dates, raising concerns about project management and execution.
The Auditor General’s findings paint a picture of an institution struggling to keep its house in order — from unpaid obligations and staffing shortages to weak procurement systems and delayed planning frameworks.
As the chief academic and administrative officer, as well as the accounting officer of the institute, Bernard Ongodia now finds himself at the center of mounting pressure to explain how such gaps were allowed to persist in a critical national institution.
The cumulative effect of these failures is clear. An institute tasked with building Uganda’s oil and gas workforce is itself grappling with internal inefficiencies that risk undermining its mission.
With arrears piling up, procurements stalling, projects delaying and plans missing, the Auditor General’s report sends a strong message — urgent corrective action is needed before the situation worsens.
Because in a sector as strategic as petroleum, there is little room for error — and even less room for mismanagement.
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