WHERE DID THE SH308M GO? Makerere Guest House Cash Trail Raises Eyebrows
KAMPALA — A financial management storm has hit Makerere University Holdings Limited (Makholdings) after the Auditor General flagged the handling of hundreds of millions of shillings collected by the Makerere Guest House.
According to the Uganda Government Auditor General’s report as of December 2025 on Makholdings’ Human Capital Development, the Guest House collected UGX457.62 million, but only UGX148.87 million was banked.
The report shows that UGX308.75 million was spent at source, contrary to the requirements of the Finance Management Manual.
The revelation raises questions about how cash generated by the university facility was handled and why such a substantial amount was used directly instead of being banked in accordance with the prescribed financial management procedures.
The Auditor General classified the audit opinion as unqualified, but the specific finding on the Guest House cash collections has nonetheless put the spotlight on compliance with financial controls at Makholdings.
The report also raises another procurement concern involving the purchase of printing materials.
According to the Auditor General, Makholdings used the direct procurement method to acquire printing materials worth UGX99.18 million without the necessary approvals and justification.
The procurement finding adds another layer to the concerns raised in the audit report, particularly regarding adherence to established procurement procedures when committing institutional funds.
The two findings centre on financial controls and procurement compliance, with the Auditor General pointing to deviations from established procedures in the management and use of public resources.
While the audit opinion itself was unqualified, the findings highlight weaknesses that management is expected to address to ensure that revenue collections are properly accounted for and procurement processes comply with the applicable rules.
The UGX308.75 million spent at source represents the bulk of the Guest House collections identified in the audit, while the UGX99.18 million printing procurement raises separate questions over the use of the direct procurement method without the required approvals and justification.
The Auditor General’s findings have therefore placed Makholdings’ cash-handling and procurement practices under scrutiny as public institutions face growing pressure to strengthen accountability and ensure that financial management procedures are followed to the letter.
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