Note: This is our record of what transpired in the meeting. Not verbatim.

Meeting with Uganda Broadcasting Corporation

Discussed in the Committee on Commissions, Statutory Authorities and State Entreprises on November 6th, 2014

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The committee meeting was chaired by Hon Semmujju Nganda and MP Ssimbwa read the queries.The procession from UBC was led by the Managing director Mr. Angelo Nkeza, with him was the Manager Finance, Mr Katebi Patrick and Head of Engineering Uganda Broadcasting Corporation. The chairperson cautioned UBC management to speak the truth and instructed them to take an oath to that effect. The following were come of the contentious issues in the Auditor General’s report;

Of the UGX 10.7 billion recorded as trade and other receivables, 7.3 billion were proceeds from land sold to 5 companies. However the possibility of this money being recovered is remote because most of these land transactions are under investigation and litigation. At the time of the audit court had nullified a 4.5 billion debt owed to UBC. Management blamed the former management for not availing a hand over report at the time of change of management. They also stated that these debts were carried on from UTV but were doing everything in their power to recover this debt.

UBC management had 3 bank accounts in KCB and Standard chartered Bank respectively that they were not aware of,therefore the report indicated that the auditor on ground was skeptical about the 7.1 billion indicated as the cash and cash equivalents. Management told the committee that they had written to the respective banks to confirm these accounts as their own. The committee however instructed UBC to write to all banks on this matter because there might be other accounts else where they are not aware of.

The auditor’s office was also noted that there was no evidence to prove that the UGX 37.9 billion indicated as property and equipment was fairly stated. This was due to the fact that UBC didn’t have an updated assets register, in repose the Manager finance said they had dispatched a team to verify assets country wide for the purpose of updating the register. The auditors could not trace how far back the last re-evaluation of property was carried out or if the corporation was carrying out the revaluation as per the standards. UBC did not carry out an impairment review of assets contrary to IAS 16, it did not have land titles of pieces of some pieces of land but management informed the committee that these pieces if land still belonged to the government. It was also noted that there were no policies to guide management in regards to loss if aspects. There were no arrests made to the culprits responsible for the theft of a transmitting mast from Mbale. Management promised to follow up on these issues.

UBC also incurred nugatory expenditure being penalties to URA for failure to remit tax arrears amounting to 900 million. There were also unsupported expenditures; URA remittances 326 million and NSSF 236 million.

On the disposal of land, between 2007 and 2011 UBC sold 53.2 acres of land were sold by UBC. In Bugolobi, UBC entered a joint venture with M/s Pinnacle project to erect apartments, however the audit discovered;

  • UBC single sourced M/s Pinnacle project therefore there was no effective competition in the bidding for this project.
  • There was irregular termination of the pinnacle contract but UBC asserted that Pinnacle failed to raise money to inject into the contract therefore UBC had no choice but to get out of the joint venture.
  • Pinnacle was not supposed to assign delegate or transfer any right of obligation under the contract, however Pinnacle transferred to Haba Group of Companies at 11 billion. Haba went ahead to fraudulently transfer land to Deo and Sons.
  • The transaction between UBC and Haba Group was considered null and void by the court.

On all these issues management promised to follow up and get back to the committee.

The committee meeting was adjourned to 14thfor all these issues to be tackled



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