PAC Queries Nearly a Billion Shillings Unauthorised Expenditure on Hoima Oil Refinery Master Plan

By Sam Ibanda Mugabi | Tuesday, March 3, 2026
PAC Queries Nearly a Billion Shillings Unauthorised Expenditure on Hoima Oil Refinery Master Plan
Members of Parliament have put the Ministry of Lands, Housing and Urban Development on the spot over a Shs950 million expenditure on the Hoima Oil Refinery proximity master plan, citing lack of prior parliamentary approval and concerns over financial discipline

The development of the Hoima Oil Refinery proximity area has come under scrutiny after Members of Parliament on the Public Accounts Committee (PAC) questioned the Ministry of Lands, Housing and Urban Development over an unauthorised expenditure of Shs950 million.

According to the Auditor General’s Report for the Financial Year 2024/2025, the ministry awarded a multi-year contract for the preparation of a master plan without obtaining prior approval from Parliament.

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The master plan is intended to guide structured urban and physical development around the Hoima Oil Refinery, a strategic national infrastructure project.

However, legislators stressed that even critical development initiatives must comply strictly with established financial and procurement procedures.

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MP Asuman Basalirwa said policy formulation is primarily an executive function but emphasized the importance of oversight.

“Policy making is an executive function, not a legislative one — though Parliament plays different oversight roles,” he said during a recent training for journalists on public policy interpretation and budget analysis.

Members of the committee underscored the need for transparency and adherence to public finance management laws, warning that deviations from approved budgetary frameworks undermine accountability.

The controversy adds to existing tensions surrounding the Hoima Oil Refinery project.

In previous engagements, some residents have raised concerns over compensation processes and alleged unfair eviction practices linked to refinery-related developments.

Critics argue that government agencies must balance national development priorities with the protection of citizens’ rights and lawful procedures.

PAC is expected to continue its review of the matter as part of its broader mandate to scrutinize government expenditure and ensure value for money in public projects.

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