The State Minister for Works and Transport, Fred Byamukama, has cautioned the new management of Uganda Railways Corporation (URC) against corruption as the entity grapples with severe financial difficulties.
URC currently faces outstanding debts of Shs1.9 billion to suppliers, along with staff gratuity arrears amounting to Shs8 billion.
However, the government has committed Shs246 billion to support the struggling corporation, focusing on railway line maintenance, salary payments, and settling pending obligations.
Byamukama disclosed that the corporation's previous leadership was removed and prosecuted following corruption allegations raised by whistleblowers.
“The managing director had issues and ended up in court because of corruption. We took it up as leaders, and those involved were apprehended,” he stated.
The minister stressed that the new appointee brings over 30 years of experience in the railway sector and is well-positioned to lead URC's revival.
"The entity had collapsed due to mismanagement, but for the past five years, the government has been implementing a comprehensive revival plan," Byamukama noted. "We have also secured loans from the African Development Bank and Spanish financial institutions to further boost operations."
Byamukama acknowledged that corruption remains a challenge at URC, with some staff members still facing legal proceedings. He assured the public that new anti-corruption measures, including increased oversight and police investigations, are in place to ensure accountability.
“The new management and board will be closely monitored. Any staff involved in corruption will face legal action,” he warned.
As part of its broader strategy to reduce transportation costs and enhance cargo movement, the government recently revived passenger rail services from Kampala to Mukono.
Byamukama expressed optimism that within two to three years, Uganda Railways would clear its debts and operate more sustainably.
Strategic Reforms to Revive URC
New Managing Director Benon Kajuna said URC currently transports only 200,000 tonnes of cargo annually, a sharp decline from the one million tons moved in 2006.
He attributed this drop to aging infrastructure, inadequate funding, poor customer service, and governance challenges.
“These issues must be addressed for URC to regain its position as a key transport player,” Kajuna emphasized.
He outlined a strategic plan to improve operations, including acquiring spare parts and rehabilitating locomotives, with nine locomotives and 300 flatbed wagons requiring repairs at a cost of Shs 6 billion.
URC also plans to expand cargo capacity by procuring 300 wagons at Shs 6.6 billion, which is projected to generate Shs2.1 billion per month.
Additionally, Shs500 million has been proposed for track repairs to increase train speeds and reduce accidents.
To enhance fuel management, Shs 9 billion is required to streamline fuel storage and usage. URC also aims to strengthen regional partnerships by collaborating with Kenya and Tanzania Railways to address cross-border railway challenges.
Kajuna confirmed that the government has approved Shs243 billion for railway rehabilitation and urged authorities to release funds in installments to facilitate a phased revival of the corporation.
“We shall work with the Ministry of Works and Finance to mobilise resources. If funding is disbursed promptly, we expect to recover within three to four months,” he stated.
The reform plan also includes enforcing performance contracts for department heads to enhance accountability and efficiency.
URC now awaits government intervention to restore its role as a key player in Uganda's transport sector.
Outgoing MD Calls for Strict Financial Management
Outgoing URC Managing Director David Musoke Bulega advised his successor to strictly adhere to financial management laws to ensure the corporation's stability and growth.
Bulega underscored the importance of operating within legal frameworks such as the Public Finance Management Act.
“My humble request is to keep up engagements and operate within the law. These regulations, including the Public Finance Management Act and other guidelines, are crucial for URC’s success,” Bulega stated.
He commended the URC management team for their dedication and professionalism, noting that their continued service demonstrated a strong commitment to the corporation's mission.
