Financial records of the Munyonyo Commonwealth Resort Limited (MCWRL), a lakeside retreat with partial government ownership, have not been subject to an audit for the past four years, as disclosed by the Uganda Development Corporation (UDC). UDC, a government entity, holds a 25 percent stake, which amounts to 15,061,309,120 shares out of the 60,244,836,480 paid-up shares in Munyonyo Resort.
Dr. Patrick Birungi, the Executive Director of UDC, informed the Committee on Trade, Tourism, and Industry that Munyonyo Resort’s financial statements for the period spanning from 2019 to 2022 have not been audited due to delays in appointing government representatives to the Board.
Dr. Birungi presented this information to the Committee on Trade, Tourism, and Industry, which convened to investigate the state of government investment in Munyonyo Resort on Thursday, October 19, 2023.
He stated, “There haven’t been audited financial statements since 2019 to 2022, primarily because, apart from the challenges posed by Covid-19, both the Board and Annual General Meeting required the presence of a government representative. At that time, many government officials did not hold the necessary positions and were, therefore, unable to attend these meetings, leading to the unavailability of audited accounts.”
The committee, chaired by Hon. Charles Okello of the Democratic Party (DP) representing Nwoya East County, was unable to proceed with the inquiry after Dr. Birungi requested additional time to allow external auditors to complete the ongoing financial audits. He explained, “The financial statements for the period from 2019 to 2022 are currently under audit following the appointment of auditors on July 19, 2023. If the committee grants us a two-month extension to obtain the audited financial statements, we can engage more effectively.” Dr. Birungi added that the audits are being conducted by external auditors from UHY Thakkar & Associates.
UDC has nominated Betty Katsimbazi and Stephen Mwanje as new directors of MCWRL, with Andrew Rugasira and Basil Ajer nominated as alternate directors.
Hon. Godfrey Odero, the Member of Parliament representing Samia Bugwe County South, urged UDC to provide audited financial statements for all previous years since the government’s initial investment in Munyonyo. He stated, “As you submit the statements for the last four years, you should also provide those from the inception of the contract.”
The Committee’s Deputy Chairperson, Hon. Catherine Lamwaka, emphasized the importance of obtaining the audited financial statements to inform the committee’s decision-making process. She said, “Our assessment of Munyonyo Resort’s performance relies on these financial statements. We should allow UDC the time to finalize the audits and request them to promptly notify the committee so that we can assess whether the government should continue its investment in Munyonyo or not.”
Until 2022, the Ministry of Finance, Planning, and Economic Development held the government’s shares in Munyonyo Resort, after which ownership was transferred to UDC in compliance with the UDC Act of 2016.
