Uganda’s Public Accounts Committee (PAC) has raised sharp questions over the government’s controversial decision to inject UGX 723.4 billion into Dei-Biopharma Ltd—a company that was later valued at just UGX 2.05 billion.
The matter came to the fore on September 9 during plenary when Butambala County MP, Muwanga Kivumbi, presented PAC’s report on the Auditor General’s review of government’s 2024 financial statements.
“It defeats investment logic for the government to invest over UGX 723 billion in a company valued at only UGX 2 billion, and in return get just 9.4% minority shareholding. Nowhere in finance does that make sense,” Kivumbi said.
In April 2024, Parliament approved a UGX 1.1 trillion supplementary budget, of which UGX 578.4 billion went directly to Dei-Biopharma to clear debts and meet operational needs. This was on top of earlier allocations—UGX 70 billion in FY2023/24 and UGX 75 billion in December 2023—bringing the cumulative government investment to UGX 723.4 billion.
The Auditor General, Edward Akol, revealed that no valuation was conducted before the massive bailout. His office was even denied access to critical documents, including the shareholders’ agreement, and to date, government has not received a share certificate confirming its stake.
PAC concluded that the Ministry of Finance ignored due diligence, with Kivumbi accusing officials of violating Section 37(1)(c) of the Audit Act by withholding vital information.
Civil society actors echoed the alarm. Timothy Chemonges, Executive Director of CEPA, warned that secrecy around such colossal spending undermines accountability:
“When decisions of this magnitude are reached behind closed doors, Parliament risks becoming a mere rubber stamp. Ugandans deserve full disclosure on how and why these bailouts were approved.”
PAC recommended that Secretary to the Treasury, Ramathan Ggoobi, be held personally liable for breaching audit provisions. It also urged the Ministry of Finance to work with Attorney General Kiwanuka Kiryowa and Dei-Biopharma to ensure that share agreements and certificates are delivered without delay.
The Finance Ministry has since claimed that Dei-Biopharma’s value stood at UGX 2.05 billion as of July 23, 2024, and promised that share certificates would be issued once the company amends its Articles of Association.
PAC also uncovered irregularities in government spending, including UGX 382 billion in supplementary releases for pensions and gratuities issued without formal requests from accounting officers. The Auditor General found that 185 entities benefited unlawfully—among them 8 Ministries, Departments and Agencies (UGX 16 billion) and 177 Local Governments (UGX 366 billion).
PAC warned that going forward, no supplementary allocations should be approved unless they comply with Regulation 18(2) of the Public Finance Management Regulations, which requires written requests.
