KAMPALA – The Uganda Civil Aviation Authority (UCAA) has demanded over Shs233 billion from the central government and Uganda Airlines for various services provided at Entebbe International Airport.
Thank you for reading this post, don't forget to subscribe!The development was revealed by the UCAA Director of Finance, Hassan Musinguzi, while appearing before Parliament’s Committee on Physical Infrastructure chaired by the MP for Mbarara City South Division, Hon. Mwine Mpaka.
Hassan Musinguzi informed the committee that the central government’s share of the outstanding arrears stands at a staggering Shs91.6 billion. He further assured the lawmakers that the authority will sustain its engagement with the Ministry of Works and Transport until the entire debt is fully settled.
“We shall continue lobbying government through the Ministry of Works and Transport to have this debt cleared,” Musinguzi told the committee.
The accumulated arrears arise from several services provided by UCAA, including rental space occupied by United Nations agencies at the airport, parking fees for Uganda Airlines aircraft, and airport passenger service charges, among other operational costs.
According to the Auditor General’s report, several government entities occupying space at the airport have not paid the required rental fees. While some organisations such as the Uganda People’s Defence Forces (UPDF) and State House have met their payment obligations, the majority have failed to do so despite repeated reminders from UCAA.
The Ministry of Foreign Affairs has also taken over a debt previously owed by MONUSCO amounting to Shs58 billion but has not yet settled the outstanding balance.
UCAA officials warned that delayed settlement of government obligations affects the authority’s cash flow and its ability to finance ongoing improvements and maintenance at the country’s airports.
The Committee on Physical Infrastructure also raised concerns over the accumulation of the debt, faulting the authority for failing to establish a clear repayment plan. MPs warned that the debt could continue to grow due to monthly interest charges, urging UCAA to provide a clear strategy for settling the arrears.
State Minister for Works Ali Musa, who led the UCAA delegation, assured the committee that the authority had put measures in place to clear the Shs233.9 billion owed to contractors within six months.
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