BUDGET: Government Picks “Mysterious” 200Bn From Oil Fund

Government has committed Shs 200bn from Petroleum Fund account to support the 2018/2018 national budget.

As at June 2017 the Petroleum Fund dollar account number 003300328400010 and shillings account number 00330028000026 at Bank of Uganda had only USD$ 72million and Shs 10billion respectively.

Shs 125bn ($ 35million) from the dollar account was committed to 2017/2018 budget for construction of 10 oil roads in the Albertine region, including Kyotera – Rakai (20km), Buhimba-Nalweyo-Kakindu-Kakumiro-Mubende (100km), Lusalira- Nkonge-Sembabule (97km), and Kabale – Kiziramfumbi road (30km), Wanseko-Bugungu (23km) and Hohwa-Nyairongo-Kyarushesha road (25km) and others.

This left the account with only USD$ 37m (Shs 133bn) while the shillings account had 10bn; both totaling Shs 143bn.

The resource envelope for 2018/2019 national budget has however indicated that out of the Shs 32tn from both domestic and external financing, Shs 200bn is going to come from Petroleum Fund.

It remains unclear how the Petroleum Fund gets extra Shs 67bn since the known figure is Shs 143bn.

The efforts to reach the signatories of the Petroleum Fund bank account; Ministry of Finance Permanent Secretary and Secretary to the Treasury, Keith Muhakanizi and Accountant General Lawrence Ssemakula, were futile as they did not pick or return our phone calls.

Other four signatories of the account are Deputy Secretary to the Treasury, Patrick Ocailap; Godfrey B. Semugooma the Commissioner Financial Management System and his deputy Aiden D. Rujumba and Acting Director Debt and Cash Management.


ChimpReports extensively reported about oil revenues during the parliamentary investigation into Shs 6bn presidential handshake that government officials awarded themselves.

Previous Oil Money Expenditures

The government has so far collected USD$ 690m from oil companies since 2010 according to available documents with ChimpReports.

In the previous four financial years of 2013/2014 to 2016/2017, government silently spent the USD 631 million oil money on project related costs on the Karuma and Isimba Hydro Power Projects and the construction of power transmission lines under Uganda Electricity Transmission Company Limited.

In the financial year 2013/2014 budget, Shs120 billion from the Petroleum Fund was committed to support project related costs of the two dams.

Shs 973.8billion from the Petroleum Fund was used in the 2014/2015 budget to support the same projects.

In the same financial year, the officials of ministry of Energy, Uganda Electricity Transmission Company Limited (UETCL) and Uganda Electricity Generation Company Limited (UEGCL) started supervising the projects. Shs 8.7bn was stunningly given to the officials for only supervision.

In the 2015/2016 budget, Shs 239bn from the oil money account was used to supplement on project related costs of Karuma and Isimba hydro power projects.

In the same financial year another 4.9bn and 30.6bn were withdrawn from the same account for supervision and construction of power transmission lines under UETCL respectively.

In the financial year of 2016/2017 Shs 68.5bn Petroleum Fund went to UEGCL and UETCL for supervision of Karuma and Isimba dams. Also Shs 197bn was given to UETCL for the construction of power transmission lines in the same financial year.

And Shs 125bn was used in 2017/2108 budget bringing the grand total of five financial years’ expenditures to Shs 1.768tn.

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