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EXCLUSIVE: Energy Ministry Fails to Utilize $36m Loan

Ministry of Energy and Mineral Development failed to plan and use $ 36million realized from the Electricity Development Project loan.

ChimpReports has exclusively obtained a distressing letter from Finance Minister, Matia Kasaija to his Energy counterpart, Irene Muloni over the matter.

This comes at a time when many projects in the energy sector are unfunded and others underfunded.

“Reference is made to a letter from your Permanent Secretary dated 1st June, 2018, requesting my Ministry to initiate the cancellation of the unutilized loan amount of US$36Million,” part of the letter from Kasaija to Muloni stated.

According to the letter, former Permanent Secretary Ministry of Energy, Kalisa Kabagambe was successors also failed to do the needful resulting in the request for cancellation.

Kasaija described the failure by Ministry of Energy to utilize the fund as “extremely disappointing”.

“It is extremely disappointing that your sector failed to produce bankable project proposals when the sector is financing deficits,” he noted.

Kasaija went ahead to name some of the critical unfunded projects  like electrification of industrial parks including Kapeeka, Sukulu and Mbale, and many other transmission lines.

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The Finance Minister wants stronger disciplinary measures to be to be taken against the responsible officials at Energy Ministry.

“This is to express my displeasure for the failure to utilize the resources when you had all the opportunity to efficiently use it to finance unfunded priorities. I strongly recommend special disciplinary measures be undertaken against whoever was responsible,” he concluded.

The letter was copied to President Yoweri Museveni and Prime Minister Ruhakana Rugunda.

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