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UFZEPA Fuel Audit Exposes Shs348m Card Loadings and Weak Controls, ChimpReports Investigation Shows
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UFZEPA Fuel Audit Exposes Shs348m Card Loadings and Weak Controls, ChimpReports Investigation Shows

Watchdog Uganda about 4 hours 3 mins read

KAMPALA — An internal audit at the Uganda Free Zones and Export Promotions Authority (UFZEPA) has flagged the loading of Shs348,296,721 onto eight fuel cards over 12 months, together with patterns of multiple daily withdrawals and the absence of an approved fleet management policy, according to an exclusive investigation by ChimpReports.

The confidential report, dated 14 September 2026 and prepared by Internal Audit Manager Peter Omwine, followed a Board resolution of 24 July 2026 directing an inquiry into fuel management, office imprest and allegations of missing money. ChimpReports obtained the document and reported that UFZEPA, which oversees free zones and export promotion, operated without a formal Fleet/Fuel Management Policy or Finance and Accounting Manual.

Of the eight cards examined, six were registered under Senior Administrative Officer Sharon Keitetsi Nangiro and carried a combined Shs272.37 million. A card linked to Deo Kyomya was loaded with Shs75,925,000, while an accountant’s card held by Fiona Kesiime accounted for Shs12,302,131. The audit noted that quarterly fuel allocations were made to staff irrespective of vehicle ownership.

A sample of transactions totalling Shs61,641,269 showed repeated multi-invoice purchases. On 15 July 2025 an Administration 2 card recorded Shs7.75 million at Shell Kawempe across 14 invoices; the previous day an Administration 1 card showed Shs7.25 million at Shell Lugogo on 16 invoices. Further large multi-invoice draws occurred at Shell stations in Kawempe, Kyanja, Masanafu and City Square between July 2025 and March 2026. The report observed that it could not be ruled out that fuel was drawn as cash and misused, describing such practice as irregular.

Management has maintained that the withdrawals supplied two generators (each of 691-litre capacity) and a 5,000-litre reserve tank at the Entebbe International Airport Free Zone. Because the facility lacked bulk-delivery infrastructure and the tank nozzles were small and without valves, fuel was collected in jerrycans, generating multiple invoices as each container filled. Officials said the purchases were supported by receipts, logs, security records and quarterly fleet reports, and that multiple same-day transactions did not constitute irregularity.

Executive Director Hez Kimoomi Alinda confirmed to ChimpReports that the transactions remain under investigation and arose from the need to feed the generators and reservoir using jerrycans. He said the authority is modifying the tanks for bulk deliveries, has submitted a draft Fuel and Fleet Management Policy, and is preparing a draft Finance and Accounting Manual for Board approval. Management has undertaken to review the transactions and hold officers accountable for any irregularities.

The auditors, however, described the generator explanation as questionable and recommended that the Board take corrective action against officers responsible for fuel mismanagement while introducing a formal policy governing eligibility, allocations, usage and accountability. The audit does not establish that the cardholders personally misappropriated the fuel, but leaves open questions about the concentration of multiple cards under one custodian and whether all fuel drawn reached the Entebbe site.

The ChimpReports investigation places the findings against a pattern of fuel-related irregularities reported in other Ugandan public institutions in recent years, highlighting risks arising from inadequate controls and weak reconciliation. UFZEPA has indicated that the Board will consider the audit recommendations as part of efforts to strengthen financial management.

The post UFZEPA Fuel Audit Exposes Shs348m Card Loadings and Weak Controls, ChimpReports Investigation Shows appeared first on Watchdog Uganda.

This article was sourced from an external publication.

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