Kampala, Uganda: The Auditor General has raised fresh red flags over cash management at Uganda Airlines after revealing that more than Shs380 million collected at the airline’s Juba Country Office was never banked, exposing the national carrier to potential financial loss and criminal liability.
In the Auditor General’s Annual Report for the financial year ended June 30, 2025, Uganda National Airlines Company Limited (UNACL) is faulted for failing to bank USD 103,491.70, funds collected in cash at its South Sudan station and left outside the formal banking system.
The Auditor General notes that the unbanked money is now subject to criminal and legal investigations, warning that failure to promptly bank public revenue violates financial regulations and creates opportunities for fraud, abuse and loss.
“All revenue collected by government entities is required to be banked promptly and fully accounted for,” the report states, describing the Juba incident as a clear breach of basic cash control procedures.
The audit findings come as Uganda Airlines remains under intense scrutiny over its financial sustainability. According to the same report, the airline recorded a net loss of Shs230.8 billion in the 2024/25 financial year, only marginally lower than the Shs231.6 billion loss posted the previous year, despite reported growth in revenue.
Since its revival, government has injected Shs1.984 trillion into Uganda Airlines. However, only Shs200 million of this amount has been formally recognised as share capital, with the remainder booked as share application funds and capitalisation pending conversion, a situation the Auditor General cites as evidence of the airline’s heavy dependence on state support to remain operational.
The report further highlights worsening liquidity pressures, with trade and other payables rising to Shs235.7 billion by the end of June 2025, up sharply from Shs171.7 billion the previous year, signalling growing strain on cash flow and creditor obligations.
Fuel procurement practices also drew sharp criticism. The Auditor General reports that Uganda Airlines incurred supplier penalty charges amounting to USD 1.78 million without adequate supporting documentation.
In addition, the airline uplifted and paid for aviation fuel worth USD 17.39 million without a valid fuel supply contract, of which USD 9.29 million relates to the 2024/25 financial year. The report warns that such transactions expose the airline to disputes, inflated costs and weak value for money.
Operational performance was also found wanting. Of 29 planned outputs covering 34 activities, only one output was fully implemented during the year, with most activities either partially implemented or not implemented at all, raising concerns about planning, execution and accountability.
The Auditor General notes that the failure to bank cash at the Juba office fits into a broader pattern of weak internal controls and oversight at the airline, alongside previous special audits that uncovered revenue leakages, fuel mismanagement and governance lapses.
The findings come amid continued turbulence at Uganda Airlines, including leadership changes, operational disruptions that stranded passengers abroad, and mounting parliamentary scrutiny over the use of taxpayer funds.
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