Uganda Airlines Officials Face Probe Over Alleged Financial Misconduct and Abuse of Office
Key Points
- 1The State House Anti-Corruption Unit (SHACU) and CID launched a formal probe on January 7, 2026, into senior Uganda Airlines officials over alleged abuse of office and embezzlement.
- 2Investigators demanded extensive financial and procurement records, including Contracts Committee minutes related to the controversial purchase decisions concerning Boeing aircraft.
- 3The investigation follows the national carrier's reported net loss of UGX 237.9 billion (USD 66.8 million) in FY 2023/2024 and cumulative losses exceeding Shs1.02 trillion since its 2019 revival.
- 4The airline is currently pursuing a controversial fleet expansion plan involving both Boeing and Airbus aircraft, which required a significant supplementary budget approval.
The State House Anti-Corruption Unit (SHACU) has launched a formal investigation. The probe is joint with the Criminal Investigations Directorate (CID). Senior Uganda Airlines officials investigation is focused on financial transactions. Allegations include alleged abuse of office, embezzlement, and false accounting probe. The inquiry follows a letter dated January 7, 2026. This letter was addressed to the airline’s Chief Executive Officer. The directive demands extensive financial and procurement records. This development underscores broader scrutiny of the national carrier’s financial losses.
Scope of the Joint Investigation
The CID, via its CID economic fraud and Anti-Corruption desk, initiated the action. Deputy Director Fred Lumala signed the formal request letter. Investigators are demanding certified copies of numerous documents. These documents are crucial for supporting the ongoing probe.
Key documents requested by the investigators include:
- The approved National Airline Business and Implementation Plan.
- The full budget for the Financial Year (FY) 2024/2025.
- Contracts Committee minutes regarding Boeing aircraft procurement.
- Procurement files for specific service providers.
- These suppliers include Mixjet Flight Support Services and Associated Energy Group.
- Revenue accounting, ticketing, and expenditure records for FY 2024/2025 are also sought.
This broad request highlights the focus on procurement and Uganda Airlines financial transactions. One area of interest is the controversial fleet expansion concerns. This expansion reportedly conflicted with earlier approved strategies.
Financial and Fleet Expansion Concerns
The investigation comes amid persistent operational and financial challenges. Since mid-2025, the airline has faced shortages of spare parts. Frequent flight disruptions and cancellations have also been reported. Auditor General reports show significant national carrier’s financial losses. The airline posted a net loss of UGX 237.9 billion in FY 2023/2024. This figure is approximately USD 66.8 million. Cumulative losses since the airline’s 2019 revival exceed Shs1.02 trillion.
Despite losses, passenger and cargo revenue showed growth. Cargo income rose by 55 percent in 2024. Passenger revenue climbed by 58 percent in the same period. The current fleet includes four Bombardier CRJ900LRs and two Airbus A330-800neos.
Controversy surrounds the new fleet acquisition strategy. Parliament approved supplementary funding for up to ten new aircraft. This plan includes four wide-body Boeing jets. It also includes four mid-range Airbus planes. Lawmakers questioned why this major investment was not in the original budget. Past procurement issues have involved some of the currently named suppliers.
Broader Context in African Airline Operations
This probe highlights the challenges facing African airline operations. Government-owned carriers often struggle with political interference and corruption. The International Air Transport Association (IATA) noted strong demand growth in Africa. African airlines saw an 11.9 percent jump in demand in September. However, the industry requires strategic management to convert demand into profit.
Uganda Airlines is a critical asset for the nation’s connectivity and tourism. Effective financial oversight is essential for its future viability. Stakeholders are watching the State House Anti-Corruption Unit closely. The outcome will impact public confidence in the national carrier. This story is a key piece of commercial aviation news from the region. For more updates on global air travel, visit flying.flights. Uganda Airlines has not yet issued an official statement on the matter.
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