Uganda Airlines Rocked by Anti-Corruption Storm: Probe Targets Financial Practices

Published 2 hours ago3 minute read
Precious Eseaye
Precious Eseaye
Uganda Airlines Rocked by Anti-Corruption Storm: Probe Targets Financial Practices

The spotlight is firmly on Uganda Airlines as the carrier finds itself at the centre of a high-profile anti-corruption investigation. Led by the Criminal Investigations Directorate (CID) and the State House Anti-Corruption Unit, this formal probe was launched in early January 2026 to examine alleged financial irregularities and procurement lapses. Investigators have demanded extensive documentation pertaining to contracts, supplier dealings, and financial records, indicating a deep dive into the airline's operational conduct.

A significant area of the inquiry is the airline’s much-publicised London route, which commenced direct flights between Entebbe and London Gatwick in May 2025. This strategic expansion, utilizing its flagship Airbus A330-800neo, was a bold move aimed at enhancing Uganda’s global connectivity and tourism prospects. However, it has simultaneously brought the airline’s internal processes under intense scrutiny, with authorities scrutinizing business plans, procurement files, supplier contracts, banking records, and expenditure reports.

The investigation specifically targets alleged abuse of office, embezzlement, and false accounting, focusing on the procedures for awarding contracts and adherence to procurement guidelines. Key suppliers whose deals are under review include Mixjet Flight Support Services and Associated Energy Group for fuel, Aircraft Leasing Services (ALS) Ltd for aircraft leasing, and Nyanzi Tours and Travel for agency services. Furthermore, questions have been raised regarding a substantial PR contract awarded to Abbavater Ltd without competitive bidding, prompting concerns about transparency and value for money.

Previously, audits and special reports had highlighted issues such as conflicts of interest in ticket sales, where agencies linked to senior executives reportedly controlled a significant share of discounted fares, generating substantial revenue. These findings underscored weaknesses in internal controls and a deficit of effective oversight, exposing the airline to financial leakages and reputational damage. The current investigation is poised to delve deeper into these patterns, aiming to establish accountability and restore confidence in the airline’s governance framework.

Uganda Airlines' predicament is not an isolated incident within the African aviation landscape. National carriers across the continent frequently contend with financial mismanagement, political interference, and governance failures. State ownership often intertwines with a complex web of interests, sometimes leading airlines to serve as instruments for patronage rather than commercially driven entities. This often results in operational inefficiencies, persistent financial losses, and recurrent appeals for government bailouts.

In Uganda's specific context, the airline has relied heavily on state support since its revival, experiencing ongoing losses and a history of management turnover and board interference. Industry experts advocate for depoliticized management, robust regulatory oversight, and professional governance as crucial elements for sustainable airline operations. The success of Ethiopian Airlines, often presented as a regional model, is largely attributed to its operational autonomy and unwavering focus on profitability—attributes that many of its African counterparts struggle to achieve.

The outcome of this high-profile probe could mark a pivotal moment for Uganda Airlines, potentially catalyzing much-needed reforms and a renewed commitment to transparency and accountability. For the broader African tourism and aviation sectors, the investigation serves as a timely and potent reminder of the indispensable role of sound governance in fostering resilient and competitive national carriers as the continent continues to open up new routes and forge new partnerships.

Recommended Articles

Loading...

You may also like...