Shocking Truth: Posta Uganda Operating Illegally

(Kampala) – Posta Uganda, the country’s postal service provider, has been operating without a valid license, according to revelations from a parliamentary Ad Hoc Committee. During an interface on Tuesday, November 19, 2024, chaired by Karim Masaba, lawmakers scrutinized Uganda Posta Limited’s (UPL) operations, exposing significant lapses in financial management and compliance.
Masaba highlighted that renewing a license costs $50,000 over five years, approximately UGX 37 million annually. He questioned why the organization failed to prioritize this payment despite spending UGX 93 million annually on airtime allowances and processing overdrafts exceeding UGX 2 billion to pay board members, including former MPs.
State Minister for Information Godfrey Kabyanga acknowledged the expired license and promised to provide further documentation.
The investigation follows the Speaker of Parliament’s October 14 appointment of a six-member Ad Hoc Committee to examine UPL’s financial and operational practices, including unresolved property disputes and mismanagement flagged in the Auditor General’s report for the fiscal year ending June 30, 2023.
Background on Posta Uganda
Uganda Post Limited, founded after the East African Community’s collapse in 1977, was restructured in 1998, splitting into Posta Uganda, Uganda Telecom Limited (UTL), and the Uganda Communications Commission (UCC). Despite its mandate to provide postal services, Posta Uganda has faced long-standing disputes over assets with UTL and other entities, leading to a rental arrear of UGX 4.5 billion by July 2022.
Property Disputes and Financial Mismanagement
Location
New Value (UGX)
General Post Office, Kampala Rd
29,429,988,050
Tororo Plot 36, Tensing Rd
85,608,250
Mbale Plot 51–55
3,965,374,075
Masindi Port Road Plot 33
693,110,000
Lira Soroti Rd Plot 9–11, 13
255,585,633
Minister Kabyanga attributed delays in resolving these disputes to transitional mistakes during the organization’s restructuring. He also noted ongoing conflicts with UTL over office space ownership in various regions, complicating service delivery.
Committee Concerns
MPs criticized Posta Uganda’s rising expenditure on allowances and salaries while failing to meet basic operational requirements. They argued that prioritizing compliance and efficient resource use would help the organization regain its footing.
Masaba pointed out that cutting airtime allowances in half could generate sufficient funds to renew the license, ensuring legal operation.
Next Steps
The committee awaits further documentation from the minister and pledged to investigate unresolved issues to enhance accountability and compliance at Posta Uganda.
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