Business • 11 November 2025

Rot In Health Ministry: Parliament Exposes 18yr Scandal In Donor-Funded Projects

The Ministry of Health has come under renewed fire in Parliament over a string of stalled, donor-funded projects some delayed for nearly two decades raising fears that the newly proposed cancer centres in Arua and Mbale could face the same fate.

The uproar followed a government request to borrow UGX 165.69 billion to finance the construction and equipping of regional oncology centres. The loans include €9.4 million (UGX 37.9 billion) from UniCredit Bank Austria for the Mbale Oncology Centre and US$36.5 million (UGX 127.7 billion) from the Islamic Development Bank (IsDB) for the Arua Oncology Centre and radiotherapy equipment for Mbale.

While presenting the Committee on National Economy report on October 28, 2025, Vice Chairperson Robert Migadde warned that government had not committed the required US$4.79 million (UGX 16.76 billion) counterpart funding for the projects.

“Government is expected to contribute US$4.79 million towards this project,” Migadde told Parliament. “However, the Committee found no approved resources for this purpose in the 2025/26 budget, nor did the Ministry of Finance give any assurance that these funds will be availed. We recommend that government commits to provide the counterpart funding and ensure timely implementation to offer the much-needed oncology services in these regions.”

His remarks triggered alarm from Butambala County MP Muwanga Kivumbi, who cautioned that without guaranteed counterpart funding, the projects could stall like several others under the Ministry of Health.

“Did I hear properly that government hasn’t provided proof of counterpart funding?” Muwanga asked. “We’ve seen projects under this docket drag on for 12 years or more without completion. The reason is simple you borrow without providing counterpart funding.”

According to the committee, by December 2024 the Ministry of Health was handling four externally financed projects worth US$120.86 million (UGX 422.9 billion), yet only 56 percent of the funds had been disbursed. Some projects, the report revealed, had shown no financial progress at all.

Among the worst affected is the Uganda Heart Institute Infrastructure Development Project, worth US$73 million (UGX 255.3 billion), which took effect in 2023 but has already suffered delays due to lack of funds for power connections at the site and inconsistent timelines from donors.

The East African Centres of Excellence for Skills and Tertiary Education in Biomedical Sciences implemented by the Uganda Cancer Institute since 2016 — has also been delayed for nine years despite full disbursement, largely because of contractor cash-flow problems.

Other long-stalled projects include the Uganda Debt Swap Program for rehabilitation of general hospitals, worth US$17.37 million (UGX 62 billion) from Spain, delayed for 12 years due to bureaucratic hurdles, and the Karamoja Infrastructure Development Project Phase II, worth €12.14 million (UGX 49 billion) from the Italian Government, which has faced funding gaps since 2022.

Despite these grim precedents, several MPs urged colleagues to back the cancer centre loans, saying the projects address a pressing national health crisis.

Mbale Industrial Division MP Karim Masaba defended the borrowing, calling it “development-oriented.”

“Many loans government brings are consumptive, but this one will benefit millions. The Mbale Cancer Centre will serve the entire Eastern region,” he said.

Terego Woman MP Rose Obigah echoed the call, stressing the regional health burden. “In Arua, the disease burden has shifted heavily to cancer. Our referral hospital serves 43 constituencies in West Nile. We can’t delay such a vital facility,” she argued.

While the committee recommended approval of the loans, Migadde warned that without counterpart funding, implementation risks collapse. He reminded Parliament that the Uganda Cancer Institute currently serves over 45 million Ugandans, handling about 35,968 new cases and 24,629 deaths annually.

“The limited availability of oncology services outside Kampala creates congestion at Mulago, late-stage diagnoses, poor outcomes, and higher mortality,” he said. “Establishing regional oncology centres is crucial to decentralizing cancer care and ensuring equitable access.”

The government insists the new projects will ease the pressure on Mulago by expanding specialized cancer diagnosis and treatment services in Eastern and West Nile regions.

Migadde concluded with an appeal for accountability and urgency. “Early-stage cancer treatment can save lives and cut future healthcare costs,” he said. “A well-developed health system is not just about health it’s an engine for productivity, growth, and national development.”