Audit finds widespread financial mismanagement at National Drug Authority

A scathing report from Uganda’s auditor general has uncovered deep financial and operational dysfunction at the National Drug Authority. From idle billions in unclaimed deposits to vacant floors in its headquarters, the agency faces growing questions about its ability to regulate the nation’s medicine supply

KAMPALA, Uganda — A scathing report from the auditor general has uncovered deep financial and operational dysfunction at the National Drug Authority, the body tasked with ensuring the safety of medicines for millions of Ugandans.

The audit, covering the period ending December 2025, depicts an agency struggling with systemic paralysis. Among the most startling findings is the discovery of 4.532 billion shillings in unclaimed deposits sitting idle in the authority’s bank accounts. Auditors attributed the stagnant funds to a failure to match deposits with client identification numbers and a breakdown in monthly reconciliations.

Public finance experts say the lack of oversight suggests a high risk of mismanagement. When a regulatory body fails at basic accounting hygiene, it invites questions about its ability to handle more complex tasks, such as vetting the country’s drug supply.

The financial disarray extends to the agency’s balance sheet. As of June 2025, the authority was owed 66.617 billion shillings in outstanding receivables. Nearly 95 percent of that debt has been unpaid for more than two years, with the Ministry of Health identified as the primary debtor.

While the agency struggles to collect what it is owed, it has also failed to spend the resources it has. Despite an available budget of 108.109 billion shillings, the authority utilized only about 75 percent of those funds. This underspending coincided with a failure to implement 13.742 billion shillings in planned procurements, leading to significant delays in inspections, licensing and marketing authorizations.

The report also highlighted the underutilization of the authority’s own infrastructure. Eight of the 12 floors in the newly constructed NDA Tower remain vacant or poorly utilized, a symbol of the administrative inertia that critics say has come to define the current leadership.

David Nahamya, the executive secretary, has led the agency since 2020. His tenure is increasingly being compared unfavorably to that of his predecessor, Donna Asiimwe Kusemererwa. During her time in office, Kusemererwa was credited with professionalizing the agency and cracking down on the distribution of substandard drugs. She was removed from her post following a legal challenge regarding her job title, a move that many insiders still characterize as a politically motivated effort to sideline a rigorous administrator.

Since her departure, the agency has faced mounting criticism over a perceived decline in regulatory enforcement. The auditor general’s findings note that regional offices underperformed in compliance visits and public health protection, raising the stakes for a country where counterfeit or ineffective medicines are a persistent threat.

The audit has now shifted the focus to the Ministry of Health and the authority’s board. With billions of shillings in limbo and critical safety functions stalling, the question remains whether the government will demand accountability at the top of the nation’s drug regulator.