UIRI IN SHOCK SCANDAL! 60-Year-Old Staff Illegally Retained, Billions Misused, Car Vanishes & Start-Ups Stuck for Years as Investigation Exposes Rot at UIRI

A bombshell Auditor General’s 2025 report has torn through the Uganda Industrial Research Institute (UIRI), exposing a deeply troubling mix of financial mismanagement, weak oversight, stalled innovation programs and outright administrative lapses under the leadership of Executive Director Professor Charles Kwesiga.

The institute, which is supposed to be Uganda’s engine for industrial innovation and value addition under the Ministry of Trade, Industry and Cooperatives, now finds itself at the center of a growing storm after the audit revealed a catalogue of failures that threaten to derail its mandate and waste billions of taxpayers’ money.

At the core of the scandal is a glaring mismatch between spending and performance. Despite receiving a total budget of UGX 22.37 billion for the financial year 2024/2025 and spending UGX 22.31 billion — representing an astonishing 99 percent absorption rate — the institute failed to deliver effectively on its strategic objectives.

The Auditor General’s findings expose a worrying trend: money is being spent, but results are painfully lacking.

UIRI is grappling with mounting financial obligations that it appears unable to manage. The institute had arrears worth UGX 85.85 million but budgeted for only UGX 35 million, creating a shortfall of UGX 50.85 million. Worse still, additional arrears amounting to UGX 2.31 billion accumulated from unpaid goods and services, a situation the Auditor General warned “negatively affects the image of the entity and may lead to litigation and the related costs.”

Inside the institution, the cracks are just as visible. Out of 410 approved positions, only 380 are filled, leaving 28 critical vacancies. This staffing gap has stretched existing employees thin, creating work overloads that directly affect performance.

The report further reveals systemic weaknesses in asset management that could cost the institution dearly. The asset management policy lacks clear procedures for monitoring non-current assets, increasing the risk of underutilization going unnoticed. To make matters worse, maintenance logs for these assets are not prepared, raising fears of premature wear and costly breakdowns.

But perhaps the most shocking revelation is the disappearance of a government vehicle. A car, registration number UAR 432Y, purchased in 2014 at a cost of UGX 201.92 million, was taken by former Deputy Executive Director Dr. Dick Kamugasha without authorization — and years later, it has not been recovered.

The Auditor General’s report bluntly notes that “efforts to recover the vehicle has been futile,” a statement that raises serious questions about accountability and enforcement within the institute.

Strategic planning, the backbone of any functional institution, is also in disarray. UIRI failed to secure adequate funding for its strategic plan, with a shortfall of UGX 2.52 billion that has already affected implementation of key activities. At the same time, the institute delayed finalizing its new strategic plan for 2025/26 to 2029/30, blaming the slow transition of the Science, Technology and Innovation Secretariat.

This delay left the institute operating without a clear, updated roadmap, weakening its ability to align with national development priorities. In fact, the National Planning Authority assessed UIRI’s annual budget and Budget Framework Paper as only 43.4 percent compliant with the National Development Plan III — a damning indicator of poor alignment.

Revenue generation has also taken a hit. UIRI collected just UGX 0.29 billion in non-tax revenue against a target of UGX 0.68 billion, translating into a weak 43 percent performance.

Implementation of activities tells an equally troubling story. Only three outputs worth UGX 1.65 billion were fully implemented, while five outputs worth UGX 3.65 billion were only partially achieved. Some activities were not implemented at all, while others could not even be assessed due to lack of performance targets.

Oversight mechanisms appear to have collapsed. Quarterly performance reports were submitted late by an average of 54 days, undermining accountability. Even more concerning, the institute does not have an annualised Monitoring and Evaluation framework and does not produce regular M&E reports, making it difficult to track progress or make informed decisions.

The Auditor General’s frustration is clear: without proper monitoring systems, the institute is essentially operating in the dark.

The Technology Business Incubation Programme — a flagship initiative meant to nurture start-ups and drive industrial growth — has turned into a symbol of inefficiency. Since its inception in 2006, only five companies have successfully graduated from the program, with another five still in the pipeline.

Out of 84 supported incubatees, many are stuck in limbo. Twelve incubatees had expired Memoranda of Understanding, while one had no agreement at all, meaning “the terms contained in the agreement may not be binding on or enforceable by either party.”

Seven incubatees had overstayed in the program beyond the allowable five years without justification, while ten had remained for as long as five to ten years, effectively blocking new entrants.

Even more alarming, eight incubatees were completely non-operational despite having access to UIRI facilities, and eleven had not paid production fees for over three years, directly violating their agreements and increasing the institute’s operational costs without generating revenue.

Key officials overseeing these programs, including Director of Industrial Production Systems Joanita Orishaba and Director of Product Development Ratibu Asuman, now find themselves under intense scrutiny as the effectiveness of the incubation program is called into question.

The Auditor General observed that “the above weaknesses affect the programme’s effectiveness and attainment of the intended objectives,” a statement that underscores the magnitude of the problem.

Even basic governance issues have not been spared. Thirteen staff members remain on the payroll despite having surpassed the mandatory retirement age of 60, raising questions about compliance with public service regulations.

And when it comes to accountability, the picture is equally grim. Out of recommendations from the Treasury Memorandum for the 2021/22 financial year, only one was fully implemented, two were partially addressed, and one remains outstanding — evidence of a pattern of ignoring corrective measures.

Management attempted to explain some of the failures, stating that they were “in the process of reviewing and renewing the contracts of the incubates” and that some start-ups remained longer in the program due to challenges that could cause them to collapse if forced to exit prematurely.

But for the Auditor General, the message is clear: the system is not working as intended.

The recommendation was direct and uncompromising — UIRI must “review and reassess the program and revise the strategies applied to make it more effective.”

As the dust settles, one thing is certain: an institution meant to drive Uganda’s industrial transformation is itself in urgent need of reform.

With billions spent, assets missing, plans delayed and innovation programs underperforming, the spotlight is now firmly on Professor Charles Kwesiga and his team.

Because for an institute tasked with building the future of Uganda’s industries, the present reality painted by the Auditor General is nothing short of a national wake-up call.