Parliament Halts UPPC’s Debt Write-Off Over Missing Documents, Mismanagement

Parliament Halts UPPC’s Debt Write-Off Over Missing Documents, Mismanagement

Posted on 19 July 2024 0
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By Spy Uganda

Kampala: The Public Accountability Committee of Parliament on Commissions, Statutory Authorities, and State Enterprises (COSASE) has halted Uganda Printing and Publishing Corporation’s (UPPC) plan to write off debts totalling over Shs3 billion. This decision came after it was revealed that supporting documents for these debts had mysteriously disappeared from UPPC’s premises.

The issue was raised by Allan Mayanja (Nakaseke Central), who asked UPPC officials to clarify why Shs1.1 billion of the debt lacked supporting documentation.

“The Accounting Officer stated that Shs1.1 billion relates to customers without supporting documents. Can you clarify this? What do you mean you don’t have supporting documents?” Mayanja inquired.

Henry Katende, Finance and Accounting Manager at UPPC, explained that the debts, some dating back 6-8 years, lacked proper documentation due to a mix of manual and computerized record-keeping systems over the years.

“We tried to locate the documentation, but we failed. We are proposing to the board to write it off. The missing documents include LPOs, deliveries, and invoices,” Katende said.

However, Medard Sseggona (Busiro East), Chairperson of COSASE, rejected this explanation, suggesting potential foul play.

“This query smells of a scheme within the Corporation. How can such crucial documents disappear?” Sseggona remarked. He insisted on details regarding the services related to the debts and demanded evidence of any payments made by customers.

Sseggona continued, “Before you write off that debt, provide the required information. We need to know the specifics of the debts incurred and related services. If someone owes you, bill them and demand evidence of payment.”

At the 17th July 2024 meeting in Parliament, legislators expressed concern over UPPC’s financial health. The Auditor General’s report indicated that in 2022/23, UPPC projected UGX8.8 billion in printing and sales but only collected UGX2.3 billion, despite holding a monopoly on printing and publishing crucial government documents.

Gerald Nangoli (Elgon North) questioned the company’s viability, asking, “Can you give us a general overview of the company’s performance since you became Managing Director? All financial indicators are negative, including a near 100% increase in payables. How are you paying workers with these negative figures?”

UPPC attributed its revenue underperformance to the lack of competitiveness in quality and pricing of its products, as well as outdated printing machinery. Mayanja asked for a price list of UPPC products and details of the corporation’s strategies to grow its market share.

Sodi Nangoli, Managing Director of UPPC, responded that the Auditor General recommended funding for new machinery, but no government appropriation has been received.

Sseggona pressed for evidence to support Nangoli’s claims, asking, “Provide a written response detailing your current machinery, its impact on performance, and evidence of your budget requests. Without this evidence, you will face significant difficulties defending your position.”

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