Parliament’s Ad-hoc Committee has uncovered a series of troubling issues plaguing Posta Uganda, revealing that the state-owned postal service is operating without a valid license and struggling under mounting debt. The six-member committee, chaired by Napak Woman MP Faith Nakut, discovered that Posta Uganda’s mail and deposit license expired in 2021, yet it continues to function illegally, burdened by unpaid license fees of UGX 1.7 billion dating back to 2017.
The Uganda Communications Commission (UCC), in a meeting with the committee, confirmed these lapses. Abdul Salam Waiswa, UCC’s head of legal affairs, expressed frustration at Posta Uganda’s failure to renew its license despite repeated reminders, stating, “You cannot operate effectively without a license.” Waiswa, however, advised against shutting down Posta Uganda, citing the country’s international obligations to the Universal Postal Union, and called for a financial bailout instead.
The committee also highlighted additional financial woes, including UGX 1.2 billion in unpaid rental tax and UGX 1.4 billion in VAT arrears owed to the Uganda Revenue Authority (URA). Furthermore, State Minister for National Guidance Godfrey Kabbyanga acknowledged that the government has not fulfilled its share capital obligations, estimated at UGX 15 billion.
Meanwhile, allegations of mismanagement within Posta Uganda have raised further concerns. It was revealed that the board, composed partly of former MPs, had approved salary increments despite the organization’s financial struggles. The committee noted that Posta Uganda has accumulated over UGX 2 billion in overdrafts over the last two years to fund these increments, diverting funds from critical operational expenses like license fees.
MP Karim Masaba disclosed that 60% of Posta Uganda’s shares had reportedly been sold to an undisclosed investor, a move confirmed by Ministry of ICT officials but shrouded in secrecy.
The UCC has held discussions on restructuring Posta Uganda and exploring potential partnerships to stabilize its operations. UCC Executive Director Nyombi Thembo urged Parliament to intervene, emphasizing that the postal service could be revitalized if adequately funded.
The probe follows directives from Speaker Anita Among in October to investigate Posta Uganda’s financial troubles, as highlighted in the 2022/2023 Auditor General’s report. The committee is expected to present its findings and recommendations to Parliament in the coming weeks.
Posta Uganda is the national postal service provider in Uganda, offering mail, courier, and financial services. It operates under the Ministry of ICT and National Guidance. Despite its strategic role, the company faces significant financial and operational challenges, including debt, mismanagement, and operating without a valid license since 2021.
