Kampala, March 2, 2026 – Parliament’s watchdog committee has demanded a detailed explanation from the Private Sector Foundation Uganda (PSFU) over how more than Shs5.1 billion was spent on supply contracts, raising fresh concerns about financial accountability in donor- and government-backed programmes.
The directive was issued by the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) after reviewing queries in the 2025 Auditor General’s report.
Chairperson Allan Mayanja Ssebunya pressed PSFU officials to provide a full breakdown of the expenditure, particularly advances worth Shs1.9 billion issued in 2020 that remain unsupported by proper documentation.
“Delayed accountability affects service delivery and distorts expenditure figures because funds are not accounted for in the period in which they were incurred and paid,” Ssebunya said.
MPs demand detailed breakdown
According to the Auditor General, PSFU reported spending over Shs5.1 billion on supply contracts in the financial year ending 2024, but lawmakers said the report lacked clarity on how the funds were used and who benefited.
“So what exactly is included in this Shs5.1 billion?” Ssebunya asked. “When someone asks you about that figure, what precisely can you explain to the committee?”
The committee has now directed PSFU to submit supporting documents, including procurement records, performance indicators and beneficiary reports.
PSFU defends spending
Appearing before the committee, PSFU Executive Director Stephen Asiimwe said the funds were used to support entrepreneurship programmes targeting small and medium enterprises, particularly among young people.
“We looked beyond agriculture and asked how to scale someone from a micro to a small enterprise, from small to medium, and from medium to large,” Asiimwe said.
He added that many initiatives were implemented in partnership with organisations such as the Mastercard Foundation to equip youth with skills and capital.
Lawmakers unconvinced
However, MPs said the explanation was insufficient without clear financial records. Mawokota North MP Hillary Kiyaga called for itemised accountability to enable proper oversight.
“Yes, we have heard the explanation, but if we get details of how this money was spent, it will help this committee follow up,” Kiyaga said.
Accountability scrutiny tightens
COSASE, one of Parliament’s key oversight committees, is mandated to scrutinise public expenditure by state agencies and organisations receiving government funds.
The committee has now directed PSFU to submit a comprehensive accountability report, warning that failure to provide adequate documentation could trigger further investigations or recovery of funds.
The scrutiny reflects growing concern over transparency in public-private partnerships and donor-funded programmes, particularly those aimed at youth employment and private sector development.
