KAMPALA — An internal audit at Uganda Airlines has raised questions over advertising expenditure amounting to Shs1.6 billion during the 2024/25 financial year, with the report recommending disciplinary action against senior officials it found responsible for financial losses.
The findings, reported by The Observer, centre on a dispute involving two advertising agencies, Metropolitan Republic Uganda Ltd and TBH Holding Ltd.
According to the audit, the actual execution of work reflected in purchase orders and invoices was valued at Shs1.6 billion, resulting in a 42 percent contract or budget overrun equivalent to Shs478 million.
Of the amount, Metropolitan Republic Uganda Ltd received Shs408 million, while TBH Holding Ltd was paid approximately Shs1.2 billion, according to the report cited by The Observer.
The audit reportedly recommends disciplinary action against the chairperson of the contracts committee, Uganda Airlines Manager for Corporate Affairs and Public Relations Shakila Rahim Lamar, and Chief Finance Officer Allan Kyeyune, whom the report found culpable for the loss.
The findings emerge as Uganda Airlines continues to expand its commercial operations and procure services through competitive bidding. The airline’s official procurement records show that it advertised for a global marketing agency in July 2025 and separately invited bids for public relations agency services under a 24-month framework agreement in November 2025.
The airline’s corporate policies require suppliers and service providers to comply with applicable laws and regulations and require its financial and business records to be accurately maintained. Its stated corporate values include accountability and ethics.
Uganda Airlines is a government-owned national carrier established in 2018 and operates scheduled passenger and cargo services in East Africa and international markets.
The audit findings raise questions about how advertising contracts were approved, monitored and paid for, particularly where the value of executed work reportedly exceeded the contracted or budgeted amount.
It is not yet clear from the publicly available information whether the officials named in the audit have been subjected to disciplinary proceedings or whether any criminal investigation has been opened.
The findings are also audit allegations and recommendations, not proof of criminal wrongdoing. Any individuals implicated would be entitled to respond to the findings and to due process before liability is established.
The airline’s current board is chaired by Priscilla Mirembe Serukka, while Ato Girma Wake is listed as Acting Chief Executive Officer on the airline’s official website.
The controversy puts a familiar question back on the table for Uganda’s public enterprises: when an institution spends public money, where exactly does responsibility begin—and where does it end when controls fail?