Best and Worst Performing Government-Owned Companies Named

BY: Eyalama In Politics On

The Auditor General John Muwanga has named the best and worst performing public corporations and state enterprises.

Muwanga in his report to Parliament for the Financial Year that ended on June 30th, 2018, has listed the performance of 29 state enterprises detailing which companies made profits and losses in the last financial year. The Auditor General’s report was recently tabled before Parliament.

According the Auditor General’s report, 17 out of the 29 State Enterprises analysed made profits in 2018, with Bank of Uganda (BoU), National Social Security Fund (NSSF) and National Water and Sewerage Corporation (NWSC) topping the chart, posting profits of UGX 424bn, 240bn and 51bn respectively.

The report further noted the worst performing State Enterprises being Uganda Railways Corporation (URC), Uganda Electricity Transmission Company Limited (UETCL) and Civil Aviation Authority (CAA) with losses of UGX93bn, UGX75.5bn and UGX21bn respectively. Nakivubo Memorial Stadium did not submit financial statements while results for Civil Aviation Authority relate to the year ended 30th June 2016.

[corona country="Uganda" title="Uganda"]

“In comparison to the previous year, 12 enterprises posted improved (increased profits or reduced loss) performance, with New Vision Printing and Publishing Company Limited, NSSF, Kilembe mines registering over 200% percentage increase,” the report noted.

However, the Auditor General in his report further noted that out of the 17 state enterprises that made profits, one company paid dividends to government.

[corona country="Kenya" title="Kenya"]

“I observed that, out of the 17 profit making enterprises, only New Vision Printing and Publishing Company Limited proposed a dividend pay-out amounting to UGX1,912,500,000. In the year under review, it demonstrated this commitment by paying out dividends totalling UGX.101,037,000. Government should ensure that profit making enterprises provide a return to the investment made by government,” Muwanga’s report adds.

The report also listed UEDCL, UEGCL, UETCL and NWSC as the state enterprises with the biggest debt ratio of more than 50% “implying that their total assets were insufficient to cover their total debt.”

Section 52 (1c) of the Public Finance Management Act (PFMA), 2015 requires the Accountant General, within three months after the end of each financial year, to prepare and submit to the Minister responsible for finance and the Auditor General the consolidated summary statement of the financial performance of Public Corporations, State Enterprises and Companies where Government has controlling interest.

Screenshot showing profitability of state enterprises
Screenshot showing profitability of state enterprises
Screenshot showing profitability of state enterprises
Screenshot showing profitability of state enterprises
Screenshot showing profitability of state enterprises
Screenshot showing profitability of state enterprises
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