Audit Uncovers $9.2M Irregularities at Uganda Airlines

Uganda Airlines is facing scrutiny after a confidential audit flagged $9.2 million in irregular passenger service fees and potential conflicts of interest tied to its ticketing practices. The revelations are contained in a “Special Audit Report on Revenue Management and Accounting and Aviation Fuel Management” covering financial years 2021–2024, according to local media.

The audit, tabled in parliament on July 31 by chief whip Hamson Obua, has been referred to a specialized investigative agency due to its technical nature. Uganda Airlines has declined to comment, with a company spokeswoman saying she was unaware of the process.

According to the findings, airline staff and general sales agents continued charging a $30 walk-in ticketing fee for a year after it was officially scrapped in July 2023. The fees were collected at stations including Entebbe, Nairobi, Juba, Kilimanjaro, and Johannesburg but were never reflected in company accounts. Auditors warned there was no evidence the money was deposited, raising concerns about misappropriation.

The report also cited a conflict of interest involving the airline’s executive overseeing fares and distribution. Two travel agencies linked to her husband sold more than 13,000 heavily discounted tickets valued at $2.8 million between 2021 and 2024, capturing more than 90% of Uganda Airlines’ cheapest fare sales. The relationship was not disclosed, auditors said, in breach of company policy.

Management defended its practices, suggesting the fees may relate to reissued tickets and discounted fares were sold transparently via global distribution systems. Still, it admitted oversight weaknesses and pledged to tighten governance and introduce mandatory conflict-of-interest declarations.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com