Uganda Air Cargo Deal With Dubai Firm Faces Parliament Scrutiny

Uganda’s parliament has opened an investigation into a controversial 2024 aircraft deal between the Ministry of Defence and Veteran Affairs (MoDVA) and Dubai-based Alpha MBM, aimed at recapitalising dormant state-owned Uganda Air Cargo (UACC). Lawmakers are raising concerns over the failed joint venture and lack of transparency.

The deal, signed on May 23, 2024, promised delivery of seven aircraft, but only one Boeing 737-400(F), P4-JMD, was received before being repossessed by Alpha MBM. UACC currently has no operational aircraft, despite ongoing commitments to the partnership.

During a July 17 session, COSASE Chairman Medard Lubega Sseggona questioned the value Alpha MBM brings to the deal. “The partner contributes no equipment or business ideas—what value do they add?” he asked. The committee ordered UACC to conduct a value-for-money audit and summoned the MoDVA to explain its failure to pay UGX29 billion (USD8 million) owed to UACC for troop transport to Somalia.

The Auditor General’s report revealed the carrier remains heavily indebted, with its key aircraft, a Lockheed L100-30 Hercules, grounded in Jordan since November 2022 due to overdue avionics upgrades. UACC lost its air operator’s certificate in 2014 and is now requesting UGX381 billion (USD106.2 million) to restart operations.

Lawmakers also criticised the carrier’s UGX8 billion (USD2.2 million) annual budget for salaries and maintenance, despite lacking an operational fleet. MP Yusuf Nsibambi labeled the airline an “economic liability” and called for the restoration of an independent board free from Defence Ministry interference.

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