Uganda Airlines Boeing Deal Faces Police Probe Over Alleged Misconduct

Approval of a planned Boeing aircraft purchase by Uganda Airlines has come under scrutiny after Uganda’s police launched an investigation into alleged financial misconduct at the state-owned carrier. The probe follows a leaked letter from the Uganda Police Force Criminal Investigation Directorate (CID) citing suspected “abuse of office, embezzlement of funds, and false accounting.”
The January 7 letter, which has circulated on social media but has not been independently verified, is addressed to Uganda Airlines CEO Jenifer Bamuturaki and signed by CID officer Fred Lumala. It states that investigators are working alongside the State House Anti-Corruption Unit to examine alleged irregularities involving unnamed airline officials.
As part of the inquiry, the CID has requested a series of certified documents, including minutes from the airline’s Contracts Committee related to approval of the Boeing acquisition. Uganda’s parliament has already approved UGX422.26 billion (USD119 million) in supplementary funding for the airline to acquire two Boeing 787 Dreamliners, one Boeing freighter, and two mid-range Airbus aircraft, as well as to cover associated leasing costs.
Investigators are also seeking the national carrier’s approved business and implementation plan, along with its budget for the 2024/2025 financial year. Additional requests include procurement files linked to several service providers, among them MixJet Flight Support Services, fuel supplier Associated Energy Group (AEG FUELS), Nyanzi Tours and Travel, and ALS – Aircraft Leasing Services. Records tied to the construction of Uganda Airlines’ offices in Entebbe are also under review.
Financial oversight is another focus of the probe. The CID has asked for the airline’s internal audit report for FY2024/2025, as well as documentation covering revenue accounting and ticketing, banking and cash receipts, and fuel-related expenditure and supplier transactions. Investigators further requested a list of companies involved in supporting the launch of Uganda Airlines’ route to London Gatwick Airport.
Uganda Airlines has declined to comment on the investigation. ch-aviation has also contacted Boeing and the named service providers for responses.
The airline has faced similar scrutiny in the past. In 2023, Uganda’s Public Procurement and Disposal of Public Assets Tribunal cancelled a fuel and inflight support procurement process after finding discriminatory treatment of bidders, following a complaint filed by MixJet. Earlier, a 2022 parliamentary report by the Public Accounts Committee (PAC-COSASE) warned that the carrier’s long-term success depended on addressing financial impropriety and governance issues.
In 2021–2022, former CEO Cornwell Muleya was suspended and dismissed amid corruption allegations, a move later ruled unlawful by the courts, which awarded him compensation. The latest investigation again places Uganda Airlines’ governance and fleet expansion plans under an intense spotlight.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com
