Ibrahim Kasita
5 July 2009
Kampala — AN international audit firm, Deloitte and Touche, has taken over the investigations into power companies, including Umeme, over inflated power tariffs.
The takeover was directed by the energy minister, Hilary Onek, who also wants a forensic audit on Umeme within three months.
Also to be investigated is the utilisation of $11m (about sh22b) the Government gave to Umeme to invest in the power network.
The investigations will also cover the Uganda Electricity Generation Company, the Uganda Electricity Transmission Company Ltd and Uganda Electricity Distribution Company and Eskom Enterprises, a South African power firm.
In a July 2, 2009 letter, Onek said: "The Inspector General of Police and the Director of the Criminal Investigations Department are advised to pass on the collected information to the consultant (Deloitte).
"I had earlier requested for an investigation into the tariff management and Umeme's operations and relevant information has been obtained on the matter by the security organisation," Onek wrote on July 2.
Last month, the minister had asked Criminal Investigations Department (CID) to stop the former managing director of Umeme, Paul Mare, from leaving the country before investigating him over the high power tariffs.
The Police anti-fraud squad raided Mare's home, and the offices of the electricity companies and the energy ministry.
Onek said the information obtained from the raids should be "critically examined by the consultant immediately and it should be an input into the forensic audit on Umeme."
The letter was copied to the Ministry of Finance, the principal private secretary to the President, the Inspector General of Police, director of the Criminal Investigation Department and the chief executive of the Electricity Regulatory Authority.
In addition, Onek wants Deloitte to review the performance of the independent power producers.
The minister also wants Deloitte to review the current tariff structure and investigate charges along the generation, transmission, distribution and supply chain.
The Government is subsiding Umeme at a tune of sh92b a year. The injection is meant to cover losses and keep the prices low.
Despite this, Uganda has the highest electricity tariffs in East Africa. It also has the highest percentage of power losses. A total of 34%, compared to 20% in Tanzania and Kenya.
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