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In a country grappling with unemployment, limited industrial capacity, and a struggling export sector, every coin allocated toward economic transformation is sacred. But when those entrusted with steering the ship of development divert resources for personal gain, the consequences reverberate through generations. Such is the grim reality behind the case of businessman Basajja Balaba, who has come under fire for misappropriating Shs 24 billion intended for the establishment of an export-ready leather processing factory.

What was once branded a flagship project to boost Uganda’s leather industry and generate thousands of jobs has instead become a symbol of elite impunity and entrenched corruption.

The Grand Promise: An Export-Ready Leather Hub

When the government allocated Shs 24 billion to Balaba, the vision was clear: establish a modern leather processing hub that would elevate Uganda’s position in the global market. Uganda, blessed with an abundance of livestock, has long suffered from underutilization of its hides and skins. A processing plant, officials said, would reduce raw exports and instead boost value addition, resulting in higher revenues, job creation, and regional trade dominance.

The project was also meant to support President Museveni’s broader vision of import substitution and export-led industrialization. Balaba, a businessman known to have close ties with State House, was entrusted with this vital mission.

But years later, not even a single machine has been installed, no construction has commenced, and no employment has been generated. What has emerged instead is a trail of luxury real estate.

The Stark Reality: Mansions Over Machines

Investigations by watchdog bodies and whistleblowers within the Ministry of Trade revealed a deeply disturbing misuse of public funds. Instead of investing in machinery, land, or factory infrastructure, Balaba reportedly diverted the entire Shs 24 billion toward personal real estate acquisitions, including high-end residential properties in upscale Kampala suburbs.

“No factory, no output—just mansions. This is economic sabotage,” the Anti-Corruption Coalition Uganda (ACCU) decried in a strongly worded statement. They called the incident a “betrayal of national interests” and demanded immediate accountability and prosecution.

Sources indicate that Balaba used the funds to acquire multiple properties under proxies, some of which have already been traced to his immediate family and shell companies registered in their names. The buildings, including luxury villas and apartments, now dot the city skyline as glaring monuments to unchecked greed.

A Culture of Immunity?

What’s particularly troubling about the Balaba saga is the perceived shield of political protection. His proximity to State House, coupled with a history of landing government tenders, has raised red flags among civil society groups. There’s an overwhelming fear that the case, like many others involving politically connected individuals, will gather dust in file cabinets while the nation bleeds.

According to a source within the Office of the Auditor General, this is not Balaba’s first brush with public funds. He has previously been linked to shady land compensation deals and has allegedly benefitted from inflated government contracts.

“Uganda continues to suffer not because of a lack of resources, but because of deliberate theft by elites who treat national coffers like personal bank accounts,” said one anonymous procurement officer familiar with the case.

The Cost of Corruption

The Shs 24 billion meant for the leather processing plant was not just money; it represented hope for thousands of Ugandan youth seeking employment, relief for farmers looking for better prices for hides and skins, and growth for a country striving to industrialize.

According to Uganda Bureau of Statistics (UBOS), Uganda exports raw hides worth approximately $60 million annually, most of which is sold cheaply to foreign markets due to lack of processing capacity. With a well-functioning leather plant, the country could have earned over $200 million annually in value-added exports, boosting foreign exchange and creating over 5,000 direct jobs.

But now, that dream is in ruins.

Civil society organizations, members of Parliament, and activists have called on the Office of the Inspector General of Government (IGG), the Directorate of Public Prosecutions (DPP), and the State House Anti-Corruption Unit to swiftly investigate and prosecute Basajja Balaba.

“We cannot allow a few individuals to strangle this country’s future. The Balaba case must become a turning point,” said Cissy Kagaba, Executive Director of ACCU.

MPs from the Public Accounts Committee (PAC) have promised to summon officials from the Ministry of Trade and Finance to explain how the funds were disbursed without proper accountability mechanisms. Meanwhile, youth activists have taken to social media, launching the hashtag #WhereIsTheLeatherFactory to demand transparency.

Ugandans have grown weary of headlines detailing corruption scandals involving billions of shillings—scandals that rarely result in justice. But the Balaba leather factory fraud cuts especially deep because it embodies the systematic betrayal of development ideals.

For a nation dreaming of middle-income status, each misappropriated project delays progress by years. It is a collective loss, and a moral failing by those sworn to serve.

Until those responsible are held to account—no matter their connections—the promise of industrial transformation will remain just that: a promise.


Editor’s Note: We will continue to follow this story closely, providing updates on any investigations, arrests, or recoveries. Citizens are encouraged to speak up and demand action from their leaders. Accountability is not a privilege—it is a right.

https://hoimapost.co.ug/ugandas-stolen-billions-basajja-balabas-24-billion-leather-factory-fraud/
https://hoimapost.co.ug/ugandas-stolen-billions-basajja-balabas-24-billion-leather-factory-fraud/ , hoimapost.co.ug
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A Over Shs 24 billion Highway to Fraud » The Hoima Post –

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ROMISE: A modern, tarmacked road linking Mukono to Katosi in central Uganda, improving access and accelerating development.
REALITY: A maze of fake companies, forged documents, and missing billions.

AMOUNT LOST: Over Shs 24 billion
IMPLICATED: Abubaker Technical Services (a ghost contractor), Dan Alinange (then UNRA spokesperson), senior officials in the Ministry of Works and Transport


The Dream: Infrastructure That Connects, Develops, and Delivers

The Katosi-Mukono-Nyenga Road was touted as one of Uganda’s critical infrastructure projects—a 74-kilometre lifeline that would link rural communities along Lake Victoria to urban centers and markets. Once constructed, it would ease transport bottlenecks, improve agricultural trade, and shorten travel time between Mukono and Buikwe districts.

In 2013, the government of Uganda—through the Uganda National Roads Authority (UNRA)—announced a Shs 165 billion contract for the road’s construction. The contractor? A little-known firm named Eutaw Construction Company, allegedly from the United States, working in partnership with Abubaker Technical Services and General Supplies, a local firm.

But from the outset, red flags waved in broad daylight.


The Reality: A Highway to Nowhere

The first sign of trouble came when Eutaw Construction Company, the “lead contractor,” was discovered to not exist in any official registry of the United States. UNRA had claimed that Eutaw was selected after a competitive procurement process, beating out several established firms. But investigations later revealed that Eutaw was a phantom company, used as a front by Ugandan operatives to siphon off public funds.

Even more baffling was that Abubaker Technical Services, the local subcontractor, had no previous road construction credentials of the magnitude needed for a project of this scale—and was, in fact, not officially registered at the time of contract award.

Despite these glaring anomalies, Shs 24 billion was immediately advanced to the so-called contractors—ostensibly as mobilization fees. Within weeks, the money was gone, and the road remained untouched.


The Role of UNRA: Complicity or Incompetence?

The scandal implicates several senior figures at UNRA. At the center was Dan Alinange, the UNRA spokesperson at the time, who consistently defended the integrity of the project in public briefings. Alinange and other officials maintained that due diligence had been done and that Eutaw was “fully verified.”

But a 2015 probe by the Inspectorate of Government (IGG) found otherwise. The report revealed that UNRA deliberately ignored multiple warnings from internal auditors and whistleblowers who questioned the legitimacy of Eutaw and Abubaker Technical Services.

The report also showed that certain individuals within UNRA approved advance payments in record time—without verifying the contractor’s physical address, financial records, or previous work experience.


A Timeline of Fraud

  • 2013: Eutaw Construction Company awarded contract to build the 74km Mukono-Katosi-Nyenga Road.

  • Early 2014: Shs 24 billion paid upfront to Eutaw (later traced to Abubaker accounts).

  • Mid 2014: Site inspection reveals slow progress and lack of heavy machinery.

  • Late 2014: IGG launches investigation after whistleblower tips off Parliament.

  • 2015: Government admits Eutaw does not exist and cancels the contract.

  • 2016–2017: Project re-awarded to China Railway Group Limited; works begin afresh.


The Fallout: Who Paid the Price?

Despite the scandal’s magnitude, accountability was selective and minimal. A few low-level officials were suspended, and the contract was terminated—but no high-ranking official, including Dan Alinange, faced prosecution.

Instead, the government quietly re-awarded the project to China Railway Group Limited, which eventually completed the road in 2019. The loss of Shs 24 billion was absorbed by taxpayers. No funds were recovered from Eutaw or Abubaker.

The scandal revealed deep institutional weaknesses in procurement, internal audit bypasses, and executive protection of those involved. While the road was eventually completed, it came at double the original cost and after significant delays.


Public Outrage and Institutional Shame

The Anti-Corruption Coalition Uganda (ACCU) and other civil society organizations labeled the Katosi scandal as “a monument to impunity.” The matter was also discussed in Parliament, with MPs demanding a full audit of UNRA’s operations. However, the debate fizzled out without tangible results.

The Katosi project also triggered a broader investigation into UNRA’s procurement record, revealing over 20 ghost contractors, inflated contracts, and billions of shillings lost between 2009 and 2015.


A Pattern of Plunder

The Katosi Road scandal is not just an isolated case—it is part of a broader, systemic pattern where infrastructure projects in Uganda become vehicles for corruption. Whether it’s ghost schools, fake health centers, or vanished road contractors, public investment often ends up in private bank accounts.

In a nation where roads are lifelines, the theft of road funds is not just financial corruption—it is a theft of opportunity, a theft of development, and in many cases, a theft of life as citizens die from lack of access to emergency services due to poor road networks.


The People’s Verdict

Today, commuters drive along the completed Mukono-Katosi road unaware that it sits atop a scandal that robbed Ugandans of more than money. It robbed them of trust. It sent a clear message: in Uganda, promises are made for plunder, not progress.


Quote of the Scandal:

“We thought we were building a highway to prosperity. Instead, we built a tunnel for thieves.” — Local council leader in Mukono District


Editor’s Note:
This exposé is part of our “Roads to Ruin” series, tracking Uganda’s most scandalous infrastructure failures. If you have tips or evidence related to this story, contact our investigative desk

https://hoimapost.co.ug/ugandas-stolen-billions-the-katosi-road-project-scandal-a-over-shs-24-billion-highway-to-fraud/
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