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Kampala — What began as a bold presidential dream to transform Uganda’s beloved matooke into a global industrial product is now under intense scrutiny after a damning audit exposed management gaps, delays, financial losses and billions lying idle at the country’s flagship banana industrialisation project.
A fresh report from the Office of the Auditor General of Uganda has raised serious concerns about operations at the Banana Industrial Research and Development Centre (BIRDC), formerly known as the Presidential Initiative on Banana Industrial Development (PIBID).
The project, launched in 2005 to spearhead value addition in Uganda’s massive banana sector, was meant to revolutionise rural livelihoods by processing matooke into high-value products such as TOOKE® flour for both local and international markets.
But the latest audit suggests the initiative is struggling with deep management challenges — leaving observers wondering whether the banana dream is slipping through the fingers of those tasked with running it.
At the centre of the storm is Florence Isabirye Muranga, the Director General of BIRDC and the public face of the initiative.
The Auditor General’s report paints a troubling picture of an organisation battling financial strain, slow project implementation and questionable administrative practices despite receiving billions in government funding.
According to the audit, the company had accumulated UGX 5.52 billion in payables, with trade payables alone skyrocketing by 167 percent as of June 30, 2025.
Financial experts say such a dramatic increase in unpaid obligations is often a warning sign that an institution may be struggling to manage its financial commitments.
The audit further revealed that the Centre submitted its financial statements to the Auditor General three months after the statutory deadline, and shockingly, the documents were not signed by either the Director or the Board.
This lapse has raised eyebrows among governance experts who say such oversight raises serious questions about accountability structures within the organisation.
“It is basic corporate governance that financial statements must be approved and signed by responsible authorities,” a governance analyst told RedPepper.
“When that does not happen, it undermines confidence in the institution’s financial management.”
Even more alarming is the revelation that the company operates without a formal operations or financial management manual to guide its activities.
In simple terms, auditors say there are no clear internal policies directing how the organisation should manage its operations and finances.
Experts warn that such a gap exposes the institution to serious risks including financial mismanagement and weak internal controls.
The audit also uncovered compliance failures that could potentially attract regulatory penalties.
The company reportedly failed to file annual statutory returns with the Uganda Registration Services Bureau (URSB), a legal requirement for registered entities.
Such failure could expose the company to fines, penalties or even the risk of deregistration.
Meanwhile, procurement processes within the organisation appear to be painfully slow.
Auditors found that seven procurement processes worth UGX 2.82 billion took more than a year from initiation to contract signing, delaying the implementation of key initiatives meant to drive banana industrialisation.
Without proper planning mechanisms, oversight of contracts also appears weak.
The report notes that contract management plans were not prepared, meaning there was limited monitoring of how contracts were being executed.
Observers say this kind of gap can easily lead to cost overruns, delays and poor project delivery.
Financially, the Centre’s performance also raises concern.
The audit shows that the company recorded a net operating loss of UGX 3.84 billion during the financial year, largely attributed to rising interim production costs.
Yet despite these losses, the organisation received significant public funding.
During the 2024/2025 financial year, the government appropriated UGX 49.62 billion to support its operations.
However, the audit revealed that out of the UGX 63.16 billion total funds available, the company only managed to utilise UGX 33.37 billion — representing just 52.8 percent of the available resources.
In other words, nearly half the funds available to drive banana industrialisation remained unused.
Experts say this raises serious questions about planning and absorption capacity within the organisation.
“If you cannot spend allocated funds effectively, it suggests deeper planning and management weaknesses,” one economic analyst said.
The audit also examined the Centre’s actual project implementation performance.
Out of five key outputs involving 34 activities worth UGX 57.46 billion, auditors found that all five outputs were only partially implemented.
This means the majority of planned activities under the banana industrialisation programme were not fully delivered.
Perhaps the most striking revelation relates to sales performance.
The Centre had projected UGX 12 billion in TOOKE product sales for the year.
But by the end of the financial period, actual sales amounted to only UGX 3.52 billion, leaving UGX 8.48 billion uncollected.
This translates into just 29 percent performance against the sales target.
For a project designed to transform bananas into profitable industrial products, such figures raise uncomfortable questions about market strategy, production capacity and commercial viability.
The audit also found that the National Development Plan III allocation to the initiative was underfunded by 12 percent, affecting implementation of key activities and limiting the Centre’s ability to achieve its strategic goals.
Project delays appear to be another major problem.
Three projects worth UGX 1.785 billion experienced delays averaging three months beyond their expected completion dates, slowing down the attainment of key programme objectives.
Even more concerning is that three completed projects worth UGX 6.17 billion were found to be non-functional despite being finished.
Auditors say this points to inadequate planning, meaning resources were tied up in projects that are not delivering value.
“These investments remain idle when they should be driving productivity and innovation,” the report notes.
Internally, the organisation still relies on manual systems for recording revenues, expenditures, assets and liabilities, a practice auditors say is inefficient and prone to errors in a modern financial environment.
Such outdated systems also make it harder to maintain accurate financial records and ensure transparency.
The Auditor General nevertheless issued an unqualified opinion on the financial statements, meaning they were broadly presented fairly.
But the detailed findings suggest that significant management and operational improvements are urgently needed.
For many observers, the revelations are troubling because the banana initiative was designed to be a flagship model for agro-industrialisation in Uganda.
With millions of Ugandans depending on banana farming for their livelihoods, the stakes are enormous.
If effectively managed, value addition through initiatives like BIRDC could transform the country’s agriculture sector, create jobs and expand export markets.
But if mismanaged, critics warn the initiative risks becoming yet another expensive government project that fails to deliver its full potential.
As pressure mounts for answers, attention is now turning to the leadership of the Centre.
Director General Florence Isabirye Muranga has long championed the project as a transformative innovation for Uganda’s agricultural sector.
Yet the Auditor General’s findings now place the spotlight squarely on the institution’s management structures and operational systems.
Whether the issues identified will trigger reforms or simply become another audit report gathering dust remains to be seen.
For now, however, the banana industrialisation dream appears to be facing one of its most serious tests yet — and the question many are asking is whether those in charge can turn the tide before the Tooke revolution goes bananas.
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