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Uganda Air Cargo Corporation (UACC), once envisioned as a strategic national aviation asset under the supervision of the Ministry of Defence and Veteran Affairs, is now at the centre of a storm after a damning Auditor General’s report exposed deep financial distress, stalled partnerships, grounded aircraft and a controversial foreign deal that appears to be going nowhere, RedPepper can report.
Founded in 1994 by an Act of Parliament, UACC was created to provide local, regional and international chartered cargo and passenger flight services. Today, instead of flying high, the corporation appears stuck on the runway — weighed down by ballooning receivables, rising payables, non-operational aircraft and a joint venture agreement that has failed to take off one year after signing.
The explosive findings reviewed by RedPepper come at a time when sister carrier Uganda Airlines is also battling turbulence, with its Chief Executive Jenifer Bamuturaki having been sacked and replaced by former Ethiopian Airlines chief executive Girma Wake as consultant and acting CEO as a search for a substantive CEO continues. Aviation insiders are now asking whether Uganda’s entire state aviation strategy is in crisis.
At UACC, the numbers paint a worrying picture. As of 30th June 2025, outstanding receivables stood at a staggering UGX 33.96 billion, representing a 63 percent increase from UGX 20.76 billion the previous year. Trade payables also shot up to UGX 9.26 billion, a 54 percent rise from UGX 6.03 billion. “How does a corporation supervised by Defence allow debtors to balloon like this?” an aviation expert RedPepper talked to asked. “Where is the financial discipline?”
The Auditor General further assessed the implementation of the 2024 Joint Venture Agreement between the Government of Uganda and Dubai-based Alpha MBM. One year later, both parties are yet to meet their obligations.
The foreign firm, Alpha MBM Aviation, is reportedly controlled by Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum, a member of the UAE royal family. The 2024 deal between the Ministry of Defence and Veteran Affairs and Alpha MBM was meant to recapitalise the dormant UACC, which had suffered years of inactivity due to inadequate funding.
The promise was bold: fleet expansion, third-party financial support, new lines of credit, sales and marketing campaigns, strategic partnerships, advanced technology systems, and crew training.
But the Auditor General found that none of these obligations had been fulfilled.
Fleet expansion is also still lacking. One Boeing 737-400 cargo plane was reportedly received from Alpha MBM. Six more aircraft were expected after signing a Memorandum of Understanding.
Third-party financing? Not delivered. Strategic partnerships? Absent. Technology upgrades? Nowhere. Training and development? Not done.
“Where is the capital injection we were promised?” a source close to the corporation asked. “Was this partnership properly vetted for capacity?”
Even more troubling, government obligations under the same agreement also remain unmet. The Government of Uganda is yet to provide an aircraft, land, a hangar, accommodation and logistical support to the flight crew, flagship route rights, and use of the UACC air services license as required under the Joint Venture Agreement.
In short, the deal appears somehow frozen mid-air.
Alpha MBM’s credibility is now under scrutiny. The firm is known as a helicopter Maintenance, Repair and Overhaul company in Dubai. Does it have the financial muscle and operational capacity to recapitalise a national cargo airline? Or was the government dazzled by a royal name?
The same Sheikh behind Alpha MBM is also leading a US$4 billion oil refinery project in Hoima District under Alpha MBM Investments, where the firm holds 60 percent and the Uganda National Oil Company holds 40 percent. But critics are now asking whether Uganda is putting too many eggs in one foreign basket.
Meanwhile, inside UACC, asset management is in shambles according to the Auditor General report. The corporation’s Return on Assets plummeted from negative 6 percent in 2023/24 to negative 22 percent in 2024/25. In financial terms, that is a crash landing. A ROA below 5 percent is considered inadequate. At negative 22 percent, UACC is among the worst-performing state enterprises in the country.
The Auditor General attributes this collapse to grounded and non-operational assets, including the Hercules L-100-30 aircraft whose repair and upgrade is expected to take 12 months. Other air assets are slated for disposal. “You cannot generate revenue from aircraft that don’t fly,” an official admitted. “We are bleeding value.”
The liquidity position also raises eyebrows. UACC posted an exceptionally high current ratio of 7:1. On paper, that suggests strength. In reality, it is tied up in unutilised committed funds and swelling receivables. The Accounting Officer explained that the high liquidity ratio was due to failure to utilise committed funds for avionic upgrades and the increase in receivables. In simple terms, money is sitting idle while operations stagnate.
Despite budgeting to earn UGX 18.63 billion from operating revenue and collect UGX 397.87 billion from approved government grants and debt collections, UACC only realised UGX 24.62 billion and UGX 12.42 billion respectively. The mismatch between projections and actual collections raises serious planning concerns.
Leadership now finds itself under the microscope.
Rtd Lt Gen Nakibus Lakara, the General Manager brought in after President Museveni sacked former GM Eng Frank Kyankya in 2020 and deployed the army to steady the corporation, is facing hard questions. Has militarising management delivered results? Or has the rot persisted under new uniforms?
Rtd Col Timothy Nabasa Kanyogonya serves as Corporation Secretary. Col Francis Makoha is Principal Director. Captain Anna Namugwere heads procurement. Captain Joseph Mugalya is Chief Pilot. Robert Murungi oversees security. Richard Sabwe heads internal audit. Igaga Nasir is in charge of marketing. Oyat Fred oversees safety. Rtd Col Andrew Michwa heads maintenance. Captain Godfrey Oketcho leads flight operations. Rtd Lt Col Lammilly Nobert Nyeko handles quality. Peace Lorika Ssonko is HRM/BA. David Fungo Wamai heads finance. The nine-member board is chaired by Captain Gad K Gasaatura, with former UIA ED Jolly Kaguhangire also sitting on it.
With such a heavy command structure, watchers are wondering why is performance deteriorating?
“Too many titles, too little output,” one insider quipped.
The Auditor General’s recommendation is clear: conduct detailed assessments of asset conditions, dispose of obsolete equipment, upgrade outdated systems and expedite projects stuck in development. But observers argue that recommendations alone are not enough.
Is it time to crack the whip?
Is Alpha MBM the right partner for Uganda? Does it truly have the financial depth to recapitalise UACC? Or should government reconsider and cut its losses before more time and taxpayer money are lost?
“Partnerships are about delivery,” an aviation sector analyst said. “If one year down the line both sides have failed to meet obligations, something is fundamentally wrong.”
For now, UACC remains grounded in controversy. Ballooning debts. Grounded aircraft. A stalled Dubai deal. Declining asset returns. And a leadership team under mounting pressure.
As one senior government source put it bluntly, “We cannot continue flying on promises. Either this corporation takes off properly, or we overhaul it completely.”
