The Office of the Auditor General (OAG) can only audit 4,500 out of 16,000 entities that fall within its mandate because of resource constraints, MPs have been told.
The revelation was made during a meeting with officials from the OAG and MPs on the Budget Committee chaired by Hon. Amos Kankunda, on Tuesday, 15 September 2026.
During the meeting, Assistant Auditor General, James Bantu, calmed the committee members, with assurances that they audit recoverable costs claimed by oil companies, amid concerns that the US$3.1 billion in claimed costs could significantly reduce Uganda’s future petroleum revenues.
“The Office of the Auditor General undertakes audits of the recoverable costs that are incurred by the companies contracted down in the Albertine,” Bantu said.
His assurance came after committee members questioned whether the Auditor General’s biannual audits of the Petroleum Fund also cover the costs being accumulated by oil companies and whether sufficient safeguards exist to prevent companies from inflating claims.
The issue was raised by Hon. Gyaviira Ssebina Lubowa, (NUP, Nyendo-Mukungwe Division) who pointed to a sharp increase in the recoverable cost figure reported by government.
Lubowa said the finance ministry had recently presented recoverable costs of about US$3.1 billion, compared with an earlier figure of about US$935 million that had remained largely unchanged in previous reports.
He asked the Auditor General to explain whether the figure had been audited and what it comprised.
Kankunda pressed Bantu for an explicit assurance, saying the committee needed confidence that Uganda's petroleum revenues would not be eroded by costs that may not be genuine.
“I would like you to put it on record how frequent do you audit them,” Kankunda said, asking the Auditor General to assure the committee that petroleum revenues would be protected from potentially inflated costs.
Bantu said oil companies submit annual cost compilations which the Auditor General reviews against existing laws and the contractual arrangements governing petroleum operations.
He explained that recoverable costs represent expenditure incurred by companies during exploration and drilling, which they expect to recover once petroleum revenues begin flowing.
The Auditor General's assurance comes as Parliament scrutinises Uganda's fiscal framework ahead of expected petroleum production and amid growing concern about how much of the country's future oil revenue will remain available to the national budget after allowable costs are recovered.
Hon. Lubowa noted that the US$3.1 billion recoverable cost figure translates into more than Shs11 trillion, while Uganda's projected oil contribution to the national budget for the current financial year is only about Shs1.4 trillion.
He asked the Auditor General to provide Parliament with its audit reports showing how the US$3.1 billion figure had been arrived at and what it contains.
The committee's wider engagement with the Auditor General focused on whether Uganda's Charter of Fiscal Responsibility can be effectively audited and whether Parliament receives sufficient information to track government performance against its fiscal commitments.
Bantu told the committee that all five objectives in the Charter including public debt, debt servicing, fiscal balance, expenditure and petroleum management are auditable and have already featured in previous audits.
He said the Auditor General's office has been re-computing fiscal indicators under previous Charters through audits of Treasury operations, government consolidated accounts and the Petroleum Fund.
Kankunda subsequently asked whether the Auditor General could produce an annual consolidated assessment showing government’s performance against each of the five objectives, including deviations and recommendations.
Bantu said the proposal was reasonable and that his office would consider producing a consolidated report on government’s compliance with the Charter, similar to thematic reports it has previously issued on areas such as domestic arrears, budget performance and the Parish Development Model.
“We can also issue a report summarising how government has performed in regard to the pronouncements in the Charter,” Bantu said.
Distributed by APO Group on behalf of Parliament of the Republic of Uganda.
