The Public Accounts Committee (PAC-Central Government) has called on the Ministry of Works and Transport to designate a central facility to securely keep vehicles awaiting disposal by ministries, departments and agencies.
This facility, the committee said, would prevent the loss of vehicle parts and the deterioration of government assets which are currently kept in private garages.
The proposal followed revelations that the Office of the President recorded losses amounting to Shs716 million arising from disposal of assets including vehicles.
The committee gave the recommendation while considering the Auditor General’s Report of the Office of the President for the Financial Year 2024/2025 on Wednesday, 14 October 2026. Officials from the office were led by the Secretary, Haji Yunus Kakande.
Hon. James Waluswaka (NRM, Bunyole West County) attributed some of the losses to the practice of keeping government vehicles awaiting disposal in privately owned garages, where they are not adequately monitored.
“As a result, some parts are exchanged while others get lost, and this contributes to depreciation,” he said.
He proposed that the government should utilise its land in Kyambogo to establish a central yard where all public institutions can keep vehicles earmarked for disposal.
Waluswaka, warned that disposal processes were vulnerable to manipulation. He cited a common practice where vehicles with good resale value are undervalued and sold to individuals connected to the disposing entity, while high reserve prices are placed on dilapidated vehicles.
PAC also questioned why the Office of the President retained 11 vehicles that had been approved for disposal, reportedly because their reserve price - the minimum amount the government is willing to accept, was unfavorable.
“You disposed of some vehicles and chose to keep others. What was that high reserve price that discouraged buyers and why do you continue keeping assets that are due for disposal?” asked Hon. Patrick Nsamba, the committee chairperson.
MPs also faulted the Office of the President over discrepancies in the valuation of its non-current assets. The Auditor General found that the office had valued the assets at Shs4 billion, while an external valuation by the Accountant General placed their value at Shs9 billion.
“We are aware of the challenges associated with the valuation of assets, but you should at least use the market value for non-current assets. Otherwise you risk distorting depreciation value,” said Hon. Ferigo Kambale (NRM, Kasese Munic.).
The Assistant Commissioner in charge of Accounts, Julius Kakoraho, attempted to explain the disparity in the valuation figures, but his response did not satisfy the committee.
Nsamba consequently directed the Office of the President to accurately report the depreciation and valuation of its assets in its books of accounts.
