PAC questions UGX 723 billion investment in Dei-Biopharma valued at just UGX 2 billion
The Auditor General, Edward Akol, confirmed critical lapses in due diligence. His report established that there was no valuation report to ascertain the net worth of the company prior to the government's investment.
Uganda’s Public Accounts Committee (PAC) has raised serious concerns over the government’s decision to inject over UGX 723.4 Billion into Dei-Biopharma Ltd without conducting a prior valuation, only to discover later that the company’s net worth stands at a mere UGX 2,057,466,404 (approximately UGX 2.057 Billion). This substantial investment has secured the government a minority shareholding of just 9.4%.
The alarming revelation came to light during a plenary sitting on September 9, 2025, as the PAC considered the Auditor General’s Report on the Consolidated Financial Statement of Government and Treasury Operations for June 2024.
Muwanga Kivumbi, the Member of Parliament for Butambala County and a member of the PAC, spearheaded the questioning. “It defeats investment logic for the government to invest over UGX 723.4 Billion in a company valued at UGX 2 Billion only to get minority shareholding of only 9.4%,” Kivumbi stated emphatically.
He further elaborated on the committee’s findings: “Later on, in the interaction of the Committee, we discovered that the net worth of the company was only UGX 2 Billion, then you government of Uganda, generous as you are, you invest UGX 723 Billion in a company worth UGX 2 Billion and you get a shareholding worth 9.4%, not anywhere in the logic of finance does that work.”
The government’s financial support for Dei-Biopharma Ltd has accumulated over time. In April 2024, Parliament approved a supplementary budget of UGX 1.106 Trillion, of which UGX 578.4 Billion was earmarked to support Dei-Biopharma Ltd in meeting its debt obligations and operational requirements. This followed an initial investment of UGX 70 Billion in the FY23/24 budget, and a further UGX 75 Billion added in December 2023, bringing the total cumulative investment to UGX 723.4 Billion.
The Auditor General, Edward Akol, confirmed critical lapses in due diligence. His report established that there was no valuation report to ascertain the net worth of the company prior to the government’s investment. Attempts by auditors to obtain crucial documents to facilitate their audit were reportedly curtailed by the government’s refusal to hand over the information.
Kivumbi highlighted the Auditor General’s findings: “There was no valuation report to establish the net worth of the company in which the government was investing and as such, Audit couldn’t confirm whether the government received shares worth the value… The Auditor General was not provided with the shareholder’s agreement by the company of the government’s investment in the company. The government is yet to receive the share certificate of the company.”
He added, “There was no due diligence and feasibility study done by Ministry of Finance to guide the government decision to invest in the company. It is no wonder the government invested UGX 723.4 Billion in a company valued at UGX 2 Billion. The Accounting Officer flouted Section 37(1)(c) of the Audit Act by denying the auditor general information.”
Timothy Chemonges, Executive Director for the Centre for Policy Analysis (CEPA), castigated the government for the secrecy surrounding the Dei-Biopharma Ltd investment. He argued that this greatly undermines public trust and Parliament’s constitutional duty to oversee the use of public funds.
“When decisions of this magnitude are reached at behind closed doors and taxpayers are left out in the dark, definitely you see that Parliament risks being a mere rubber stamp of the Executive,” Chemonges stated. “Ugandans deserve to know how and why bailouts were approved, and Parliament must demand full disclosure and accountability to protect public resources and restore confidence in government spending.”
In light of these findings, the PAC made several recommendations. They called for the Secretary to Treasury, Ramathan Ggoobi, to be held liable for allegedly flouting Section 37(7)(c) of the National Audit Act. The committee also urged the Ministry of Finance to engage the Attorney General, Kiwanuka Kiryowa, and Dei-Biopharma Ltd, to ensure that the purchase agreement and share certificates are promptly submitted to the Ministry to mitigate any potential legal risks.
In response to the committee, the Ministry of Finance informed the PAC that as of July 23, 2024, the company was indeed valued at UGX 2,057,466,404. The Ministry further stated that the share certificates would be issued once the Articles of Association have been amended to include the 9.4% of shares allotted to the Government.
