Uganda’s anti-corruption agencies have stepped up oversight of public infrastructure projects, with a fresh investigation into a disputed UGX 1.5 billion payment in Arua City highlighting renewed efforts to safeguard government and donor-funded resources.
The investigation is being conducted jointly by the State House Anti-Corruption Unit and the Inspectorate of Government (IG), following allegations surrounding a payment recommended under the Uganda Support to Municipal Infrastructure Development Additional Financing (USMID-AF) programme.
The inquiry was triggered after the Head of the State House Anti-Corruption Unit, Brigadier General David Isoke, directed Arua City authorities to suspend the payment to China Railway Seventh Group Company Limited until investigators establish whether the claim is legitimate.
In a letter dated June 24, 2026, addressed to the Arua City Clerk, Brig. Gen. Isoke said the Unit had received information indicating that the city’s Executive Committee had endorsed payment of approximately UGX 1.5 billion to the contractor as an outstanding contractual obligation.
However, preliminary information available to investigators reportedly contradicted recommendations from the project’s Contracts Manager, who had indicated that the contractor was not entitled to the amount being claimed.
The Anti-Corruption Unit said the decision to halt the payment was intended to protect public funds while investigations are completed.
The disputed payment was approved during an extraordinary sitting of the Arua City Council, where councillors endorsed the release of UGX 1,596,590,518 to China Railway Seventh Group Company Limited for works carried out under the USMID-AF programme.
The contractor, which implemented World Bank-funded road, drainage and street infrastructure projects in Arua City beginning in 2022, maintains that it is owed outstanding payments inherited from the former Arua Municipal Council after the transition to city status.
A joint team of investigators from the State House Anti-Corruption Unit and the Inspectorate of Government has since commenced inquiries in Arua City. The team is expected to review project documentation, procurement records, payment approvals and contract management processes before determining whether the payment should proceed.
Several current and former city officials are expected to record statements during the investigation. They include former City Engineer and USMID-AF Project Manager Eng. Anthony Dradria, City Community Development Officer and USMID-AF Project Coordinator Judith Drate, City Clerk David Kyasanku, former Mayor Sam Nyakua and the current Mayor of Arua City, Lawrence Alionzi.
Mayor Alionzi confirmed that investigators are carrying out their work but urged residents to allow the process to proceed without interference, saying the findings should be left to the responsible institutions.
The Inspectorate of Government has also confirmed its involvement in the matter. According to the IG’s spokesperson, Munira Ali, the Ombudsman’s office received the complaint and has opened parallel investigations into the disputed payment.
The ongoing probe has reportedly heightened anxiety within the Arua City administration as officials await the outcome, with concerns that the investigation could affect implementation of ongoing infrastructure projects if financial irregularities are established.
Anti-corruption advocates say the investigation reflects growing government efforts to tighten accountability in large-scale infrastructure programmes financed through both public resources and development partners. They argue that ensuring proper verification of contractual claims before payments are made is essential for protecting taxpayers’ money and maintaining confidence in Uganda’s urban development initiatives.
One whistleblower familiar with the matter welcomed the investigations, expressing hope that they would deter abuse of public funds and reinforce accountability among leaders entrusted with implementing development projects.
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