Uganda Airlines has responded to a public dispute with its fuel supplier, MIXJET, over outstanding payments, revealing the issue stems from broader payment challenges affecting several government entities in the country.
The airline clarified on Monday that its outstanding balance to MIXJET stands at “approximately USD 8 million, not USD 10 million as reported” in local media.
The national carrier, which began its contract with MIXJET in 2019, stated it has already paid a substantial USD 140 million to the supplier.
According to Uganda Airlines, the delay in settling the remaining amount is due to its preference for verifying fuel usage through technical logs and fuel uplifts instead of relying solely on supplier invoices.
This approach, the airline asserts, is a measure against potential overcharges, as it has encountered instances of “inflated invoices, high market prices, erroneous charges, and over-invoicing” from MIXJET.
Uganda Airlines expressed dissatisfaction with MIXJET’s choice to publicise the dispute, describing the action as “unacceptable” and noting that airing grievances through the media undermines standard financial management practices meant to protect against inaccuracies.
The airline’s dispute highlights a growing issue within Uganda’s domestic economy, where government entities have reportedly delayed payments to various suppliers, accumulating significant arrears.
According to the Auditor General, Uganda’s domestic arrears rose from UGX 8 trillion in 2022 to over UGX 10 trillion in 2023. This burden affects sectors ranging from infrastructure and health to utilities and transportation, placing suppliers under financial strain and impacting service delivery.
In recent months, many suppliers have voiced frustration over delayed payments, arguing that these financial setbacks hinder their operations and disrupt cash flow. Such delays, they contend, are unsustainable for businesses reliant on consistent government contracts.
Despite these financial challenges, Uganda Airlines assured the public that its operations will “continue uninterrupted” and reiterated its commitment to reconciling all invoices accurately before settling the outstanding balance with MIXJET within a reasonable period.
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