The Government has moved to write off Shs2.2974 billion in Annual Mineral Rent arrears owed by Kilembe Mines Limited, with the proposal now before Parliament for approval.
The arrears accumulated between 2018 and 2024 and constitute non-tax revenue owed to Government by the mining company.
The request was presented to the Parliamentary Committee on Finance, Planning and Economic Development on Thursday by State Minister for Finance (Planning) Amos Lugoloobi, who appeared before the committee alongside technical officials.
Lugoloobi said the proposed write-off follows a recommendation by the Auditor General in the audit report on the Ministry of Energy and Mineral Development for the year ended December 2024.
“The Auditor General’s report on the Ministry of Energy and Mineral Development for the audit year ended December 2024 recommended the write-off of the outstanding Annual Mineral Rent arrears amounting to UGX 2,297,400,000,” Lugoloobi told the committee.
He said the Ministry of Energy and Mineral Development subsequently requested the Ministry of Finance to write off the outstanding amount owed by Kilembe Mines.
Lugoloobi explained that the process requires Parliament’s approval under Section 33(1) of the Public Finance Management Act, Cap. 171.
The law requires the Minister of Finance to seek Parliament’s approval before Government can abandon or remit a claim or write off a loss or deficiency in public money or public resources.
“The request to write off Kilembe Mines debt has therefore been presented to you Hon Chair and members in this committee in accordance with the provisions of the Public Finance Management Act for your consideration,” he said.
The Finance Committee will scrutinise the request before making its recommendations to Parliament.
The proposed write-off concerns Annual Mineral Rent arrears accumulated over six years, as Government considers clearing the outstanding claim against Kilembe Mines.
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