How Unaccounted for and Misappropriated Funds Landed Dr Byarugaba Baterana in Trouble

A total of UGX 28 billion has been recorded as unaccounted for and misappropriated funds at Mulago Hospital, Uganda’s national referral hospital which until end of February was run by Dr Byarugaba Baterana.

Dr Byarugaba has been at the helm of Mulago Hospital for the last 19 years, a position he was appointed to by President Yoweri Museveni.

The Health Monitoring Unit (HMU) under State House has been conducting an investigation since April 2021 into the conduct of the hospital’s Executive Director who also doubles as the Accounting Officer. The unit learnt that the accounting officer was running business in an unprofessional manner until staff and concerned parties tipped raised alarm.

In the preliminary investigative findings, it was established that over UGX 974 million could not be traced or accounted for since July 2019.

It was also found that two companies namely; MS Setramaco International Ltd and MS Convention World Ltd received UGX 20 billion from the hospital for running laundry machines, central sterile supply department, steam boilers among other things but these were paid with forged receipts and had duplicated activities and certificates.

As if that was not enough, there were suspicious procurement of medicines and other medical supplies. The hospital had paid first pharmacy over UGX 1.4 billion as payment for medicine procured and supplied under emergency orders. There were also untraceable supplies of about UGX 754 million to First Pharmacy in 14 different transactions. Another UGX 40 million was paid to the same pharmacy purportedly for the purchase of medical supplies which were never delivered to the hospital.

Both First Pharmacy and Ecopharm were found to be illegally operating in the premises of the hospital. Their tenancy agreements were poorly executed and were not approved by the respective government authorities. To make matters worse, they were operating without clearance from National Drug Authority licenses. The two pharmacies defaulted rent to a tune of UGX 135 million to the hospital.

The investigations are still on-going and once complete the parties involved will be arraigned in courts of law.

The health monitoring unit was established in 2009 by the directive of the president as a medicines/health services delivery unit under the State House to respond to the persistent outcry on the poor medicines and health services delivery in the country.