The Managing Director, of National Enterprise Corporation (NEC), James Mugira has revealed that the Army has been able to offset the Shs28Bn losses it has made in the past 8 years and finally managed to make the Corporation profitable.
Mugira made the remarks while appearing before the Committee of Commissions, Statutory Authorities and State Enterprises COSASE), where he had led his team in responding to queries raised in the December 2023 Auditor General’s report.
According to the December 2023 Auditor General's report, NEC Luwero Industries Limited posted profits to the tune of UGX8Bn in 2022/23, up from UGX 7.88Bn recorded in 2o21/22, while NEC Construction Works & Engineering Limited in 2022/23 recorded profits worth Shs5Bn in 2022/23, up from UGX 4.35Bn in 2021/22.
The other subsidiary to post profits was NEC AGRO SMC Limited which recorded UGX 4Bn profits in 2022/23 from Shs1.64Bn in 2021/22, and although NEC Uzima Limited posted profits to the tune of UGX 160M, this was a drop from Shs190M in 2021/22.
However, the subsidiary recently won a lucrative deal being the supplier of water at Parliament, a move that will likely sour its profits.
“On the positive side, according to the Auditor General’s report, of 2023, four of the NEC Subsidiaries are among the 10 Government owned enterprises that made profits during the year under review.
As a corporation, throughout 7-8 years, we have been able to reverse and offset the accumulated loss of Shs28Bn, which we think is an achievement and consequently, we have started making some profits in the last two years,” remarks Mugira.
COSASE is continuing to scrutinize the December 2023, audit findings for National Enterprise Corporation (NEC).
The subsidiaries under scrutiny are; Katonga, Luwero Industries, and Uzima Water.
