Kilembe Investments Limited Posts UGX 1Billion Loss

5425 Views Kasese, Uganda

In short
According to the report, the overbilling occurred at the Kikorongo transmission meter along the Kasese-Mbarara road.

Kilembe Investments Limited in Kasese district suffered a loss over 1 billion shillings in the 2012-2013 financial year due to overbilling by Uganda Electricity Transmission Company Limited-UETCL, a financial audit has revealed. Kilembe Investments limited buys electricity from UETCL, which it then sells to consumers in Kasese, Rubirizi, Mitoma, Kamwenge and parts of Kyenjojo districts.
 
The audit report was tabled before shareholders during the company’s annual general meeting at Verina Garden’s hotel in Kasese town on Wednesday.  According to the report, the overbilling occurred at the Kikorongo transmission meter along the Kasese-Mbarara road. While presenting the report, Xavier Marusi, an auditor with Yombo associates said the loss was verified by a joint investigation team comprising of engineers from the Rural Electrification Agency-REA, Kilembe Investments Ltd, UMEME and Uganda Electricity Transmission Company Limited-UETCL.

He also disclosed that Kilembe Investments Limited owes Uganda Electricity Transmission Company limited 1.3 billion shillings in power sales. Godwin Thembo Mujungu, the managing director Kilembe Investments Limited told the shareholders that the Electricity Regulation Authority has instructed UETCL to issue a credit note to Kilembe Investments limited to cover for the loss. He said once the credit note is honored by UETCL, Kilembe Investments Limited would post profits of over 1 billion shillings.

However, some of the shareholders wondered whether the company was making any profits given the losses. The shareholders have not received any dividends on their shares over a period on nine years. Kaso Bwambale, the company lawyer told the shareholders that the regulations governing the company only allow paying out dividends when the company posts profits.