Kampala: Uganda Airlines is embroiled in a new financial scandal after an audit revealed that more than Shs103 billion (approximately USD 27 million) in passenger ticket sales are unaccounted for in the airline’s bank accounts. The missing funds are linked to Passenger Name Record (PNR) transactions that were either not properly reconciled or not linked to deposits.

The PNR system, which connects each ticket sold to corresponding bank payments, showed thousands of instances where ticket sales appeared in the airline’s booking system but did not reflect in its financial records. Airline management acknowledged the discrepancies, citing challenges in reconciling PNR data with bank statements due to weak IT systems and understaffing. They pledged to strengthen internal controls and invest in a more robust revenue accounting system.

Critics, however, warn that repeated gaps in reconciliation could indicate deliberate loopholes that allow insiders or unscrupulous agents to siphon funds without detection. The audit also raised concerns about certain travel agencies potentially retaining customer funds instead of remitting them directly to the airline.

This scandal adds to Uganda Airlines’ series of financial controversies, including the Shs26 billion MixJet fuel issue and significant losses from bogus ticket refunds. Public calls for criminal investigations have intensified, with many demanding accountability for potential misappropriation of the missing funds.

Uganda Airlines, which has previously relied on taxpayer bailouts, now faces heightened scrutiny over its financial governance and operational practices.