In a development by the CEO, Tembo Steels Limited, a prominent steelmaker, has reached an out-of-court settlement with Uganda Railways Corporation (URC), paying UGX 520 million to resolve a lawsuit concerning the possession of stolen railway tracks valued at UGX 12.39 billion. The settlement comes after a raid conducted by URC and security agencies at Tembo Steels’ Lugazi and Iganga factories, which uncovered 1,946 railway materials.
According to the Auditor General’s report for 2021/22 on URC, the out-of-court settlement resulted in a loss of UGX 11.87 billion for the government, as the payment was significantly less than the value of the stolen materials. A similar case involving Tian Tang Steel, which was found with vandalized railway line, concluded with an out-of-court settlement of UGX 210 million, representing a loss of UGX 0.89 billion.
URC has attributed the prevalence of theft and vandalism of railway tracks to the complicity of steel companies, which provide a steady demand for stolen rail tracks despite clear markings indicating URC ownership. These stolen materials are melted down and repurposed for various steel by-products, feeding Uganda’s construction industry.
The theft and vandalism of railway tracks have not only resulted in substantial financial losses for URC, estimated at up to USD 100 million over the past decade, but have also impacted customers who face longer delivery periods due to repairs or accidents caused by broken lines. Although efforts to combat theft and vandalism saw a reduction in incidents in 2022, 2023 witnessed a resurgence, with losses totaling UGX 881 million in that year alone.
John Linnon Sengendo, the spokesman for URC, expressed concern over the lack of deterrence for thieves, noting that they continue to operate with impunity. He emphasized the broader societal impact, including increased insurance compensation for accidents and disruptions to clients’ operations.
The theft and vandalism extend beyond railway tracks to include road signs, guardrails, and other steel road furniture managed by the Uganda National Roads Authority (UNRA). Allan Ssempebwa Kyobe, the Manager of Media Relations at UNRA, highlighted ongoing efforts to address the issue, urging both the public and perpetrators to recognize the dangers posed by such activities.
Simon Kasyate, the publicist for Kampala Capital City Authority (KCCA), echoed these sentiments, lamenting the theft and vandalism of city infrastructure. He pointed to metal scrap buyers as facilitators of these illicit activities, underscoring the need for collective action to combat the problem.
