KAMPALA – The Auditor General, John Muwanga has named National Water and Sewerage Corporation (NWSC) as the most profitable public entity in Uganda.
The details are highlighted in the December 2019 audit report that was recently handed over to Speaker Rebecca Kadaga and formerly tabled before Parliament.
Muwanga noted that eighteen) out of the 26 State Enterprises analysed made profits in the year under review, with National Water and Sewerage Corporation (NWSC), Uganda Electricity Transmission Company Limited (UETCL) and Civil Aviation Authority (CAA) posting profits of Shs85.7bn, Shs64.6bn and Shs45.5bn respectively.
In comparison to the previous year, 13 enterprises posted improved (increased profits or reduced loss) performance, with Uganda Electricity Generation Company, Uganda Property Holding and Civil Aviation Authority registering over 300% percentage increase.
The report further noted that the Return on Assets (ROA) which shows the percentage of how profitable a company’s assets are generating revenue and measures management’s efficiency in using the enterprise’s assets to generate earnings.
Audits indicate that NEC Tractor Hire Scheme Limited, NEC Construction Works & Engineering Limited and Pride Micro Finance have persistently recorded impressive performance posting Return on Assets of 40.5%, 9.5% and 5.7%, respectively.
Majority of the enterprises are suboptimal and inefficient in utilising their assets. The worst performing Enterprises were NEC Tractor Project, Uganda Development Corporation and Kilembe Mines Limited.