
By Sadique Bamwita
Entebbe
A confidential audit report has exposed conflict of interest scandal at Uganda Airlines, revealing how travel agencies linked to a senior airline official allegedly channelled almost all sales of the carrier’s cheapest tickets, earning close to Shs9.8 billion in the past three years.
The Auditor General’s Special Audit Report on Revenue Management and Aviation Fuel Management for FY 2021/22–2023/24, indicates that Mrs. Doreen Nambatya Mulindwa, the airline’s Fares and Distribution Executive, failed to disclose her direct ties to Nyanza Tours & Travel, a leading agent in the sales of discounted fares.

Nambatya is married to Mr. Stanley Mulindwa Matembe, the agency’s proprietor, and she formerly worked with the firm before joining Uganda Airlines in 2019.
“The failure to declare such a material conflict undermines transparency and creates the potential for preferential treatment,” the report reveals, highlighting a violation of the airline’s own Conflict of Interest Policy.
Domination of Discounted ticket Fares:
Audit findings indicate that Nyanza Tours & Travel and its affiliate, Nyanza Tours and Tours 2, virtually dominated ticketing in the lowest economy classes.
The two agencies together sold 13,000 tickets, commanding 92.3% of all X-Class (deeply discounted economy) and 72.1% of all Q-Class (discounted economy) allocations.
Nyanza Tours & Travel: 7,393 tickets issued, controlling 57.9% of X-Class and 30.86% of Q-class. Nyanza Tours and Tours: 5,606 tickets issued, controlling 34.39% of X-Class and 41.28% of Q-Class.
In comparison, all other accredited agents combined accounted for less than 8% of X-Class and just 28% of Q-Class tickets.
“The disproportionate allocation of discounted fares to Nyanza Tours & Travel and its affiliate has raised serious concerns about fairness, transparency and accountability in fare distribution,” the report concluded.
Meanwhile, the two agencies jointly generated Shs 2.7 billion in FY 2021/22, Shs 3.2 billion in FY 2022/23, and Shs3.9 billion in FY 2023/24, bringing their cumulative sales to Shs 9.8 billion (about USD 2.6 million). In some years, they outperformed all other agents combined in discounted ticket sales.

Airline’s Response:
In reaction, Uganda Airlines maintained that discounted tickets are distributed fairly through global distribution systems accessible to all agents.
Management further attributes Nyanza’s dominance to its clientele base, particularly “price-sensitive traders and transporters.”
However, the airline conceded weaknesses in its disclosure mechanisms and pledged to introduce annual conflict-of interest declarations for staff in sensitive roles.
On the other hand, the Auditor General recommended the establishment of a fare allocation monitoring framework to track agent-level sales, identify anomalies, and enforce strict accountability.

Governance Concerns
The findings come at a time when Uganda Airlines is already under parliamentary and public scrutiny over alleged irregularities in aircraft procurement, leasing arrangements, and fuel supply contracts.
For aviation analysts, the audit highlights a serious governance gap.
“When one family-linked agency is allowed to corner 92% of the cheapest tickets, it stops being competition. It becomes capture,” An expert expressed concern.
The auditors further warned that Uganda Airlines’ credibility risks being eroded unless corrective measures — including disciplinary action for failure to disclose conflicts are urgently implemented.