Tourism Ministry On The Spot Over Shs13bn Flopped MTV Africa Awards

The Ministry of Tourism, Wildlife and Antiquities invested Shs13 billion to host the 2020 MTV Africa Music Awards (MAMA), but the government has been unable to recover Shs3.2 billion from the organizers following the event’s cancellation.

This information is detailed in the 2021/2022 Auditor General’s report, which revealed that the Ministry signed a Memorandum of Understanding with a foreign company on February 5, 2020, to facilitate Uganda’s hosting of the MTV Africa Music Awards scheduled for June 13, 2020.

According to the Auditor General, the government agreed to a sponsorship fee of Shs13 billion, disbursed in two installments: Shs10.4 billion paid on March 12, 2020, and Shs2.6 billion paid on January 19, 2021.

However, due to the onset of the COVID-19 pandemic in March 2020, the event could not be held as planned. In response, the Ministry revised the contract on November 9, 2020, allowing the event to take place virtually on February 20, 2021.

The situation was further complicated by a heightened electoral season, leading to the organizers announcing the cancellation of the awards ceremony on June 14, 2021.

An examination of the Ministry’s financial status indicated that the Ministry was entitled to recover Shs3.2 billion from the event organizers. This figure was based on preliminary findings from a private audit firm hired to assess the recoverability of funds following the termination of the agreement.

The Ministry of Tourism had requested the Auditor General to conduct a special audit to verify the recoverable amount, which was still in progress at the time of the report’s publication. The Office of the Auditor General advised the Ministry to ensure that once the special audit is completed, they follow up on the confirmed outstanding amount and take appropriate recovery actions.