The Ministry of Water and Setting has come beneath scrutiny by the Public Accounts Committee (Central Authorities) for failing to hunt parliamentary approval for an extra expenditure of Shs25.3 billion within the Strategic Cities Water Provide and Sanitation Undertaking.
Showing earlier than the committee chaired by Hon. Muwanga Kivumbi on Tuesday, 11 March 2024, ministry officers led by Everlasting Secretary Alfred Okot did not justify why they didn’t course of a supplementary finances request for the additional funds spent.
An audit for the 12 months ending December 2024 revealed that Shs25.3 billion was spent with out authorisation having been carried over from the earlier monetary 12 months.
The undertaking had an accepted exterior financing finances of Sh22.7 billion however Shs48.01 billion was remitted. The full out there funds for spending amounted to Shs58.1 billion.
The over-receipt of funds was attributed to direct funds by the donor to consultants and contractors as defined by the Accounting Officer.
The Undertaking Supervisor for Strategic Cities Water Provide and Sanitation, Felix Twinomucunguzi stated that the COVID-19 pandemic negatively impacted on each bodily and monetary efficiency resulting in delays in deliberate actions and budgets. In subsequent monetary years, undertaking actions have been expedited, leading to over-receipt on earlier finances allocations.
Nevertheless, Kivumbi dismissed the justification. “The regulation may be very clear; any extra expenditure outdoors the accepted finances should undergo a supplementary request to Parliament. But right here we’re, with an additional Shs25.3 billion spent with out approval. That’s unlawful and unconstitutional,” he stated.
Hon. Jessica Ababiku (NRM, Adjumani District Girl Consultant) questioned why the ministry did not disclose how exterior elements akin to COVID-19 and the Ukraine-Russia warfare impacted undertaking prices. “Why didn’t you avail all these nitty-gritties to the auditors?” she requested.
Twinomucunguzi admitted to inconsistencies within the expenditure breakdown, stating that the additional funds have been used for pre-contract actions together with compensation and logistical changes.
Nevertheless, MPs dismissed this clarification asserting that each one expenditures past the accepted finances required prior parliamentary authorisation.
Beneath Secretary, Emmanuel Mugunga tried to downplay the difficulty, arguing that the funds weren’t new however merely unspent sources from the earlier monetary 12 months. “This isn’t an extra useful resource; it’s merely cash that was not spent prior however is now out there,” he stated.
Nevertheless, Kivumbi dismissed the reason asserting that any unspent funds should be reallocated by way of a supplementary finances course of. “The Public Finance Administration Act is obvious; unspent funds don’t robotically roll over. You both embrace them within the subsequent finances cycle or course of a supplementary. Anything is against the law,” he stated.
The committee directed the ministry to offer a complete breakdown of the expenditure and formally clarify why a supplementary request was by no means made. Failure to conform might end in additional accountability measures towards the ministry officers chargeable for the monetary oversight.
In the meantime, concerning stalled initiatives, Twinomucunguzi said that COVID-19 and the Russia-Ukraine warfare had severely affected operations. The committee then tasked him to elucidate why some initiatives had not progressed. “Probably the most affected nations was China and India, which have been our major sources of supplies particularly metal pipes. The manufacturing strains have been curtailed,” he stated.
Distributed by APO Group on behalf of Parliament of the Republic of Uganda.
