The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Secretary to Treasury Keith Muhakanzi says that mischarge of expenditure is partly caused by insufficient funding for expenditure on different activities.
This is carried in his written response to Parliament’s Public Accounts Committee (PAC)- Central Government in regard to the audit report on the Consolidated Government of Uganda financial statements for the financial year ended 30th June 2018.
According to Auditor General John Muwanga’s audit report, a review of expenditures revealed that entities charged wrong expenditure codes to the tune of Shillings 369.8 billion, a practice he said leads to financial misreporting.
“Besides, this practice undermines the budgeting process and the intentions of the appropriating authority as funds are not fully utilized for the intended purposes,” reads the audit report for financial year ended 30th June 2018.
In his response accessed by URN, Muhakanizi says that a review of the mischargeof expenditure indicates that 85 percent of these was under the Uganda National Roads Authority (UNRA) as a result of insufficient funding for expenditure on roads to prevent contract penalty.
“Funds for one road project were utilized to finance another road project due to delayed execution bottlenecks with the clearance of Ministry of Finance. The Judiciary mischarge constitutes 10 percent and this is under investigation by the Inspector General of Government (IGG). For others, the respective Accounting Officers were directed to show cause why they should not be personally held responsible,” says Muhakanizi who also doubles as Permanent Secretary in the Ministry of Finance.
Letters seen by URN indicate that the Deputy Secretary to Treasury, Patrick Ocailap wrote to the then Accounting Officer Courts of Judicature Kagole Kivumbi on 28th January, 2019 to explain a mischarge of expenditure amounting to Shillings 34.076 billion, ineligible expenditure incurred on Registrar High Court Account 3.39 billion and accrued rent mis-statement of 2.78 billion.
In another letter dated 22nd November, 2018, Muhakanizi demanded an explanation from the Accounting Officer Ministry of Agriculture, Animal Industry and Fisheries concerning a mischarge of 2.18 billion, unaccounted for funds of 422 million, 196.8 million doubtful expenditure and 281.4 million domestic arrears.
“Please note that according to Section 79 of the Public Finance Management Act (PFMA), you commit an offence if you fail to provide the information to me as required and I may recommend penalties and surcharges against you in addition to other administrative sanctions,” wrote Muhakanzi.
The Secretary to Treasury is expected to provide more explanation to the committee chaired by Budadiri West MP Nathan Nandala Mafabi on Tuesday and any action that has been taken.
Meanwhile, in his response concerning expenditure on undisclosed domestic arrears amounting to Shillings 377.1 billion, Muhakanizi says that votes had misinterpretation basing on the budget execution circular regarding payment of any outstanding obligations taking a first call on their budgets.
“However, the Circular required all Accounting Officers to comply with the overall Legal framework of budgeting and budget execution but not to hide information. Accounting Officers should take responsibility for their actions and have been requested to adjust their records accordingly whenever such obligations are discovered,” said Muhakanizi.
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