Govt loses Sh865 billion as financial indiscipline soars

Kampala, Uganda | THE INDEPENDENT | Financial indiscipline by government ministries, departments and agencies led to a loss of sh 864.8 billion in the year ending December 31, 2018, according to a new audit report released by the Auditor General John Muwanga today.

The Auditor General says that as a result of inadequate financial controls, a number of government agencies are overriding financial controls resulting in mischarging of expenditure, wasteful expenditure, and payments for undisclosed domestic arrears, among others. He presented the report to the Speaker of Parliament, Rebecca Kadaga.

A total of sh 396.8 billion was lost through financial mischarge, sh 66.9 billion is recorded as wasteful expenditure, sh 377.1 billion was spent on undisclosed domestic arrears and sh21.7 billion remains unaccounted for.

The Auditor General cites a case in Apac district where sh 2.3 billion was paid out to six district officials without any supporting documents or details on the Integrated Financial Management System payment file to indicate the purpose for the payments.

The audit report also reveals that by December 31, 2018, ministries, departments and agencies (MDAs) and Local Governments had not paid out sh 65.6 billion in Pension and gratuity arrears despite the funds being released by the Finance Ministry.

He observes that instead, the funds were returned to the Consolidated Fund posing an implication that the pensioners are non-existent or that the departments and Local Governments are denying beneficiaries their benefits.

The Auditor General also faulted the government for failing to collect sh 20.6 billion it was awarded, after winning different court cases as at June 30, 2018.

Speaker @RebeccaKadaga
is concerned about the rising levels of public debt, which now stands at 41% of the GDP, according to a report from the Office of the Auditor General.Kadaga was particularly concerned about 50% of the loans that are expiring in 2020. pic.twitter.com/PeVXRT6n0j

— Parliament of Uganda (@Parliament_Ug) January 4, 2019

He further notes that the government accumulated liabilities amounting to sh 655 billion in respect of unsettled court awards and that as a result of non-payment of these liabilities, some cases had accumulated interest amounting to sh 124 billion for close to 10 years.

“During the year under review, I noted that a sum of 15.8 billion was garnished from three government agency accounts resulting from court judgment to creditors. This leads to the suspension of rights to withdraw funds from the affected accounts, thus delaying government projects or activities,” Muwanga said.

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