PAC investigating police over expenditure on non-budgeted items

Kampala, Uganda| AFP |  THE INDEPENDENT |  Parliament’s Public Accounts Committee (PAC) is investigating the expenditure of 24.4 billion shillings by the Uganda Police Force on non-budgeted items contrary to the Public Finance Management Act. 

The matter stems from a June 2019 audit report in which Auditor General John Muwanga queried expenditure on non-budgeted items totalling 24.45 billion shillings on items for which money was not allocated and the failure to spent Shillings 6.2 billion released by the Ministry of Finance in the financial year 2018/2019.

Muwanga has severally warned government agencies and departments about the increasing expenditure on non-budgeted items which impacts on the credibility of the financial statements.  For example, in his June 2016 report to Parliament, Muwanga said that 168 billion shillings were in that year spent on non-budgeted items which were an increase from the previous queried 83 billion shillings expenditure by government entities. 

The report indicates that expenditure on non-budgeted items has been on the increase in the past three years despite warnings that it impacts on the credibility of the financial statements.  Muwanga advised the need for government to streamline budgeting processes and to enforce strict adherence to the provisions regarding reallocation of funds to have the mischarge practice contained.

According to the Uganda Police documents sent to Parliament’s Public Accounts Committee (PAC) chaired by Budadiri West MP Nandala Mafabi, the institution’s Under Secretary Aggrey Wunyi says that at the beginning of the budgeting process, the inadequacy of the Force’s budget was brought to the attention of Ministry of Finance since it causes arrears.

“Uganda Police Force has been perennially underfunded at between 45 percent and 47 percent thus creating arrears as some of the operational activities cannot be halted to wait for funds. During the year under review, the budget provided was inadequate to clear all the arrears. Therefore we charged the recurrent budget items to clear come of the obligations,” part of Wunyi’s responses reads. 

The documents seen by URN indicate that the 24.4 billion was spent on special meals supplied to the Force by Arafat Dealers Limited (216.4 million), 1.54 billion on the supply of 36,000 pieces of Duty Belts by Alps International Exports, 114.5 million for the supply of uniform materials by Southern Range Nyanza Limited, 267.8 million for maintenance of vehicles –supply of spare parts by Eagle Motors Ltd, 127.1 million part payment for supply of hot meals to Bwebajja Senior Command and Staff College by Mirembe Millers Ltd and others.

Regarding under absorption of funds totalling 6.2 billion, the Uganda Police also says that these were also under domestic arrears where a Shillings 3.17 billion transaction meant to clear Uganda Telecom Limited (UTL) was not made after the communications company failed to present a contract with Police for services purported to have been supplied.

Aggrey Wunyi further explains that another 2.19 billion was meant for wage arising out of attrition, stayed promotions due to Inspector General of Government’s (IGG) sanction, retirement, deaths, replacements and invalidated employees on the payroll.

The remaining funds were in respect to bounced Electronic Fund Transfers- EFTs for pensions and gratuity (123.4 million) due to dormant bank accounts and wrong account titles of pensioners, Shillings 137.8 million bounced EFTs meant for special meals and drinks, 48.7 million bounced EFTs meant for uniforms and protective wear and 513.3 million foreign exchange difference on foreign payments and called Local Purchase Order- LPO meant for a classified asset.

PAC is expected to meet with officials from the Police Force over the expenditures next week after last week’s meeting could not proceed due to the inconsistencies in the institution’s financial statement.

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