Parliament has asked the government to quickly provide money for projects funded by donors that are still happening.
This came after a report from the Committee on Finance, Planning, and Economic Development about money not spent and the Consolidated Fund status as of June 30, 2023.
The report was given by the Committee Chairperson, Hon. Amos Kankunda, during a session on January 31, 2024.
The report showed that the Finance Ministry hadn’t given out over shs385b for ongoing projects funded by the World Bank, like the Uganda Support to Municipal Infrastructure Development (USMID) and The Uganda Intergovernmental Fiscal Transfers (UgIFT), even though there’s money available.
“On July 1, 2022, there was sh734.8b that local governments hadn’t spent. Thirty-seven percent was for UGIFT, and 20 percent was for USMID,” the report stated.
Kankunda said that by the end of the financial year, sh3.77 trillion remained unspent, contributing to increasing debts.
Members of Parliament (MPs) found this unacceptable, blaming the Finance Ministry and technical officers for negligence.
“The World Bank is tired of waiting for payments. Municipalities hired suppliers, they’re frustrated, but the money is there,” said State Minister for Housing, Persis Namuganza.
MPs suggested that unpaid warrants should be dealt with in supplementary budgets.
“Arrears should be the first priority in the budget. The ministry should give priority to donor-funded projects in the supplementary schedule,” said Deputy Speaker, Thomas Tayebwa.
MP Sarah Opendi pointed out irregularities in donor-funded projects, like one contractor getting multiple contracts without enough money.
“Contractors shouldn’t get more than one lot for donor-funded projects,” Opendi proposed.
MPs called for an audit of unspent balances worth sh58.9 billion for staff wages.
“Why deny people services when recruitment should be ongoing?” asked MP Aisha Kabanda.
Minister of State for Finance (General Duties), Henry Musasizi promised to consider MPs’ suggestions and release funds for donor-funded projects.
“We can prevent unspent warrants with better planning. The commitment control systems need to change,” Musasizi explained.
Parliament amended the report to hold the government accountable for its warrants.
