Members of Parliament (MPs) convened to question the Ministry of Health regarding the purported overpayment of shillings 286 billion to the contractor responsible for the incomplete Lubowa Hospital project. Officials from the health ministry were summoned before Parliament’s Public Accounts Committee (Central) to address audit queries raised in the Auditor General’s report for the financial year 2022/2023.
One of the primary concerns highlighted by the Auditor General was the disbursement of shillings 286 billion to the Lubowa hospital contractor before the completion of the project. Committee chairperson Muwanga Kivumbi underscored the discrepancies in the project agreement, noting that remuneration for construction works should have been tied to the achievement of specific milestones. However, audit findings revealed that milestone certificates were issued based on contractor reports, despite restricted access to the construction site for the owner’s engineer.
The committee expressed alarm over the significant financial commitment of approximately $379.71 (about shillings 1.1 trillion) by the Government towards the hospital’s construction, with a projected completion date of September 2, 2022. Kivumbi directed pointed questions at the health ministry officials, questioning their role in authorizing certificates of completion and overseeing the disbursement of funds for a project facing such challenges.
Health ministry Permanent Secretary, Diana Atwiine, acknowledged the concerns raised by the committee regarding the Lubowa project and assured them of the ministry’s commitment to its completion. However, she deferred certain questions to the finance ministry, suggesting they were better positioned to provide answers.
George Otim, the engineer responsible for supervising the project, maintained that construction progress stood at 35% despite challenges leading to temporary work stoppages. Otim denied awareness of any overpayment, stating that milestone certificates were issued in accordance with the project’s performance budget.
Suspicions arose among committee members regarding Otim’s assertions, prompting them to place him under oath to ensure full disclosure. The health ministry pledged to facilitate a visit for committee members to the Lubowa Hospital construction site to assess progress firsthand.
Amidst deliberations, differing opinions emerged regarding whether Otim should be given the benefit of the doubt or placed under oath immediately. Ultimately, committee members agreed that Otim’s responses warranted further scrutiny, opting to administer the oath without delay.
