Trade Ministry Faces Uncertain Future Over Budget Stalemate

Parliamentary Standoff Threatens Trade Ministry’s Budget

The future of the Ministry of Trade, Industry, and Cooperatives’ budget for the Financial Year (FY) 2024/2025 hung precariously as the House Budget and Trade committees failed to reach a consensus.

The House Committee on Trade resisted a plea from Parliament’s budget committee to reconsider its earlier decision of not allocating funds to the Trade ministry. The refusal stemmed from the unresolved issue surrounding Ms. Geraldine Ssali, the Trade ministry’s Permanent Secretary, according to Mr. Mwine Mpaka, the Committee on Trade’s chairperson.

During a meeting between the two parliamentary committees, Mr. Patrick Isiagi, the chairperson of the Budget Committee, proposed a deferral of the discussion on PS Ssali’s situation. However, the impasse persisted, leading Mr. Mpaka to express that the resolution rested with the entire House.

The collective decision of the House regarding the reported mismanagement of funds, particularly in cooperatives, featured prominently in the discussions. Mr. Mpaka emphasized that the House’s stance on fund appropriation would be decisive, pending which the committee would await further instructions.

Lawmakers across the political spectrum supported Mr. Mpaka’s position. Mr. Ibrahim Ssemujju Nganda underscored the importance of understanding the sector’s issues, while Mr. Elijah Mushemeza declared the accountability crisis in the ministry as a serious matter.

The Stakes

The Trade ministry, with unfunded priorities reaching Shs500 billion, received only Shs105 billion from the Finance ministry. This marked a significant shortfall, necessitating an additional one trillion for a balanced budget.

The decision not to allocate funds was made the previous week during a committee appearance by Trade Minister Francis Mwebesa and his team. The committee, led by Mr. Mpaka, expressed dissatisfaction, stating that salaries and ministerial policy statements would receive zero allocations.

Accusations were directed at the executive for failing to implement key decisions, including the recommended dismissal of PS Ssali. A report highlighted irregular payments to cooperatives, with PS Ssali’s husband allegedly receiving under a billion shillings.

Justification

Mr. Mpaka, defending the committee’s position, emphasized their role in presenting a report exposing accountability issues. This, he argued, made it challenging to allocate funds to someone with demonstrated financial mismanagement skills.

Allegations of intimidation surfaced, with Mr. Mpaka claiming attempts to coerce a revision of the budget decision. He maintained the committee’s unity, asserting that his role was to represent their decisions, not personal views.

The Process

Procedurally, ministries, departments, and agencies (MDAs) present and defend their Budget Framework Papers before House committees. Lawmakers scrutinize justifications and make decisions on budget items, leading to a final report. The House Budget Committee distills these reports, and the National Budget Draft is then presented to the entire House for deliberation and voting.