KAMPALA, Uganda
President
of Uganda, Yoweri Museveni has rejected a loan of Shs 1.4 trillion ($400m)
accusing the ministry of Finance of lack of seriousness. This is part of the
Shs 3.5 trillion total loan request that minister of Finance Matia Kasaija
sought in January.
President of Uganda, Yoweri Museveni
Of this, Shs 596 billion was to support
irrigation and drainage infrastructure in Kabuyanda and Matanda, Shs 447
billion was for the construction of roads and bridges for refugee-hosting
districts and Shs 427 billion for additional financing for competitiveness and
enterprise development projects.
The other component included Shs 559 billion
for the forest and resilience landscape project, Shs 559 billion for the
secondary schools expansion project and Shs 932 billion for additional
financing for intergovernmental fiscal transfers.
However, in a letter dated April 4, 2020, the
president rejected the loan on the forest and resilience landscape project and
the additional financing for intergovernmental fiscal transfers. He said he has
a problem with the ministry's lack of seriousness and failure to use clear
language in seeking for the loan.
Museveni says that he only approved four out of
the six loans. The approved applications include irrigation and drainage, roads
and bridges, funding for the competitiveness and enterprise development
project, and the secondary schools expansion project. He says he could not
understand the two other loans.
“I cannot understand No.3 (Shs 559 billion for
the forest and resilience landscape project) unless it focuses on building an
electric fence on the boundaries of the national parks. I will not approve
unless it concentrates on that,” Museveni says in the letter.
On the second loan of Shs 932 billion for
additional financing for intergovernmental fiscal transfers, the president
wonders if the ministry needs to increase the indebtedness of the country just
to buy computers to trace the money moving from one ministry to another.
“Intergovernmental fiscal transfers, what is
that? ...if that money is there, let us then use it to handle the issue of
institutional houses for teachers in government schools and health workers in
government hospitals,” Museveni says.
But according to the Finance ministry, the loan of Shs 932 billion for additional financing for intergovernmental fiscal transfers will focus on health and education, agriculture and water with the aim of increasing productivity and this will improve household income. – The Observer
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