By Frank
Kisakye, KAMPALA Uganda
Of the
487 financial audits concluded for ministries, departments and agencies (MDAs),
commissions, statutory and state enterprises, projects, districts and
municipalities, 433 (89 per cent) had unqualified opinions and 54 (11 per cent
had qualified opinions.
Qualified means qualified for
punishment. The agencies qualified for punishment include Uganda National Roads
Authority, Judiciary, Uganda Law Reform Commission, Ugandan embassy in China,
Mulago national referral hospital, ministry of Health, National Drug Authority,
Uganda Cancer Institute, Uganda Heart Institute and Equal Opportunities
Commission.
UNRA, according to the Auditor General,
diverted up to Shs 341.2 billion from planned activities without authority. The
entity also made payments for un-budgeted domestic arrears amounting up to Shs
224.5 billion. UNRA also incurred a nugatory expenditure amounting to Shs 8.1
billion and $800,448 that arose out of penalties for court cases and interest
on delayed payments of advances from various contractors.
The Judiciary irregularly diverted Shs
565 million on activities that had not been approved, and a total of Shs 1.2
billion remains unaccounted for as it lacked supporting documents such as
acknowledgment receipts.
Also Shs 103 million was diverted from the
Justice, Law and Order Sector (JLOS) Sector Wide Approach (SWAP) funds to
refund bail claimants’ money that went missing and the money has never been
refunded or recovered from the responsible officers.
Judiciary also failed to account for Shs
84 million paid to officers of the registry High court in Kampala. Payment
vouchers worth Shs 320 million paid to various officers and companies by the
registrar High court during the financial year under review were missing.
Another Shs 237 million was ineligibly expensed on the registrar High court.
Ministry of Health made unsupported
adjustments relating to domestic arrears amounting to Shs 1.5 billion,
overdrafts worth Shs 1.03 billion and bounced EFTs amounting to Shs 313
million. The ministry also mischarged or diverted funds worth Shs 3.1
billion, Shs 2.7 billion was paid out as pension without verification of
salary, gratuity and pension files.
Uganda Cancer Institute diverted Shs 497
million off Shs 7 billion allocated to deliver cancer care services to other
activities while National Drug Authority failed to utilise funds worth Shs 39
billion from a capital expenditure budget of Shs 41 billion.
Mulago hospital charged Shs 3.2 billion
on items that do not reflect the nature of expenditure as defined per government
chart of accounts. The Auditor General also faulted the hospital management for
collecting only Shs 4 billion against a budgeted revenue target of 13 billion -
a 70 per cent underperformance.
Furthermore, the hospital declared only
41 registered ventures as operating on hospital land but a physical count
inspection revealed that 145 ventures were on the hospital land and only the
less profitable ones were declared. Mulago also fell short on developing
performance agreements/targets, failed to develop performance appraisals,
failed to monitor staff attendance, and among others.
The Uganda Heart Institute, meanwhile,
diverted Shs 579 million earmarked to be spent on planned activities without
authority. The Auditor General also observed that the institute had over 270
patients waiting for surgery and patients usually have to wait for up to two
years to be operated on. Although the institute makes waivers for various
reasons, there is no waiver’s policy to provide guidance on the matter.
The Ugandan embassy in China diverted
Shs 654 million without authority from the accountant general and Shs 33
million reported as outstanding advances has taken a long period without
recovery from concerned officials. Another Shs 209m remained unaccounted for at
the time of the audit.
Uganda Law Reform Commission irregularly
diverted and spent Shs 59 million on other activities at code level without the
necessary approvals while Shs 1.1 billion was also diverted from programs on
which they were budgeted and spent on other programs without authority.
Equal Opportunities Commission
irregularly diverted Shs 783 million without approval, Shs 144 million employer
contribution was not remitted to National Social Security Fund. Management also
irregularly paid Shs 668 million and Shs 322 million towards duty and
consultancy allowances irrespectively.
The AG’s report noted that various
entities charged wrong expenditure codes amounting to a total of Shs 384
billion. This practice, the AG says, leads to financial misreporting and undermines
the budgeting process.
A total of Shs 19 billion remained
unaccounted for by the time of the audit, contrary to the Public Finance and
Accounting Regulations. Judiciary failed to account for Shs 1.2 billion; Uganda
embassy in Rome, Shs 206 million, Ugandan embassy in China, Shs 209 million,
Ugandan embassy in Ethiopia, Shs 234 million; Kyambogo University, Shs 296
million, ministry of Water and Environment, Shs 136; million; and Uganda
National Children’s Authority, Shs 52 million.
“In the absence of proper
accountability, the auditor general could not provide assurance as to whether
the funds involved were utitlised for the intended purposes.”
The ministry of Finance sought for Shs
1.7 billion supplementary budget from parliament. Parliament approved and
appropriated only Shs 615 million but Finance went ahead and spent Shs 1.1
billion.
Maxwell Ongetho from the Auditor
General’s Office challenged civil society organisations to make follow-ups on
the AG’s report by reaching out to the local communities and make them
understand that the reason for poor service delivery was due to theft of public
funds.
“We want a comprehensive system on
implementation…What we want is this to be reflective on a shared platform;
wherever you are you can punch in, check and say this entity of Local Government
A in the last five years, these were the issues raised. The Auditor General is
saying this has been implemented, this has not been implemented. Then you’re
able to go and verify,” he said.
“The civil society has a special role
because you’re the lead link between we who write in a professional way, there
are standards, there are procedures of the paper and for our work to be
appreciated we have to do that. Now you, you understand both our language and
also the language of the local people…. Talk about the service missed.” he
added.
Ogentho said the accountability
government officials and contractors talk about on paper should also be
reflective on the ground. He said parliament should ask the questions of paper
accountability while civil society ask for tangible accountability. He also
said that society should make it scary and embarrassing for officials to steal
government money.
“If everything is fine, the two should tally; not engineers attaching receipts but when you go down, there is no borehole. This is like a relay race; if there are four they should all relate with each other…I am not sure there is any technology that will replace the physical reality of what you see on the ground. I don’t see a situation where we have solved all the problems and there is no need for civil society,” Ogentho said.
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