Interesting findings from the AG report on “Central Government and Statutory Corporations” – Part Three!
Here I will Travers through the report of Auditor General of Uganda’s Annual Report for the year ended 30th June 2015. This is on: “CENTRAL GOVERNMENT AND STATUTORY CORPORATIONS”. I will take the quotes and stories that seem to show parts of how the Government of Uganda works and what the Auditor General have cared about addressing in this specific report. Take a look! This here is Part three!
Ministry of Local Government:
Mischarge of Expenditure:
“Ministry of Local Government’s expenditure revealed that the entity charged wrong expenditure codes to a tune of UGX.12,086,792,676. This constituted 40% of total actual expenditure for the Ministry of Local Government. Whereas the funds were spent on items for which they were not originally budgeted for, the accounts have been presented in a way that reflects that the amounts were spent on the earlier budgeted items” (P: 215). Comment: This here came up in the value for money edition from the AG, now here is the whole picture. How the management of the Local Government Councils that doesn’t follow procedures for the items bought into the LGC. As this is seen by the review from AG and that is scary parts is the amount of monies used without procedure and not following budget. So they can by rollex to the council meetings or fancy watches for all we know.
- Millennium Village Project II: “Conflicts between appointed and elected officials in Local governments resolved” (…)”International conference with IPC conducted” (…)”Despite receiving all the funds no conference was held” (…)” There was budgeted UGX 200m and the allocated UGX 200m” (P: 217).
Personal Advances to Government Officals:
“Personal advances to the tune of UGX.3,827,011,454 were not accounted for by the respective officials. As such, I could not ascertain whether the funds were used for the intended purpose. It was also noted that the unaccounted for funds were not reflected as advances receivable in the financial statements at the end of the year. The financial statements were therefore misstated by UGX.3,827,011,454” (P: 220). Comment: Certain officals have been gotten paid advances without proving where the monies have been used; surely this is questionable actions from the Local Government Councils.
Procurement of solar packages for the districts of Kabarole, Sheema, Rakai and Lwengo
“Withholding tax to the tune of UGX.36,561,220 from payments of UGX.922,845,962 to SHL and AVC for supply and installation of solar packages in the districts of Kabarole, Sheema, Rakai and Lwengo was not deducted for onward remittance to URA contrary to the tax law” (P: 235-236). “Audit review revealed that only two firms (SHL and AVC) won all the six contracts awarded during the year. However scrutiny of their bid documents revealed that they both shared an address as “P.O. Box 9784, Kampala” raising doubt as to ownership of the two companies given that at some point they were the only bidders who responded to the bids” (P: 236). “It was observed that invoices with higher amounts were entered on the system leading to overpayments of UGX.1,787,317” (P: 237). Comment: This here proves that there is something fishy in the financial audit on the contracts and the procurement of the solar packages. The statements and findings prove that two set of companies where at the same postbox; and they didn’t open an open bidding to the public as there should have been.
Community Agricultural Infrastructure Improvement Programme – Project III (CAIIP III):
“It was noted that GoU contribution amounting to UGX.187,654,400 was released by Ministry of Finance, Planning and Economic Development to the project through the Ministry of Local Government Treasury General Account where the funds were subsequently spent” (…)”ADB Loan: Further, out of the released amount of UGX.187,654,400, UGX.102,932,000 was diverted by the Ministry and used on non-project activities” (P: 259). Comment: Out of the loan delivered the CAIIP III the funds was not used we’re they was supposed to be allocated and service delivered as was budgeted.
Uganda Good Governance (UGOGO) Progamme:
“It was noted that out of UGX.700,000,000 expected from the Government of Uganda, however, only UUGX.104,062,000 was disbursed. This led to a short fall of UGX.595,938,000” (P: 273). Comment: The GoU has just allocated about 14% of the amount that was budgeted. That such little funds that was to the UGOGO so they can’t do what it is supposed to do.
Second Northern Uganda Social Action Fund Project (NUSAF2):
“Section 2.2 of NUSAF II Operational Manual requires that at least 80% of previous disbursements are accounted for before replenishment to a subproject. The policy also requires that all funds to subprojects should be accounted for within six months. It was noted that UGX.5,159,940,305 out of UGX.281,974,035,473 disbursed to subprojects remained unaccounted for as at 30th June 2015” (P: 278). Comment: This here prove how little check up of the project that exisist. There is funds that are unaccounted for and that should be worrying, they could be used for ginger-snaps for all we know.
Think that was enough for today. More to come. Peace!
Office of the Auditor General – The Annual Report for the Year Ended 30th June 2015 – Central Government and Statutory Corporations 30th June 2015.