OAG Muwanga reports that the Local Government misuse of public funds, while Court Awards are going unpaid!
Parts of this has been reported before, but that was as reports of the coverage from Parliament as the Auditor General John Muwanga we’re attending preliminary sessions and delivering OAG Report of 31st December 2016, which is the end of year report from the OAG. That one has stories to tell. Parts of this are known, but they are proving that words in Parliament had other numbers than the report that is released later on online. Still, the vast waste of funds and the unallocated or unaccounted funds proves questionable use of public coffers in the Local Government, the districts, parish and municipalities. These funds are important that is well spent and accounted for, because the funds are supposed to go to local government salaries and investments for the citizens. Therefore the mismanagement of this is thieving or maladministration from the civil servants or the locally elected officials. Take a look!
Outstanding Court Awards:
“Government had outstanding amounts in court awards, compensations and other liabilities totaling to UGX.684Bn as at 30th June 2016. The outstanding amount in Court awards and compensations has been accumulating over the last five financial years raising from 54Bn to now 684Bn. I observed that as a result of government’s failure to pay these court awards on time, the awards have accumulated interest and in some instances the interest has exceeded the principal award. As at the close of the year outstanding interest had accumulated to UGX.175.3Bn” (OAG, P: 12, 2016).
Local Government issues:
“The amount is comprised of UGX .1.310Bn which lacked procurement files, UGX.21.225Bn where there was breach of procurement procedures, UGX .4.695Bn involving inadequate contract management and UGX.0.315Bn of unauthorized contract variations. Consequently, it becomes difficult to ascertain whether value for money was achieved” (…) “Expenditure amounting to UGX.3.896Bn was identified as funds unaccounted for. Consequently, I could not confirm that the funds were utilized for the intended purposes. The delayed submission of accountability may also lead to falsification of documents resulting into loss of funds. This was caused by failure of Accounting Officers to enforce accountability controls and lack of an advances ledger to monitor advances” (…) “Regulation 32 of the Local Governments Financial and Accounting Regulations, 2007 requires Councils to ensure collection of all budgeted revenue in an approved manner. Review of revenue performance revealed significant under collection of Local revenue in 161 Councils amounting to UGX.17.165Bn” (OAG, P: 31, 2016). “Out of 307 Local Governments, 148 entities representing 48% of the Local governments lacked land titles for the land where council properties are located. There is a risk that council land is exposed to encroachment and disputes which later leads to litigation in courts of law arising from land disputes between the Councils and the Communities” (OAG, P: 33, 2016).
Here you can see the numbers and it is dozens of Presidential Handshakes, the handshakes of the President could go unaccounted for a dozens of times. That the Government have learned from the Parliament and Central Government is clear, since this is rampant and seems to indicated in many local governments. It cannot be okay that the lacking of documentation and of how the monies where spent. Of how and where the documentations went before the allocation of the funds. That shows malpractice and maladministration in the Local Government. Something that is also evident in the Courts, the Courts hasn’t paid out their awards on time and adds extra interests, which the government have to pay as well. Peace.
Office of Auditor General (OAG) – ‘Extracts of the Summary of Key Findings of the Annual Report of the Auditor General for the Year Ended 31st December 2016’ (31.12.2016)