Members of a House committee have accused leaders from Nakasongola District of collaborating with officials from the finance ministry to artificially inflate budgets, resulting in funds being returned to the Consolidated Fund.
The district leaders appeared before the Public Accounts Committee- Local Government to address the Auditor General’s report for the Financial Year 2021/2022.
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As per the Auditor General’s findings, out of the total budget of 20 billion shillings, 114 million shillings were returned to the Consolidated Fund.
This prompted Betty Naluyima, the Shadow Minister of Local Government, to question the reasons behind this fund return.
Naluyima, who also represents Wakiso District, inquired, “Please provide an explanation to this committee, as many local governments are struggling due to insufficient funds while others are returning money to the Consolidated Fund.”
Edith Kirega, the Principal Accountant of Nakasongola, explained that the 114 million shillings constituted excess funds.
She cited an example where the district initially requested 49 million shillings for the first quarter, but the finance ministry released 89.4 million shillings.
Kirega stated, “In our calculations, we had accounted for 49 million shillings, but the Ministry of Finance allocated us more.”
Noah Mutebi, the Member of Parliament for Nakasongola County, inquired about whether an inquiry was made regarding the excess funds.
Mutebi asked, “When did you realize that you had received excess money? Did you inform the Ministry of Finance about this surplus?”
Kirega responded that no inquiry had been initiated and revealed that the excess funds were only identified at the close of the financial year.
Ibanda Rwemulikya, an independent representative from Ntoroko County, questioned the district’s failure to disclose their receipt of surplus funds.
Rwemulikya expressed skepticism, stating, “Your explanation doesn’t make sense. You received money, yet you remained silent. If it was indeed excess, it appears that you were well aware that this money was meant for personal gain.”
Patrick Isingoma, an independent representative from Hoima East Division, laid blame on the finance ministry, asserting that the responsibility for accurate fund disbursement lies with them.
“The main issue lies with the ministry, not the districts. We need concrete evidence that this excess money was returned to the Consolidated Fund,” Isingoma remarked.
Committee chairperson Gilbert Olanya indicated that this matter would be brought to the attention of the finance ministry.
“If there was collusion, it likely started with the finance ministry. Nevertheless, local governments should also actively inquire with the finance ministry about excess funds,” Olanya concluded.
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