Government has created a number of Town Councils in the last five years which should be financially independent from the districts from which they were created in line with Section 79 of the Local Government Act.
However, out of 583 Town Councils created, only 228 have been approved by the Ministry of Finance for access of resources from the national budget, the Auditor General’s December 2019 audit report says.
According to Auditor General, John Muwanga, the balance of 355 Town Councils that require Shs622bn for start-up and operational costs remain unfunded and rely on internally generated funds which are very meager to sustain their operations.
He made the remarks while handing over the December 2019 Audit report to Speaker Rebecca Kadaga at Parliament on Wednesday.
“This significantly affects the ability of these Town Councils to operate and later deliver services to the people. Government appears to be unable to fund the newly created Town Councils,” noted Muwanga.
As such, the Auditor General advised that for any additional administrative institutions created, should be matched with available resources.
In 2018/2019, the Office of the Auditor General conducted 4,496 audits, comprising of 108 Ministries Departments and Agencies, 114 Commissions, Statutory Authorities and State Enterprises, 97 projects, 4 production sharing agreements and 3,888 Local Governments and Tertiary Institutions.
In the same year, the Auditor General conducted 11 value for money reports, 36 forensic investigations and special audits which were issued to the respective stakeholders who requested for them.
