The State Minister for Finance (General Duties), Henry Musasizi (pictured) has admitted that certain financial obligations will not be met in 2023/24 Financial Year because Government is struggling to balance its financial books that has left it grappling with a number of unfunded items.
He has however promised to table before Parliament a corrigenda to the budget which will have such some items catered for.
“In FY 2023/2024, it isn’t going to be an easy year, our discretionary resource is only Shs24.4Trn against the needs which are close to Shs40Trn. We have categorized all the expenditure needs and we have had to pick priorities among priorities. Because of timelines, which we must comply with, so far what we have provided we think must be provided in all circumstances then in this period of April, we are still analyzing, we have a window through corrigenda to pick out other priorities,” the Minister said.
The Minister made the remarks after lawmakers on Parliament’s Finance Committee lashed out at the Ministry of Finance for refusing to avail within the budget for Treasury Operations, funds for the Democratic Republic of Congo (DWRC) war compensations to a tune of Shs248Bn, warning this could attract further litigation for Uganda.
In a meeting held between Treasury Operations and Finance Committee, Jennifer Muhuruzi, Acting Director Treasury Services and Asset Management at Ministry of Finance, decried the failure to avail Shs248Bn for the DRC award so as to honour the UN court ruling remarking, “We have a court award that was awarded by the international court of justice against this country where we have to pay US$65M to our neighbours in DRC.”
This prompted Jane Avur (Pakwach DWR) to task the Minister of State for Finance (General Duties) to explain why these funds haven’t been provided for in the 2023/2024 national budget for Treasury Operations.
Pacuto remarked, “These items here are very critical, they are things that the office of the accountant general can’t do much. Really I would think that these aren’t items that would be left out because we aren’t balanced. You would rather go on other budgets and reduce on non-wage of entities coming up with calendars, brochures, clothing, wedding those you could have left them for corrigenda. Why are you putting parliament at the corner?”
Muwanga Kivumbi (Butambala County) also asked, “I see here Shs248Bn for Congo award, last year we paid Shs270Bn but it is unfunded priority next year, so when it arises, is the Ministry of Finance preparing the budget for a supplementary budget? Because consequently, these are statutory when they come, you can’t run away from them.”
In the 2022/2023 national budget, the treasury Operations have been allocated Shs18.747Trn up from Shs16.799Trn the entity was allocated to manage Uganda’s public debt. Of these funds, Shs6.013Trn will go towards interest payment on public debt, while the rest of Shs12.733Trn will go towards other items in debt refinancing.
It should be recalled that in February 2022, the International Court of Justice (ICJ) ordered Uganda to pay DRC US$325m approximately Shs1.165Trn in reparations for resources plundered during the UPDF deployment in DRC.
The UN court castigated UPDF for breaching the international law and ordered Uganda to pay the money in annual installments of $65m so as to clear the compensation fee within five years.
According to the ruling, Uganda will pay damages to persons at US$225m, damages to property at US$40m and, for looted resources at US$60m.
However, the ruling although costly to Uganda was viewed as a win for Uganda’s legal team, after Uganda successfully challenged the US$11.3Bn (about Sh43.132Trn) that the International Court first awarded to DRC in 2005, after declaring Uganda guilty of violating international law during the UPDF occupation.
In the 2005 award, US$4.35Bn was to go towards compensation claims for personal injury, US$239.9M for damage to property, while US$1.04Bn for plundered natural resources, yet US$5.7Bn in macroeconomic damage; US$25m as a fund to be used in promoting reconciliation between the Hema and Lendu people in Ituri province; and, $100m for non-material harm to the country.
However, the two nations failed to agree on the amount to be paid, prompting DRC to drag Uganda back to court in May 2015 to re-open proceedings to resolve the reparations issue because Uganda had not agreed with its figure during negotiations that had been re-ordered by the same Court.
