PostBank Uganda has admitted that they failed to recover Shs235m double payments from the beneficiaries meant to receive COVID-19 relief funds.Government contracted Airtel, MTN and PostBank Uganda to disburse the Shs1000,000 COVID-19 relief funds to the select vulnerable Ugandans impacted by the pandemic and the lockdown.
The revelation was made by Julius Kakeeto, the PostBank Uganda Managing Director while appearing before joint Public Accounts Committee (Central and Local Government) that is investigating list of beneficiaries who benefited from the Shs53bn Covid relief funds during the 42-day lockdown.
This followed questions asked by Martin Ojara (Chairperson PAC Local Government) who asked Post Bank to clarify on remarks by Minister of Gender, Betty Amongi who told Parliament that over 600,000 people received double payment instead of Shs100,000 that had been earmarked.
“It was clearly indicated that there was double payment close to 600,000 people, it would be good to know how this happened and the implication and also inform the Committee whether you have been able to recover monies and if you have recovered how much and if you have not recovered, what is the implication but explain to us who bears the burden? Asked Ojara.
ojara was backed by Patrick Isingoma (Hoima East Division) who asked PostBank to assure Parliament that no tax payers money would be lost. In response, PostBank admitted to the scenario, saying they mistake was realized within 15minutes and Airtel and Government were notified, and embarked on recovery plan.
“On the 16th of July, among the many batches that was processed, of the batches that was uploaded, one of them got a fatal error. So our staff uploaded that batch again, so it meant the 600,111 beneficiaries received the money twice. This was notified to the Ministry immediately and we engaged to Airtel,“ Kakeeto said.
He added that not all the money was recovered as some clever Ugandans moved swiftly to withdraw the money, prompting PostBank to use their internal mechanisms instead of chasing after the lucky Ugandans.
“Of the money that was sent out (Shs600M), Shs380m was recovered, it hadn’t been withdrawn, and the remaining Shs235M, the beneficiaries had withdrawn it, so between us and Airtel we decided not to chase after those Ugandans, so this money was put back to the Ministry of Gender account and we asked Airtel to forget about these Ugandans,” he said.
It should however be noted that Government owns PostBank Uganda and therefore, if any funds were used to cover up the mistake, it has a big bearing on taxpayers.
It should be recalled that Government earmarked Shs53.5bn to 501,107 targeted beneficiaries who include bus or taxi drivers, conductors, Baggage carriers, wheelbarrow pushers, touts, traffic guides, Barmen, DJ’s, barmaids, waiters and bouncers whose livelihood had been disrupted by the lockdown imposed to contain spread of coronavirus.
