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Finance Ministry Fails To Justify Shs1.1 Trillion Supplementary Expenditure

The Budget Committee of parliament has ejected Kenneth Mugambe (in featured photo), the Director Budget in the Finance Ministry for failure to justify a supplementary expenditure of Shillings 1.1 trillion in the 2018/2019 financial year.  

Shillings 403.5 billion of the Shillings 1.17 trillion that appears under the Supplementary Schedule 2 has already been spent. The Ministry is seeking approval of another Shillings 770.2 billion from parliament.  


According to Section 25 of the Public Finance Management (Amendment) Act 2015, the total supplementary expenditure that is over and above what is approved by parliament shall not exceed 3% for a particular financial year.   
 
The law also requires that where funds are spent, supplementary estimates showing the sums spent shall be laid before parliament within four months of expenditure.


This morning, Mugambe appeared before the Budget Committee together with the State Minister for Planning David Bahati to present expenditure for the spent money and seek parliament’s approval.  


However, as Mugambe took legislators through the supplementary budgets given to different sectors, MPs questioned the rationale of spending money on the items and demanded specific details for the expenditures.

Key among the items that raised queries was Shillings 13 billion spent on the compensation of Project Affected Persons (PAPs) under the Amuru Sugar Cane Project, ranchers and shortfall on funds utilized by the Commission of Inquiry on Land matters.     


The other items included Shillings 16.9 billion spent on the meals, drinks, uniforms, beddings and protective gear for Prisons, Shillings 60 billion provided for the implementation of E-passports and another Shillings 24 billion spent on the purchase of motorcycles for sub-county chiefs and others.  
Dokolo Woman MP, Cecilia Ogwal criticized Mugambe for failing to provide details on ranchers who were compensated and amount of money each beneficiary received.    

She noted that Mugambe’s presentation failed short of satisfying the regulations under the Public Finance Management Act, which stipulates that all supplementary requests must be for expenditure that is unavoidable and unforeseeable. 
   
She moved a motion that his presentation be halted until such a time when he is able to present the committee with adequate justification and details as required by law.   


The Budget Committee Chairperson, Amos Lugoloobi concurred with Ogwal, saying his committee needs full justification of the expenditures in line with regulations passed under the Public Finance Management Act.   


Mugambe’s efforts to explain the expenditures fell on deaf ears. Ogwal noted that whatever explanation he was giving was out of order, saying he needs time to go back and prepare a presentation, which complies with the law.


She then moved a motion for the committee to eject Mugambe. The officer conceded defeat and promised to make another presentation before the committee on Tuesday next week.  

URN

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