Mary Karugaba and Henry Mukasa
9 April 2008
Kampala — PARLIAMENT has given the secretary to the treasury Chris Kassami a week to account for sh4.6b. This was after Kassami, the undersecretary Betty Kasimbazi, and the accountant general Gastavio Bwoch, failed to explain to the committee on public accounts how the money was spent.
Scrutinising the ministry's accounts, the MPs discovered that out of the sh42b project funds, sh2.7b remained outstanding.
They also discovered that sh1.9b domestic arrears could not be traced.
"We were not ready for that query. We limited ourselves only to the queries of 2005, which you asked.
"Give us more time we shall respond," Bwoch requested.
The officials were appearing before the committee to answer queries raised by the Auditor General (AG) in the 2003/4 financial year report.
According to the AG, out of sh2.3b that was disbursed to hospitals as health workers' lunch allowance, sh2.1b is not accounted for.
Kasimbazi informed the committee that the officers had now accounted for the money. She also tabled the accountability documents to the MPs.
The committee, however, cleared the ministry of sh4.2b that was paid to an international air organisation, to which Uganda subscribes.
Kasimbazi argued that the money was paid after parliament approve it.
"Otherwise our planes were going to be grounded."
Kassami said the ministry also during the year paid sh4b as value added tax (VAT) arrears on boreholes to Uganda Revenue Authority on behalf of the local government.
"We wish ministries could estimate their tax obligations.
"As a result, some times we are forced to pay.
"However, payment of taxes is not a resource since it moves from one account to another," he said.
The committee also discovered that the ministry paid sh579m on behalf of Southern Range Nyanza as VAT on fabrics for school uniforms.
However, the committee chairman Nandala Mafabi, put the officials to task to explain whether the money was paid after the ministry's assessment report.
"Did you establish that the money was for VAT on uniforms alone?
"How sure are you that they never charged it again?" he asked.
Kassami admitted that "policy wise, there was a problem with the tax exemption.
"It is problematic. They are even asking us to clear another huge amount."
The committee, however, advised the officials to allow the AG to first carry out an audit to establish the actual figures before clearing any more claims by Nyanza.
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