Kampala — Members of Parliament on Thursday resolved to suspend passing a $5million (Shs 10billion) loan request to finance funding shortfalls for a project dubbed the sustainable management of mineral resources project.
It was the second time in three weeks that MPs expressed apprehension at passing the loan which they faulted for lack of clear planning and an apparent failure to show a value for money audit.
Buliisa MP Steven Birahwa, who chairs the House's National Economy Committee tasked with scrutinising government loan requests, suffered humiliation after MPs condemned his report that had recommended parliamentary sanction for the loan.
In suspending the request, several MPs complained that the project, which started in 2004 with government borrowing and spending up to Shs47 billion, had failed to achieve several set objectives, with reports indicating that activities in the project were behind schedule by more than two years.
Some of the pending projects include geological mapping of 75 per cent the country's land mass, geochemical surveys and reconstruction of offices and laboratories at Entebbe and seven regional offices and yet all these activities had been budgeted for earlier.
Aruu MP Odonga Otto stunned MPs after he pointed out that out of Shs47 billion spent, as much as Shs29 million had been spent on capacity building through trainings and workshops.
"It is not proper for this Parliament to approve additional funding," he said, adding, "As we are deliberating on this loan, there are those salivating and who will be smiling all the way to the bank."
A motion moved by Prof. Ogenga Latigo to suspend passing the loan request, drew overwhelming support. The House subsequently resolved to set up a select committee to investigate the performance of the loan and report back to Parliament.
Deputy Speaker Rebecca Kadaga said she would constitute the committee after a meeting between the opposition and government.

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