In a parliamentary saga that unfolded during a riveting plenary sitting on Wednesday, January 31, 2024, the Committee on Finance, Planning, and Economic Development dropped a financial bombshell that sent shockwaves through the hallowed halls of power.
Committee Chairperson, Hon. Amos Kankunda, meticulously presented a report highlighting the alarming state of unspent funds, specifically targeting donor-funded projects, during a session that was more akin to a theatrical performance than a routine parliamentary gathering.
The report, meticulously crafted and delivered with an air of urgency, revealed that the Finance Ministry had not unleashed over Shs385 billion earmarked for ongoing projects funded by the World Bank.
These projects, critical to national development, included the Uganda Support to Municipal Infrastructure Development (USMID) and The Uganda Intergovernmental Fiscal Transfers (UgIFT). The revelation drew audible gasps from the assembled MPs, adding theatrical flair to the already charged atmosphere.
“On July 1, 2022, warrants equivalent to Shs734.8 billion were idling, with 37 per cent allocated for UGIFT and 20 per cent for USMID,” read Kankunda, his delivery measured and deliberate, driving home the gravity of the financial quagmire.
The report painted a vivid picture of financial mismanagement, as funds earmarked for vital projects languished untouched.
The bombshell continued to reverberate as Kankunda disclosed that an eye-watering Shs3.77 trillion remained frozen in the form of unspent warrants by the close of the fiscal year.
The unspent warrants, authorized expenditures that were never cashed, stood as a stark testament to a financial system in disarray and were identified as a primary driver for the escalating domestic arrears.
The parliamentary floor transformed into a battleground of discontent as MPs, their tones laced with indignation, lambasted the Finance Ministry and implicated technical officers within ministries and local governments.
State Minister for Housing, Hon. Persis Namuganza, voiced concerns about potential funding withdrawals, stating, “The World Bank has been here in several meetings; they are tired, and they might withdraw the funding.”
Deputy Speaker Thomas Tayebwa, who presided over the session, intervened with a call for urgent action. He implored the Finance Ministry to prioritize unpaid warrants in supplementary budgets, urging a course correction to prevent potential funding withdrawals that could have far-reaching consequences.
The parliamentary theatrics intensified as Tororo District Woman MP, Hon. Sarah Opendi, took center stage, pointing out irregularities in the implementation of donor-funded projects.
Opendi proposed a stringent reform, suggesting that contractors for such projects should be restricted to a single lot to prevent financial strain.
As the parliamentary storm raged on, MPs demanded a thorough audit of unspent balances worth Shs58.9 billion designated for staff recruitment wages. Hon. Aisha Kabanda expressed frustration, questioning why essential services were denied when recruitment should be an ongoing process.
Responding to the uproar, Minister of State for Finance (General Duties), Hon. Henry Musasizi, took the floor, pledging to study the Hansard meticulously.
He committed to extracting MPs’ recommendations and assured the release of funds for donor-funded projects. Musasizi acknowledged the need for systemic changes, emphasizing the importance of preventing unspent warrants through improved planning and commitment control systems.
The parliamentary saga, filled with drama, outrage, and calls for accountability, concluded with the resounding echoes of a demand for swift action to salvage vital projects hanging precariously in the balance.
The nation now awaits tangible steps to rectify the financial fiasco laid bare on the parliamentary stage.
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