Finance May Hold Nebbi SFG Funds

Feb 29, 2004

Nebbi district chairman Esrom William Alenyo, last week gave an ultimatum to contractors who were awarded contracts under the Schools Facility Grants (SFG), to present performance guarantees in order to save releases which the finance ministry was threatening to withhold.

By Frank Mugabi
Nebbi district chairman Esrom William Alenyo, last week gave an ultimatum to contractors who were awarded contracts under the Schools Facility Grants (SFG), to present performance guarantees in order to save releases which the finance ministry was threatening to withhold.
This follows remarks by the Ministry of Education senior official, during a workshop in Kampala last month, that the finance ministry would suspend SFG funding to seven districts including Nebbi, for poor utilisation.
During a meeting on recently, district officials were informed that only 26% of the SFG first quarter releases had been utilised.
New SFG guidelines indicate that the funds can only be withdrawn after a contractor presented a financial statement proving that they had 10% of the total contract payment on their company account.
Alenyo also directed that all uncompleted work should be done within three weeks lest they be re-allocated to different contractors.
Alenyo said to improve the overall district SFG performance, the engineering department should be strengthened to ensure timely preparation and presentation of tender bid documents.
The ultimatum expires today.
Ends

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