National
Finance stops cash payments over fraud
Publish Date: Nov 19, 2012
Finance stops cash payments over fraud
Maria Kiwanuka, the Minister of Finance and Economic development
  • mail
  • img
.

By Mary Karugaba

The Ministry of Finance has suspended cash payments from Bank of Uganda (BoU) to government ministries and departments.

The move is part of new measures to curb the theft of government funds.

Inside sources in the ministry said cash transactions will only be limited to a maximum of sh20m per month and the rest will be done through electronic fund transfers.

The measure follows reports that the Office of the Prime Minister (OPM) used the laxity in the rules and withdrew sh116m per month instead of only sh20m.

The Auditor General’s forensic report on the stolen funds in the Prime Minister’s office indicates that in some cases, the officers withdrew up sh800m per month.

“On September 25, 2010, the Accountant General granted an imprest warrant of up to sh96m monthly. However, it was noted that imprest amounts were drawn over and above the authorised limit in various months in some instances, drawing over sh800m in a single month,” the report indicates.

The permanent secretary to the Treasury, Chris Kassami, last week told the public accounts committee that any financial transfers in Bank of Uganda to ministries’ accounts must be confirmed by the respective permanent secretaries and the telephone conversation recorded.

“To make sure that they don’t deny later, their conversation will also be recorded,” he said.

Kassami said the Government has also solicited the services of the Police to check the Integrated Financial Management System (IFMS) to ensure that all the loopholes are closed.

“The system’s problems have been identified and we are going to do things differently. Such transfers will no longer be done by individuals. The police officers are qualified in system audit and will detect any illegal transaction immediately,” he said.

Kassami warned that there is a problem in the country which needs future redress.

“We are setting institutional measures to correct the mistakes that were made. I have discussed this even with the donors,” he added.

Sources also said the ministry plans to hire a firm to provide security advisory services in order to enhance the security of IFMS to be able to detect security fraud and put mitigating measures.

Pension and salary payment, according to the sources, will be fully migrated to the Integrated Personnel Payroll System by December.

According to the audit report, sh14b was disguised as salary and transferred from one account to another within Bank of Uganda.

The United Kingdom, Ireland, Norway and Denmark have suspended financial support to the Government over alleged theft of money meant for northern Uganda.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Leaders meet over electoral reforms
The civil society, religious leaders, political parties and the labour movement have met in Kampala for the national dialogue to generate consensus on the necessary electoral and constitutional reforms to guarantee free and fair elections in 2016....
About 100 people massacred in DR Congo - MPs
About 100 people were slaughtered last week in the east of the DRC, the latest massacre to shake the restive region....
Uganda Road Fund wants efficiency in roads maintenance
The financial accountability guidelines are affecting the maintenance of roads and Uganda needs to emulate its neighbors if the Uganda Road Fund (URF) is to efficiently be managed.Engineer Michael Odongo, the URF executive director said that the Ethiopian and Kenya road funds which have been in exi...
Who will finally stop Kinawataka destruction?
Can decisions by the Cabinet and Parliament about the environment be ignored? The continued destruction of Kinawataka swamp in Banda, Kampala suggests they can....
City floods: body of woman who drowned found
The body of Irene Nakato, who slipped and fell into one of the secondary channels in Kawempe, has been found after a long search, KCCA has said....
Elderly defiler asks for lenient term saying he is
A traditional healer, sentenced to 15 years in jail for defiling a nine-year-old girl, has asked for a lenient jail term, saying he is now impotent....
Should Govt lease parts of Lake Victoria to private developers?
Its Ok
No Way
Not Sure
follow us
subscribe to our news letter