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KAMPALA - Members of Parliament (MPs) have quizzed the health ministry over the overpayment of shillings 286 billion to the incomplete Lubowa Hospital project contractor.

Health ministry officials appeared before Parliament's Public Accounts Committee (Central) last week to answer audit queries of the financial year 2022/2023 highlighted in the Auditor General’s report.

Among the queries highlighted by the AG is the overpayment of shillings 286 billion to the contractor of the Lubowa hospital Even before the project was completed.

Committee chairperson Muwanga Kivumbi, who was reading from the project agreement, said: “The designed agreement provides that remuneration of the construction works of the specialised hospital will accrue upon the achievement of each milestone…”.

In addition, Kivumbi read: “Audit noted that while the owners engineer issued milestone certificates based on progressive reports issued by the contractor, the owners engineer had restricted access to the hospital’s construction site which undermined his role of protecting both the ministry of health and ministry of finance interests.”

Approximately $379.71 (about shillings 1.1 trillion) has been committed by the Government towards the construction of a hospital whose construction completion was supposed to be September 2, 2022, according to the committee.

“And we are in this mess because you the ministry supposed to oversee this project went ahead to offer certificates of completion which prompted the finance ministry to effect payment even with the reason of restricted access and the ministry depended on your report. That’s why accounting officer, this audit query needs to be answered by you.

Why did you offer certificates of completion and the country committed sh1.1tn and also your ministry kept on receiving money for supervision? Not only the supplementary which I know, but also earlier funds. Madam accounting officer that’s the case you ought to explain, how you caused the country a crucial financial loss,” Kivumbi said.

Health ministry permanent secretary Diana Atwiine said: “Chair you are right to bring the issues of Lubowa. It has also been equally our concern. We want to see that that project is really completed. I will ask the owner engineer to answer the questions.”

However, Atwiine also said the finance ministry would be in a better position to answer the question the committee was asking.

However, Kivumbi interrupted and informed her that the committee had spoken to the finance ministry and the Office of the Auditor General over the same issues.

George Otim, the Engineer from the ministry who is responsible for supervising the construction of the project, said progress of construction is at 35%.

Otim said they have had challenges for about one year for which works have stalled “but as I speak, the contractor is on the ground working. Chair, I have issued certificates for works that have been implemented. I am not aware of overpayment.”

He added: “We have offered milestone certificates as per the project performance budget which outlines the activities supposed to be outlined within the project.”

However, the committee suspected that the engineer was holding back some information and put him under oath.

The Ministry of Health assured the committee that it would make provisions for the members to visit the construction site of the International Specialised Hospital of Uganda in Lubowa to ascertain the progress of construction.

Nathan Mafabi (Budadiri West) asked the committee to give Otim a benefit of doubt before he could be put on oath.

“I would plead, let us give him a benefit of doubt, give the man the document ask him to come and answer the question,” he said.

However, committee deputy chairperson Gorreth Namugga said Otim’s accusations were clear and that there was no need to excuse Otim.