Speaker grants PAC extension for project audits

In a move poised at enhancing oversight, Speaker of Parliament Anita Among has extended the timeline for the Public Accounts Committee (PAC/Central) to complete their scrutiny of entities and projects currently under review. 

The update was disclosed by the body’s vice-chairperson Gorreth Namugga (Mawogola South MP) on December 12, 2024, during a flopped engagement with the works ministry (MOWT).

“As you are aware, our time had elapsed, the six months where we could not handle the 513 entities and the projects at the same time. We were given extra time to ensure that we give keen detail and interest ourselves in how projects are handled. Every one of us knows that most of the Government's money is in projects and we have been giving attention to the main ministries,” Namugga said.

Speaking to New Vision on Friday, December 6, 2024, PAC chairperson Muhammad Muwanga (Butambala county, NUP), decried the lack of attention given to these reports, emphasizing that the overlooked projects are people-centred and integral to service delivery.

Adding that this unprecedented development, being the first time PAC is undertaking such a focused review, will offer taxpayers a unique opportunity to assess the efficiency of these projects while also giving due regard to the critical work of the Auditor General.

“One we have huge borrowed money that remains unutilized and undisbursed. Two, these projects leave a lot to be desired when you go to the countryside. For example, we are looking at DRDIP with $200 million. So, there are huge sums of money in particular projects. When you look at the ministry of local government it has projects for the market, the lake project,” he explained.

However, their latest efforts have hit roadblocks, with several entities; such as the works ministry, which was on Thursday expected to appear regarding the $16.62 million (approximately shillings 62.3 billion) multinational Lake Victoria Maritime Communications and Transport Project, failing to turn up or repeatedly requesting indefinite postponements.

This, Kivumbi laments, is significantly hampering their progress.

The latest being the local government ministry (MOLG) which was due to appear before MPs on Friday morning. However, the delegation, led by undersecretary Hajji Muhammad Sewante, informed the legislators that the ministry’s accounting officer was unable to attend due to indisposition.

“On Friday last week, we received an invitation from this honourable committee to come on Tuesday and give responses to the Auditor General’s report on those projects that we are implementing. That’s the Project for Restoration of Livelihoods in the Northern Region (PRELNOR), Local Economic Growth Support (LEGS), Markets and Agricultural Trade Improvement Programme (MATIP). Because we received the letter on Friday and we were supposed to appear here on Tuesday, that difference of one day was not easy for us. Indeed, we wrote a letter asking for a postponement that indeed we should endeavour to appear on Friday which is this morning,” Sewante alluded.

“Our permanent secretary Ben Kumumanya is supposed to be in this meeting. However, he is unable because he is not feeling well and as we speak, he is actually in the hospital. Preparing for these responses is not an easy task because the first project PRELINO closed and the team went home. So, we have contacted the Project management team and they are just gathering up to come and prepare the responses,” he added.

Asking for a postponement, Sewante emphasized that the team behind LEGs is not in the country at the moment.

About LEGS

The Local Economic Growth Support (LEGS) Project is a five-year, $50 million (equivalent to shillings 187.5 billion) initiative to improve the lives of people in rural Uganda. A bulk of these funds, $43 million is from the Islamic Development Bank's Lives and Livelihoods Fund (LLF) with the rest being footed by the Ugandan Government.

The initiative launched on May 20, 2019, aims to drive interventions aligned with the Sustainable Development Goals (SDGs) in the districts of Nakaseke, Gomba, Alebtong, Bunyangabu, Kabarole, Kumi, Katakwi, Kyenjojo, and Ntoroko. Additionally, it seeks to enhance access to microfinance support in Adjumani, Buyende, Buikwe, Nwoya, Tororo, Luwero, and Rukungiri, fostering inclusive economic growth and community resilience.

The project consists three components, through which implementers hope to improve agronomic/livestock practices, rehabilitate of farm market access roads, improve land management and support 15,000 individuals under the Islamic Micro Financing modality among others.

Red flags

However, even before flipping the first page, Kivumbi has already raised a red flag over what appears to be gross irregularities and grey areas.

“We have now discovered that not a single one of the agencies is willing to appear. Because every page you open in project reports, there are queries, huge monies to be accounted for in billions of shillings. For example, when you look at a project like LEGS, there are advances to Microfinance Support Centre (MSC) of shillings one billion, there are unrecovered advances of 720 million and that is a scratch of what there is inside,” Kivumbi remarked.

Unaccounted for funds

A copy of Auditor General (AG) John Muwanga’s report shows that in the 2020/21 Financial Year, the local government ministry advanced 720 million to Kyenjojo district for the implementation of project activities. However, these were not accounted for at the end of the 2022/23 FY.

The funds were intended to establish a livestock breeding and demonstration centre in Katooke sub-county, set up a vegetable demonstration unit in Kihuura Sub County, and support the restoration of the Nyansimbi wetland within the same district.

Compounding the issue, during the year under review, shillings 181 million allocated to nine staff members for activity implementation remains unaccounted for, raising serious questions about whether the funds were misappropriated.

Among those implicated are Christopher Kisinde, who allegedly pocketed 41.7 million, Medard Kakuru with three million, and Chris Kisinde, who received 17 million for a joint field assessment.

Miriam Kuseewa also received 15.6 million for conducting regional sensitisations aimed at realigning LEGS to the Parish Development Fund.

Additionally, seven million was disbursed as facilitation to cluster staff for attending a meeting, among other questionable allocations.

Unrecovered MSC funds

In the same vein, the Microfinance Support Center (MSC) is yet to recover sh1billion which comprise ineligible payments, project management has said should be refunded.

As of July 1, 2021, the AG’s report indicates that MSC’s opening recoverable balance from the previous year was shillings 4.28 billion but by August 7, 2021, only shillings 3.2 billion had been recovered.