MPS want loans recovered from private companies
Oct 21, 2009
MPs want over sh1 trillion lent to private companies by the Government recovered. Over 60% of the loans are said to be non-performing, while about sh6b has been declared bad debts by the Government.
By Mary Karugaba
and Catherine Bekunda
MPs want over sh1 trillion lent to private companies by the Government recovered.
Presenting the public accounts committee report on issues raised by the Auditor General, the chairman, Nandala Mafabi, on Tuesday said the money was loaned to the companies in 2003.
Mafabi told Parliament that over 60% of the loans was non-performing, while about sh6b has been declared bad debts by the Government.
He, however, said the committee was not satisfied with the explanations given by the accountant general, Gustavio Bwoch.
Mafabi asked for an explanation on the criteria used to determine these bad debts since most of the companies involved were limited liability companies.
The committee, however, declined to name the companies involved.
“This type of action serves a smaller section of the population and is unfair to the taxpayers. Any policy that favours the interest of the smaller population against the national interest should be discarded forthwith,†Mafabi said.
He also informed Parliament that over sh68b was incurred as excess expenditure to ministries and departments, contrary to the law.
This the year, Uganda Revenue Authority has financed its operations with over sh24b without authorisation, Mafabi said.
The MPs proposed that accounting officers who incur such excess expenditures should be held responsible and charged with theft and corruption.
Mafabi said accounting officers of the Ministry of Gender, State House, Local Government, Prisons Office of the Prime Minister and the Police were among the culprits.
He also noted that accounting officers were advancing themselves money for private use. He cited former investment minister Prof. Kiwanuka Ssemakula, saying he still owes sh365,812 to the Office of the Prime Minister.
and Catherine Bekunda
MPs want over sh1 trillion lent to private companies by the Government recovered.
Presenting the public accounts committee report on issues raised by the Auditor General, the chairman, Nandala Mafabi, on Tuesday said the money was loaned to the companies in 2003.
Mafabi told Parliament that over 60% of the loans was non-performing, while about sh6b has been declared bad debts by the Government.
He, however, said the committee was not satisfied with the explanations given by the accountant general, Gustavio Bwoch.
Mafabi asked for an explanation on the criteria used to determine these bad debts since most of the companies involved were limited liability companies.
The committee, however, declined to name the companies involved.
“This type of action serves a smaller section of the population and is unfair to the taxpayers. Any policy that favours the interest of the smaller population against the national interest should be discarded forthwith,†Mafabi said.
He also informed Parliament that over sh68b was incurred as excess expenditure to ministries and departments, contrary to the law.
This the year, Uganda Revenue Authority has financed its operations with over sh24b without authorisation, Mafabi said.
The MPs proposed that accounting officers who incur such excess expenditures should be held responsible and charged with theft and corruption.
Mafabi said accounting officers of the Ministry of Gender, State House, Local Government, Prisons Office of the Prime Minister and the Police were among the culprits.
He also noted that accounting officers were advancing themselves money for private use. He cited former investment minister Prof. Kiwanuka Ssemakula, saying he still owes sh365,812 to the Office of the Prime Minister.