Why government should improve accountability?

May 28, 2015

As the country prepares for the forthcoming budget speech on June 11, 2015, it is imperative that beyond the increasing budget figures with each passing year, efforts to review the performance of the budgets are seen and appreciated.

By Christine Byiringiro Ayebazibwe

As the country prepares for the forthcoming budget speech on June 11, 2015, it is imperative that beyond the increasing budget figures with each passing year, efforts to review the performance of the budgets are seen and appreciated. 

Uganda’s dependence on debt (external and domestic) has taken on a rising trend over the years and will still do over the medium-term. Uganda Debt Network (UDN) acknowledges the rationale behind borrowing, in some cases and also to finance huge infrastructural investments, to enhance economic productivity and development. The role of the private sector, too, is critical in this cause. So the Government has oftentimes extended credit to some private sector players.

Given that it is public funds that are extended, it is imperative that the Government  periodically,  for example, quarterly, accounts to all Ugandans who have benefited from such credit facilities, the selection criterion of recipients (to accord equal play) and extent to which intended objectives have been realised to-date. Such expectations largely still elude the Government of Uganda. Such omissions or commissions are susceptible to questionable public accountability and inequality, while undermining aggregate poverty reduction.

As Ugandan citizens and players concerned about public accountability, we expect the Government to regularly provide updates on components like i) loans ii) grants and iii) guarantees on a quarterly and semi-annual basis, as guided by the debt strategy for Uganda.

This is, therefore, to challenge the government to focus on guarantees, for improved public accountability. Can the government report on performance and recovery of selected guarantees issued from 2006 to-date, such as;

1) The guarantee issued in 2006 to Rift Valley Railways (for the EA Trade and Transport Facilitation) from IDA amounting to $10,000,000

2) The guarantee issued in 2007 to Bujagali Energy Ltd (for the Partial Risk Guarantee for Bujagali Project) from IFC amounting to $ 115, 000,000

3) The guarantee issued in 2009 to IUIU (for the student hostels project) from IDB amounting to $5,214,000

4) The guarantee issued in 2010 to IUIU (for the student hostels project) from IDB amounting to $567,000

5) The guarantee issued in 2010 to Apparel Tri-Star from UDB amounting to $3,060,636.

6) The guarantee issued in 2010 to Apparel Tri-Star from BOU amounting to $6,037,986.

 
The writer works with Uganda Debt Network.
 

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