State House sheds more light on losses
May 26, 2004
AAs I continue to reflect on the article: State House Loses Billions in Fraudulent Payments, which appeared in The New Vision of May 7 and mindful of the fact that State House statement issued on May 5 helped to clarify issues, one thing comes to mind: It pays to keep the cool. One does not have to
AAs I continue to reflect on the article: State House Loses Billions in Fraudulent Payments, which appeared in The New Vision of May 7 and mindful of the fact that State House statement issued on May 5 helped to clarify issues, one thing comes to mind: It pays to keep the cool. One does not have to lose their heads in the face of such allegations whose motives need no emphasis.
Although we were stunned by this article, our minds were put at ease by the editor’s apology, which, in my opinion, demonstrates a sense of duty and a break with the ugly past.
Allow me space to throw some light on the audit queries the subject of which your paper dwelt upon. The readers may wish to note the following:
Auditor General’s queries are not conclusive. They are statements based on impressions and not facts. Accounting officers are required by law to respond to audit queries within a specified time frame.
The Auditor General raised 25 audit queries on State House accounts for the financial year 2002/3. I led a team of senior managers to the Auditor General to discuss the queries and 95% of them were dropped.
For the sake of transparency, it is prudent to get to the heart of the problem by examining in a summary the audit queries discussed.
The audit queries are dropped where accountability is satisfactory, the are upheld where accountability at the time of discussions is unavailable or unsatisfactory. In any event, the latter form part of the Auditor General’s Report to Public Accounts Committee (PAC). Accounting officers are summoned to discuss the report to PAC. The same pattern as elaborated above is repeated at PAC meetings.
The following is a summary of the audit queries State House discussed with the Auditor General in February 2004. Queries at this meeting were either dropped, or upheld.
l Pay As You Earn (PAYE) not recovered. Query dropped during discussion. (To be considered in the 2003/04 financial year).
l Employment Income not taxed (Query dropped after verification)
l Medical treatment abroad (Query dropped after verification)
l Unauthorised diversion (Query dropped during discussion.)
l Land surveyed. Land Titles and Deeds are being processed (Query stands).
l Rented Premises:
i) Accommodation of staff who were not entitled (Query stands - A letter from Public Service authorising State House to accommodate staff not availed).
ii) Classified expenditure which could not be verified (Sh35,843,496).(Query dropped after verification).
iii) Rental payments without tenancy agreements, valuation reports and acknowledgement receipts from the landlords.(Query dropped after verification).
l Cash survey
i) Missing funds (Query dropped after verification).
ii) Non-deduction of 4% withholding tax (Query dropped after verification).
iii) Cashiers not properly appointed (Query dropped after verification).
iv) Unauthorised payments (Query dropped after verification).
l Food Basket Allowance:
i) Funds not accounted for (Sh172,444,000). (Query stands).
ii) Sh31,951,000 not signed for by the intended beneficiaries.(Query stands).
iii) Sh47,598,000 signed for on behalf of the payees without written authorities from the beneficiaries.(Query stands).
iv) Strength return for (PGB) (Norminal Roll).(Query stands).
l Classified expenditure. (Query stands).Classified expenditure prior to the enactment of the Public Finance and Accountability Act was not audited for lack of clear guidelines. Guidelines are now available. The Auditor General has audited classified expenditure.
l Repair of accident motor vehicle.
i) Police Accident Report not availed for audit (Query dropped after verification).
ii) Overpayment of repair costs (Query dropped during discussion).
l Fuel deposits not accounted for. (Query dropped after discussion).
l Improper use of fuel advantage card system.(Query stands).
l Funds not accounted for. (Query stands)
l Advances not accounted for. After verification the outstanding figure is Sh109,126,300.
l The Cooperative Conference and Youth Seminar at Kyankwanzi.
i) Cooking pots not accounted for (Query dropped after verification).
ii) Hire of transport services (Query dropped during discussion).
iii) Hire of tents without Contracts Committee approval. (Query dropped during discussion).
iv) Irregular payments. (Query dropped after verification).
v) Unaccounted for photocopier. (Query dropped after verification).
l Remittances abroad.(Query dropped after verification).
l France – Africa Summit. (Query dropped during discussion).
l Doubtful accountability of advances for flying time, navigation fees and other jet expenses.
i) Accommodation and catering expenses. (Query stands).
ii) Safari day allowance for Gulu trips and extra per diem for days to Eritrea. (Query stands).
ii) Doubtful expenditure.(Query dropped after verification).
iv) Unreceipted balance. (Query dropped during discussion).
v) Aviation medical testing expenses and renewal of airline transport, pilot’s licence (Query dropped during discussion).
l Travel abroad
i) Accommodation expenses for the President’s delegation. (Query stands).
ii) Security deposits on premises leased for the accommodation of the president during his visit in June 2003 to USA (Query dropped after verification).
iii)Cellular phones not returned/accounted for (Query dropped after verification).
iv)Pending refund from a transport company. (Query stands).
v)Remittance of public funds to personal account. (Query dropped during discussion).
vi)Outstanding bills settled. Query dropped after verification.
l Unauthorised borrowings (Query dropped during discussion).
l Nugatory expenditure. (Query stands).
l State House sponsored students. (Query dropped during discussion).
l Entebbe repair workshop. (Query dropped after verification).
I chose to go the full length to clear the air and help the readers form their opinion on State House accounts for the year 2002/03.
State House is credited with sound Management systems. We have no room for impropriety.
Richard Muhinda
State House Comptroller
Although we were stunned by this article, our minds were put at ease by the editor’s apology, which, in my opinion, demonstrates a sense of duty and a break with the ugly past.
Allow me space to throw some light on the audit queries the subject of which your paper dwelt upon. The readers may wish to note the following:
Auditor General’s queries are not conclusive. They are statements based on impressions and not facts. Accounting officers are required by law to respond to audit queries within a specified time frame.
The Auditor General raised 25 audit queries on State House accounts for the financial year 2002/3. I led a team of senior managers to the Auditor General to discuss the queries and 95% of them were dropped.
For the sake of transparency, it is prudent to get to the heart of the problem by examining in a summary the audit queries discussed.
The audit queries are dropped where accountability is satisfactory, the are upheld where accountability at the time of discussions is unavailable or unsatisfactory. In any event, the latter form part of the Auditor General’s Report to Public Accounts Committee (PAC). Accounting officers are summoned to discuss the report to PAC. The same pattern as elaborated above is repeated at PAC meetings.
The following is a summary of the audit queries State House discussed with the Auditor General in February 2004. Queries at this meeting were either dropped, or upheld.
l Pay As You Earn (PAYE) not recovered. Query dropped during discussion. (To be considered in the 2003/04 financial year).
l Employment Income not taxed (Query dropped after verification)
l Medical treatment abroad (Query dropped after verification)
l Unauthorised diversion (Query dropped during discussion.)
l Land surveyed. Land Titles and Deeds are being processed (Query stands).
l Rented Premises:
i) Accommodation of staff who were not entitled (Query stands - A letter from Public Service authorising State House to accommodate staff not availed).
ii) Classified expenditure which could not be verified (Sh35,843,496).(Query dropped after verification).
iii) Rental payments without tenancy agreements, valuation reports and acknowledgement receipts from the landlords.(Query dropped after verification).
l Cash survey
i) Missing funds (Query dropped after verification).
ii) Non-deduction of 4% withholding tax (Query dropped after verification).
iii) Cashiers not properly appointed (Query dropped after verification).
iv) Unauthorised payments (Query dropped after verification).
l Food Basket Allowance:
i) Funds not accounted for (Sh172,444,000). (Query stands).
ii) Sh31,951,000 not signed for by the intended beneficiaries.(Query stands).
iii) Sh47,598,000 signed for on behalf of the payees without written authorities from the beneficiaries.(Query stands).
iv) Strength return for (PGB) (Norminal Roll).(Query stands).
l Classified expenditure. (Query stands).Classified expenditure prior to the enactment of the Public Finance and Accountability Act was not audited for lack of clear guidelines. Guidelines are now available. The Auditor General has audited classified expenditure.
l Repair of accident motor vehicle.
i) Police Accident Report not availed for audit (Query dropped after verification).
ii) Overpayment of repair costs (Query dropped during discussion).
l Fuel deposits not accounted for. (Query dropped after discussion).
l Improper use of fuel advantage card system.(Query stands).
l Funds not accounted for. (Query stands)
l Advances not accounted for. After verification the outstanding figure is Sh109,126,300.
l The Cooperative Conference and Youth Seminar at Kyankwanzi.
i) Cooking pots not accounted for (Query dropped after verification).
ii) Hire of transport services (Query dropped during discussion).
iii) Hire of tents without Contracts Committee approval. (Query dropped during discussion).
iv) Irregular payments. (Query dropped after verification).
v) Unaccounted for photocopier. (Query dropped after verification).
l Remittances abroad.(Query dropped after verification).
l France – Africa Summit. (Query dropped during discussion).
l Doubtful accountability of advances for flying time, navigation fees and other jet expenses.
i) Accommodation and catering expenses. (Query stands).
ii) Safari day allowance for Gulu trips and extra per diem for days to Eritrea. (Query stands).
ii) Doubtful expenditure.(Query dropped after verification).
iv) Unreceipted balance. (Query dropped during discussion).
v) Aviation medical testing expenses and renewal of airline transport, pilot’s licence (Query dropped during discussion).
l Travel abroad
i) Accommodation expenses for the President’s delegation. (Query stands).
ii) Security deposits on premises leased for the accommodation of the president during his visit in June 2003 to USA (Query dropped after verification).
iii)Cellular phones not returned/accounted for (Query dropped after verification).
iv)Pending refund from a transport company. (Query stands).
v)Remittance of public funds to personal account. (Query dropped during discussion).
vi)Outstanding bills settled. Query dropped after verification.
l Unauthorised borrowings (Query dropped during discussion).
l Nugatory expenditure. (Query stands).
l State House sponsored students. (Query dropped during discussion).
l Entebbe repair workshop. (Query dropped after verification).
I chose to go the full length to clear the air and help the readers form their opinion on State House accounts for the year 2002/03.
State House is credited with sound Management systems. We have no room for impropriety.
Richard Muhinda
State House Comptroller