Book of shame out
Jun 22, 2008
SPOTLIGHT<br><br>From ghost workers to expired drugs, unfair allowances, irregular procurements and outright loss of cash in ministries and government departments: These are some of the finding in the latest Auditor General’s report.
SPOTLIGHT
From ghost workers to expired drugs, unfair allowances, irregular procurements and outright loss of cash in ministries and government departments: These are some of the finding in the latest Auditor General’s report.
By Mary Karugaba and Paul Kiwuuwa
Expired drugs delivered to hospitals, ghost workers on payrolls of prisons and ministries, payments for air tickets without proof of travel, and advances of salaries unaccounted for: these are some of the conclusions of the report of the Auditor General for the financial year 2006/2007, released to Parliament last week. Below are some of the most striking findings.
Losses
A total of sh327m worth in cash and stores was lost in the financial year ending in June 2007, the report notes.
About half of the losses, or sh175m, appeared in the Police, followed by the ministry of communications, where sh40m went missing in TVs, video recorders and other equipment; the internal affairs ministry, which lost some sh37m on passports; and NARO (National Agriculture Research Organisation), which registered losses worth sh36m on motorcycles and computers.
“These losses should be investigated and properly dealt with in accordance with the Public Finance and Accountability Actâ€, the Auditor General, John Muwanga, said.
Prisons
The report revealed that most of the Prisons’ land had no land titles, many had been encroached upon by private individuals or allocated to landless people.
It also found that Uganda prisons department had swapped its housing quarters at Nakivubo Road, valued at sh1b, with Namayiba Tea Estates, without following the proper procedures.
“The terms of the swap were for the transferee to construct a prison unit at Nakasongola. However, the deal was not subjected to competitive bidding, contrary to procurement regulationsâ€, the report stated.
The audit further discovered that out of 263 cows kept at Isimba Prison farm, 79 were for private individuals, including senior Prisons staff.
Police
According to the report, the Jinja Road Police Inspectorate of Vehicles lacks proper inspection equipment and records.
“The park yard was full of accident vehicles and some of the vehicles had been parked for the last seven years. Some vehicles came in without any records being made,†it says.
The audit also established that most of the Police housing estates were leaking and uninhabitable.
Loans and holding accounts
According to the Auditor General, a total of sh1.2 trillion in loans to state and private enterprises was outstanding by the end of June 2007.
He further noted that loans worth sh620b had not been performing for a long time and considered their recoverability “highly doubtful.â€
He further questioned the operations of three holding accounts in the Central Bank. These are accounts where budget support grants from donors are kept before they are transferred to the Consolidated Fund.
Details on one of the accounts showed that sh15b was received in June 2007 but the amount had disappeared through various “unexplained transactions†by the end of that month.
“The account was reconstructed following communication between the Accountant General and the European Commission, where it was resolved that all wrong transaction made be reversed,†the report reads. However, only sh8b was recovered.
Arrears
Although the finance ministry introduced the commitment control system, the Government’s domestic arrears by the end of the financial had accumulated to sh210b compared to sh279b last financial year.
According to the report, the defence ministry had arrears amounting to sh43b, foreign affairs sh24b, finance sh23b and water and environment sh11b.
The pension liabilities had reduced from sh222b to sh210b last financial year. The ministry of Public Service had the biggest bulk of the money amounting to sh190b including that of military widows and survivors benefits.
Health
The AG expressed concern over the poor state of regional hospitals, some of which are as old as 70 years.
“Most of the buildings are dilapidated with crumbling walls and ceiling. The sewage system cannot support the population. Theaters lack functioning equipment. The hospitals lack incinerators and mortuaries,†the report states.
It further observed that many hospitals face a serious problem of expired drugs arising from drug procurements and donations that were not properly planned for.
In Arua a sizeable number of ARV drugs were delivered two months after their expiry date. Mbale Regional Hospital received expired Zinc Oxide, while expired boxes of Aspirin and Panadol were delivered to Kabale Hospital.
At Mulago Hospital, according to the report, procurements worth sh1.2b were made without the authority of the contracts committee. It also found several stores and containers full of expired drugs.
Ghost workers
The Auditor General’s report noted that a total of 200 employees of the ministry of health were being paid without a clear employment status.
It also found that 18 employees of State House, whose contracts had expired, continued to get their salaries.
Examination of the prisons payroll for October 2006 only, found that sh20m had been paid to individuals who had either deserted, retired, transferred, died or been dismissed.
The water ministry was also queried over the irregular payment of sh217m to students who had applied to join the ministry for industrial training without the authority of the Public Service Commission.
In addition, according to the report, sh37m was paid to a retired judge as salary and allowances for a period of five months after retirement, which contravened government regulations.
Allowances and advances
Some foreign affairs officials based at home are being paid warm clothing allowance, just like their staff posted to missions in cold climates, the audit found.
Still at the foreign affairs ministry, the report said sh1b had been paid to officials in respect to air ticket and allowances without any evidence that the officials had actually travelled.
Advances totaling to sh17b remained unaccounted for, contrary to the regulations which require that all advances be cleared by the end of the financial year.
The Auditor General attributed this to “laxity by accounting officers to enforce timely accountability and strengthen controls over advances.â€
The health ministry had advances of sh7b by June 2007, Parliament sh3b, finance sh2b, defence sh1b and Makerere University sh786m.
Procurements
The Auditor General questioned the defence ministry over the payment of sh1.8b for uniforms, which were contested by the supplier. He warned that with the new agreement with the same firm, the ministry was likely to lose sh1.7b.
He also queried the way sh758m was paid out to a firm to overhaul the M1-24 helicopter belonging to State House. According to the report, the contract showed no detailed break-down of the payments “hence leaving room for manipulation.â€
During the year, sh293m was paid to a local firm for the supply of two new engine parts for the helicopter. But, items worth only sh263m were delivered and the balance was not explained.
Muwanga also discovered that the Electoral Commission paid out sh715m to various law firms in petition fees arising from the 2006 general election. However the payments lacked supporting documents, including the court judgments.
From ghost workers to expired drugs, unfair allowances, irregular procurements and outright loss of cash in ministries and government departments: These are some of the finding in the latest Auditor General’s report.
By Mary Karugaba and Paul Kiwuuwa
Expired drugs delivered to hospitals, ghost workers on payrolls of prisons and ministries, payments for air tickets without proof of travel, and advances of salaries unaccounted for: these are some of the conclusions of the report of the Auditor General for the financial year 2006/2007, released to Parliament last week. Below are some of the most striking findings.
Losses
A total of sh327m worth in cash and stores was lost in the financial year ending in June 2007, the report notes.
About half of the losses, or sh175m, appeared in the Police, followed by the ministry of communications, where sh40m went missing in TVs, video recorders and other equipment; the internal affairs ministry, which lost some sh37m on passports; and NARO (National Agriculture Research Organisation), which registered losses worth sh36m on motorcycles and computers.
“These losses should be investigated and properly dealt with in accordance with the Public Finance and Accountability Actâ€, the Auditor General, John Muwanga, said.
Prisons
The report revealed that most of the Prisons’ land had no land titles, many had been encroached upon by private individuals or allocated to landless people.
It also found that Uganda prisons department had swapped its housing quarters at Nakivubo Road, valued at sh1b, with Namayiba Tea Estates, without following the proper procedures.
“The terms of the swap were for the transferee to construct a prison unit at Nakasongola. However, the deal was not subjected to competitive bidding, contrary to procurement regulationsâ€, the report stated.
The audit further discovered that out of 263 cows kept at Isimba Prison farm, 79 were for private individuals, including senior Prisons staff.
Police
According to the report, the Jinja Road Police Inspectorate of Vehicles lacks proper inspection equipment and records.
“The park yard was full of accident vehicles and some of the vehicles had been parked for the last seven years. Some vehicles came in without any records being made,†it says.
The audit also established that most of the Police housing estates were leaking and uninhabitable.
Loans and holding accounts
According to the Auditor General, a total of sh1.2 trillion in loans to state and private enterprises was outstanding by the end of June 2007.
He further noted that loans worth sh620b had not been performing for a long time and considered their recoverability “highly doubtful.â€
He further questioned the operations of three holding accounts in the Central Bank. These are accounts where budget support grants from donors are kept before they are transferred to the Consolidated Fund.
Details on one of the accounts showed that sh15b was received in June 2007 but the amount had disappeared through various “unexplained transactions†by the end of that month.
“The account was reconstructed following communication between the Accountant General and the European Commission, where it was resolved that all wrong transaction made be reversed,†the report reads. However, only sh8b was recovered.
Arrears
Although the finance ministry introduced the commitment control system, the Government’s domestic arrears by the end of the financial had accumulated to sh210b compared to sh279b last financial year.
According to the report, the defence ministry had arrears amounting to sh43b, foreign affairs sh24b, finance sh23b and water and environment sh11b.
The pension liabilities had reduced from sh222b to sh210b last financial year. The ministry of Public Service had the biggest bulk of the money amounting to sh190b including that of military widows and survivors benefits.
Health
The AG expressed concern over the poor state of regional hospitals, some of which are as old as 70 years.
“Most of the buildings are dilapidated with crumbling walls and ceiling. The sewage system cannot support the population. Theaters lack functioning equipment. The hospitals lack incinerators and mortuaries,†the report states.
It further observed that many hospitals face a serious problem of expired drugs arising from drug procurements and donations that were not properly planned for.
In Arua a sizeable number of ARV drugs were delivered two months after their expiry date. Mbale Regional Hospital received expired Zinc Oxide, while expired boxes of Aspirin and Panadol were delivered to Kabale Hospital.
At Mulago Hospital, according to the report, procurements worth sh1.2b were made without the authority of the contracts committee. It also found several stores and containers full of expired drugs.
Ghost workers
The Auditor General’s report noted that a total of 200 employees of the ministry of health were being paid without a clear employment status.
It also found that 18 employees of State House, whose contracts had expired, continued to get their salaries.
Examination of the prisons payroll for October 2006 only, found that sh20m had been paid to individuals who had either deserted, retired, transferred, died or been dismissed.
The water ministry was also queried over the irregular payment of sh217m to students who had applied to join the ministry for industrial training without the authority of the Public Service Commission.
In addition, according to the report, sh37m was paid to a retired judge as salary and allowances for a period of five months after retirement, which contravened government regulations.
Allowances and advances
Some foreign affairs officials based at home are being paid warm clothing allowance, just like their staff posted to missions in cold climates, the audit found.
Still at the foreign affairs ministry, the report said sh1b had been paid to officials in respect to air ticket and allowances without any evidence that the officials had actually travelled.
Advances totaling to sh17b remained unaccounted for, contrary to the regulations which require that all advances be cleared by the end of the financial year.
The Auditor General attributed this to “laxity by accounting officers to enforce timely accountability and strengthen controls over advances.â€
The health ministry had advances of sh7b by June 2007, Parliament sh3b, finance sh2b, defence sh1b and Makerere University sh786m.
Procurements
The Auditor General questioned the defence ministry over the payment of sh1.8b for uniforms, which were contested by the supplier. He warned that with the new agreement with the same firm, the ministry was likely to lose sh1.7b.
He also queried the way sh758m was paid out to a firm to overhaul the M1-24 helicopter belonging to State House. According to the report, the contract showed no detailed break-down of the payments “hence leaving room for manipulation.â€
During the year, sh293m was paid to a local firm for the supply of two new engine parts for the helicopter. But, items worth only sh263m were delivered and the balance was not explained.
Muwanga also discovered that the Electoral Commission paid out sh715m to various law firms in petition fees arising from the 2006 general election. However the payments lacked supporting documents, including the court judgments.