AG faults Gulu authorities over shoddy work
Mar 12, 2013
Reconstruction of five roads worth sh1.5b in Gulu municipality was substandard, leading to the loss of money by the Government, the Auditor General has noted.
By Chris Kiwawulo
Reconstruction of five roads worth sh1.5b in Gulu municipality was substandard, leading to the loss of money by the Government, the Auditor General has noted.
The roads, which include Sir Samuel Baker, Churchill, Acholi, Louis Otika and Market Street, were done using sub-standard materials, some of which were not approved in the bills of quantities (BoQ).
In his report for 2010/11, the Auditor General, John Muwanga, found out that the Japanese International Cooperation Agency (JICA) upgraded Sir Samuel Baker and Churchill roads at a cost of sh673.4m, but the work done was substandard.
On the Sir Samuel Baker Road (1.2km), inspectors discovered that stone pitching was not done as provided for in the BoQ.
“Only 22 culverts instead of the 120 provided for in the BoQ were laid. Therefore, 98 culverts worth sh17.6m could not be accounted for,” the report revealed.
It was also discovered that there were no headwalls constructed in addition to the second layer of bitumen not being applied.
Management attributed the poor quality of work to insufficient funding. The Auditor General, however, recommended that the managers take personal responsibility.
On Churchill Road, out of the 89 culverts, only 35 were laid, leaving 54 culverts worth sh11.8m unaccounted for. The second layer of bitumen worth sh147m was also not applied.
“Residents reported that residential houses along the road would always get flooded whenever it rained,” the report stated.
On Acholi Road, a sh376.3m contract was awarded and sh342.9m paid, but work was far from completion. Management attributed the delay to the amendment of the contract sum by sh148m, which required the approval of the Solicitor General.
The construction of the 1.6km Louis Otika Road, contracted out at sh73.9m, was not properly shaped. Some sections had developed deep potholes, yet sh69.7m had been paid.
Market Street, which was worked on under JICA at sh387.6m, was also not properly done. Inspectors found that only 30 out of the 66 culverts had been laid, yet they did not have head and wing walls as provided for in the BoQ.
Public works
Investigators also found that the work at Lacor Hospital was not in line with the Primary Health Care (PHC) guidelines, which require that 50% of funds allocated to non-governmental organisation hospitals be spent on procurement of drugs from Joint Medical Stores.
It was observed that out of sh136.3m PHC funds transferred to Lacor Hospital in the first quarter, only sh41.4m was spent on the procurement of drugs, which is 30.4% instead of the required 50%.
In Gulu municipality, there were irregularities in the procurement of road construction materials, where sh979.4m was paid to the JICA project co-ordinator, Joseph Rutaagi, council officials and firms to procure road construction materials. In some instances, there was no evidence of adherence to the basic procurement principles and procedures.
Unaccounted for funds
A total of sh232.7m was advanced to various council officials and firms to carry out activities and provide services during the financial year 2010/11. But after the scrutiny of payment vouchers, it was discovered that payments lacked adequate accountability documents.
Undocumented expenditure
Expenditure amounting to sh73m had no supporting payment vouchers, creating uncertainty about how it was used. Auditors also found sh43.5m transferred to various Government-aided primary schools, division councils and other institutions, but vouchers were not supported with receipts from the intended beneficiaries.
Outstanding advances
Out of the previous year’s outstanding balance of sh32.8m, advances of sh1.6m were recovered, leaving a balance of sh29.8m. Other administrative advances worth sh1.9m were not reported on the balance sheet.
Doubtful tax remittances
A sum of sh26.7m in withholding tax remittances and Pay As You Earn (PAYE) was not supported with receipts or tax credit certificates from Uganda Revenue Authority.
Misused funds
Investigators discovered that sh196.4m was diverted from four municipal council accounts without proof of approval from the line ministries.
The Auditor General recommended that diverted funds be refunded. Payables amounting to over sh1.3b remained outstanding at the end of 2010/11 and included in this figure are tax obligations worth sh1b due to URA.
Out of sh634.2m in property rates’ revenue, a balance of sh415.7m was outstanding. Auditors also found that monthly subsidies extended to council employees worth over sh73m were not taxed.
Financial Loss
Investigators found that Gulu municipal council lost about sh239.8m in court costs for wrongful dismissal of staff. The Auditor General also noted that council stands to incur a further loss of sh56.4m when the obligation is fully settled.
Assets ownership
Auditors discovered the municipal council owns a fleet of vehicles and motorcycles but there was no evidence of ownership in the form of log books.
Inadequate staffing
Investigators also found that out of the approved 700 vacancies in the district, only 506 were filled. Among the key vacant posts was that of the chief finance officer, internal auditor and district engineer, the report revealed.
Primary schools
Inspection of 14 UPE schools revealed that the level of service delivery was lacking. Investigators found that a sh39.9m contract awarded to Kalbo Construction Company and General Supplies to construct a two-classroom block at Police Primary School was executed shoddily.
Despite the contractor being paid sh37.9m, the floor and inside wall painting were shoddily done. The paint peeled off hardly a year after commissioning. The school did not have a title for the land on which it is located.