Parliament summons finance officials over 'dubious' expenditures
Mar 11, 2015
The Committee on Statutory Authorities and State Enterprises (COSASE) has written summons to the Finance minister, the Accountant General, Director Privatisation Unit and Secretary to Treasury to explain dubious expenditures queried in the Auditor General’s report.
By Cyprian Musoke
The Committee on Statutory Authorities and State Enterprises (COSASE) has written summons to the Finance minister, the Accountant General, Director Privatisation Unit and Secretary to Treasury to explain dubious expenditures queried in the Auditor General’s report.
“We want them to explain queries in the AG’s report of 2013. The report says government does not know what amount of investments it owns in terms of shares in several firms like National Housing and Construction Corporation, Uganda Telecom and many others.
“We are losing money every year because of this and we continue to pass budgets to these corporations yet they at the same time generate money utilised at source. So we end up making a loss,” said Committee Chairman Ibrahim Semujju Nganda.
He said that the report also faults the Privatisation Unit for managing only a few remaining units, the rest having been sold off, while maintaining a huge staff payroll.
“People just get salary without doing anything. The Auditor General observes that they sold National Housing and Construction Corporation (NHCC) at US$18m for which government gave 49% to the Libyan Government,” he said.
Other shares queried by the Attorney General that were sold off by government were in Uganda Telecom to the Libyan government worth 49% and Uganda Coffee Development Authority (UCDA)
“The Auditor General has confirmed that government gave away to Libyans 90% and remained with only 30%,” the report says.
The MPs also wondered why David Ssebabi sits on several boards of parastatals and whether he is not overwhelmed by the duties.
Mr. David holds a B.Com (Hons) degree of Makerere University Kampala and a Masters in Finance from Strathclyde University in Glasgow, Scotland UK. He is the Director of Uganda’s Privatization and Utility Sector Reform project under the Ministry of Finance, Planning and Economic Development and a seasoned Financial Analyst with experience in banking, parastatal monitoring and Utility Reform & Restructuring.
Another query involved the distribution of land in Namanve industrial park and the way that NSSF bought off land now referred as Kasokoso in Karaka under terms now being probed.
“We summoned PSST Muhakanizi and he informed us yesterday by way of a phone call that he would appear with his team but none of them has turned up.
“We hereby instruct the Clerk of the committee to draft summons which the Criminal Investigations Department (CID) officers attached to the committee to deliver to them to appear on Friday before we make our final report, Semujju ruled.
“If they don’t we shall make our final report without their input and ask CID bring them later as suspects,” Semujju.
MP Crispus Ayena said that if a parasail or government entity collects Non tax revenue and uses it all on salaries, and wai ts for another government disbursement for operations then it is worth disbanding
“If you set up an establishment and all it does is collet Non tax revenue and all of it goes to paying salaries why do we still need it,” asked.
Several MPs asked the government officials be given an opportunity to answer to the audit queries.
Kenneth Omona (Kaberamaido) said that the poorly negotiated agreements by the privatisation Unit a total of syh150b was paid in terminal benefits to laid off Uganda Commercial Bank (UCB) workers.
The commi9ttee resolved that if the officials don’t turn up them will make their report without their input.
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