Finance, MPs lock horns over Finance Bill

By Mary Karugaba

Scrutinizing of the Finance Bill has commenced members of the House budget committee threatening not to pass the Bill until their concerns have been addressed.

Budget Committee chairman Tim Lwanga without mentioning the committee’s concerns said they will block the Bill if the minister of finance does not address their concerns.

The finance ministry intends to replace the Budget Act of 2001 and the Public Finance and Accountability Act of 2003 with Public Finance Bill 2012.

The Budget Act provides for the establishment of a Parliament budget committee and budget office, which regulate budget allocations but in the new proposed law, the two establishments are not included.

 “Three months ago, Finance presented the Bill to the committee and we told them if our concerns in the budget Act are not incorporated in the Bill, we shall not be party to it. They never came back yet this is a serious issue that we need to address. I am surprised they are now here saying they are time bad?” Lwanga said.

The Bill also seeks to establish the Petroleum Investment Fund and also provide for the establishment and management of the Petroleum Investment Reserve.

Some MPs had argued that without the Budget Act, it will be difficult for Parliament to perform its oversight role in regulating and monitoring Uganda’s public funds.
But Finance argued that the new Bill rather seeks to strengthen Parliament’s oversight in the mobilization, allocation, utilization resources.

The officials further explained that the Bill also seeks to stop funding of activities that are outside the budget and have not been approved of by Parliament.

After hours of argument, state minister for finance Matia Kasaija agreed to meet the Budget Committee separately. “We have incorporated most of your concerns in the Bill and we are ready to present them to you,” he said.

He said the ministry was under pressure to pass the Bill in order to address the gaps that exist in financial accountability and transparency.

Officials from the Auditor General led by Keto Nyapendi Kayemba welcomed the Bill saying it enhances the timeliness and relevance of Audit reports so that accounting officers are held to account for any adverse reports before more resources are appropriated to them by Parliament.

Finance Committee Chairman Robert Ssebunya said the Bill should be amended to include punitive measures for public officers who misuse government funds.

According to the Bill, public officers who loose government funds/property are supposed to pay a fine of sh10m or imprisonment for four years.