Auditor-General Edward Ouko

The Auditor General has started carrying out an in-depth audit over the bankruptcy of defunct banks taken over bank of uganda.

This came after the parliamentary committee on commissions, statutory Authorities and state enterprises told the Auditor general to interest its self in carrying out a special audit in the processes of defunct bank take over by bank of Uganda.

READ: BOU officials grilled over hiring external lawyers to battle court cases

A number of Banks have been dissolved by the Central Bank which includes Crane bank, Cooperative bank, Green land bank, International credit bank, Global trust bank, Nile bank and National bank of commerce.

This was revealed by the committee Chairperson and Bugweri County Member of Parliament (MP), Abdul Katuntu during a committee interface with the officials from Bank of Uganda led by the Deputy Governor, Louis Kasekende.

 The Bank of Uganda officials were appearing before the committee expects this report within 90 days.

Katuntu said that the audit should cover aspects of cost of liquidation, assets, liabilities and the status of all the defunct banks.

He said that as a committee had realized that Bank of Uganda has never accounted to any institution about that process of liquidation of defunct banks.

Katuntu said that the defunct banks were public institutions which had a lot of securities which were liquidated.

Katuntu further revealed that audit is going to be married by another audit to find out what has led to the collapse of the defunct banks.

ALSO READ: Bank of Uganda’s accountability of 200bn shillings questioned by Parliament

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Auditor General, John Muwanga

MPs sitting on the Public Accounts Committee (PAC) of Parliament on Monday grilled the Ministry of Education and Sports officials to explain their expenditure of over 2.1billion shillings of public funds meant for private Universities.

In his June 30^th 2016 report to Parliament, Auditor General, John Muwanga, highlighted that the Ministry transferred 2.1billion shillings to six private Universities, in fulfillment of Presidential pledges.

The beneficiary Universities included; Bishop Staurt University which received 380 million shillings , Kumi University 300Million shillings , Kisubi Brothers University College 912.5Million shillings , Nkumba University 300M, Mountains of the Moon University 150M and Ndejje University 150M.

During the audit process, the auditors discovered that the transfers lacked detailed information with regards to status of implementation of pledges where the benefiting universities had to construct libraries, laboratories and other science blocks.

The auditors also queried discovered that the transfers were made without putting in place mechanisms for accountability from the universities that benefited from President Museveni’s generosity.

In their response, the Ministry told MPs that only Nkumba and Ndejje Universities have handed in their accountabilities.

Director Higher Education Robert Odok Oceng said that the understanding is that the students from private Universities are also Ugandans who come to the job market, who should be properly trained.

During the interface, it was discovered that the Ministry issued the funds without drawing any agreement with the Universities.

The Ministry acknowledged that there was no memorandum of understanding drawn but revealed these have since been put in place.

Gerald Karuhanga the Ntugamo MP

Gerald Karuhanga, Ntungamo Municipality MP wondered how the Ministry would commit such huge funds to private Universities, yet public Universities are grappling with meager funds.

He also questioned why the Ministry budget should go into paying presidential pledges, yet Parliament allocates monies to the Office of the President to meet presidential pledges.

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Auditor General John Muwanga.

The Auditor General, John  Muwanga, has released a new audit report for the financial year 2015/16 showing escalating misuse of trillions shillings in government agencies and entities.

The report handed to the Speaker of Parliament, Rebecca Kadaga by  Muwanga indicated that government domestic debt increased by 446 billion shillings making a total of 2.7 trillion shillings government arrears.

The report faults the accounting officers in government entities of paying for domestic arrears which were previously not disclosed nor budgeted for.

The report further shows that 168 billion shillings was spent on items which do not reflect the nature the expenditure.

According to the  Auditor General’s analysis carried out on the government payroll, it was revealed that 11.3 billion shillings was paid irregularly by accounting officers in local government authorities through over payments, wrong salaries payments and unsupported pension payments.

Speaker of Parliament Rebecca Kadaga recieving the Auditor General John Muwanga’s report previously.

The Auditor General said that though he has experts with required skills for auditing any entity they can only contain corruption but that it is difficult to eliminate it totally and hence called for every one’s effort in the fight against the vice.

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Mulago hospital’s Executive Director Dr. Byarugaba Baterana

This was during the committee sitting where the hospital Executive Director, Dr. Byarugaba Baterana among other officials appeared to answer queries in the Auditor General’s report of 2013/14.

According to the report, the hospital failed to declare a tune of 1.2bn shillings as receivable from private patients.

Among the companies mentioned to have not paid their bills even after their patients had received treatment include Vision group, Bank of Uganda, Sheraton Hotel, parliament, ministry of Defense among others.

The Committee Chairperson whose is also MP Soroti district, Angelina Ossege blamed the hospital management for letting such high profiled entities consume services they don’t pay for yet this is not the case when it comes to handling the peasants.

The Auditor General notes that by the hospital’s failure to declare these receivables, it might lead to inappropriate accountability in case this money is paid at any time because of absence of any records.

Meanwhile, the hospital Executive Director Dr. Byarugaba Baterana threw MPs into laughter when he sympathised with the mentioned companies that they didn’t have money to pay the bills by the time of audit and they could not be denied services.

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Winnie Kizza the Woman MP for Kasese and also the Leader of Opposition in Parliament of Uganda and outgoing chairperson accounts committee of parliament.

Speaking to Journalists at Parliament during the handover ceremony for the parliamentary committee on local government accounts, the Opposition’s Chief whip Winfred Kiiza, said that they had observed that change of leadership of this committee every after two years affects the tracking of accountabilities.

Kiiza handed over the office to the new bearer Reagan Okumu.

She said this in particular happens in government ministries where officials are often transferred and this makes it troublesome tracking them if the accounts committee leaves office within a short time.

She also said that redeployment of accounting officers like Chief Finance Officers (CFOS) and Chief Administrative Officers to other district before accounting for expenditure of the period of their operation is wrong because it is not easy to trace these officials to account for the funds for the previous districts.

Okumu, while receiving the new office said that his committee will stick to the Auditor General (AG) reports over the accountability of the district funds as a way of disposing off of the many pending reports to reduce the current backlog caused because of the many administrative units like districts, municipalities,sub counties and municipal councils.

He urged the whistle blowers to utilize the local government accounts committee to report contracts and donor funds what is perceived not accounted for.

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officer last year.

Addressing journalists today at his office, Lukwago said, according to the auditor general’s report, Musisis has illegally recruited her technical staff naming the PRO, financial manger, legal experts,
logistical manager, drivers among others adding that most of the officers are not qualified for these posts and are still receiving double pay from URA and KCCA, a thing Lukwago says is
illegal.

Lukwago also pins president Museveni for now helping to get Musisi out of the roaming trouble by holding meetings at state house with Musisi and officers from the auditor general’s office to defend Musisi by doctoring the report.

Lukwago and the transparent councilors are now calling on the auditor general to make the report which was produced on 28th/Jan/2012 public so that laws grab the blue eyed lady of the
president.

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Bbumba appeared before the committee to explain her role in sanctioning the monies over 140 billion shillings claim to Basajjabalaba for cancellation of contracts to run Nakasero and Owino markets, as well as Constitutional Square.

Bbumba is said to have sanctioned the payments despite of advice from the Auditor General’s office against it.

The legislators accused the minister of disregarding President Yoweri Museveni’s letter dated 17^th May 2011, which described as scandalous and unacceptable.

MP Gerald Kruhanga said it was unwise for Bbumba to sanction the payment yet a day earlier, the Auditor General’s office had instituted a special investigation into the monies.

Maxwell Okora further said the President’s letter, questioning the claims to Basajjabalaba should have been taken into account and the payments scrutinized further.

Ultimate Media

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