CSOs set terms for bailout
Kampala- A group of Civil Society Organisations have asked government to stop bailing out distressed companies but instead focus on increasing budgets for underfunded government departments.
“CSOs feel bailout should be given to underfunded government priorities that need to be addressed,” Mr Julius Mukunda, the coordinator Civil Society Budget Advocacy Group, said during a media briefing at the organisation’s headquarters in Kampala, yesterday.
Mr Mukunda cited the National Medical Stores, which he said has a shortfall of Shs180 billion to purchase ARVs. Others include the Ministry of Agriculture with a shortfall of Shs16.2 billion for recruiting extension workers and the Education ministry with a shortfall of Shs12 billion to recruit Science and English language teachers.
Mr Mukunda said investing in these would benefit the citizens other than supporting a few individuals whose impact on the economy is negligible.
Ms Cissy Kagaba of the Anti-Corruption Coalition Uganda stressed that the decision to bail out companies should be economic and less political.
On Tuesday, President Museveni made it clear that government would pay companies it owes money and those which exported goods to South Sudan but have not been paid because of the instability in Uganda’s northern neighbour.
Ms Kagaba, however, questioned the effect of the said companies on the economy.
In the event of a bail out, however, the CSOs want government to follow a clear criteria to support any such companies including parliamentary approval.
SOS bailout terms
.Only companies not individuals should be bailed out
lBail out has to be a loan not gift with specific repayment plan
.Company has to have been in existence for at least the past ten years with audited books of accounts reviewed and certified by the Auditor General
.Companies must be tax compliant for the previous five years with tax certification from URA
.The company must have proof to at least employ 500 Ugandans directly on payroll
.Company must have forward and backward linkages to the agricultural sector
.Bail out will have to be an appropriation by an Act of Parliament
