MPs block plan to use Shs116.7 billion Petroleum Fund money for oil roads
The oil drilling machine at Kasamene 2 drilling ground in Hoima District. File photo
PARLIAMENT- Parliament has turned down the government’s request to withdraw Shs116.6 billion from the Petroleum Fund to finance the construction of roads in the oil belt.
Parliament said the government had not followed the necessary laws to move the money.
“The matter is prematurely before this House,” the Speaker of Parliament, Rebecca Kadaga, said on Wednesday.
“So please go back and file the necessary papers namely the Appropriation Bill on this issue before we can proceed.”
Moments earlier, Finance Minister, Matia Kasaija, had, during plenary in Kampala, moved a motion requesting that Parliament allows government to withdraw the money.
“To ensure the first oil comes out in 2020, we have found it necessary that we touch on the Petroleum Fund…to commence on the roads that are going to the oil wells,” Mr Kasaija told the House during plenary Wednesday.
“These roads must be in place by 2019. With the rest [of the money needed] we shall borrow and we have had to suppress certain expenses from the budget and we believe with that package we should be able to get the oil out of the ground by the target date.”
The government also wanted Parliament to approve a supplementary budget of an equivalent amount to the Uganda National Roads Authority.
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Mr Kasaija added that the government thought it is not necessary to refer the matter to the House Budget Committee.
Referring to the Public Finance Management Act and the Appropriation Act, Mr Abdu Katuntu said the finance minister should address himself to seek Parliament’s permission to withdraw the money from the Petroleum Fund.
“It will not be a casual motion you bring and we [Parliament] allows you. The Attorney General should address you on the provisions of the law,” Mr Katuntu said.
