Ministry of health on the spot over Shs780m
Dr Diana Atwiine, the ministry’s permanent secretary who doubles as the accounting officer. FILE PHOTO
What you need to know:
- Dr Diana Atwiine, the ministry’s permanent secretary who doubles as the accounting officer, said the construction which started last year, is expected to be completed in February 2019.
- The construction contract was awarded to M/s Cementers Limited who would receive 20% payment for every approved certificate in the subsequent years.
The Office of the Auditor General has put on spot the ministry of health over irregular transfer of Shs789m to a foreign Non-Government Organization’s (NGO) account to construct a hospital to cater for civilian war victims.
According to the Auditor General, Mr John Muwanga, an Italian registered NGO- M/s Emergency Life Support for Civilian War Victims, entered an agreement with the Ministry of Health (MoH) and the Ministry of Defense (MoD) to construct, operate and manage a regional hospital for Pediatric Surgery.
In his report on the financial statements of the ministry of health for the year ended 30th June 2017, Mr Muwanga says that the Memorandum of Understanding (MoU) was signed on 25th September 2013.
Details of the report indicate that the MoD was required to provide land measuring 30 acres as a project site, the title of which would be in the names of the Italian NGO.
The ministry of Health was to make a financial contribution of up to 20% of the total estimated budget for the construction of premises and procurement of equipment among others, while the NGO was to contribute 300% of the project cost and to source 50% from major donors.
“Subsequently, UGX.789,596,814 was transferred to the NGO as the 20% contribution. However the entity has not yet been registered as established under the laws of Uganda, for the hospital construction,” the AG notes in his report.
Mr Muwanga said that there is a risk of misappropriation of funds if the recipient is not registered in Uganda as the MoU stipulated.
“Management (MoH) is advised to obtain and submit documents of registration of the entity in Uganda and to properly seek parliamentary approval through the budget process of amounts to be expended,” the AG directed.
The AG points at an anomaly where the money was transferred to the NGO without a budget from which the 20% contribution would be calculated.
“In the absence of a budget, it is difficult to ascertain the basis upon which the funds were disbursed,” the AG notes.
Dr Diana Atwiine, the ministry’s permanent secretary who doubles as the accounting officer, said the construction which started last year, is expected to be completed in February 2019.
"As we speak now, the NGO is performing well as stipulated in the MOU. In fact we as the government are the ones lagging behind because of budget constraints," Dr Atwine said.
She said the hospital will be a specialised unit in cardiology (heart surgery) and its services will be for free.
"If the AG wanted to get information on registration we would have provided," Dr Atwiine added.
The construction contract was awarded to M/s Cementers Limited who would receive 20% payment for every approved certificate in the subsequent years.
The hospital is situated at Lunyo in Entebe.
