Muhakanizi on spot over Shs90b farmers cash

The Secretary to the Treasury, Mr Keith Muhakanizi who kept calling himself “a born again Christian” was today pushed on the wall and forced to apologise for the “inefficiencies” in the running of a Shs90billion facility meant for helping the poor farmers access cheap credit.

The Parliament’s Public Accounts Committee noted “gross inefficiencies, conflict of interest and lack of supervision of the funds” on the part of Bank of Uganda and Ministry of Finance. Because of lack of supervision, PAC Chairperson Ms Alice Alaso said, the money has gone to the well-off farmers at the expense of the poor farmers and written off more than Shs499 million in bad debts.

On December 3 2009, the Governor Bank of Uganda Prof Emmanuel Mutebile wrote to Ministry of Finance, saying that Bank of Uganda could not monitor the implementation and evaluation of the facility, citing conflict of interest however to date, Mr Muhakanizi had not taken action. The ST apologised for “inefficiency” saying “he is also human”.

The committee expressed concerns about the possible risk to the funds and ordered Muhakanizi to streamline the monitoring of the scheme within one month. Officials from BoU told the committee that they signed a Memorandum of Understanding with Ministry of Finance and clearly statement that monitoring of the agriculture credit facility will not be their mandate.

Mr Muhakanizi returns to PAC next week.