Students loan: Alupo told to account for Shs6b

Minister of Education and Sports Jesicca Alupo (R) with her junior ministers of state for higher education J.C. Muyingo (L) and of Primary Education Kamanda Batalingaya appear before the Education committee to defend their budget yesterday. PHOTO BY Geoffrey Sseruyange

What you need to know:

Loan scheme. MPs told that some universities will not qualify for the loan as government cites lack of funds.

Parliament.
Lawmakers on the Education committee yesterday agreed to stand over further debate on the long-awaited students’ loan scheme until Education ministry officials provide details of how they spent Shs6b released for the purpose last financial year.

It also emerged yesterday that only new science students will benefit from the first lot of the scheme’s cash which is intended to enable individuals from poor backgrounds to access higher education. MPs also heard from ministry officials yesterday that some universities will not qualify for the loan as the government cited lack of funds.
It had been anticipated that continuing students would also benefit from the loan.

Presenting an overview of the ministry’s policy statement, Education Minister Jessica Alupo reported that the government has started financing higher education studies in line with the Higher Education Students Financing Act, 2014. She said government had set aside Shs5b so far.

Accountability
But MPs Gertrude Nakabira (Lwengo), Joseph Ssewungu (Kalungu West) and Jacob Opolot (Pallisa) pressed Ms Alupo to account for Shs6b that was released to her ministry last financial year.
In her response, the minister said part of the Shs5b was spent on the ongoing admission of students who applied for the loan whose deadline falls on August 15.

But in contradiction of the minister’s explanation, the Permanent Secretary, Ms Doreen Katusiime, who is the accounting officer in the ministry, said some of the money was used to cater for other pressing needs of the ministry and the unspent balance at the close of the financial year returned to the Consolidated Fund. Ms Katusiime’s revelations set off an uproar in the committee.
“So should we conclude that this money was diverted? The minister must give this committee an explanation of how this money was spent,” said the committee chair, Mr William Kwemara.
According to the standing orders governing public monies, any unspent funds must be returned to the consolidated fund.

Mityana Woman MP Sylvia Namabidde observed that Parliament approved Shs5b on last year which was supposed to be saved on a separate account to kick-start the scheme under the Higher Education Students Financing Act.

“What we are saying is that the students’ loan money was protected by the law. We approved Shs6b last year where Shs1b would cater for administration costs and the balance was for loans which were never disbursed last financial year. Where did you put the money and why didn’t you save it on a separate account,” asked Ms Namabidde.
The Higher Education Students Financing Act mandates the ministry to open up a separate account on which it can temporarily hold unspent balances.
Ms Alupo asked for more time to harmonise the ministry’s position and come up with a detailed breakdown of how the money was spent.

Other MPs queried why continuing students were not allowed to apply for the money yet they qualify according to the law, and why students from some universities had been denied access to the money.
Mr Michael Wanyama, the coordinator of the scheme, explained that science students from Kampala International University will not get loans because the institution is asking for Shs10m which is way above the average unit cost of Shs4m to be disbursed annually.