Kabarole returns Shs5b to treasury as projects stall
A building under construction that will house Kichwamba Health Centre III in Kabarole District. PHOTO BY ALEX ASHABA
What you need to know:
During a district council meeting on June 30, Mr Richard Rwabuhinga, the district chairperson, explained that the district was unable to utilise the money from the previous financial year due to various factors. Part of the returned funds to the tune of Shs2 billion was meant for wages
Kabarole District local government has announced that it will return Shs5.2 billion allocated to it in the 2022/23 financial year to the treasury.
This comes at a time when several district projects have stalled for two consecutive financial years, affecting service delivery.
During a district council meeting on June 30, Mr Richard Rwabuhinga, the district chairperson, explained that the district was unable to utilise the money from the previous financial year due to various factors. Part of the returned funds to the tune of Shs2 billion was meant for wages.
He said the ministries of Finance and Public Service prohibited the district from recruiting new staff, resulting in inability to utilise the allocated wage budget.
Another Shs2.8b under the Uganda Intergovernmental Fiscal Transfer projects will be returned to the treasury.
The district received this money as a supplementary budget in May, shortly before the end of the financial year.
The same amount had been returned to the treasury in the previous financial year (2021/22). Also, Shs217 million was meant for the construction of the district headquarters.
Mr Rwabuhinga expressed hope that they would be able to reclaim the Shs217 million allocated for the construction of the district headquarters in Busoro Sub-county, as the contractor was unable to complete the work on time.
He raised concerns about the Public Finance Management Act, 2015, which allows the Ministry of Finance to reclaim unspent balances at the end of the financial year without consulting the district. He opposed this practice, suggesting that grant money allocated for such projects should be allowed to remain in the district.
In the 2022/23 financial year, Kabarole embarked on implementing projects under the UGFIT programme.
One of the notable projects involved the upgrade of Nyabuswa and Kituuli health facilities at a cost of Shs1.22 billion. The contracted parties were expected to construct and complete a general maternity ward and install the necessary equipment.
Similarly, under the same programme, funds amounting to Shs1.297 billion were allocated for the upgrade of Iruhura and Kichwamba health facilities to health centre III status.
Additionally, the programme included the construction of Kiko and Kidubuuli health centres to the level of health centre III with a budget of Shs1.8 billion.
However, the district’s performance report for the end of the 2022/23 financial year, released on June 23 revealed that the contractors failed to complete their assigned work.
District leaders attribute the unspent balance and project delays to the central government’s failure to expedite the procurement process for contractors and the late release of funds. For instance, the construction of the Kichwamba seed school, awarded to a contractor in the previous financial year (2021/22), has not progressed beyond site levelling.
The Kichwamba Sub-county chairperson, Mr Jackson Magezi, expressed frustration over the contractor’s delays and emphasised that the district lacks the authority to supervise the contractor.
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This is not the first time Kabarole District has faced challenges in utilising its budget. The auditor general’s report as of June 30, 2022, revealed that Shs3.128 billion had been returned to the treasury in the previous financial year (2021/22).
