Financial crisis hits Kasese

Kasese. Kasese District is facing a financial crisis that is crippling service delivery at local government level.
The crisis is driving the district into recession because most projects have stalled due to lack of funds.

For instance, works on the Shs900m Kyogho Bridge in Bwesumbu Sub-county, Busongora North has been abandoned due to lack of funds.
At Kyogho Bridge, the workers said they lacked building materials, fuel and money to pay workers and other service providers. The crisis has had a spill over effect on other areas that include water and engineering departments that have reported huge debts to service providers.

Daily Monitor has seen a copy of a letter dated October 16, 2018, in which Mr Harry Turyaheebwa, the Kasese District chief administrative officer (CAO) wrote to the Permanent Secretary in Local Government ministry, explaining the prevailing financial crisis at Kasese District.
Mr Turyaheebwa indicated that the district is hugely indebted, blaming his predecessors who did not pay up debtors.
He indicated that he found unlimited deductions from staff totalling to Shs396.5m, unsettled court fees totalling to Shs27m, Pay as You Earn of Shs64m and unpaid service providers and contractors who are demanding Shs1.1b.

“The purpose of this communication is to inform you about the prevailing situation in the district and in case you hear of endless court cases, they will be emanating from this unpleasant financial management,” Mr Turyaheebwa’s letter reads in part.
The district planner, Mr Alex Masereka, in his defence, however, claimed that the district experienced over payments, which he blamed on the new system.
He claimed that some accounts were reflected in the computerised payment system as double counted.

But Mr Masereka was hesitant to reveal the areas where the money was over spent. He claimed that the district had a shortfall in local revenue collections of about Shs1.3b of Shs1.9b which was budgeted for.
“If you budget for the money and you don’t realise it, it becomes an audit query but auditors had made their reports and everything seemed to be okay,” he said without giving a clear explanation on the fate of service providers who are demanding their money.
The district chairman, Mr Geoffrey Sibendire, said he was not aware of any debts of the district and that his operations are going on normally.

He, however, said more than Shs700m has been spent on the Kyogho Bridge, adding that there is no value for money even when he is not an engineer.
Mr Sibendire revealed that 150 bags of cement were abandoned in the stores for long and feared it could have gone bad.
Kyogho Bridge has led to the arrest of many district engineers over delayed works even when money was released on time.
Mr Sibendire said the bridge was supposed to be handed over in May 2017 but not even quarter of the construction has been done.

What others say
The District Public Accounts Committee (DPAC) chairperson, Mr Louis Ntungwa, however, confirmed that money was missing from the district coffers but his committee was following up on the matter.
“It is true we received the information about the missing and unaccounted for funds that was released from the district accounts. We tried to intervene by tasking the deputy CAO but the explanation he gave us was not satisfactory. He also blamed it on the new system but we have not backed off,” Mr Ntungwa said.

He said the district Public Accounts Committee was yet to summon the then CAO, Mr Matthias Ndifuna, for clear explanation. However, Mr Ndifuna denied ever causing any financial loss to the district. He said if the planner talked of overpayment, “he should have told you where he cited that”.
He said all debts were well indicated in his handover report, contrary to the letter written by his successor, Mr Turyaheebwa.

[email protected]