State House bills hit record Shs190b

What you need to know:

A bottomless pit. Despite two supplementary budgets, State House asks MPs to approve an extra Sh14b it spent last year on travel, entertainment, and other bills.

State House has lodged a third supplementary budget request, this time asking Parliament to approve an extra Shs14 billion for, among other expenses, the President’s trips, welfare and entertainment, potentially leaving his public spending last year at about Shs189 billion.

The Shs189 billion expenditure on the presidency last year is just Shs11 billion short of what the government needs to raise salaries of the entire health workforce. It is also eight times more than what 23 regional referral hospitals need for their development budgets.

The President’s Spokesman, Mr Tamale Mirundi, responding to criticism from the Budget Committee, asked MPs and Ugandans to stop complaining about the President’s expenditure. He compared criticism of his boss’ spending habits in these difficult economic times to an unappreciative parent whose child performs well in class but keeps complaining about school fees.

“Ugandans should sacrifice whatever they have to ensure that the President performs his duties,” Mr Mirundi said. “The way these MPs look at the President’s expenditure is disappointing. They should know that when a family is facing economic hardships, it is not advisable to sell the padlock, doors and windows, what will happen to security of that family?”

The new Supplementary Budget Schedule Number III totalling Shs14 billion was presented to the committee by State Minister for Finance Fred Omach. He told MPs that the additional resources were urgently needed to cover unforeseen shortfalls in State House’s operations budget.

This request for a stamp of approval for more money already spent above budget, coming at a time the government insists it cannot find money to increase salaries for disaffected teachers, had MPs describing State House as a bottomless pit. They accused Ministry of Finance officials of spending the money outside established regulations.

“Before spending this money, there was need for prior Parliament approval, but this was not done, yet they spent the money,” Ms Rose Akol (Bukedea) said. “The Budget Act is clear, for any expenditure over and above three per cent, there must be prior approval. They have spent more than 27 per cent over and above the approved budget for the financial year 2010/11.”

The lawmakers also wondered why a supplementary budget request in respect to 2010/11 was brought in the financial year 2011/12. But Mr Omach said State House was not given enough money in their budget and that there was need to facilitate the President to perform his constitutional mandate. Mr Omach said the Shs530.7 million for training was used to train staff outside the country and that an additional Shs1.6 billion was needed to procure specialised machinery of a security nature. But lawmakers led by Franca Akello (FDC, Agago Woman) said the minister “didn’t know what he was talking about.”

The committee demanded the appearance of State House Comptroller, Ms Lucy Nakyobe, who didn’t attend yesterday’s morning meeting. When the MPs reconvened in the afternoon, the Committee Chairperson Tim Lwanga, who is gradually growing an anti-media reputation with his repeated closing of controversial proceedings, again stopped reporters from covering the session.

But defending the President’s expenditure particularly on travel, Mr Mirundi added: “The President we have is highly respected and that is why he travels abroad. The President does not go abroad for holiday. Those MPs should know that the influence of a country depends on leadership and the President we have is consulted on many issues.”

In January, Parliament approved Shs602 billion supplementary budget in which Shs18.6 billion was approved to facilitate President Museveni’s donations under the State House budget of Shs95 billion in extra funding -- a figure which is over and above the original State House budget of Shs80.6 billion for the 2010/11 financial year.

If Parliament grants State House retrospective authority to spend Shs14 billion the total State House Budget for last financial year will amount to Shs189.5 billion.

Request 3 breakdown
Welfare and entertainment Shs400 million
Travel abroad Shs2.7 billion
Travel inland Shs3.9 billion
Electricity Shs300 million
Water Shs100 million
Specialised machinery Shs1.6 billion
Classified Shs2 billion
Staff training Shs530.7 million
General supply of goods & services Shs286m
Maintenance Shs1.98 billion
Insurance Shs163.2 million