When monitoring and inspecting public construction works in Agago District on Tuesday 10th May 2022, the area Deputy Resident District Commissioner, Cosmas James Okidi warned the District Chief Administrative Officer and contractors against returning project money to consolidated funds which according to him is an act of denying better service delivery to the people.
Mr. Okidi made the remarks following the return of over Shs3.5 billion from various departments and different funds categories to Central Treasury in the last financial year 2020/2021.
“My Office received a letter from Permanent Secretary/ Secretary to the Treasury dated 28/04/2022 which stated that all wages, pension, gratuity and any other transactions be fully processed by 24th June 2022. This should act as a reminder to all staff and contractors, “DRDC asserted.
On the other hand, Mr Okidi was very impressed with construction of administrative block at Lamiyo Sub county where he witnessed good work and the contractor is optimistic to complete the work in early June.
“The government under the leadership of H.E Yoweri Kaguta Museveni is committed to providing peace and security,in ensuring effective service delivery as the country strive to achieve vision 2040, and we are here to accomplish it,” he noted.
Last year in September, the Ministry of Finance, Planning and Economic Development said a total of Shs589 billion was returned unspent to the Consolidated Fund by local governments at the end of financial year 2020/2021.
The Public Finance Management Act, 2015 provides that all unspent balances from Ministries, Departments, and Agencies be sent back to the Consolidated Fund by 30 June, before the start of every new financial year.
In spite of releasing the funds timely, the ministry said up to Shs119 billion meant for wage bill was returned unspent, gratuity Shs18.9 billion, pension Shs7.7 billion, non-wage recurrent Shs35.5 billion and Shs40.7 billion for development.
While addressing leaders from Acholi and Lango sub-regions during a budget consultative meeting held at Bomah Hotel, Henry Musasizi, the State Minister for Finance in-charge of General Duties said government was committed to increasing Local Government funding, but the funds are regrettably being returned unspent.
Musasizi attributed it to late procurement, poor monitoring and supervision of government projects and delayed recruitment by the Local Governments. He threatened that the ministry will not approve any supplementary budgets for the unspent balances without clear justification why the funds were not absorbed.
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