Presenting the report to Parliament, the Committee’s Deputy Chairperson, Hon. Moses Aleper, cited the Auditor General’s findings indicating that domestic arrears had risen from Shs10.5 trillion in the 2022/2023 financial year to Shs13.8 trillion.

Aleper noted that while the government has allocated Shs1.1 trillion towards domestic arrears for the 2025/2026 financial year—an increase from Shs200 billion in the previous fiscal year—the amount remains insufficient to address the growing burden.

“Even at the current rate of allocation, it would take the government over 12 years to clear all domestic arrears, assuming no additional arrears are accumulated,” Aleper warned.

The Committee recommended that the Ministry of Finance, Planning and Economic Development develop a comprehensive medium- and long-term strategy to address the arrears. It emphasised that failure to pay domestic arrears was crippling the private sector and undermining overall economic growth.

Deputy Speaker Thomas Tayebwa acknowledged the increased allocation but stressed the need for further action.

“By the time small companies supplying at the district level receive payment, the funds cannot even cover the interest accrued,” Tayebwa observed.

Hon. Peter Okot (DP, Tochi County) criticised the Ministry of Finance for failing to supervise accounting officers, noting that officials continue to commit government resources without corresponding funding.

“Accounting officers were warned against committing the government beyond available resources. Has the Ministry of Finance failed in its supervisory role?” Okot questioned.

Tororo District Woman MP, Hon. Sarah Opendi, called for a more aggressive approach, urging the government to cut domestic arrears by at least 50 percent.

“There must be deliberate efforts to eliminate wasteful expenditure. If this is not addressed, many businesses risk collapsing. How will these companies sustain employment and tax contributions?” Opendi said.

Hon. Agnes Auma (Indep., Lira District) urged the Ministry to prioritise the timely release of funds to government entities, stating that delays lead to the accumulation of arrears.

“Domestic arrears are becoming a national embarrassment. These activities are already budgeted for—so where does the money go? We need a firm commitment from the Minister of Finance,” she added.

Responding to the concerns, the Minister of State for Finance (General Duties), Hon. Henry Musasizi, said the Ministry had developed a plan to clear all verified domestic arrears within three years. He noted that the increased allocation for arrears was a positive indicator of government commitment.

“Substantial provisions have been made for arrears under the former Uganda National Roads Authority (UNRA), which currently holds about Shs2 trillion,” Musasizi said.

He, however, cautioned that the reported Shs13.8 trillion figure needed verification.

“Different reports indicate varying figures—some cite Shs13 trillion, others Shs10 trillion, and there is also mention of Shs5.7 trillion. The actual amount depends on which audit report you refer to,” Musasizi stated.

The issue of domestic arrears remains a key fiscal challenge for the government, with implications for public trust, private sector viability, and the broader economic environment.

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Dr. Kaziimba appealed during Easter carols and Holy Communion prayers held at Parliament on Thursday, 10 April 2025. The solemn service was attended by members of Parliament, parliamentary staff, and members of the public.

Referencing the recent by-election in Kawempe Division North, which was marred by violence, Dr. Kaziimba urged politicians to rise above division and hostility. He emphasised the importance of mutual respect across political lines and condemned the growing trend of character assassination during electoral campaigns.

“Respect for one another should be promoted and character assassination eradicated,” he said. “Even if you are from different political parties, you are still one. A good leader uses every issue to ensure that everyone emerges victorious at the end of a debate.”

As the country inches closer to another electoral season, the archbishop encouraged leaders to place their trust in God and remain hopeful in the face of political pressure. Drawing a parallel with the life and persecution of Jesus Christ, he reminded the congregation that politics has long been intertwined with matters of faith and justice.

“Politics has been in existence since the time of Christ, and his death was politically motivated. His resurrection, however, teaches us that there is always hope. As Christians, we should never lose that hope,” he said.

Representing the Deputy Speaker of Parliament, Thomas Tayebwa, Government Chief Whip Hon. Hamson Obua echoed the Archbishop’s message. He urged Christians to focus on their life’s journey not just by how it begins, but by how it ends.

“The last three days of Christ were characterised by anguish and agony; he was mocked, but in the end, he overcame all through resurrection,” Obua said. “In all we do, it is not the start that matters—it is the end that matters.”

He also expressed gratitude for the growth of the Christian fellowship within Parliament, praising the leadership of the Anglican chaplain, Rev. Gillian Okello, for nurturing the spiritual well-being of the institution.

The Easter service concluded with prayers for national unity, wisdom for leaders, and a peaceful electoral season ahead.

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The approval, made on February 6, 2025, followed the presentation of Supplementary Expenditure Schedule No.2 for the 2024/2025 financial year by the Minister of State for Finance, Planning, and Economic Development (General Duties), Henry Musasizi.

Key Allocations

The Ministry of Works and Transport received the largest share, with Shs934 billion earmarked for development expenditure and Shs246 billion for recurrent expenditure.

According to Minister Musasizi, these funds will help implement the revised structures and operationalise the functions of the Uganda National Roads Authority (UNRA) and the Uganda Road Fund.

The Ministry of Agriculture, Animal Industry, and Fisheries was allocated Shs32.7 billion for recurrent expenditure and Shs2.6 billion for development projects.

These funds will support critical agricultural programs under the Dairy Development Authority, National Agricultural Advisory Services (NAADS), Cotton Development Organisation, and Uganda Coffee Development Authority.

Additionally, the Uganda Free Zones Authority and the Uganda Export Promotion Board received Shs2.3 billion for development, Shs859 million for statutory allocations covering contract gratuity and National Social Security Fund contributions, and Shs8.8 billion for recurrent expenditure.

Other beneficiaries include the National Planning Authority, the National Identification and Registration Authority (NIRA), and the Ministry of Water and Environment.

Musasizi clarified that the supplementary budget would be funded using unreleased resources that had been appropriated to the rationalised votes.

Suspension of Rule 153 Sparks Debate

To fast-track the approval, Parliament suspended Rule 153, allowing the supplementary request to pass without undergoing the usual scrutiny by the Budget Committee.

Government Chief Whip Hamson Obua, who moved the motion, argued that the Budget Committee had already considered the matter, making further debate unnecessary.

However, some lawmakers strongly opposed the move, citing constitutional concerns. Jonathan Odur (UPC, Erute County South) argued that suspending Rule 153 violated Article 156 of the Constitution, which provides for the approval process of supplementary budgets.

Denis Oguzi Lee (FDC, Maracha County) echoed this sentiment, warning against bypassing constitutional procedures in financial matters.

In response, Deputy Speaker Thomas Tayebwa defended the decision, emphasizing that the funds in question had already been appropriated and that Parliament was merely finalising the rationalisation process.

He noted that unnecessary delays in approving the budget could disrupt government planning and service delivery.

Implementation of Government Rationalisation Policy

The approval of this supplementary budget aligns with the government’s ongoing Rationalisation of Government Agencies and Public Expenditures (RAPEX) policy, which seeks to streamline public institutions, eliminate redundancies, and improve efficiency in service delivery. Parliament had previously passed several bills to merge government agencies as part of this initiative.

With the funds now approved, attention shifts to the implementation phase, where receiving institutions will be expected to utilise the resources efficiently in line with the government’s rationalisation framework.

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The aim is to enable the committee to distinguish official military attire from other clothing clearly.

The directive followed concerns raised during a meeting with senior officials from the Ministry of Defence and UPDF leaders to review the ministry’s budget framework for the upcoming financial year.

Mukono Municipality MP Betty Nambooze, along with other National Unity Platform members (NUP) members, initiated the discussion by addressing the arrests of NUP supporters wearing red overalls and red berets.

Nambooze questioned why these individuals were charged in the Court Martial for allegedly wearing military uniforms when their attire aligns with NUP’s official party colours.

“Mr. Chairperson, many of our supporters have been arrested and prosecuted for wearing clothes claimed to be reserved for the UPDF, yet red is our party’s colour,” Nambooze stated during the session.

In response, Deputy Chief of Defence Forces Lt. Gen. Samuel Okiding outlined the official UPDF uniforms but did not include red overalls in the list, raising further concerns.

Nambooze pressed for clarification, questioning why NUP supporters were being prosecuted for wearing items not officially listed as UPDF attire.

Committee Chairperson Wilson Kagwenje instructed Lt. Gen. Okiding and Minister Oboth Oboth to compile and submit a detailed list of all gazetted UPDF uniforms and symbols to resolve the matter.

This document is expected to provide clarity to the controversy and ensure a clear distinction between military and non-military clothing.

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The call for explanation follows concerns raised by Hon. Muwanga Kivumbi, Chair of the House Public Accounts Committee, in a session chaired by Speaker Anita Among.

Kivumbi informed the House that URA awarded bonuses for achieving revenue targets in the 2021-2022 financial year. However, he emphasised that parliamentary approval, required for such payments, was not obtained.

According to the URA’s policy, bonuses can only be paid if revenue collections exceed the government’s annual target, but Parliament must first authorise these funds.

Kivumbi disclosed that while the Minister of Finance allowed the URA to retain UGX 14.6 billion, approval from Parliament was conditional and was never finalised. This procedural lapse, he argued, makes the bonus payment irregular.

In response, the URA’s accounting officer admitted that the payment schedule wasn’t included in their supplementary funding request to Parliament.

Former Auditor General John Muwanga’s audit report for the year ending June 2023 also flagged the payment. He confirmed that URA paid out UGX 11.63 billion in bonuses but failed to get the required supplementary funding approval, as per Section 25 of the Public Finance and Management Act 2015.

Muwanga recommended that the finance ministry submit funding requests early to allow Parliament time to review.

Speaker Anita Among has delayed further debate on the report, giving the finance minister two weeks to respond to the committee’s concerns.

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The bill was intended to repeal the Tax Appeals Tribunal Act, the Electricity Disputes Tribunal Act and all other tribunals established by law.

The Bill was tabled for a Second Reading during a plenary sitting on Thursday, 24 October 2024, wherein the Committee on Legal and Parliamentary Affairs presented its report, which was followed by a minority report.

In the minority report, Hon. Jonathan Odur (UPC, Erute County South) argued that extending the Bill to all other Tribunals has constitutional ramifications that might affect the legality of the proposed law.

Odur also referred to the majority report, saying that it correctly observes that Tax tribunals including TAT is created or empowered to be created by the Constitution and therefore, should be on the list protected by constitution.  

“It is therefore critical to note that Taxation is an important tool available to the government to raise resources to deliver services to the taxpayers. The framers of the 1995 Constitution were alive to this fact and in their wisdom, which we do not have any doubt at all, gave Taxation an article of its own in Article 152 under the heading TAXATION,” Odur said.

Odur also faulted the committee for not carrying out consultations on the Bill, saying that the other five tribunals that are to be dissolved were not consulted. These include; Public Procurement and Disposal of Public Assets Appeals, Insurance Appeals Tribunal, Uganda Communications Tribunal and Retirement Benefits Appeals Tribunal.

“On matters of taxation, the key stakeholder in Uganda is the Uganda Revenue Authority (URA) were not invited for the reason that the committee was out of time,” Odur said.

He also cited that the Certificate of Financial Implication considered only the Tax Appeals Tribunal and the Electricity Disputes Tribunal, leaving out the rest.

“A patient and critical analysis of the Certificate of Financial Implication issued by the Minister of Finance clearly shows for all intent and purposes that it was issued in respect of the National Tribunal BiIl, 2024 to ‘ration” the Tax Appeals Tribunal and Electricity Disputes Tribunal into a National Tribunal,” said Odur.

Ndorwa County East Member of Parliament who doubles as Shadow Attorney General, Hon. Wilfred Niwagaba, advised that establishing a single Tribunal requires a Constitutional amendment.

“In effect, Clause 42 of the Bill intends to amend the Constitution by infection. You are amending the Constitution by adding what the Constitution does not provide,” said Niwagaba.

Leader of the Opposition, Hon. Joel Ssenyonyi, said that the defective certificate of financial implication contravenes the Public Finance Management Act.

“In your case, you are seeking to deal with many tribunals that means your certificate of financial implication is defective,” said Ssenyonyi.

This prompted Speaker, Anita Among to guide the Minister of Justice and Constitutional Affairs, Hon. Nobert Mao to withdraw the Bill.

“There is a drafting problem, we could have something drafted better and we will still accommodate you here,” said Among.

Mao conceded and said the Bill will be re-tabled.  

“We will pull back for now and come back better and stronger. The matters of contention are now clear to us. I wish to move under Rule 140 to withdraw the Bill,” Mao said.

Committee chairperson, Hon. Stephen Mugabi Baka, had presented the committee’s report, justifying that the proposed law does not contravene Article 152 (3) of the Constitution.

“The provision does not require that the settlement of tax disputes must be done by a single tribunal whose only function is to adjudicate tax disputes,” he said.

Baka added, “Indeed, clause (3) of article 152 is crafted in plural, and envisages the appointment of more than one tribunal for settlement of tax disputes. The provision does not also require that the name of the Tribunal envisaged in the provision is “the Tax Appeals Tribunal”.”

The policy behind the Bill is to give effect to the Government Policy for Rationalisation of Government Agencies and Public Expenditure (RAPEX) which was adopted by the Cabinet on 22 February 202l.

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Presenting the committee’s report, PAC Chairperson Muhammad Muwanga Kivumbi highlighted the urgent need for the government to rethink its borrowing strategy.

“The committee recommends that the government restructure its debt to secure cheaper loans and reduce obligations. Measures should be initiated to reverse this debt trend, enforce fiscal discipline, and ensure timely servicing of domestic obligations, including interest payments,” Kivumbi said during a parliamentary session.

According to the Auditor General’s findings, the UGX 97.499 trillion debt is split into UGX 44.673 trillion in domestic borrowing and UGX 52.826 trillion from external sources. Over the past year, the debt burden has risen by UGX 9.329 trillion (10.74%) from UGX 86.839 trillion in June 2022.

Kivumbi expressed concern over Uganda’s rising debt service costs, which continue to escalate due to the government’s failure to efficiently use contracted loans. As a result, the country incurred UGX 112 billion in commitment fees by mid-2023—an expense that surpassed the approved budget.

The report also criticized the government’s dependency on supplementary budgets and excessive borrowing, which has been a significant factor in the debt surge. The committee particularly emphasized the need for the government to address issues related to the UGX 405 billion in penalty fees that the Bank of Uganda imposed due to delayed payments on domestic debt obligations.

In response, the Ministry of Finance acknowledged the debt concerns and shared that discussions were underway with the central bank to cap the penalty fees. Additionally, the ministry plans to revise the Public Debt Management Framework by December 2024 to incorporate new safeguards, including guidelines for financial derivatives and debt swaps.

Speaker of Parliament Anita Among deferred further debate on the matter, requesting that the Ministry of Finance address the key issues raised in the report before the discussion continues.

The post MPs Raise Alarms Over Uganda’s UGX 97 Trillion Debt Burden appeared first on The Standard News (Uganda).

This directive came during a plenary session on Wednesday, October 16, 2024, after Kassanda North MP, Patrick Oshabe, raised concerns about the delayed project.

Oshabe, speaking on a matter of national importance, urged the House to seek updates on the progress of the chambers, which have been long overdue.

“As MPs, we deserve to know the state of the new chambers,” Oshabe emphasized. In response, Speaker Among promptly tasked the Commissioners with preparing and submitting the report within two weeks. “Commissioners, we need a report in two weeks,” she stated.

The Commissioners of the Eleventh Parliament, as of July 2021, include Speaker Among (Chairperson), Deputy Speaker Thomas Tayebwa, Prime Minister Robinah Nabbanja, Leader of Opposition Mathias Mpuuga, and Finance Minister Matia Kasaija.

Also on the commission are backbenchers Solomon Silwany, Esther Afoyochan, Prossy Mbabazi Akampurira, and Joel Ssenyonyi. The Clerk to Parliament, Adolf Mwesige Kasaija, serves as Secretary.

The construction of the new parliamentary chambers, overseen by Roko Construction Company LTD, started in July 2017 with a budget of UGX 206 billion.

Initially, the project was scheduled for completion in July 2020 but has faced numerous delays, causing frustration among MPs.

Once finished, the new chambers will offer seating for 600 MPs, a massive upgrade from the current 100, easing space constraints.

The nine-story building will also feature a modern museum, an archiving facility, a gallery, and additional office spaces.

The existing chambers, built-in 1956 during the colonial period, were designed to accommodate just 88 MPs. Today, Parliament has 559 MPs and over 450 staff, all grappling with limited office space, prompting the construction of the new facility to address the pressing need for more room.

The post Speaker Among Orders Report on Delayed Parliamentary Chambers Construction appeared first on The Standard News (Uganda).

The Public Accounts Committee raised concerns following revelations that the company was overpaid by UGX 124.5 billion for incomplete work, with the cost per kilometre flagged as excessively high at UGX 8.5 billion.

In a report based on December 2023 findings from the Ministry of Works and Transport, the Committee highlighted significant delays in the project as well as ongoing tax disputes over construction materials.

The project, which aims to construct and upgrade 222 kilometres of major roads such as Mpondwe/Kasindi-Beni-Butembo (133 km) and Bunagana-Rutshuru-Goma (89 km), is expected to enhance trade, security, and regional connectivity between Uganda and the DRC.

Chairperson of the Public Accounts Committee, Muwanga Kivumbi, emphasised the need for accountability: “The Auditor General should carry out a forensic audit on the efficacy of the project, and the responsible paymasters should be held accountable. The total project cost is estimated at US$509 million (UGX 1.7 trillion), translating to US$2.29 million (UGX 8.5 billion) per kilometre, which is exorbitant under any circumstance.”

He also noted that despite Uganda having contributed over US$66 million—more than half of its expected US$101 million contribution—only 17% of the work had been completed.

While Ministry of Works officials attributed the delays to DRC authorities blocking construction materials at customs and demanding taxes despite a bilateral tax exemption agreement, the Committee was not provided with the contract to verify these claims.

The report recommends that the Auditor General conduct a thorough audit of the project, given the massive overpayment and slow progress, to ensure transparency and accountability.

Both Uganda and the DRC are responsible for 40% of the project’s funding (20% each), with Dott Services tasked with mobilising the remaining 60%.

However, the inflated costs and delays have raised serious concerns about the management and efficacy of the project.

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The contractor, China Chongqing International Construction Corporation (CICO), has requested that the Ugandan government cover the 8 percent insurance fees for a loan taken from China. This insurance cost was not disclosed during the initial pre-financing agreement negotiations.

Launched in March this year, the Masaka-Kyotera to Mutukula road project aims to improve the major trade route between Uganda and Tanzania, currently plagued by large potholes that hinder trade and transportation. The government entered into a two-year pre-financing agreement with CICO, with the construction expected to take four years.

During a recent session of Parliament’s Committee of National Economy, Buliisa County legislator Allan Atugonza revealed the additional Shs64 billion cost. He explained that the contractor initially indicated no intention of charging insurance fees. However, a later addendum, which expanded the project scope to include another road, introduced Shs54 billion in insurance for the Masaka-Mutukula Road and Shs10 billion for the new road.

Atugonza questioned the necessity and legitimacy of the additional cost, pointing out the lack of proof that the insurance money would be paid to a Chinese insurance company. He also criticized the logic behind the government covering 100 percent of the insurance cost for a pre-financing arrangement where only 60 percent of the project cost is financed by the contractor.

Committee members, including Pakwach District Woman MP Jane Pacuto, expressed surprise and concern over the oversight. Pacuto demanded evidence of the insurance requirement from Chinese authorities, emphasizing the need for transparency.

Defending the insurance fee, Juvenile Muhumuza, Commissioner of Development Assistance & Regional Cooperation at the Ministry of Finance, argued that the 8 percent charge is relatively low compared to other commercial loans. He cited historical data indicating that insurance fees from Sinosure, the Chinese insurance company, are moderate.

Muhumuza further explained that such fees are standard practice in international borrowing, not specific to Uganda’s risk profile. The government’s commitment to pay these fees reflects global norms in commercial financing.

In December 2023, Parliament approved the pre-financing agreement with CICO, which includes constructing the 89.5 km Masaka-Mutukula Road, rehabilitating the 11 km Nyendo-Villa Maria Road, upgrading a 3.5 km access road to the Uganda People’s Defence Forces barracks in Masaka, and adding 28.5 km to the Kikagati-Kafunzo Road.

Under this agreement, CICO is responsible for securing funding and completing the construction, with the government repaying the contractor within two years post-completion.

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