MPs dismiss Minister Kasaija over irregularities in Supplementary budget requests.

By Francis Lubega

16^th March 2021

For the second time in two months, Members of the Parliamentary Budget Committee have humiliated Finance Minister Matia Kasaija over his baffling requests for funding. 

In late January, Kasaija’s request for 481 billion shillings to recapitalize Bank of Uganda was thrown out and the central bank also came out to deny requiring the money.

Now MPs on the Budget Committee have dismissed the Finance Minister over several irregularities surrounding the Supplementary budget request to finance government’s investment in the East Africa Crude Oil Pipeline Project (EACOP)

The Minister in the company of the Director Budget Kenneth Mugambe appeared before the committee chaired by Kachumbala County MP Patrick Isiagi today to offer justification for supplementary schedule 5 which totals to US$130m (Shillings 481bn).

One of the discrepancies that MPs highlighted was the fact that the supplementary Budget request schedule 5 had been tabled under a non-existent vote.

The request had been made under vote 311 which is a vote previously belonging to the Uganda National Oil Company (UNOC) that is now receiving funds under a subvention from the ministry of finance which was spotted by the Kumi County MP Charles Ilukor

The minister had earlier told the committee that the funds are required before the end of March 2021 to enable Uganda National Oil Company (UNOC) sign the Final Investment Decision (FID) following the signing of the shareholders agreement, where uganda government’s 15% equity contribution through UNOC is US$213m of which US$70m is required as initial contribution and $60m required to settle historical costs were all needed.

Muwanga Kivumbi the Butambala county MP observed that the correct procedure was to bring any agreement to Parliament for approval before funds is approved.

The MPs were also skeptical about approving $60m for historical costs which according to the minister are cost incurred on Land acquisitions/ compensations, studies, surveys and Front End Engineering Designs after Dokolo Woman MP Cecilia Ogwal requested the minister to provide details of the land acquisition and compensation forcing the minister to request for further consultations.