The Ministry of Water and Environment has recently faced scrutiny from the Public Accounts Committee (Central Government) for failing to seek parliamentary approval for an additional expenditure of Shs25.3 billion in the Strategic Towns Water Supply and Sanitation Project. This issue was brought to light during a meeting chaired by Hon. Muwanga Kivumbi on Tuesday, 11 March 2024, where ministry officials, including Permanent Secretary Alfred Okot, were unable to justify why they did not process a supplementary budget request for the extra funds spent.
An audit conducted for the year ending December 2024 revealed that Shs25.3 billion was spent without proper authorization, as it had been carried over from the previous financial year. The project initially had an approved external financing budget of Sh22.7 billion, but a total of Shs48.01 billion was remitted, resulting in a discrepancy. The over-receipt of funds was attributed to direct payments made by the donor to consultants and contractors, as explained by the Accounting Officer.
The Project Manager for Strategic Towns Water Supply and Sanitation, Felix Twinomucunguzi, cited the negative impact of the COVID-19 pandemic on both physical and financial performance, leading to delays in planned activities and budgets. However, Kivumbi dismissed this explanation, emphasizing that any additional expenditure beyond the approved budget must go through a supplementary request to Parliament.
During the meeting, Hon. Jessica Ababiku raised concerns about the ministry’s failure to disclose how external factors such as COVID-19 and the Ukraine-Russia war impacted project costs. Twinomucunguzi admitted to inconsistencies in the expenditure breakdown and stated that the extra funds were used for pre-contract activities. However, MPs reiterated that all expenditures beyond the approved budget required prior parliamentary authorization.
The committee directed the ministry to provide a comprehensive breakdown of the expenditure and formally explain why a supplementary request was never made. Failure to comply could result in further accountability measures against the ministry officials responsible for financial oversight.
In addition to the financial discrepancies, Twinomucunguzi also addressed stalled projects, attributing delays to the impact of COVID-19 and the Russia-Ukraine war on operations. He explained that countries like China and India, which were main sources of materials for the projects, had experienced disruptions in production lines, particularly affecting the supply of steel pipes.
The committee emphasized the importance of adhering to the Public Finance Management Act and ensuring that all financial transactions are conducted in accordance with parliamentary procedures. It remains to be seen how the Ministry of Water and Environment will address the concerns raised by the Public Accounts Committee and rectify the issues surrounding the expenditure in the Strategic Towns Water Supply and Sanitation Project.
