Finance minister warns CAOs against approving inflated project costs

By George Niyonzima

The Minister of State for Finance, Planning and Economic Development, Henry Musasizi, has warned accounting officers against corruption in public procurement, cautioning that inflated project costs and approval of irregular rates will attract the attention of anti-corruption agencies.

Musasizi said some procurement officers inflate project costs during the procurement process, with Chief Administrative Officers (CAOs) and other accounting officers approving the inflated rates, a practice he described as corruption.

He warned that such practices must stop, adding that continued abuse of public procurement processes would prompt intervention by institutions mandated to fight corruption.

The minister’s message was delivered on his behalf by the Minister of State for Finance in charge of General Duties, Cissy Mulondo, during the official opening of the Public Procurement and Disposal of Public Assets Authority (PPDA) Midwestern Regional Office in Kijungu, Hoima City, on Monday evening.

The new office is expected to bring procurement advisory services closer to local governments, strengthen compliance with public procurement regulations and improve service delivery.

Musasizi said he expected the regional office to deliver measurable improvements in procurement planning, regulatory compliance, contract management and value for money in public projects.

He also called for stronger contract monitoring to ensure public funds are used efficiently and government projects deliver the intended results.

PPDA Executive Director Canon Benson Turamye said the office would support accounting officers in improving procurement practices, addressing inflated project costs and ensuring public resources are put to effective use.

Turamye also raised concerns about financial losses arising from delays in government payments to contractors, noting that contractors sometimes charge the government penalties when payments are not made within agreed timelines.

He questioned the apparent lack of similar consequences for contractors who fail to complete projects within their contractual periods, calling for greater accountability in contract implementation.

The concerns highlight the need for improved contract management, timely payments and enforcement of contractual obligations to protect public resources and ensure projects are completed as planned.

PPDA Board Chairperson Julius Ishungisa urged district officials to take responsibility for their performance, ensure projects are completed on schedule and strengthen efforts to eliminate corruption in public procurement.

He noted that procurement processes remain vulnerable to corruption and called on local government officials to uphold accountability and transparency in the management of public projects.

Hoima City Deputy Mayor Florence Nanyombi pledged the city’s cooperation with PPDA, including joint efforts to monitor public projects and strengthen oversight of procurement activities.

The opening of the Midwestern Regional Office expands PPDA’s regional presence to five regions: Northern, Western, Eastern, Central and Midwestern.

The authority is expected to use the new office to improve access to procurement guidance and oversight services for local governments in the region, helping public entities comply with procurement regulations and achieve better value for money.