Parliament wants money sent to districts accompanied by expenditure guidelines
Debate on this Report has been deferred to two weeks to allow members to examine the report in detail.
The Committee of Public Accounts (Local Government) has recommended that any money that is sent to districts should be accompanied by clear guidelines on how the money is supposed to be used and that the initial intended purpose should not be lost.
The Committee chairperson, Mapenduzi Ojara, also Gulu City West MP, presented before the Parliament committee findings on the report of the Auditor General for FY 2020/21 on 49 District Local Governments, 6 Cities, and 5 Municipal Councils.
According to the committee report, local governments underperformed on local revenue, registering revenue underperformance of Shs30.4bn of the target of Shs68.2bn translating into local revenue performance of 56%.
The Public Accounts (Local Government) report named Masaka City (37%), Gulu City (36%), Kitgum (36%), and Hoima City (30%) as the worst-performing entities in terms of funds absorption capacity in FY 2020/21 while Arua City, Kitagwenda, Terego, and Madi Okollo were the best performing with 100% absorption of their releases.
The Minister of Local Government, Raphael Magyezi, appreciated the committee report, saying the findings and recommendations will help the government to improve the management and accountability for funds utilised at the local government level.
“Government has taken steps to ensure that the new cities take off safely, albeit with a few challenges. Funding has been provided beyond the level of the former municipalities. The cities have each received Shs2bn to cater for the expanded wage bill,” Magyezi told Parliament.
