With hardly two months to the end of the 2023/24 Financial Year, government has presented another, Shs288.624Bn supplementary schedule for which; Shs132.634Bn is meant for purchase of shares in the East African Oil Pipeline (EACOP) by the Uganda National Oil Company while Shs152Bn is meant for the construction of the Hoima City Stadium by National Council of Sports in preparation for the 2027 African Cup of Nations.
Gov’t is also seeking to Embassy of Geneva additional Shs1.490Bn for the post NAM Summit activities, while Uganda Blood Transfusion has been allocated Shs2.5Bn to meet the shortfall in the operational budget for the UBTS for blood collection, processing and distribution.
Ibrahim Ssemujju (Kira Municipality) described the latest supplementary proposal as fraudulent, wondering how the entities seeking for extra funds will be in position to absorb the funds within 20 days ahead of the closure of the financial year in June 2024.
“It is going to be very difficult for anyone to absorb this money because the Government procedures intended to protect taxpayers’ money are too procedural, they are too many. In the remaining 20 days or one month to close the Financial Year, you can’t fulfill any of the requirements,” Ssemujju said.
Henry Musasizi, Minister of State for Finance, defended third supplementary budget request before Parliament’s Budget Committee noting that, the funding for Uganda National Oil Company (UNOC) is needed as additional equity acquisition in East African Crude Oil Pipeline to meet the cash call arising from delayed financial close by the financiers.
“This is required before 1st July 2024 in order to meet the funding obligations in the EACOP projects. This funding will be accessed from the Petroleum Fund in line with the Section 59(3) of the Public Finance Management Act 2015. Shs400Bn is currently in the petroleum Fund, I propose to utilize Shs284.634Bn in line with the Section 59(3) of the Public Finance Management Act to finance the acquisition of equity in East African Crude Oil Pipeline and construction of Hoima City Stadium,” remarked Musasizi.
