The Uganda Revenue Authority (URA) has come under fire from Members of Parliament (MPs) for failing to disclose the sources of funding and off-budget financing. The Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) has faulted URA for not adhering to financial management regulations.
According to Section 44(1) of the Public Finance Management Act (PFMA) 2015, the Minister of Finance, Planning, and Economic Development must receive all monetary grants made to the government or a vote by a foreign government, international organization, or any other person. Additionally, the Treasury Instructions 2017 require accounting officers to include all planned development partner disbursements in the vote budget estimates, which are appropriated by Parliament.
During a committee meeting with URA officials, it was discovered that the authority had received project funds worth Shs101.5 million directly from the United Nations Capital Development and funds worth Shs420 million from the World Bank. However, no information was provided to show that these funds were budgeted and appropriated by Parliament.
The Auditor General highlighted that the failure to fully budget for all funds distorts budget management, creating a risk of multiple financing and a breach of the law. Members of Parliament raised concerns about URA’s authority to spend money from donors without approval and questioned the credibility of the taxes collected.
Hon. Ferigo Kambale from Kasese Municipality demanded that URA includes the money in their budget as soon as the agreements are signed. He emphasized the need to prepare a supplementary budget approved by Parliament if the money was supposed to be included but hadn’t been signed at the time of budget preparation.
Hon. Mpindi Bumali expressed disappointment that URA had failed to declare money collected from donors while collecting taxes from Ugandans. He raised concerns about the possibility of the authority declaring less taxes and spending money for their own use.
In response to the Auditor General, URA stated that they would adhere to all laws and policies while obtaining any external financing in the future. However, COSASE Chairperson Hon. Joel Ssenyonyi emphasized that external financing should have been part of URA’s budget submitted to Parliament. He explained that URA doesn’t have the authority to receive money from outside the authority of Parliament, even with clearance from the Ministry of Finance.
Ssenyonyi added that Parliament is responsible for appropriating money collected by URA to different entities, including any loans, grants, and other financing throughout the government.
It is imperative for URA to disclose the sources of funding and adhere to financial management regulations to ensure transparency and accountability. Members of Parliament are calling for strict measures to be implemented to avoid the misuse of funds. The issue highlights the need for effective budget management and clear guidelines on receiving external financing.
By addressing these concerns and improving financial transparency, URA can rebuild trust and ensure that taxpayers’ money is used appropriately for the development of Uganda.
