Uganda: Muhakanizi Grilled Over Shs5 Trillion Used for Contingency Liabilities

The Public Accounts Committee of Parliament has grilled Mr Keith Muhakanizi, the Secretary to the Treasury, over close to Shs5 trillion that was used for contingency liability.The money mainly indicates projected government expenditure on cases yet to be determined by court."I am not under any obligation to save any coin out of court orders other than implementing court decisions," Muhakanzi said.

The officials from the ministry of finance led by Muhakanizi were appearing before the committee chaired by Angeline Osegge (FDC-Soroti) to answer queries from two audit reports, 2013-2014 and 2014-2015.Whereas the 2014-2015 Auditor General's Report captured the figure at Shs4.893 trillion, the increase by over Shs100 billion up from Shs4.785 trillion the previous year raised questions from Mr John Muwanga the Auditor General and members of Parliament. Muwanga said the government risks using half of its budget to meeting the liabilities, at least out of Shs 12 trillion collected in taxes.

"In the event that all these liabilities crystalise, government will be required to use close to 50 per cent of its annual budget to meet these liabilities which is likely to adversely affect implementation of other government programmes," Mr Muwanga noted in the report.However Mr Muhakanizi told the committee the money was arising from cumulative court awards which the ministry holds in greatest regard lest they are in contempt court.

"When court orders that pay so much costs to the complainant, it orders the PSST to charge the Consolidated Fund directly," he said, adding, "When I don't charge in time, people go back to court and ... they (court) issue a mandamus (a court directive to respondents to clarify delayed payment)."

Most of these expenses Mr Muhakanizi said stemmed from land-related cases which attracted heavy payments and fines. Others came from unsettled pension claims and war debt especially in northern Uganda."Those who we never paid in time have taken government to court," he said.Muhakanizi however failed to provide the schedule indicating financial allocations and lists of paid people but pledged to submit them to the committee today (Wednesday.)

Osegge questioned the figures, wondering why they kept on the rise despite heavy projections for the last three consecutive financial years.Mr Lawrence Semakula, the Accountant General in the ministry of Finance told the committee that this was because, "Ministry of justice has many cases some of which they know they have lost and they are only awaiting court orders for payment."

The reports note that if the trend continues, the national budget will be unsustainable because of the significant percentages spent on liabilities.

Money in contingency for the last three years

2012-2013=2.275 trillion

2013-2014=4.7785 trillion

2014-2015=4.893 trillion